Overview

Micro, small, and medium-sized Enterprises (MSMEs) play a critical role in Asian economies, representing 97% of enterprises and 69% of the labour force. They contribute between 30% to 50% of GDP across many regional economies and are essential to global supply chains. Simultaneously, MSMEs in Asia are particularly vulnerable to the impacts of the triple planetary crisis—climate change, biodiversity loss, and pollution—due to their reliance on natural resources, exposure to climate-related disasters, and limited adaptive capacity.[iii] For SMEs in the textile industry - a key economic vertical for the region - water scarcity and chemical pollution further compound vulnerabilities, disrupting operations, and endangering local ecosystems. These environmental risks intersect with persistent human rights issues, including labour rights violations and informal worker precarity, which worsen during climate-related disruptions.

At the same time, MSMEs face mounting pressures from emerging regulatory requirements, evolving buyer expectations, and shifting sustainability standards. This includes growing demands to report on sustainability practices including growing demand to report on wastewater management, reducing industrial discharge, etc.  Collaborations with other stakeholders, such as environmental experts, brands and businesses, are increasingly seen as opportunities to address sustainability challenges—enhancing water quality monitoring and traceability in supply chains. However, these collaborations need to be accessible, practical, and relevant to the realities of MSMEs. 

While compliance with sustainability and environmental due diligence requirements is often seen as adding cost and complexity for smaller enterprises, making it challenging to partake in the competitive global business landscape, this panel will address key questions: How can the textile industry address water pollution and mitigate its impacts in supply chains? What role can responsible wastewater management play in improving both environmental sustainability and the competitiveness of textile supply chains?  Can integrating respect for human rights and environmental standards —such as safer chemical use and water recycling—enhance market access and industry resilience? How can MSMEs in the textile sector leverage responsible practices (responsible wastewater management) to gain a competitive edge and drive market inclusion? 

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Format

This session dives into real-world examples of Asian businesses operating in the textile industry demonstrating leadership in human rights and environmental accountability. It will showcase practical solutions—including responsible wastewater management and innovative water recycling technologies to the adoption of eco-friendly dyes and sustainable production processes—that help SMEs minimize their water footprint while maintaining competitiveness —that can empower SMEs to advance responsible business practices while driving growth and resilience. Most importantly, it will give an answer on: how can SMEs be positioned as leaders in building a sustainable future?

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LEARN:

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Participants will gain insights into the current landscape for SMEs and their role in advancing human rights and environmental accountability. 

• State-of-Play: Explore the current landscape of MSMEs, particularly in the textile sector, the ecosystem of stakeholders they engage with, and their role in addressing water pollution and driving human rights and environmental accountability.

• Understanding Barriers: Identify obstacles MSMEs face in integrating sustainable business practices, including challenges related to wastewater management in the textile industry.

• Case Spotlights: Hear real-world examples of textile industry initiatives striving to address water pollution while advancing responsible business conduct.

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Actionable Solutions: Learn practical steps MSMEs can take to improve water management while aligning with responsible business practices without compromising competitiveness.

 

ENGAGE:

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• Sectoral Insights: Learn from approaches in areas such as environmental experts, textile businesses and supply chain practices, with specific insights into addressing water pollution challenges in the textile industry.

• Peer-Learning: Share experiences and identify practical ways MSMEs, particularly in water-intensive industries, can drive impact within their operations.

• Co-create Pathways: Identify and connect on pathways to address market barriers, improve water stewardship, strengthen human rights practices, and enhance environmental accountability.

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CONNECT:

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• SME-to-SME Exchange: Connect with experienced and emerging MSMEs in water-intensive sectors like textiles to share strategies for overcoming water pollution challenges.

• Building Cross-Sectoral Relationships: Foster cross-sectoral collaborations to drive collective impact and enhance value-chain transparency, with a focus on water stewardship and pollution mitigation.