For Gokaldas Exports (NSE: GOKEX), a Cascale Corporate member, sustainability has become closely intertwined with the company’s broader transformation.
Founded in 1979 and headquartered in Bengaluru, India, the apparel manufacturer operates across India, Kenya, and Ethiopia and serves over 20 global brands and retailers across more than 50 countries.
In a conversation for Cascale’s “Source of Good” podcast, Siva Ganapathi, vice chairman and managing director, described how the company’s transformation began around 2017, when management focused on strengthening factories, improving quality and delivery, investing in automation, and rebuilding customer confidence. As expectations from global brands continued to evolve, Gokaldas also needed to translate sustainability commitments into measurable, credible improvement across its manufacturing operations — while ensuring those investments supported the company’s broader business goals.
“We invested a lot in sustainability because we understood that brands are requiring it,” Ganapathi said on the “Source of Good” podcast. “It made environmental sense, it made social sense, and it made business sense.”
Top Takeaways
- Sustainability investment is helping drive Gokaldas Exports’ broader business transformation.
- Higg FEM data supports factory-level measurement, benchmarking, and corrective action.
- Independent validation strengthens the credibility of Gokaldas’ environmental performance data.
- Water investments have delivered significant gains, including 92 percent process-water recycling in laundry operations.
- Gokaldas Exports has developed a robust and well-defined roadmap to achieve net zero emissions by 2045 and carbon neutrality by 2030.
- MCAP is helping Gokaldas translate its climate ambitions into measurable, science-aligned Scope 1 and 2 targets.
The Challenge: Turning Expectations into Measurable Performance
Sustainability, and Cascale membership, became an increasingly important part of Gokaldas’ investment strategy. Ganapathi explained that while sustainability initiatives existed previously, they were not a primary focus. As brand expectations evolved, Gokaldas increasingly viewed sustainability not only as an environmental and social responsibility, but also as a business imperative.
The challenge was to turn those growing expectations into consistent, measurable action across the company’s operations. That required reliable factory-level data, credible validation of reported performance, targeted investments in areas such as water and energy, and a structured pathway for advancing climate goals.
The company’s FY2024–25 Annual Report reflects this approach, identifying sustainability as a core component of its operating strategy and highlighting investments in energy, water, waste, sustainable sourcing, and circularity.
Making Sustainability Measurable with Higg FEM
Data has become a central part of Gokaldas’ sustainability management. The company has used the Higg Facility Environmental Module (Higg FEM) to assess and benchmark environmental performance across its facilities, covering areas such as energy, water, waste, wastewater, air, and chemical management.
In the podcast, Ganapathi reported that Gokaldas’ average Higg FEM score increased to 91 percent in 2025, up from 89 percent in 2024. To achieve it, Gokaldas tracks performance at the factory level and focuses corrective action on facilities and areas where performance is weaker.
This reflects a progression from measuring sustainability performance to using standardized data as an operational management tool. It gives Gokaldas a consistent framework through which to identify performance gaps, compare results, and direct improvement efforts across its operations.
Strengthening Confidence Through Independent Verification of Higg FEM Data
Gokaldas Exports subjects its Higg FEM-related environmental data to independent validation, strengthening the credibility of the information it uses to assess environmental performance. In its FY2024–25 Annual Report, the company states that it engaged Bureau Veritas, PDCA International Limited, and Teks Tech Inspection India Private Limited to validate its environmental data in accordance with Higg FEM 4.0. The validation covers reported environmental performance across areas including energy, water, wastewater, emissions, and waste.
Third-party verification plays a vital role in building confidence in environmental performance data. It provides independent assurance that Gokaldas sustainability data is accurate, reliable, and aligned with internationally recognized standards. This enhances transparency, strengthens trust with their customers and stakeholders, and demonstrates their commitment to accountability. More importantly, verified data supports informed decision-making and reinforces Gokaldas’ focus on continuous improvement, making it a key element of their sustainability journey.
Water: From Efficiency to Water Neutrality
Water is one of the areas where Gokaldas has made particularly significant progress. The company reports recycling 92 percent of process water in its laundry operations and has achieved a 40 percent reduction in water use in laundry operations through state-of-the-art machinery. Water intensity per kilogram of garment washed also decreased by 36 percent.
The company has implemented Zero Liquid Discharge (ZLD) systems and uses treated wastewater to reduce freshwater requirements. In the podcast, Ganapathi also noted that the company’s fabric-dyeing plants recycle approximately 96 percent of water.
These initiatives support Gokaldas’ goal of becoming water positive by 2030. The company’s current sustainability strategy identifies water as a priority alongside decarbonization and circularity.
Net Zero by 2045, Carbon Neutrality by 2030
The company has developed a robust and well-defined roadmap to achieve net zero emissions by 2045 and carbon neutrality by 2030, supported by clear milestones and strategic investments. Significant progress has been made through the increased procurement of renewable energy, Carbon offset strategy, implementation of energy-efficiency projects, and the gradual transition toward an electric fleet to reduce fossil fuel dependence.
Using MCAP to Put Climate Targets into Action
Gokaldas Exports’ participation in Cascale’s Manufacturer Climate Action Program (MCAP) has helped strengthen the company’s approach to climate action by providing a structured pathway to establish science-aligned targets for Scope 1 and 2 emissions.
Through MCAP, manufacturers with guidance and support to measure emissions, develop and validate Scope 1 and 2 science-aligned targets, assess climate risks, and build actionable decarbonization plans. Gokaldas has combined target setting with practical work on energy efficiency, renewable energy, and resource management. The company has highlighted its progress in procuring renewable energy, improving machinery efficiency, and increasing water and waste recycling as part of its broader decarbonization efforts.
Listen to “The Business Advantage of Sustainability Investment with Gokaldas Exports”
Why It Matters
Gokaldas Exports demonstrates how a manufacturer can integrate sustainability into a broader business transformation. By combining Higg FEM measurement and independent data validation with investments in water efficiency, renewable energy, operational improvements, and science-aligned climate targets through MCAP, the company is building sustainability into how it manages and grows its manufacturing operations.
Together, these efforts show how sustainability investment can support more disciplined, data-driven management while helping a manufacturer respond to customer expectations and prepare for long-term growth.
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