CHALLENGES OF ESG IMPLEMENTATION IN THE GERMAN CLOTHING MARKET

Abstract

Integrating environmental, social and governance (ESG) criteria into business practices has become a key issue for companies seeking long-term success and social responsibility. The clothing sector, a major player in the global economy, faces unique challenges in implementing ESG standards stemming from its complex supply chain, heavy reliance on resources, and environmental and social impact. This study focuses on the challenges of implementing ESG in the German apparel market and analyzes the specific obstacles faced by companies in this sector.
            The German clothing market is characterized by a variety of players, including large brands, medium-sized companies, and small businesses. Each of these players has different resources, priorities and capacities to implement ESG policies. The study examines the impact of this diversity on the implementation of ESG criteria and identifies gaps and challenges that exist.
            In addition to internal and external challenges, companies in the German clothing market are faced with the task of meeting consumer expectations and gaining the trust of stakeholders. Communicating ESG efforts and transparency in supply chains are critical to the success and credibility of companies.
            The results of this study help deepen the understanding of the complexity of implementing ESG criteria in the German clothing market and provide companies, regulators and stakeholders with valuable insights and recommendations to promote sustainability in the industry.