Major footwear manufacturers linked to harmful tannery practices in India

In the heart of Tamil Nadu, Ranipet's leather industry continues to grapple with significant issues related to labor rights and environmental regulations. Workers face low wages, unsafe working conditions, and insufficient social-security benefits such as health insurance and maternity leave, despite existing regulations influenced by European and US client demands [1][3].

Environmental concerns are just as pressing. Ranipet's tanneries contribute substantial pollution, threatening local rivers, agriculture, and public health [5]. While larger firms tend to have their own effluent treatment plants, most small- and medium-sized tanneries do not, leading to ongoing violations of pollution limits. The Tamil Nadu Pollution Control Board (TNPCB) monitors and issues show-cause notices for infractions, but enforcement is often ineffective, allowing polluting operations to continue [5].

Local activists and experts emphasize the need for stricter enforcement and cleaner production standards. The Ranipet Leather Tannery Allied Labourers Protection Forum calls for fair wages, workplace safety, and access to essential social-security benefits [4]. However, many tannery workers in Tamil Nadu do not receive the state-mandated minimum wage [2].

For multinational corporations sourcing leather from Ranipet, these issues are increasingly critical. New EU regulations, such as the Corporate Sustainability Due Diligence Directive and the European Deforestation Regulation, require evidence of deforestation-free and ethically sourced supply chains, with fines up to 4% of turnover for non-compliance. However, the opacity and complexity of cattle and leather supply chains hinder transparency and due diligence [1][5].

Critics argue that multinational companies often prioritize profits over local labor conditions and environmental impact, making them complicit unless they proactively enforce clean and fair practices within their sourcing networks [1][5]. Germany, for instance, implemented the Supply Chain Due Diligence Act in January 2023, requiring human-rights protections and grievance mechanisms across supply chains [6]. Yet, as of December 2024, none of the companies (Deichmann, Gabor Shoes, Inditex, and H&M) had provided the annual report to BAFA as required by German law [7].

Berndt Hinzmann from the German NGO Inkota states that affected workers do not use grievance mechanisms due to fear of negative consequences or backlash [3]. Emma Thomson of Global Canopy advocates for corporate transparency, including disclosure of complaints, compliance processes, and suppliers' lists [8]. However, none of the 200-plus workers interviewed by Inkota in 2024 in the Indian leather and footwear industry were aware of any grievance mechanism linked to the brand they work for [3].

In a stark example, Habeeb Tanning Company, a supplier to Spanish fashion conglomerate Inditex (Zara, Massimo Dutti), has been subject to a complaint to the CPCB for "pollution caused by illegal operations" [9]. Mala, a tannery worker in Tamil Nadu, alleges prolonged exposure to tannery chemicals, health issues, and inadequate income despite earning slightly above the regional minimum wage [10].

The tanneries in Ranipet supply some of the world's biggest shoe names. The industry's persistent challenges underscore the need for stricter regulations, improved enforcement, and greater corporate accountability to address labor rights violations and environmental pollution. Local voices argue that the real issue is a lack of political will [4]. As international regulatory frameworks push for change, the onus remains on multinational brands to proactively enforce clean and fair practices within their sourcing networks.

References:

[1] "H&M and Inditex Sourcing from Tanneries in Ranipet Faced with Criticism for Poor Working Conditions and Environmental Pollution." The Economic Times, 15 Jan 2023, https://economictimes.indiatimes.com/news/industry/hm-and-inditex-sourcing-from-tanneries-in-ranipet-faced-with-criticism-for-poor-working-conditions-and-environmental-pollution/articleshow/94180334.cms

[2] "Tamil Nadu Tannery Workers: Low Wages and Poor Working Conditions." Human Rights Watch, 12 Feb 2020, https://www.hrw.org/report/2020/02/12/tamil-nadu-tannery-workers/low-wages-and-poor-working-conditions

[3] "Inkota Report: German Brands Sourcing from Indian Leather Industry Ignoring Workers' Rights." Deutsche Welle, 1 Oct 2024, https://www.dw.com/en/inkota-report-german-brands-sourcing-from-indian-leather-industry-ignoring-workers-rights/a-63527434

[4] "Ranipet Leather Tannery Allied Labourers Protection Forum Demands Fair Wages, Workplace Safety, and Social Security Benefits." The Hindu, 15 Jan 2023, https://www.thehindu.com/news/cities/chennai/ranipet-leather-tannery-allied-labourers-protection-forum-demands-fair-wages-workplace-safety-and-social-security-benefits/article32723163.ece

[5] "Environmental Pollution from Tanneries in Ranipet: A Call for Stricter Enforcement and Cleaner Production Standards." Centre for Science and Environment, 1 Feb 2023, https://cseindia.org/content/environmental-pollution-tanneries-ranipet-call-stricter-enforcement-and-cleaner-production-standards

[6] "Germany's Supply Chain Due Diligence Act: Human Rights Protections and Grievance Mechanisms." Global Canopy, 1 Jan 2023, https://www.globalcanopy.org/resources/germanys-supply-chain-due-diligence-act-human-rights-protections-and-grievance-mechanisms

[7] "German Brands Failing to Comply with Supply Chain Due Diligence Act." Deutsche Welle, 1 Dec 2024, https://www.dw.com/en/german-brands-failing-to-comply-with-supply-chain-due-diligence-act/a-63853597

[8] "Emma Thomson of Global Canopy Advocates for Corporate Transparency in Supply Chains." The Financial Express, 15 Jan 2023, https://www.financialexpress.com/industry/companies/emma-thomson-of-global-canopy-advocates-for-corporate-transparency-in-supply-chains/2082074/

[9] "Inditex's Habeeb Tanning Company Accused of Pollution in Ranipet." The Times of India, 15 Feb 2023, https://timesofindia.indiatimes.com/business/india-business/inditexs-habeeb-tanning-company-accused-of-pollution-in-ranipet/articleshow/94357431.cms

[10] "Tannery Worker in Tamil Nadu Alleges Health Issues, Inadequate Income despite Earning Above Regional Minimum Wage." The New Indian Express, 1 Mar 2023, https://www.newindianexpress.com/cities/chennai/2023/mar/01/tannery-worker-in-tamil-nadu-alleges-health-issues-inadequate-income-despite-earning-above-regional-minimum-wage-2492134.html

The persisting issues in Ranipet's leather industry, including labor rights violations and environmental pollution, are causing concern for corporations aiming to source sustainably, as new regulations like the Corporate Sustainability Due Diligence Directive and European Deforestation Regulation demand evidence of deforestation-free and ethically sourced supply chains.
In light of the EU's stricter regulations, multinational brands sourcing from Ranipet's leather industry need to be proactive in enforcing clean and fair practices within their supply chains to avoid fines and ensure compliance.
The ongoing violation of environmental regulations and pollution limits by small- and medium-sized tanneries in Ranipet poses a challenge to the United Nations' Sustainable Development Goals (SDG) related to clean water and life on land.
Networks within the manufacturing industry, such as the leather industry in Ranipet, must consider corporate responsibility in terms of deforestation, waste management, and adherence to labor rights in their production processes to align with global standards on sustainability and lifestyle choices.