Sustainability


This report consolidates the environmental, social, and governance (ESG) activities, impacts, and future goals of the company for the period 2024–2025, in line with its Sustainability Policy, Standard Operating Procedures, and revised Indian regulatory norms (SEBI BRSR 2023). The data presented herein is based on verifiable internal documentation and external compliance audits.


Key Pillars

These support our vision to nurture time-honored practices of leather tanning and weaving to offer hand-crafted pieces that are made to last, advancing the handworker economy and minimizing impact on the environment.


Social Responsability


Labor Rights & Ethics
・Full compliance with national labor laws and ILO conventions.
・Formal grievance mechanisms and worker committees functional.
・Providing aid to medically affiliated people and deserving students through NGO who are authorized to receive CSR funds.


Health, Safety & Training
・100% of workers covered under Environmental, Health, and Safety Training Programs for identifying hazards, using protective equipment, and complying with regulations.
・Quarterly safety audits conducted.
・Periodic medical check-ups for staff exposed to chemicals.


Environmental Performance

Third party certifications & trainings are critical to promoting resourcefulness.

Responsible Raw Materials
All leather is verified semi-annually as LWG-cer tified or ISO 14001 suppliers.

Water & Energy
Monitored daily via digital meters to identify reduction opportunities through process optimizations and/or system upgrades.

Chemical Management
ZDHC MRSL & REACH compliant. Staff trained twice annually.

Waste Management
Hazardous waste disposal managed through certified handlers.


Our approach to leather

Grade Selection
Leather skins are graded based on surface appearance, with grade A being flawless, grade B having minor defects, and lower grades yielding increasingly more cosmetic defects. These lower grade selections can lead to higher waste generation and loss for tanneries, but Dragon Diffusion is able to utilize them given the leather is cut into thin strips for weaving and the imperfections become imperceptible.

Cutting Process
Once the leather is procured, it is cut on a spiral cutting machine, which maximizes the material yield for making long, continuous strips for weaving.

Vertically Integrated Operation
From the purchase of the leather crust, all subsequent tanning, dyeing, and finishing processes are managed in-house. The prepared leather strips are then passed to the makers to perform their highly specialized handcraft work, without the use of any machinery.


GOVERNANCE & COMPLIANCE


・Internal ESG audits are conducted bi-annually.
・SA8000 + SMETA audit (the leading certification on workplace standards and practices) completed.


・Annual management review held in December 2024.
・Supplier audits conducted for chemical compliance, sustainability declarations, and traceability.


Measuring Progress

Measuring progress involves defining clear indicators for each goal, collecting relevant data, and establishing baselines. Regular monitoring and evaluation against these indicators help track trends and assess the effectiveness of implemented policies.


Future Roadmap

We are on track to reach various milestones each quarter through 2026-2027.