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.
"The dominating culture of hyper-consumption, fueled by the fast fashion model with its lightning-fast production and fleeting product lifespan, is taking a toll on human welfare and causing more environmental harm than the aviation and shipping industries combined. At Dragon Diffusion, we believe in heritage craftsmanship-timeless designs, hand-woven from quality materials made to last. Each piece is made to order, supporting the handworker economy and minimizing environmental effects.
We know our responsibility doesn’t end with reducing our negative impacts though; we also seek to be a positive force in the communities where we operate. That’s why we have set goals around achieving Zero-Waste to Landfill
Certification this fall, increasing our energy mix to 50% solar by the end of the
year, and opening a Women's Vocational Training Centre by early 2027.
Honor tradition. Respect craft. Protect the future."
Craig Wright
Founder, Dragon Diffusion
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.
1. Respect Heritage Craftsmanship
Preserving the art of natural veg-dyed leathers and handwoven techniques also involves ensuring responsible sourcing, including requiring our suppliers are certified by third-parties.
2. Promote Resourcefulness
Water, energy, and waste are monitored daily to track progress and identify ways to optimize processes.
3. Champion Slow Fashion
Educating our community at all levels, from training programs for workers to care guides for customers to extend their life of their products are integral to the slow fashion movement.
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.

