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This is the second of a two-part series on the leather industry in the Palar River basin. The first part<\/strong><\/a> examined the impact of the industry\u2019s pollution.<\/p><\/div><\/div>\n\n\n\n \u201cIt\u2019s not uncommon for people in poor health to continue working in tanneries or shoe factories,\u201d says Vedha Nayagi, a doctor and member of the Ranipet Leather Tannery Allied Labourers Protection Forum, an NGO dedicated to worker welfare.<\/p>\n\n\n\n \u201cMany patients show up at the hospital at night, take injections and then return to work the following morning because they have no other option.\u201d<\/p>\n\n\n\n Nayagi is a vocal critic of the pollution caused by the tanneries in her area and has a personal connection to it. She believes exposure to tanning chemicals, such as chromium, was a factor in the death from cancer of her nephew, who had worked in a tannery for several years. \u201cHe knew the risks, but he needed the money,\u201d she says.<\/p>\n\n\n\n Tannery work can be connected<\/a> to several health hazards such as lung, bladder, kidney and pancreatic cancers, as well as respiratory illnesses, studies find.<\/p>\n\n\n\n Surveys show<\/a> that at least 30% of tannery workers in Tamil Nadu do not receive the state-mandated minimum wage of INR 11,130 (USD 127.5) a month. Many also undertake hazardous tasks, such as manually cleaning toxic sludge from septic tanks, without protection, despite nationwide bans<\/a> on the practice due to health risks.<\/p>\n\n\n\n Sheela, a young widow, shares the story of her late husband, Tamil Selvan. \u201cHe used to clean septic tanks to earn extra,\u201d she says. \u201cHe would make INR 500 [USD 5.72] for four hours of that dangerous work, because his full-time job at Euro Shoes wasn\u2019t enough.\u201d It was at Euro Shoes that Sheela and Tamil had first met. \u201cI worked in the packing section, earning INR 6,500 a month. We saw each other every day and grew close,\u201d she recalls.<\/p>\n\n\n\n In May 2023, Selvan died<\/a> while cleaning a tannery\u2019s septic tank, overcome by toxic fumes.<\/p>\n\n\n\n \u201cHe did it because he needed the money,\u201d Sheela says. Now, she lives with her siblings, caring for her two children as a single parent.<\/p>\n\n\n\n This exposure to pollution is not limited to the factory floor. As we heard in the first article<\/a> of this two-part series, the tannery industry is also polluting the Palar River, a vital drinking water source for 50 villages and 30 towns that also sustains farmland \u2013 or should. The pollution has contaminated the water supply, devastating crops and causing widespread health issues in nearby communities.<\/p>\n\n\n\n This is the hidden human cost behind some of the leather goods that European consumers wear and buy. While EU laws now require companies to ensure fair and safe supply chains, labour rights activists and researchers say brand audits often fail to reveal what happens behind the walls of tanneries and shoe factories.<\/p>\n\n\n\n Many factories have guards stationed at the gates to ensure strict monitoring of entry and exit. Nearly a dozen workers from different companies tell Dialogue Earth they must surrender their phones before entering.<\/p>\n\n\n\n \u201cOn the boxes that we pack, there are names of countries: Italy, Germany, the UK. But the names of the brands aren\u2019t mentioned while the boxes are with workers,\u201d says Sheetal, 35, who packs shoes in the Vellore district.<\/p>\n\n\n\n \u201cWhen it comes to leather, EU product legislation is not very transparent,\u201d according to Gustavo Quijano from Cotance, a European leather-industry association. Leather companies can label goods \u201cMade in EU\u201d even if the raw hides originate elsewhere, with only the final assembly being done in Europe. This allows them to outsource much of the production to countries like India, where health and safety regulations on hazardous chemicals are less strict.<\/p>\n\n\n\n In Tamil Nadu, industrial zones are colour-coded based on their environmental impact. Tanneries fall into the red category, meaning they have the highest pollution potential according to the Tamil Nadu Pollution Control Board (TNPCB), a government agency responsible for preventing pollution.<\/p>\n\n\n\n According to Sai Sathya Jith Sasi Kumar, external counsel for the TNPCB, this classification is based on a pollution index score developed by India\u2019s Central Pollution Control Board. The CPCB is the national authority that collects real-time data from effluent-treatment plants which deal with tannery waste. These plants, when equipped with proper technology, can neutralise harmful chemicals, but local activists say they are inadequate, and despite the data collection, enforcement remains weak.<\/p>\n\n\n\n Responsibility for unsafe working conditions and environmental risks in the leather industry also rests with multinational corporations. According to trade data reviewed by Dialogue Earth, several European shoe brands source leather from tanneries in Tamil Nadu that have been found to commit environmental and labour violations. Among them are H&M, Deichmann, Inditex and Gabor Shoes. Local activists remain sceptical. \u201cAudits are often reduced to tick-box exercises,\u201d says a labour-rights representative who requested anonymity due to safety concerns. \u201cFactory managers are frequently given advance notice and stage temporary safety measures, while workers are coached on what to say during inspections.\u201d<\/p>\n\n\n\n These concerns resonate with tannery workers like Shashikala, who packs shoes at KH Exports, a supplier to H&M. \u201cInspectors only check the products; they don\u2019t talk to us,\u201d she says. \u201cThe smell in the factory is always unbearable, and I suffer from allergies on my hands and face.\u201d<\/p>\n\n\n\n Unlike many of its competitors, H&M publishes supplier lists and details on union representation \u2013 something those pushing for change say is essential for accountability.<\/p>\n\n\n\n KH Exports, which is both a tannery and a manufacturer of leather goods, is listed among the tanneries with a high pollution potential by the TNPCB, and Dialogue Earth was told it has only one union representative for every 1,000 to 2,000 workers. At the same time, the Leather Working Group (LWG), a global standards organisation, rates it as a Gold standard tannery. That rating requires adherence to the highest environmental, social and traceability standards, including compliance with labour laws and provision of safe working conditions.<\/p>\n\n\n\n \u201cThis situation appears inconsistent with what the LWG Gold standard demands,\u201d says a labour rights representative.<\/p>\n\n\n\n H&M told Dialogue Earth that KH Export factories in India supplying the company were following its audit programme and \u201cshowing compliance\u201d as of 2024. It added that all of the tanneries it used in India were audited in 2024, but did not provide further details. LWG and KH Exports\u2019 auditors never replied to Dialogue Earth\u2019s request for comment.<\/p>\n\n\n\n The 2024 EU Directive on Corporate Sustainability Due Diligence<\/a> requires large companies to address human rights and environmental risks across their supply chains. By 2026, EU member states must incorporate this legislation into their national laws.<\/p>\n\n\n\n \u201cTraceability is crucial for due diligence,\u201d says Emma Thomson, of NGO Global Canopy, a UK-registered non-profit advocating for corporate sustainability and environmental protection. \u201cCompanies need to be more transparent, disclosing complaints, compliance processes, and suppliers\u2019 lists; that\u2019s the only way to push for change and better practices.\u201d<\/p>\n\n\n\n However, most footwear and clothing companies still do not publish the names of their suppliers. <\/p>\n\n\n\n Germany, meanwhile, became the first EU country to implement its own Supply Chain Due Diligence Act<\/a> in January 2023. The law requires German companies, and companies operating in Germany with at least 1,000 employees, to ensure both human-rights protections and the implementation of grievance mechanisms across their supply chains. They must also submit annual reports to the German Federal Office for Economic Affairs and Export Control (BAFA). Sanctions for non-compliant companies are set to begin on 1 January 2026, but the legal requirement for annual reporting is already in place. This means that German companies like Deichmann or Gabor Shoes, as well as international brands such as Inditex and H&M, should comply with this regulation. As of December 2024, none<\/a> of these companies had provided the annual report to BAFA as required by German law.<\/p>\n\n\n\n Two years after the German law\u2019s introduction, the impact in Tamil Nadu remains unclear. \u201cNothing has reached the field yet,\u201d comments one resident.<\/p>\n\n\n\n This disconnect between European due-diligence frameworks and on-the-ground reality is evident in the experiences of workers like Mala, who works at a tannery belonging to Tata International, a major firm with tanneries in Tamil Nadu that supply the likes of Deichmann, Gabor and H&M.<\/p>\n\n\n\n \u201cMy face was smooth before,\u201d she tells Dialogue Earth, pointing to black patches on her cheeks she says are caused by prolonged exposure to tannery chemicals. Mala says colleagues also suffer from health issues due to this exposure. Although she earns slightly above the regional minimum wage, Mala says her income still doesn\u2019t provide a decent standard of living. Her experience is in sharp contrast to Tata International\u2019s status as an LWG Gold rated tannery. Gabor Shoes did not reply to requests for comment. In an email exchange, Deichmann insisted that its code of conduct ensures respect for workers throughout its supply chain and said it had not received any \u201crelevant information\u201d through its internal grievance mechanisms. The company cited posters in local languages displayed at supplier factories informing workers of their rights, with targeted training programmes encouraging employees to speak up.<\/p>\n\n\n\n Berndt Hinzmann, senior policy advisor at the German NGO Inkota, explains the problem: \u201cSystems are in place, especially indictment hearings, to address these issues. However, those affected don\u2019t use them because they fear that speaking out will have direct negative consequences or backlash, influencing how the issue is handled by existing grievance and primary systems.\u201d<\/p>\n\n\n\n![\"woman](\"https:\/\/dialogue.earth\/content\/uploads\/2025\/07\/20240220_India-Tamil-Nadu-Sheela-whose-husband-died-v2_VarshaTorgalkar.jpg\")
<\/div>The failure of due diligence<\/h2>\n\n\n\n
![\"rows](\"https:\/\/dialogue.earth\/content\/uploads\/2025\/07\/20240220_India-Tamil-Nadu-hides-hang-in-tannery_VarshaTorgalkar.jpg\")
<\/div>Audits and accountability gaps<\/h2>\n\n\n\n
One documented case involves Habeeb Tanning Company, a supplier to Spanish fashion conglomerate Inditex (Zara, Massimo Dutti), which has been subject of a complaint<\/a> to the CPCB for \u201cpollution caused by illegal operations\u201d. Inditex acknowledged to Dialogue Earth that audits in 2024 and 2025 had identified unspecified non-conformities and that steps were being taken to address these issues. It declined to share the results of these audits.<\/p>\n\n\n\n![\"woman](\"https:\/\/dialogue.earth\/content\/uploads\/2025\/07\/20240220_India-Tamil-Nadu-workers-rely-on-leather-companies_VarshaTorgalkar.jpg\")
<\/div>EU due diligence: Promises versus reality<\/h2>\n\n\n\n
![\"\"\/](\"https:\/\/dialogue.earth\/content\/uploads\/2025\/07\/20240220_India-Tamil-Nadu-tannery-in-Ranipet_VarshaTorgalkar.jpg\")
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LWG and Tata International auditors did not respond to Dialogue Earth\u2019s questions about workers allegedly being exposed to tannery chemicals for prolonged periods of time.<\/p>\n\n\n\n![\"women](\"https:\/\/dialogue.earth\/content\/uploads\/2025\/07\/Shoe-factory-workers-Tamil-Nadu_RonGiling_Alamy_2YNHMAC.jpg\")
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