An Exploratory Case Study on the Feasibility of Green Investment and Financing in the Smart Textile Industry from an ESG Perspective

Conggang Lv, Xuting Zhang, Huiming Lv
Article
2026 / Volume 9 / Pages 3796-3815
Published 25 April 2026

Abstract

In the context of global "carbon neutrality" goals, the traditional textile industry faces significant environmental and social challenges. Intelligent textiles offer a key path for industrial upgrading, but their high R&D and investment costs demand new financing solutions. This paper conducts an exploratory case study to investigate the feasibility of using green financing, guided by the ESG investment concept, to support this emerging industry. We developed a feasibility evaluation framework with three dimensions-economic feasibility, ESG performance, and the market environmentand used the analytic hierarchy process (AHP) to assign weights to 15 key indicators. An empirical analysis of a representative intelligent textile firm revealed that investors prioritize economic feasibility (weight of 0.450) and ESG performance (weight of 0.385), with the environmental (E) factor being most critical within ESGs. The case company's high score (4.231/5) suggests strong green financing potential for this type of enterprise, particularly in technological innovation, although it also revealed weaknesses in social disclosure and supply chain management. This study concludes that ESG-guided green financing is a viable model for fostering the sustainable development of innovative firms within the intelligent textile industry. However, effectively implementing this model requires overcoming challenges such as inconsistent ESG standards and "greenwashing" risks through the joint efforts of the government, enterprises, and financial institutions.

Keywords

ESG investment, intelligent textiles, green finance, feasibility study, analytic hierarchy process