The paper explores current trends in sustainable business transformation and their peculiarities of proceeding in companies of textile industry. The complex production chain in textile industry is the main reason for leaving a negative environmental and social footprint on our planet, including large volumes of production and waste, labor exploitation and poor working conditions, unequal distribution of profits. An important prerequisite for the transition of companies to sustainable business models is following to the principles of sustainable development and green management practices, the implementation of sustainable development strategies and circular business models. Companies need to review their values, policies and practices in relation to sustainable development, ethical business conduct, environmental protection and community care. It should be a common practice to develop or update a sustainable development strategy in companies of the textile industry with its mandatory implementation in the general strategy of companies, training of personnel on sustainable production at all organizational levels. Social responsibility should become an integral part of the corporate culture and business strategy of the textile industry, being integrated into every business process and decision on the way to creating value for all stakeholders.