Garment industry in Bangladesh
“Do you know about the significance of the ready-made garment industry in Bangladesh?”
“I know Bangladesh has a booming garment industry, but not so much to realize its significance to the country.”
Tashi put down his glass while replying to Lalima.
“The readymade garment (RMG) industry is the single biggest export earner for Bangladesh that accounts for 83% of the total export earnings of the country (BGMEA, 2023).”
Lalima’s eyes grew wide.
“Wow! That’s huge.”
“Yes, and the RMG industry is also taking a stride in the green transition. Even though 2022 was a challenging year for the industry after facing two years of devastating consequences of the Covid-19 pandemic, garment factories continue to pursue internationally recognized green certification. This Leadership in Energy Environmental Design (LEED) certification is awarded by the United States Green Building Council (USGBC) which is a globally recognized symbol of sustainability achievement which is highly sought after but not easily attained. To achieve this certification, factories need to maintain the highest standards regarding carbon emission, energy, and water usage, waste management, indoor environmental quality, etc. under the strict supervision of the USGBC. Of the 100 highest-scoring green garment factories, 53 are in Bangladesh which makes the country a global leader in green garment production (Hassan, 2023).
Now, you might ask why factories are investing to pursue green operations – which is not easy or maybe not even economical since it initially requires significant capital, innovation, strong partnerships and commitment from manufacturers and the customers’ willingness to pay more for products manufactured in green factories (Hassan, 2023). A benefit that factories gain is to show their commitment to the environmental front within their increasing environment-conscious customer base. This helps enhance their positive brand perception translating to greater business opportunities.”
Tashi took a sip of water again.
“This seems to be a case of internationally recognized certification that companies see worth achieving to enhance their business.”
Tashi nodded in agreement and continued the conversation.
“To get certified in sustainable operations, renewable energy is one of the aspects that companies need to consider to lower carbon emissions. Say, for example, a factory that partially operates diesel generators for its electricity, can reduce its carbon footprint by adopting renewable sources of energy such as rooftop solar energy systems. With a detailed financial evaluation, the company can quantify the payback period of solar energy against the long-term use of diesel generators. At the same time, the company can meet its sustainability goals, get certified, and communicate to its customers about its commitment to sustainable practices. Nowadays, people – especially youths – really do lean towards sustainably produced products.”