As a frontrunner in the environmental sustainability movement and ethical manufacturing, the readymade garment (RMG) industry of Bangladesh has emerged as a symbol of hope, resilience and resurgence.
Our focused and systematic endeavor to upgrade and transform the RMG industry has played a pivotal role behind Bangladesh’s global rise as a major apparel manufacturing hub, opening new avenues for economic prosperity and citizens’ well-being.
Bangladesh's RMG industry has been in a continual state of transformation since the beginning of its journey about four decades ago.
Thanks to its high level of adaptability, the industry has become a state-of-the-art, safe, secured and green hub of apparel manufacturing, overcoming seemingly insurmountable obstacles.
Thanks to these impressive changes, the industry is now the world’s second largest garment exporter, accounting for about 82% of Bangladesh’s total export earnings.
There are many achievements in the realm of the country’s garment sector for which the manufacturers and industry leaders can take justifiable pride in.
Take the case of environmental sustainability for instance.
Going green has been one of the most commonly used terms in the apparel manufacturing sector in the last decade as environmental concerns have been increasing with the growing number of industries.
The growth of manufacturing is crucial for economic development, but at the same time the challenges that emerge with it must also be dealt with.
That means taking proactive steps to mitigate environmental impact is a must because both the business and environment have to survive.
To meet environmental standards, Bangladesh has made huge strides walking on the green path.
An increasing number of our factories are embracing green industrialization by incorporating environmentally sustainable measures in the manufacturing process.
So far, there are 171 factories in Bangladesh which have received Leadership in Energy and Environmental Design (LEED) certification from United States Green Building Council (USGBC); of which 53 are in platinum and 104 in gold category.
According to the USGBC,Bangladesh has the highest number of green garment factories in the world, in every consideration.
It indicates that sustainability is not just a buzzword in the arena of Bangladesh RMG sector, it is a common practice which makes business more environment friendly and more profitable.
Besides, the factories have been subjected to a thorough inspection under a number of global consortiums to substantially improve their structural integrity and electrical and fire safety.
It has not only made the factories safer, but also helped restore global confidence in Bangladesh.
Sustainability goals
To expedite the green revolution, BGMEA has taken a series of initiatives under its sustainability vision 2030 which aims to reduce 30% carbon emission, 50% use of sustainable raw materials, 50% reduction of groundwater usage, 100% use of ZDHC chemical usage, 30% reduction of energy usage, 20% use of renewable energy and 30% reduction of deforestation.
These targets have been fixed in accordance with "Race to Zero" GHG emission campaign, SDG-12 on “Responsible consumption and production” and National Priority Indicators (NPIs) of the government.
The government has also been supporting the green growth movement of the RMG industry through various initiatives such as a special tax rate of 10% for green factories which is 12% for other factories and reduction of vat for setting up Sewerage treatment Plant (STP.)
The government has also sanctioned a number of financial schemes for the green industrialization of the country like Green Transformation Fund (GTF), Technology Upgradation Fund (TUF) and AFD-funded program to Support Safety Retrofits and Environmental Upgrades (SREUP.)
I think all of these are visionary steps and will give a massive boost to the industry’s sustainability momentum.
However, there are some problems regarding due diligence within these initiatives.
Green banking requires a long and complex process that involves high transaction costs which is sometimes difficult to comply with, particularly for small and medium enterprises.
We need a feasible solution to help them out.
A coalition scheme could be introduced so that small-scale green entrepreneurs can come together and make collective applications to banks and financial institutions for green funds.
Our common goal is to take the RMG industry to the next level of sustainability and we have to work comprehensively in all the possible areas of concern.
Sustainability is a marathon and not a sprint.
So we are setting higher bars as we strive to make the industry more environmentally-friendly.
A shift towards a circular economy is now our next target.
In this regard, a proper chemical management system as well as a guideline, responsible waste generation, water resource management, climate actions, green initiatives, sustainable business and responsible industrial practices are all prerequisites in achieving a more sustainable apparel industry.
Apart from sustainability, ensuring workers well-being is another focus area of Bangladesh's RMG industry.
As the largest formal sector employer, the industry supports over four million jobs directly, with 2.5 million of them being women who otherwise might not be engaged in any productive role in society.
Thus the industry played a significant role in women empowerment and poverty reduction, which brought about numerous positive changes in society like drop in early marriage and early motherhood, increase in female literacy rates, curb in population growth, and increase in environmental and personal hygiene awareness, etc.
Overall, millions of underprivileged women who have become independent and self-reliant through this industry are now socially aware and active citizens.
Pride in personnel
We believe that our employees are the driving force behind all of our endeavours.
Therefore, we have always been proactive in ensuring workers’ rights.
For example, the labor law has been reformed to ensure better rights and empowerment of the workers.
The amended laws require formation of safety committees and elected participation committees mandatory in every factory.
Besides, the minimum wage of the workers has been increased by 381% since 2010.
Annual increment is mandatory by law.
A central fund for workers’ welfare has been created where the RMG owners have already started contributing funds.
In the last fiscal year we provided about $12 million and this will increase with the increase in our export earnings.
Moreover, as part of our commitment to make our factories safer, risk-free and sustainable for our workers and employees, a tripartite consultative committee (TCC) has been formed consisting of representatives from the government, trade unions and RMG owners to address labour and workplace related issues.
We have also created higher education opportunities for girls working in garment factories.
Currently, 60 young female workers are pursuing higher education in the Asian University for Women.
Along with that, many of our factories are running fair price shops and day care centers within the factory premises.
There are many other such well-meaning initiatives.
All these aforementioned measures amply prove our unwavering commitment to environmental sustainability and workers’ well-being.
Besides, the recently unveiled new logo of BGMEA has been designed in a way that it makes the people and the environment two core areas of its nine guiding principles.
Last but not least, as an emerging industry, the RMG sector has great potential, and it has already exhibited a unique strength and resilience in improving its overall business sustainability.
Therefore, my hunch is that many more milestone achievements await the industry in future.
Let us stay focused on tapping its full potential.
Faruque Hassan is the president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the managing director of Giant Group