Our apparel industry has faced the test of time as it has overcome many challenges through its history. This difficult journey of Bangladesh's readymade garment (RMG) industry started in the 1980s.
The first challenge that the garment industry faced was the issue of child labour. However, this has now been eliminated from our garment industry.
Then there was the issue of a standard minimum wage, which has now been legally resolved by the establishment of a new board every five years.
There is also the issue with safety. The Rana Plaza collapse is an important event in the garment industry of Bangladesh. After this horrendous event, the sector saw the formation of Accord and Alliances, who inspects all the factories with open information on their website.
We can now say with pride that among the many big manufacturers and manufacturing countries in the world, Bangladesh is one of the safest destinations.
Yet, at the end of the day, buyers pay us less and we are deprived of a fair price.
We have to improve our bargaining power, learn how to say “no,” and learn to be competitive in different ways so as to force the matter of raising prices.
Moreover, we have to provide a variation in products, and escape basic product manufacturing.
In addition to making high-end garments, we have to work with premium buyers.
One of the biggest challenges at present is cost escalation. As the cost of production is increasing everyday, the game played in the market seems to be a toss up of who can supply better things at lower prices.
New innovations, the inclusion of modern machineries, and state-of-the-art technologies make large production much more efficient.
The modern day challenge
But in today's world, the new challenge is the matter of sustainability and environment-friendly production.
That is to say that these new innovations and machinery that results in high production and greater efficiency, must be committed to maintaining sustainability and keeping the environment clean.
Retail consumers were not always so environmentally conscious, but the times have changed, and now they want to know where, with what, and how a product is manufactured.
It is clear that if manufacturers want to capture the consumers in the present time, it is impossible to continue production while ignoring sustainability.
If we consider ESG -- one of the hottest new terms in the industry -- environment, social, and governance or corporate governance are all present.
Sustainability is a much larger aspect. It does not only focus on the environment, rather it is the collective phenomenon of these three aspects of E-S-G, one of the main elements of which is the environment.
Regarding the environment, we carry a large responsibility. How to maintain the environment, pollute less, save water (using less and not polluting), etc, are the immediate concerns that come up.
However, there is no common criteria or common measurement on how we can create new products while maintaining everything, nor a guide on how much ought to be recycled or how innovation can be continued at a low cost.
Green factories
Much of the sustainability requirements can be achieved, especially from the environmental side, with the establishment of a LEED-certified green factory.
Bangladesh has the largest number of factories with USGBC green certificates. So far, 192 factories in our country have received LEED certificates and 550 are in the process of getting it -- among which there are 68 platinum, 110 gold, 10 silver, and 4 are certified.
Another point of pride is that 53 of the top rated 100 green factories in the world are in Bangladesh and 8 out of the first 10 factories are from Bangladesh.
Moreover, the highest rated factory, Green Textile Limited, is also from Bangladesh -- who scored a total of 104 out of 110 a few weeks ago and obtained a certificate in the platinum category.
The recertification process has also started in Bangladesh, meaning the owners don't stop at just setting up the factory, but continuously improve it.
Although the initial cost of setting up a green factory is high, in the long run the cost is made up for in various ways. Just as a simple example, the long run water and electricity saved cuts a significant cost of production.
Moreover, apart from the financial issue, there is a moral issue as well. Ethical responsibility towards the global environment and future generations is also fulfilled by setting up a green factory.
If water and electricity consumption can be reduced by setting up a green factory today, the next generation will have better water, healthier air, and access to electricity, available tomorrow.
The world has realized how big an issue power scarcity is since the beginning of the Russia-Ukraine war. Oil prices have become volatile, disruptions in supply chains occur frequently, and even the world is facing a turbulent economy.
Earlier, setting up green factories and the issues of sustainability were choices or options, but not anymore, sustainability is now the reality. Very soon, this will become the standard, meaning if one wants to set up a factory, they have to set up a green factory.
The role of others
In this regard, the government has a key role to play. The government can provide policy support to encourage entrepreneurs to set up green manufacturing units. Moreover, the government can provide some facilities related to tax, VAT etc to the entrepreneurs who have green factories.
Green finance can be also introduced to finance entrepreneurs importing and manufacturing with less carbon emissions and less pollution.
The buyers also have an important role to play. When they source from these types of factories they can be, and should be, relaxed with their pricing.
Although there is no difference in pricing between green and non-green companies, buyers should consider paying slightly higher prices for products produced in an eco-friendly way.
In this case, they can charge their consumers slightly higher for such products. If the sustainability tag is used on the product, then the conscious consumer will not mind buying it at a higher price.
We are moving in the right direction; our sector is now one of the safest sourcing destinations in the world.
In the post-Covid-19 situation, the Russia-Ukraine war and the ongoing global economic turmoil, we are better positioned than competitors.
We must continue the journey down this road at all costs. For this reason, we have to instigate the improvement of backward linkage industries, product innovation, research and development, and proper maintenance of the green factories.
My organization, Bangladesh Apparel Exchange (BAE) is always at the forefront in terms of environment and sustainability.
It is our vision that sustainability will become one of the most important factors in the world. On that note, we pioneered the Sustainable Apparel Forum (SAF) -- as the first time in the country -- back in 2017.
We are now on the fourth edition of SAF. Various aspects of sustainability, financing, R&D, and machinery are discussed with the participation of a number of prominent experts, stakeholders, and decision-makers of both Bangladesh and abroad.
The main objective is to share knowledge about sustainability with our entrepreneurs. We hope everyone will be with us in the journey towards green and sustainability.
Mohiuddin Rubel is the Additional Managing Director of Denim Expert Limited, the Managing Director of Bangladesh Apparel Exchange (BEA), and the Director of the BGMEA.