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BGMEA joins hands with Good Fashion Fund to finance SMEs in sustainability

28 Aug 2021 12:02:05 | Update: 28 Aug 2021 12:02:05
BGMEA joins hands with Good Fashion Fund to finance SMEs in sustainability

Bangladesh Garment Manufacturers and Exporters Association and the Good Fashion Fund have joined hands to collaborate in taking the apparel and textile industry of Bangladesh a step ahead in the area of environmental sustainability by financing sustainable practices and technologies.

BGMEA and GFF signed a Memorandum of Understanding (MoU) recently to support and strengthen the development and uptake of innovative sustainability solutions and particularly to improve environmental and social sustainability within factories in Bangladesh.

BGMEA President Faruque Hassan and GFF Fund Director Bob Assenberg signed the MoU at a virtual ceremony on behalf of their respective organizations.

BGMEA Directors Barrister Shehrin Salam Oishee and Md Mohiuddin Rubel were also present at the agreement signing ceremony.

As per agreement, Good Fashion Fund will provide long term loan in addition to technical and environmental and social expertise to the manufacturers to adopt sustainable production.

Good Fashion Fund launched in 2019 is initiated by Laudes Foundation and Fashion for Good and managed by Fund Manger FOUNT.

Through these joint efforts GFF aims to invest an amount up to USD 10 million in textile manufacturing companies in Bangladesh in the next two years and up to US$ 25 million at the target fund size, naturally subject to availability of funds.

The collaboration aims to provide manufacturers with access to finance and help them in building a restorative and regenerative apparel supply chain.

This means the use of recyclable and safe materials, clean and less energy, closed-loop manufacturing and the creation of fair jobs and growth.

BGMEA President Faruque Hassan said energy efficiency, renewable energy, carbon and water footprint reduction, circular economy have been the core areas of concern for BGMEA as long as sustainability and resilience is concerned.

"So our SMEs have to invest in eco-friendly technologies. We thank Good Fashion Fund for extending their support to the industry the collaboration of these two organizations can be prolific to enhance the sustainability standard of the SMEs.”

GFF Fund Director Bob Assenberg said: “We are very excited about partnering with BGMEA and our joined support to apparel manufacturers in Bangladesh to become more sustainable. We are committed to driving a positive change and good fashion practice in the apparel sector in Bangladesh and look forward to working with forward looking SME’s in the country.”

The vision for GFF is for manufacturers in the apparel supply chain to invest in innovations that deliver both economic growth and good fashion practice.