For sustainable RMG growth

Readymade garments sector continues to dominate the economy of Bangladesh with a contribution of about 85 per cent of total export earnings for the country. The slump during the Covid-19 pandemic and subsequent recovery attempts in recent months show how vibrant the sector is among all other business sectors. Being the major foreign currency earner for the country, the responsibility of its sustainability rests on the shoulders of all stakeholders and policy pundits.

Sustainability is the buzz word in the present time as it encompasses vast areas of life. According to experts, ‘sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social—also known informally as profits planet, and people. Increasingly, companies are making public commitments to sustainability through actions like reducing waste, investing in renewable energy, and supporting organisations that work toward a more sustainable future.’

Therefore, sustainability is a core area of concern for Bangladesh’s RMG industry which is striving to grow despite many internal and external adversities. Environmental sustainability is also a prime issue for the sector at the same time. However, it is encouraging to learn that Bangladesh has 148 LEED Green factories certified by the US Green Building Council (USGBC), of which 44 are Platinum rated and 91 are Gold rated. Moreover, 40 out of top 100 green factories of the world belong to Bangladesh while 500 more are in the process of getting certification. It proves the focused commitment of the industry in the area of environmental sustainability.

The issues of sustainable buildings, green building certification and green finance were discussed in a recent webinar organized by BGMEA. The webinar aimed to increase the awareness of Danish technical solutions for Green Building and Industrial Processes in Bangladesh. In this regard, experts said that in order to keep our industry competitive in the global market we have to adopt advanced sustainable technologies and initiatives. With regard to improving energy efficiency and reducing carbon footprint we have to welcome technologies such as advanced LED lamps, direct drive exhaust fan, building management system, solar PV, circular technology, water treatment and recycling, compressed air system, automation, etc.

Meanwhile, garment sector leaders recently said that the ready-made garment industry is increasingly focusing on garment items made from non-cotton fibre. This item can be supplied by local textile mills. It is indeed good news that the demand for local fabrics and yarn is rising in the ready-made garment industry of Bangladesh. Textile sector leaders commented if the closed mills are reopened, they will be able to supply the needed local yarn and fabrics to the readymade garment factories. This will also generate employment of the young unemployed population.

 There is no denying that the RMG sector is the heart and soul of our economy, being the biggest contributor to our gross domestic product (GDP). But the sector has seen some disturbing figures in the past years. The earning from RMG export in 2019-20 declined to 27.83 billion USD - an 18.45 percent decline compared to the previous fiscal year. The shutdown during the pandemic and the closure of seaports since early 2020, have been blamed for the decline. Bangladesh exported RMG products worth $34.13 billion in 2018-19 fiscal whereas in June 2021 the country earned only 2.12 billion USD from garment exports.

The sliding figure of GDP contribution is disconcerting news for our economy because this sector contributes 84 per cent of overall export earnings for Bangladesh. Experts point at the absence of new and innovative investments in the apparel sector as factory owners had to invest money to improve safety and environmental standards prescribed by the Accord and Alliance. Also, to bounce back, manufacturers will need to invest in research and development and on creating sustainable factories.   

The good news is factory owners are becoming more and more aware of the importance of the concept of sustainability and accordingly factories are going for sustainability through actions like reducing waste, investing in renewable energy, and supporting organizations that work toward a more sustainable future.