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RMG green practices a self-motivated marketing strategy: CPD study

Oct 4, 2023

| Star Business Report | The Daily Star

Self-motivation was the factor for 69.70 percent of the factory owners, found the study on securing green transition of the textile and garment sector in Bangladesh, revealed through a ceremony organised by the CPD at Amari Dhaka yesterday. Some 54.55 percent adopted those as a marketing strategy while 39.39 percent to gain market competitiveness.


The adoption of the practices accelerated after the Tazreen Fashion fire and Rana Plaza building collapse mainly to improve the country's image amidst criticisms from international communities over poor workplace safety and labour rights. Though not a requirement of international clothing retailers and brands, the shift had other perks such as savings on energy and water bills and better productivity and health of workers form working in improved workplace environments. However, the factory owners have been demanding premium prices from their trading partners, reasoning that clothes made through such practices are a big draw for conscious buyers and a few billion US dollars have already been invested for the purpose.


Bangladesh currently has 202 LEED-certified garment and textile industries, of which 73 are of a platinum level, 115 gold, 10 silver and four green. The Leadership in Energy and Environmental Design (LEED) certification is provided by United States Green Building Council. The LEED certification level depends on how much a project adhered to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.


Bangladesh is home to 13 of the world's 15 top-rated LEED certified green factories. Another 500 units are currently engaged in securing the certification. The green practices have some benefits such as worker health improvements and compliance to standards, but fair wages are also important and the brands have the rules to play for fair wage, said EU Ambassador to Bangladesh Charles Whiteley. The wage issue is now going through a pivotal moment as the Tk 8,000 minimum monthly salary of garment workers fixed five years ago is currently under review, he said.


The amount is not conducive to healthy living as people worldwide are struggling with rising living expenses, he added. "So, the onus is not only on the government, the onus is not only on the industry, but also the onus is also on the brands and buyers," said Whiteley. There are excellent examples of real engagements and partnerships, he said, citing one between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Swedish retail giant H&M on reducing carbon emissions by 30 percent by 2030.


Consumers in Europe also have to wake up at this difficult time and they need to pay more for garment items, he said. "Get the fair price in Europe, pay the workers well and be compliant," he said. It is tricky mix and not so easy, added Whiteley. Financing and trade benefits can be availed but Bangladesh must retain its competitiveness after the 2026 United Nations country status graduation and diversify exports, he said. Sharing the study findings, Muntaseer Kamal, a CPD research fellow, said 182 garment factories, 221 textile factories and 4,541 workers were surveyed. Small and medium enterprises have limited ability to adopt green technologies compared to the large ones, the study also said. Harmonised adoption of green practices is important as the requirements are different depending on the buyers, said CPD Executive Director Fahmida Khatun while moderating the seminar. Initiatives solely by the factory owners and the government are not enough as the workers and international communities should also be involved in adopting the shift, she said. Such studies could be conducted on other sectors, suggested Md Shahidullah Azim, a BGMEA vice-president. The greening initiatives are there in the government's eighth five-year plan, said State Minister for Planning Shamsul Alam. Dhaka is one of the world's dirtiest cities and it needs to be addressed through the initiatives, he said. Bangladesh will be a trillion-dollar economy by 2032, when 30 of the planned 100 special economic zones will go into operation, he said.



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