BGMEA green efforts win US accolade
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has been awarded the prestigious "USGBC Leadership Award" by the United States Green Building Council (USGBC) for its strides in making the local apparel industry eco-friendly.
"This is the first USGBC leadership award for any organisation in the world," said Faruque Hassan, president of the BGMEA, at a virtual press conference held from the association's office in Gulshan, Dhaka.
Bangladesh has the highest number of green garment factories in the world. Currently, there are 143 Leadership in Energy and Environmental Design (LEED) certified apparel manufacturers in the country.
Of them, 41 are platinum-rated, 89 gold-rated, and the rest are silver and only LEED-certified.
Another 500 garment factories are set to be certified by the USGBC, Hassan said.
Bangladesh is also home to nine of the top 10 LEED-certified buildings, indicating the country's progress in protecting the environment during its manufacturing process.
Global management consulting firm McKinsey & Company, in its latest report, lauded Bangladesh's garment sector as a frontrunner in ensuring transparency regarding factory safety and value-chain responsibility, said Hassan.
The report highlighted the sector's advancement in tackling the challenges standing in the way of growth, particularly in diversifying customers and products, improving supplier and workforce performance, and strengthening compliance and sustainability.
"It praises our manufacturers who are the frontrunners in entrepreneurship and strategic management, have made investments in productivity improvement, digitalisation, automation, and sustainability, and operate as per international best practices," he added.
More than 1,500 local companies are accredited by the Global Organic Textile Standard, the second-highest in any country.
As the leading export industry in Bangladesh, the garment sector has the responsibility to keep the wheel of the economy spinning.
"But while we do it, we cannot stay indifferent to the negative externalities of growth, especially when it comes to the environment," Hassan said.
According to the entrepreneur, one of the most scientific ways of keeping the balance of growth and sustainability is green factories.
Green factories attach the highest importance to energy use, water use, indoor environmental quality, material selection and its effects on the site.
These buildings have cleaner air circulation, more access to daylight, less pollution, harm-free chemical paints and finishing, which create a healthier working environment.
"The improved quality of environment not only reduces the prevalence of asthma and respiratory allergies but also encourages workers and boosts the retention rate and productivity," Hassan said.
The BGMEA has joined an initiative led by the Global Fashion Agenda to capture and reuse textile waste in Bangladesh and achieve a long-term, scalable transition to a circular fashion system.
It published its own "Sustainability Reporting" based on the guideline of the Global Reporting Initiative.
Forty-seven member factories have brought out Sustainability Development Goals (SDGs) reports in partnership with the SDGs coordinator of the Prime Minister's Office and the United Nations Development Programme.
The association regularly carries out policy advocacy to secure low-cost finance and tax benefits for green factories, which are entitled to a 2 per cent rebate on corporate tax.
"We believe the industry will be more encouraged, and the green transformation will speed up if the rebate on corporate tax is enhanced further," Hassan said.
Thanks to the advocacy of the BGMEA, the central bank has unveiled several low-cost finance schemes for green factories like the Green Transformation Fund and the Technology Upgradation Fund.
"These initiatives have helped factories to go for green investment. The factories can better avail these benefits if the stringent procedures can be simplified, and the financing policies become more investment-friendly," he added.
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