Promoting eco-friendly production

processes as branding tools in the

RMG sector in Bangladesh
 UNITED INTERNATIONAL UNIVERSITY

Project report
On
Promoting eco-friendly production process as branding tools
in the RMG sector in Bangladesh

A Project Report Submitted to the School of Business and Economics in Partial Fulfillment of
the Requirements for the Degree of Bachelor of Business Administration.

Submitted to
Muhammad Rehan Masoom
Asst. Professor
School of Business Economics

Submitted by
Nowshin Naina
ID: 111 151 237
Major in Marketing

Date of Submission: 30th January, 2020

 Letter of transmittal

30th January, 2020

Muhammad Rehan Masoom

Asst. Professor
School of Business Economics
United International University

Subject: Submission of projects on “Promoting eco-friendly production process as

branding tools in the RMG sector in Bangladesh”

Dear Sir,

I am very happy to state that projects on “Promoting eco-friendly production process as branding
tools in the RMG sector in Bangladesh ”asked by you to prepare is completed and ready for your
viewing. I am glad to submit it as part of completion of the requirement for project course with
you.

I have tried my best to put up a good report with as must information as I could gather during the
short time span allotted for writing this paper. I am begging pardon for any kind of mistake.

Thank you, for your kind support and help throughout the course.

I shall be highly encouraged if you are kind enough to receive this report.

Sincerely,
Nowshin Naina
111 151 237
Bachelor of Business Administration
United International University

i
 Acknowledgement

First of all, I would take the opportunity to express my heartfelt gratitude to Allah for
making me accomplish the project within the designated time. This project is a part of my
academic course.

This is high time we express our cordial thanks to our honorable course instructor
Muhammad Rehan Masoom (Lecturer, School of Business and Economics, United International
University) for assigning such an effective task. Without co-operation and the support from him,
it would not be possible to prepare a resourceful paper. I am thankful to him for all the times I
consulted him and for being constantly patient in guiding us throughout the whole term paper.
This has enabled me to make a comparison between theoretical knowledge and practical
applications of it. Finally, thanks to everyone who was putting their efforts into completion of
the task.

ii
Contents
Executive Summary ........................................................................................................................ 3
Chapter-01....................................................................................................................................... 5
Introduction ................................................................................................................................. 5
1.1 Background of the Report: .................................................................................................... 5
1.2 Objective of the Report: ........................................................................................................ 5
1.3 Limitation of Report: ............................................................................................................ 5
1.4 Sources and Methods of collecting Data: ............................................................................. 6
Chapter -02...................................................................................................................................... 8
2.1 Eco-friendly solutions or green production process: ............................................................ 9
2.1.1 Resources efficiency .................................................................................................... 10
2.1.2 Emission reduction....................................................................................................... 11
2.1.3 Available technological and institutional policy: ........................................................ 11
2.1.4 Improving management systems: ................................................................................ 13
2.2 Safety Standard Eco-Friendly Framework for RMG sector ............................................... 14
2.3 Eco-friendly production process creates effective positioning strategy: ............................ 15
2.4 Advantage of Eco-friendly solution in production process: ............................................... 16
Chapter -03.................................................................................................................................... 18
Industry review: ........................................................................................................................ 18
3.1 Contribution of RMG Sector in the Economy: ................................................................... 18
3.2 Environmental scenario of textile industries in Bangladesh: .............................................. 21
3.3 Crisis of RMG industry in Bangladesh: .............................................................................. 22
Impact of Eco-friendly production process on Bangladesh RMG industryError! Bookmark
not defined.
Chapter -04.................................................................................................................................... 26
4.1 Impact of Eco-friendly production process on Bangladesh RMG industry ........................ 26
4.1.1 Branding to capture customer attention: ...................................................................... 26
4.1.2 Increasing competitiveness: ......................................................................................... 26
4.1.3 Cope with the Global trend Patterns: ........................................................................... 27
4.1.4 Establish positive image: ............................................................................................. 27
4.1.5 Utilize business opportunity: ....................................................................................... 28
 4.1.6 Establishing supplier‟s rights in international market: ................................................ 28
4.1.7 Turning international buyer into investor: ................................................................... 29
4.1.8 Protecting the Environment industrial revolution ........................................................ 30
4.1.9 Engagement of global brands with Bangladesh for Eco-conscious production process:
............................................................................................................................................... 30
4.2 Eco-friendly practice in RMG industry in Bangladesh....................................................... 32
4.2.1 Environmental sustainability law for RMG industry in Bangladesh: .......................... 32
4.2.2 Environmental friendly policy in all production stages in RMG sector: ..................... 33
4.2.3 Eco-friendly process promoter organization in RMG sector in Bangladesh: .............. 35
4.3 Eco-friendly Green infrastructure in RMG Factories in Bangladesh: ................................ 38
4.3.1 Green building of Bangladesh‟s readymade garment (RMG) factories: ..................... 38
4.3.2 Progress of safety inspection program in Bangladesh: ................................................ 40
4.3.3 Workers‟ development under eco-friendly solution in Bangladesh: ........................... 42
4.3.4 Remediation progress in Bangladesh: .......................................................................... 44
4.3.5 The growth of LEED-certified green factories in Bangladesh: ................................... 47
4.4 Target of Green industrialization: ....................................................................................... 48
4.5 Challenge of promoting eco-friendly solutions in Bangladesh: ......................................... 49
Chapter -05.................................................................................................................................... 51
Conclusion ................................................................................................................................ 52
Bibliography…………………………………………………………………………………..53

ii
 Executive Summary

Bangladesh's garment industry has to progress towards a green revolution in the RMG industry,
which has already lead the world. RMG sector should make every manufacturing unit
environment friendly.

Bangladesh's apparel industry has also seen the most analysis from global markets. After past
incidents such as the Rana Plaza collapse created waves everywhere in the world market to drive
reform for granting safer work environments and wages for its workers. The disorganized
management of textile industrial wastes contaminate of resources such as water, air, land etc. In
most cases of industrial production, the apparel manufacturers never imagine the cost of
resources they are using to manufacture their products.

At each step of completion of plans, the motive of workers, managers, owners and buyers/brands
is very significant. In Bangladesh, industries‟ energy use has decreased precisely but the progress
is not so notable due to some obstacles. We cannot stop producing, but we can produce more
consciously. Only proper use of resources increases the productivity and profitability as well as
creates a positive brand image in the global market for Bangladesh's garments industry.
Chapter -01
Introduction

 Background of the Report

 Objective of the Report
 Limitation of the Report
 Sources and Methods of collecting Data
5

Chapter-01
Introduction

1.1 Background of the Report:

Project course is an integral part of the BBA program. With a view to develop skilled
professionals in Marketing after completion of the course, a student must submit the report on
the assigned topic to the Supervisor and Department. The program is three months duration. I
choose “Promoting eco-friendly production process as branding tools in the RMG sector in
Bangladesh” as a topic to complete the project. In this report, I have also focus on marketing
application of eco-friendly production process as a competitive advantage in RMG sector of
Bangladesh

1.2 Objective of the Report:

1.2.1 Broad objective:

To know the Marketing Practices of eco-friendly production strategy in RMG industry of

Bangladesh. The report is showing that how to differentiate RMG sector by using eco-friendly
production strategy and potentiality of eco-practice in Bangladesh RMG sector.

1.2.2 Specific Objectives:

 To study the Eco-manufacturing process methods used in RMG factories in Bangladesh.

 To coordinate between the theories of Eco-friendly production strategy and Eco-branding
a real life Situation.
 Delineate the different stages in Eco-friendly production process and describe each step.
 To assess and evaluate the existing Eco-branding strategies of Bangladesh in RMG
industry.
 To measure practice and potentiality of Eco-friendly production process in Bangladesh
RMG industry.

1.3 Limitation of Report:

I have faced many limitations for preparing this report. In spite of wholehearted effort was
applied to complete the report and to bring a reliable and fruitful result, there exits some
limitations, which acted as barrier. The limitations were:

 Information is not available enough in our hand and Internet.

 I cannot cover all the topics of the study in this project.
6

 As because RMG sector of Bangladesh is a large, it is very difficult to understand each

and every aspect of its operation within a very short period of time.
 Enough data is not available.

But, I tried to cover the topic as much as possible in this project.

1.4 Sources and Methods of collecting Data:

1.4.1 Sources of collecting Data:

The report has been prepared by the help of both primary and secondary data. I collected primary
data from Primary Sources and secondary data from Secondary sources.

i. Primary Sources:

I have collected primary data by Bangladesh Garments Manufacturers and Exporters

Association.

ii. Secondary sources:

Secondary data are collected from Internet, different published articles, books, prospectus,
journals, other publications and written information about RMG industry of Bangladesh.

1.4.2 Methods of collecting Data:

I have collected primary data by Personal observation of the process. I visit various web sites for
collecting data from secondary sources. The secondary data has been collected from their annual
reports and from web sites.
Chapter -02

2.1 Eco-friendly solutions or green production process

2.2 Safety Standard Eco-Friendly Framework for RMG sector

2.3 Eco-friendly production process creates effective positioning

strategy
2.4 Advantage of Eco-friendly solution in production process
8

Chapter -02

Eco-friendly product is the most developed fashion trends as required by consumers. According
to sustainability philosophy, readymade manufacturing companies ensure applying scientific and
technological policies in each stage of the production cycle. Standard strategic purposes of an
organization are correlated to the achievement of predefined values in the area of sales or a
market share. Their achievement is dependent on achieving loyal consumer preferences and
competitive advantage. Implementing conventional marketing activities does not have the
desired outcome; the organization has been forced to seek new ways to attain its goals. One of
those techniques is the application of green marketing or promoting eco-friendly production
processes that are related to social-responsible-behavior concepts. This approach is creating a
significant competitive advantage for the company with a society-wide benefit. This kind of
holistic development approach will ensure not only the improvement of social and environmental
standards in the workplace but also will support the core business function such as production,
merchandising, sales and procurement. Eco-branding or Green marketing is related to -

 Worker
 Workplace
 Work Method

Green marketing is the process of planning, executing and controlling price developments,
promotion and distribution of the product and other marketing activities together fulfill all
principles to satisfying the demands of the customer which is accomplishing targets of a
company and compatibility of the whole process with the ecosystem. We could satisfy for the
first time in the eighties of the 20th century with the concept of green marketing

Sustainable
chemicals &
enveronmental
management Sustainability
Safety reporting &
management management
tools

compliance
Sustainability
Sutainable use (social &
management
of resource materials )
system
management
9

Eco-branding is an instrument of green business and marketing which enables corporations

around the world to comply with specified environmental performance criteria or standards and
consumers to adopt socially responsible practices to ensure equitable and sustainable utilization
of the natural resource. In Marketing Conceptions, Promoting eco-friendly production process or
Green Marketing used as Position strategy that aimed the implementation of a marketing
programs at an environmentally conscious segment of the market to recognizes among organic
(target to reducing harmful products on the market), environmental (responds to demand by
applying environmental marketing as a competitive advantage) and sustainable marketing (target
to covering all the environmental influences of production and consumption of the product). All
these types are included in the concept of green marketing.

2.1 Eco-friendly solutions or green production process:

Eco-friendly solutions or green production process is a set of sustainable management

practices that contribute to green living and assist preserve resources for maintaining
safety standard in the production process.

Resouce
efficiency

Emission
reduction

Green
techonology
& policy
Improving
management
practies

Considering today‟s business is all about “Go Green”, a company must apply sustainable and
environmentally friendly practices. Establishing a “green building” in the manufacturing firm is
considered one of the crucial parts of the “Going Green” approach.

It designed in such a way that combines a lot of traits in terms of making efficient use of sources,
especially water and energy, maintaining stronger protections against emissions, the use of
renewable energy in the manufacturing process, protecting human and social rights, minimizing
10

the negative effect on the environment etc. Marketers can ensure the customer that final products
are not hazardous to the ecosystem under this approach.

Eco-friendly strategies cannot be an add-on to business as usual; they need to be integrated with
a company‟s core business activities. However, green industrial growth sustainably utilizes
natural resources by taking into consideration of its inadequacy while ensuring a positive impact
on the environment and thus trying to create the world a better and livable place in opposition to
conventional growth.

2.1.1 Resources efficiency

Resources are very valuable like water, energy, material, etc which is an influence on the
production process. Production costs will be high if natural resources are not used effectively.
Eco-friendly practices enhance the efficiency of natural resources as well as improve
productivity. The eco-friendly production process is designed in such a way efficient human
resource, modern technology effective methods ensure proper use of raw materials, energy, and
water which consume less cost and time to more produce. It reduces scarcity of resources as well
as saves money in the production process. Because more production reduces production costs;
the marketer can differentiate the business and protect environmental and stakeholder rights by
using Eco-friendly solutions. Most factories have developed saving capabilities in electricity gas
and water usage. Install solar panels, use sustainable raw materials, and train up workers etc are
also included resource efficiency activities.

• Reducing energy
Energy usage
Resources efficiency • Maximize alternative
efficiency energy resources

• Reducing water
Water usage
efficiency • Maximize alternative
water supply

• Optimizing material
Material flow & usage
efficiency • Manage inventory &
procurement
11

2.1.2 Emission reduction

Executing Eco-friendly strategy reduce greenhouse gas emission and pollution of air, land, and
water that save money, enhance productivity, preserve the environment and ensure the nation‟s
energy requirement. There are many techniques to decrease the pace of greenhouse gas emission
in producing environmentally sustainable products.

Below steps require for emission reduction:

1. Handle environmental flow

2. Implement apply waste management hierarchy
3. Reduce, Reuse, Recycle (3R)dyes chemicals and energy
4. Prevent ground water and land contaminations
5. Renewable energy
6. Reduce carbon emission in manufacturing process.

2.1.3 Available technological and institutional policy:

Technological & institutional

policy Corrective
Action Plans
(CAP)

Cleaner
Production
(CP)

I. Cleaner Production (CP):

Cleaner Production (CP) is an integrated method that concentrates on thus minimizing waste,
pollution at the source and maximize outcome. „„Standpoints of going Clean &
Green‟‟ Apparel makers should follow an environmentally friendly production process as part of
their daily operation. Recently, the concept of Cleaner Production has quickly developed across
different vital markets in the area and with outstanding results. “Cleaner Production (CP)”
methods are redesigning products and processes over the industry by diminishing harmful and
persistent wastes at the same time also helps waste minimization to promote a more sustainable
12

society. The CP method does not only improve output, competitiveness but also decreases input
costs. The implementation of CP is costly but it contributes in long terms. Cleaner production
options are:

 Documentation of waste on basic analysis of material and energy flows

 Use of indicators and controlling to identify losses from weak planning, inadequate
education, and training, errors.
 Use of renewable resource.
 Development of useful life of machine and process liquids by avoiding drag in, drag-out,
pollution.
 Enhanced new, moderate waste processes and technologies.
 Reuse of internal or external waste.

Cleaner
Production
(CP)

Common and
Sewage Combined Effluent
Treatment Effluent Treatment
Plants (STP) Treatment Plants Plant (ETP)
(CETP)

Effluent Treatment Plants (ETP): to become a market Leader companies must apply Effluent
Treatment Plants (ETPs) such as evaporation and drying methods, centrifuging, filtration,
incineration for chemical processing and effluent treatment to filter water and discharge any
toxic and non-toxic substances or chemicals from it for environment protection. The first step to
greater compliance is to maintain a functioning Effluent Treatment Plant (ETP). It adapts to
different industries in 130 countries around the world. Companies convert organics to modify
production processes by using ecologically friendly.

Sewage Treatment Plants (STP): Most of the factories apply Sewage treatment as a wastewater
treatment or biological process to discharge contaminants from wastewater and sewage. Sewage
Treatment Plants are protected resources and reduce emissions.

Common and Combined Effluent Treatment Plants (CETP): CETP‟s are installed up in the
polluting industrial zone before disposal whether it is in-stream, land, sewerage system or in
rivers and seas.
13

Corrective action process (CAP):

The corrective action process is a crucial process that influences all of the instrument points in a
company's management system. Corrective action process covering remediation, inspection,
structural (Detailed) Engineering Assessment (D/EA), Improve management systems for
securing safety in all workplaces and Safety culture, safety education, training etc for the worker
with proper investment in awareness. Readymade garment factory upgrades safety conditions by
using CAP. Following remediation, items measure common Values Fulfillment in the inspection
factory:

• Removal of lockable & collapsible gates

Fire items • Adequate egress lighting in fire exits
• Installation of fire detection & alarm system
• Installation of fire suppression system.

• Overall adequate cables and wiring

Electrical items • Lightning Protection System (LPS)
• Single Line Diagram (SLD)

• Management load plan

Structural items • As-built plan & drawings accepted by
Engineering Assessment

2.1.4 Improving management systems:

An efficient environmental management system, improve auditing and environmental monitoring

performance and compliance with environmental systems are necessary to enhance management
practices. On the other hand, for sustainability enhancement below things are needed:

 Taking environment-friendly decision

 Complete industrial clustering and resource pooling
 Ensuring the implementation of new, less polluting technologies
 Execute, modify and improve production policy and make it eco-friendly.
 Recognize, improve and execute business matters for sustainability growth.
14

2.2 Safety Standard Eco-Friendly Framework for RMG sector

A set of initiatives in term of making green the RMG sector continue to turn its production
process and export growth into green. It can design the following way:

Installing green building

Using eco-friendly technologies & policy

Cleaner Production methods Corrective action plan

plant
Installing ETP, STP, CETP Using LPS, SLD, D/EA
Harvesting rainwater
Remediation program
Biological
enzymatic solutions Fire detection &
suppression system
Using T5 & LED
light Inspection
Install solar program
power plant
Safety
Reduce, training
Reuse, program
Recycle dyes
& chemicals

Resources
Emission Improving management practices efficiency
reduction
Implementing eco-treatment
Ensure Safety culture & education

Ensure work environment safety

Sustainability reporting etc

assessment
15

2.3 Eco-friendly production process creates effective positioning strategy:

Brands‟ conscious - consumers are not only looking for the quality and price of the products, but
they are also concerned about the rights of people and the environment in the entire supply chain.
The eco-friendly production process creates efficiency in production, distributing, sales and
promoting, investing and procurement for effective positioning. The eco-friendly production
plans improve social standards, environmental standards and production capability with world-
class quality which are involved with workers, workplaces, and work method sustainability.

Improving social and environmental standards contribute directly to business efficiency for both
customers and industries. For industries, improving social and environmental standards are
doubled production capacity with world-class quality. As a result, the quality product would be
available to buyers with an efficient price on time.

Eco-friendly solution develops Workplace by establishing sound infrastructure, skill manpower

by applying engineering tools and techniques that would also facilitate work method
development. Fixing the workplace for maximum production, safety and security must be
performed together to enhance market access, market diversification, access to finance at
competitive interest rates and sustainability.

Eco-friendly solution improves work method such as production process, HR processes,

procuring process, wastes disposal process, industrial relationship process to achieve efficiency.
It decreases the length of the work process as well as the cost of the final product.

Workers‟ development plan is the most important part of Eco-friendly production processes to
raise the factory's capacity, social and environmental standards of factories. Eco-friendly
manufacturing process Update social standards such as compensation, working hours,
implementation of building and fire safety measures etc to create a sustainable culture for
stakeholders as well as business efficiency. All sections of personnel from management and
workers on those processes should be trained up to double their skills and speed, efficiency.

The total impact of updating this production process would be a higher incentive of workers, less
overtime, absenteeism and turnover. All these together ensure them the highest profit to stay in
business after meeting their operating expenses and social and legal obligations. Implementing
and Maintaining the whole process is the responsibility of both garment factories and brands.
Implementation of the whole green production process creates a unique brand image as well as
the attractiveness of product to customer.
16

2.4 Advantage of Eco-friendly solution in production process:

 Increase profitability.  Reduce cost of inputs.

 Increase efficiency of natural resource.  Reduce operating cost.

 Improve productivity.  Decrease emissions.

 Increase ability to gain an improved  Reducing individual carbon footprint.

image.

 From the standpoint of the factories.  Reduce risk in natural disaster.

 Facilitate better market access in the  Lessening some of the intense pressure on
future. RMG factories from the buyer,
community and government.

 Promote a better working environment.  Attracting investor in international market

Chapter -03
Industry review:

3.1 Contribution of RMG Sector in the Economy

3.2 Environmental scenario of textile industries in Bangladesh
3.3 Crisis of RMG industry in Bangladesh
18

Chapter -03
Industry review:

Bangladesh has become the serious victim of global climate change with 0.3 tons per person per
year carbon dioxide emission. Despite the carbon dioxide emission of Bangladesh is lower than
the average emission of 1.6 tons a year by other developing countries; the amount is cross the
limit of carbon dioxide emission. Unfortunately, our country continues to pay a heavy price
concerning lives and property loss for faults committed by developed countries.

Globally, the production process of the textile industry is generating heavy pressure on the
environment which is initiating new opportunities in sustainable textile production. Consumers
and brands get high-quality, sustainable fabrics that are quickly gaining in popularity. At the time
of rising environmental damage and intensifying attempts to turn this negative situation, more
and more corporations are continually concentrating on the implementation of eco-marketing as
one of the forms of socially responsible business. The top international exchange earner of the
garments industry has been moved to own projects to grow sustainability formed into the sector.

Due to a few troubles, the whole RMG sector of Bangladesh is getting a bad name, which turns
to the risk of losing the market. Foreign purchasers and consumers of Bangladesh are observing
us as to what steps we take to holding our position in the international market.

3.1 Contribution of RMG Sector in the Economy:

Bangladesh‟s textile industries are performing a vital role in Bangladesh‟s economy for a long
time which contains a mix of small to large-scale privately and publicly owned firms. The
private sector is the fastest-growing sector in the country.

In the 1970s, the RMG sector is a small non-traditional sector of exportation. At that time there
were only nine exporting garments manufacturers in the country. The three largest industries in
that time were Riaz Garments, Jewel Garments, and Paris Garments. In 1979, several garments
factories were established such as “Daiyuu, Style craft Limited, Aristocraft Limited, Azim
Group, and Sunman Group. Since then, the RMG sector of Bangladesh has been expanding day
by day through various crucial stages.

At present, according to private statistics, more than 5,000 garment factories are in Bangladesh.
But BGMEA statistics recorded that the number of garment factories in Bangladesh is more than
4000. Now, the RMG sector is the country‟s largest export earner.
19

Contribution of RMG sector of Bangladesh:

Year Number Of Comparative Statement On Export of RMG
Garment Total Export of Bangladesh
Factories
Export of RMG Total Export of % of RMG‟s to
(In Million US$) Bangladesh Total Export
(In Million US$)
1984-85 384 116.2 934.43 12.44
1985-86 594 131.48 819.21 16.05
1986-87 629 298.67 1076.61 27.74
1987-88 685 433.92 1231.2 35.24
1988-89 725 471.09 1291.56 36.47
1989-90 759 624.16 1923.70 32.45
1990-91 834 866.82 1717.55 50.47
1991-92 1163 1182.57 1993.90 59.31
1992-93 1537 1445.02 2382.89 60.64
1993-94 1839 1555.79 2533.90 61.40
1994-95 2182 2228.35 3472.56 64.17
1995-96 2353 2547.13 3882.42 65.61
1996-97 2503 3001.25 4418.28 67.93
1997-98 2726 3781.94 5161.20 73.28
1998-99 2963 4019.98 5312.86 75.67
1999-00 3200 4349.41 5752.20 75.61
2000-01 3480 4859.83 6467.30 75.14
2001-02 3618 4583.75 5986.09 76.57
2002-03 3760 4912.09 6548.44 75.01
2003-04 3957 5686.09 7602.99 74.79
2004-05 4107 6417.67 8654.52 74.15
2005-06 4220 7900.80 10526.16 75.06
2006-07 4490 9211.23 12177.86 75.64
2007-08 4743 10699.80 14110.80 75.83
2008-09 4925 12347.77 15565.19 79.33
2009-10 5063 12496.72 16204.65 77.12
2010-11 5150 17914.46 22924.38 78.15
2011-12 5400 19089.73 24301.90 78.55
2012-13 5876 21515.73 27027.36 79.61
2013-14 4222 24491.88 30186.62 81.13
2014-15 4296 25491.40 31208.94 81.68
2015-16 4328 28094.16 34257.18 82.01
2016-17 4482 28149.84 34655.90 81.23
2017-18 4560 30614.76 36668.17 83.49
2018-19 4621 34133.27 40535.04 84.21
20

3.1.1 Growth of RMG sector of Bangladesh:

Bangladesh Ready-Made Garments (RMG) industry is based on B2B relationships. This sector
distinctively contributes to the Bangladesh economy. The production of RMG dominates in
contribution to Bangladesh‟s GDP and exportation development. Bangladesh has gained third
position in apparel manufacturing the leading ranking in South Asia. The main importer of RMG
products from Bangladesh is the USA and Europe. The USA is the largest importer of
Bangladeshi RMG products. Bangladesh earned $6.13 billion, up by 14.60% from the USA
by exporting apparel goods. Bangladesh garment product exports worth $18 billion per year to
the United States, Germany, UK, France, Canada and European Union (EU) countries. Some
other countries also have a contribution to the total RMG export of Bangladesh. Bangladesh is in
the second position in the global market with a market share of 6.4 percent. Though the total
export target was not achieved, garments still played the leading role in exports and maintained
competent growth. In the recently concluded financial year, the contribution of the RMG sector
to the total export was 83.49% or 5 percent to the total national income.

Market growth of RMG sctor in global market

86
84
% of growth of RMG sector

82
80
78
76
74
72
70
68

The sector witnessed exceptional growth in the last 35 years and also converted the largest
exporting industry in Bangladesh. It has achieved a high profile in terms of foreign exchange
earnings, exports, industrialization, and contribution to GDP within a short period.

The industry performs a notable role in terms of employment and income generation of millions
of people. Total employment in RMG factories is about 4 million, mostly women. Currently, the
textile industry in Bangladesh estimates 45 percent of all industrial jobs. Previously, the
21

domestic market was reliant upon imported goods; now the local industry meets over 90 percent
of domestic demand for ready-made garments Growth of RMG sector.
Bangladesh has created a whole new set of linkage industries and facilitated the extension of
many service sector activities of the country. All the readymade garments of Bangladesh are
categorized into two general sections namely woven products (shirts, pants, and trousers) and
knitted products (T-Shirts, polo shirts,
undergarments, socks, stockings, and
sweaters). Woven garments still
dominate the export income of the
country. According to the BGMEA
report, knitted items production is
growing at a considerable rate day by
day and present. About 40% portion of
the export earnings of Bangladesh come
from knitted products. Bangladesh‟s
RMG industry is dominated other
competitors in the global market with 95
percent of the woven and 90 percent of
the knit Over the last 35 years (from
1983-84 to 2017-18), CAGR of RMG
export was 21.71% where CAGR of
export was 11.50%.

3.2 Environmental scenario of textile industries in Bangladesh:

The garment industry is facing three major challenges-

 Weak factory structure

 Workplace safety
 Environmental issues.

Most industries are located in Dhaka, Savar, Gazipur, and Narayanganj. About 33 percent of the
textiles industry is in the North Central (NC) region. Most of these industrial units are located
along the banks of the rivers, which facilitated transportation for incoming raw materials and
outgoing finished products. Unfortunately, manufacturing units drain effluents directly into the
rivers without any consideration of the environment. The reason is simple; being located so close
to a water body, industries do not worry about what they are producing and discharging in the
water bodies and nearby areas.
22

Major Industrial Area Number of garment Most polluted river

factories
Dhaka Approximately 963 Buriganga, Dhaleshwari,
Sitalakhya
Gazipur 224 Sitalakhya, Turag
Narayanganj Approximately 488 Buriganga, Dhaleshwari
Savar more than 85 Bangshi.
Tongi 29 Turag
Fatulla, Panchabatee, 71 Shitalakkhya, old Brahmaputra
Kachpur, Rupashi, Tarabo,
Hotabo, Sonargaon,
Araihazar, Rupganj and
Gopaldee

The Bangladesh Center for Advanced Studies (BCAS), analyzed that EC of Shitalakkhya River
crosses the limit, it rises up to 1440 mg/l during 1998 and TDS rises 216 to 446 mg/l for
extensive industrialization and improper agricultural activities. The concentrations of zinc, lead,
and cadmium were also found to be higher than the national standards (BCAS, 2000). Although
there is a field for efficiency growth by using eco-friendly technologies, the problem is getting
funds for garment factories.

3.3 Crisis of RMG industry in Bangladesh:

RMG industry is progressing as the country‟s largest exporter; it has many things to do but
sustainable and environmentally friendly ways. Despite the significant economic contribution of
the textile industries in Bangladesh, RMG industry is suffering from several industrial accidents
for lack of sustainable management practices such as lack of professional expertise, shortage of
knowledge and green technology, poor data management at the factory level, lack of branding
and strong support from brands and clients etc according to the US Green Building Council
(USGBC) guideline.

The Tazrin Fashion fire and Rana Plaza collapse are the two most shocking industrial accidents
in the history of Bangladesh. The Tazrin Fashion fire (2012) was caught the biggest fire in
Ashulia which is part of the Tuba Group. It‟s major exporter the U.S., Germany, France, Italy
and Netherlands. Tazreen Fashion factory manufactured for Marins (US), C&A (Dutch), the
Walmart (America) and Li & Fung (Hong Kong). At least 117 people were confirmed dead in
the fire, and over 200 were injured, making it the deadliest factory fire in the nation's history. On
27 November, Walmart America terminated its contact with the Tuba Company without its
knowledge.

Just a year later, the Rana Plaza tragedy took over 1,100 lives. We lost some of the major clients
after Tazreen and Rana Plaza tragedy. Its include Walmart, Carrefour and IKEA. As a result,
our market share drops that makes it challenging to hold our position in the international market.
23

List of Garment Factory Accidents in Bangladesh: 2013 to 2017

Location Factories Cause of Accident Death Injured

2017
Munshiganj Ideal Textile Mills Sparks from welding 6 0
combine with
Chemical stored nearby
Narayanganj Plummy Fashions Ltd. Short circuit 1 0

Gazipur Hope Lane Garments Coil 0 2

Multifabs Ltd. Boiler expired 13 50
Chittagong Uni Garment Unknown, stampede 0 15
Pacific Jeans Group Short circuit, stampede 0 35
Karnaphuli Knitting, Spark from welding and 0 0
Siddique Knitting Fashion Park fire retardant 2 0
International Ltd. foam generated thick smoke
Savar Medlar Apparels Ltd. Unknown 0 0
Pakiza Knit Composite Ltd. 0 21
Anlima Textiles Machine caught fire, 0 15
stampede
Rupganj Nawab Spinning Mill Gas leak 8 0
2016
Dhaka Alipara , Style Garments Short circuit 0 6
Narsingdi Mom Tex Short circuit, flammable subs 3 5
tances accelerated
Narayanganj Vibjiur Knit Composite, Short circuit 0 0
Sinha Garments Tokyo Plaza‐2
Amin Dyeing Gas leak 0 5
Savar Al Muslim Group Earthquake 0 50
Gazipur Bikon Knitwears Short circuit 0 55
Matrix Sweaters Ltd. 0 5
TEMPAC Boiler explosion 15 72
Confidence Knitwear Unknown 0 2
Tanaz Fashions Ltd. 0 10
2015
Savar Al Muslim Group Short circuit 0 20
Next Collection Ltd. 0 30
Supreme Jute and Knitex Ltd. Machine caught fire 4 0
Hoore‐Shams Composite Textie
Mills Ltd.
Gazipur Deco Accessories Ltd. Unknown 5 0
Agami Washing Ltd. Gas leak 3 6
24

Kader Synthetic and Compact Short circuit 0 2

Spinning Mill
2014
Dhaka Mayer Doha Short circuit 1 3
ZA Sweater Factory 0 4
Green Leaf Appear 1 0
Savar Anlima Textiles Unknown 0 5
Syntax Industries Ltd. Machine explosion 0 2
Ashulia Amina Exports Wear Ltd. Sparks from welding 10 0
Gazipur Ishrak Spinning Mill Leakage in gas cylinder 3 0
Mega Yarn Dyeing Mills Ltd. Unknown 1 5
S.S. Sweater Ltd. 0 10
M.M. Garment Ltd. 0 0
G.M. ESTABLISHMENT Ltd. 10 3
2013
Dhaka Smart Export Garment Ltd. Short circuit 7 15
Binni Garments Ltd. 0 0
Sicily Garments Unknown 0 3
Narayanganj Abonti Colour Text, Unit 2, Short circuit 0 50
a sister org. of the Crony Group 0 10
Abdullah Spinning Mille
Pabna Nakano International Co. Ltd. 0 7
Savar JK Group factory Unknown 0 10
(Rana Plaza) Building collapse 1,134 2,500
New Wave Bottoms, Ether Tex Substandard construction
New Wave Ltd., Phantom materials that could not withs
Tac, Phantom Apparels Ltd. tand the weight of heavy mac
hinery, built on swampland
Ashulia Mondol Group‟s garment Unknown, stampede 0 15
Aman Spinning Mills Ltd Unknown 0 25
Arba Textile Ltd. 0 10
Gazipur Riyad Dying Unknown, stampede 0 15
Aswad Composite Mills Suspected chemical (dyes) 10 50
Starlight Sweaters Contaminated drinking water 0 600
(suspected purposeful
poisoning)

The repetition of industrial accidents indicates that the situation could be alarming for our RMG
industry. Bangladesh RMG industry is accused of the absence of implementation of
sustainability issues by experts and buyers in the factories. Nowadays, apparel customers are
focusing on the eco-friendly way of production. If we want to reduce the industrial accident in
the readymade manufacturing sector, we should have promoted the eco-friendly solution in the
RMG sector as soon as possible.
Chapter -04

4.1 Impact of Eco-friendly production process on Bangladesh

RMG industry
4.2 Eco-friendly practice in RMG industry in Bangladesh
4.3 Eco-friendly Green infrastructure in RMG Factories in
Bangladesh
4.4 Target of Green industrialization
4.5 Challenge of promoting eco-friendly solutions in Bangladesh
26

Chapter -04
4.1 Impact of Eco-friendly production process on Bangladesh RMG industry

4.1.1 Branding to capture customer attention:

Several available studies, articles, and surveys have disclosed the fact that A green seal or
certification on products, or with the business logo, will ensure consumers with instant
recognition of brands as „eco-friendly‟. Buyers purchasing decisions are considerably affected by
environmental safety which is increases sales and pulls potential affiliates to business. With the
requirement of the buyers, the government and the community, numerous garment factory
owners of Bangladesh are starting to realize to execute their business eco-friendly, these steps
are must fulfill. Bangladesh RMG sector is already market toper in competition. Now, it is the
high time to differentiate of Bangladesh RMG industry in international apparel market.

4.1.2 Increasing competitiveness:

Bangladesh RMG industry has a top position in the global market with competitiveness on
quantity, lead time, quality and price. But recently, the RMG industry of Bangladesh is passing
many competitiveness difficulties such as product diversification, image crisis, technological
advancement, innovation and value addition to holding the position in the international apparel
market. Bangladesh has to compete with competitor countries to accommodate logistic to drive
efficiency. Many companies are going to value addition, adopting green technology and
emerging green factories for product diversification and image differentiation among suppliers
country.
27

4.1.3 Cope with the Global trend Patterns:

An essential move in beating competitor countries will be increasing the ease of doing business
in the country, where Bangladesh rated 177th out of 190 countries. If Bangladesh creates its
brand image as a green industry in the global garments manufacturing industry, the country‟s
exportation will view more increase in earnings. According to an article in Forbes, the apparel
industry with the international market size of $3 trillion is yearly responsible for 10 % of carbon
discharge and the second-largest polluting industry just after the oil industry. Environment
conscious consumers are
ready to pay more for green
apparel clothing which drives
top global leading fashion
players such as H&M, Hugo
Boss and Levi's to rebuild
their image as a '' Green
apparel Brand '' with
innovative green fashion
concepts. Nowadays, retailer
apparel firms are more
interested in buy textile and
apparel goods in a sustainable
or eco-friendly which is
responsible for a new shape to the trend of global clothes production in recent years. Brands are
increasingly shifting to digital terms from conventional brick-and-mortar shops, reshaping
storage and retail processes for requires speedy and cheap production. As a result, trends and
patterns in global demand affect Bangladesh directly. Bangladesh garments sector is extending
its production on the one hand and reducing its production-related environmentally detrimental
impacts on the other hand. Otherwise, the shifting pattern of global trends can be the greatest
potential threat to Bangladesh‟s RMG sector.

4.1.4 Establish positive image:

Bangladesh's apparel industry is under pressure to build a positive image and overcome the
image crisis. Bangladesh RMG industry has some image crises in international markets after
Rana Plaza incident. However, the owners of garment factories have taken initiatives to create a
positive image such as reformed their factories, ensure safety for workers in the workplace. They
are attempting to develop institutional capacity and sustainability by implementing the eco-
friendly strategy. Ready-made Garments (RMG) industry of the country should establish a green
image in the global market with the assistance of all, especially through the media.
28

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) play a vital role to
establish a positive brand image in the international market. Bangladesh's government, combined
regulator group and owner of RMG factories is executing the green business practiec to pass a
positive message to the worldwide apparel market in the future. Bangladesh exporter union is
strong enough to handle combined media, government drives; the buyers‟ demands increasingly
determine their business practices. Moreover, to embrace and retain the sweet results of RMG a
positive branding should be maintained.

4.1.5 Utilize business opportunity:

Although Bangladesh as one of the

best sourcing suppliers regarding the
volume of garments, lead time,
quality and price, it has been standing
fierce competition with China, India,
Sri Lanka and Vietnam for its market
share in the surpassing markets of the
USA, EU and Canada. USA is the
main importer of china who is
holding first position in exporting
RMG. Recently, US garments import
from China is declining, which is
opening a new door of opportunity to
the Bangladesh apparel exporters.
Bangladesh RMG sector becomes
more able to attract more eco-
conscious buyers by turning into the
green industry. Green
industrialization makes this sector
more efficient in production with high
quality as well as an eco-brand image. As a result, Bangladesh's apparel industry is getting more
orders from USA brands and clients.

4.1.6 Establishing supplier‟s rights in international market:

Bangladesh RMG industry produce comparatively low price for retailer counties. This industry
has been deprived for a long time in the global apparel market. Unhealthy competition, lack of
unity and weak negotiation skills of marketers are the main reasons behind low prices.
Implementation of the eco-friendly production strategy is making golden opportunities to
increase the price of our apparel product in the global market. Readymade garment (RMG)
29

exporters recently proclaimed on buyers and retailers to ensure a sustainable RMG sector by
raising product prices.

The social and environmental standards of Bangladesh‟s readymade garment (RMG) factories
are huge concerns of developed countries. According to Bangladesh at the United States Green
Building Council (USGBC), Bangladesh textile industries have to reconstruct their factory,
upgrade quality requiring huge money following Accord and Alliance. Bangladesh RMG
industry is also suffering demand from increasing labor costs. It rises over 15 % of the total
production cost. The minimum wages have been risen several times over the past decade in
Bangladesh, after strikes from laborers and despite protests from the BGMEA reciting a failure
to remain alert. Increasing prices and making retailers investing in the RMG sector is the demand
of time.

4.1.7 Turning international buyer into investor:

Eco- friendly production process is a cost-cutting plan, as well as its establishment cost, which is
very high. So, we demand a huge investment in the Install eco- friendly production process in the
RMG sector. If the RMG sector will sustain the process, our retailer countries have to become an
investor. If Bangladesh wants to maintain to export to the EU until 2050, it requires to strike up
its renewable energy practice. Already over 100 European brands have accepted to rebuild their
agreements with Bangladesh's factories and to fund a percentage of the upgrade and maintenance
costs for two years while supervising the inspection of approximately 1,600 clothing factories.
The National Government of Bangladesh guaranteed to inspect 1,200 more factories, which
indicates over half of Bangladesh's 5,000 apparel factories will be inspected with these new
regulations soon. As progress to improve factory and worker well-being, Walmart and Gap Inc.
have signed an agreement over 24 U.S. companies. The agreement retains them accountable to

Foreign investment on eco friendly production process

15%

Total clothing factories

European investment on
21% RMG factories

Government investment
64% on RMG factories
30

support in factory inspections and upgrades and individually supervise the inspections of 600 of
Bangladesh's garments factories. Walmart distributed US$1,600,000 to Institute for Sustainable
Communities, which would manage the donation to install up an Environmental, Health and
Safety Academy in Bangladesh. The contribution is too little to make the industry safe,
especially because several factories do not even have primary safety features.

4.1.8 Protecting the Environment industrial revolution

The 12th UN Sustainable Development Goal aims for „Responsible Consumption and
Production‟, with targets including the efficient practice of natural resources, environmentally
safe chemical and waste management, developed technology integration, and information
distribution regarding these applications. Some textile manufacturers dump their wastewater onto
the open ground or farmland, which deduct of soil fertility in the long run. The chemical odors of
the water and other resources negatively influence the people who live in and around these
industries. The conventional processes are using high energy and discharge of contaminated
wastewater where Bangladesh is no different. From the examinations of NGOs, different groups
and monitoring administration has been discovered that these wastewaters or partially treated
wastewater carries contaminants, toxicants and chemicals are quite over the acceptable limit. The
lowering of water consumption means the reduction of energy consumption. Bangladesh can
preserve around 22 billion liters of water, cut down water waste by 18 billion liters and
greenhouse gas by 46,000 tones in a year according to a study of the International Finance
Corporation. It found that taking eco-friendly production processes in the textile and clothing
industry could able it to save up to $150 million per year in cost-cutting terms in Bangladesh. At
the same time, it will obtain competitive and sustainable in this sector. The global fashion
industry is earning US$3 trillion which considered the second largest polluter in the world. The
textile sector produces water waste by 20 % and emits 10 % of carbon dioxide alone. Almost 82
% of the supply of water in Dhaka is dependent on groundwater and to meet this enormous
demand for water, the groundwater level is falling by 2-3 meters each year. Every year 1,500
billion liters of water are utilized to color and wash cotton and apparel for the garment industry.
Regarding the current depletion rate, it foretold that the groundwater level will declinling down
to about 110 to 115 meters by 2050 if any defensive action is not undertaken. Not only branding,
green technology also aids to cut down on energy usage by 40 % and water consumption by
more than 30 %.

4.1.9 Engagement of global brands with Bangladesh for Eco-conscious production process:

General responsibilities and duties of global brands/buyers and Bangladesh‟s readymade garment
(RMG) factories plan to improve social and environmental standards that need to be
implemented together in such a way that would assure benefits to both sides. Compliance
factories are performing several best practices to gain efficiency and sustainability. Tazreen and
Rana Plaza incidents drew the distressed working conditions of Bangladeshi garments laborers to
31

the attention of the world. Coverage was given to both dead workers‟ families and those injured.
Those in charge of the factory were arrested or prosecuted. Since then, multiple steps have been
applied to workplace safety. Global retailers are taking advanced steps to protect their reputation.
On top of this, the government administrative organizations are monitoring the approximated
3,500+ factories. Some foreign brands select agents such as the Alliance and the Accord to
assure satisfactory production capacity, observing supply chain and compliance obligations.
With the new foreign collaborations, the industry has become a strong illustration with
international partnerships, such as the Alliance and Accord, and force on the company's guide to
established strategic change. Currently, the Alliance, the Accord, BRAC University, the C&A
Foundation, and the BGMEA are working to outline all factories of the country to build a digital
database providing information to be obtained by workers, clients, and other stakeholders.
Accord develops a long-term agreement with company signatories.

Engagement of global brands in Bangladesh for

Eco-conscious production process

29 Brands
Number of
Global Brand
190 Brands

0 50 100 150 200

Alliance Accord

Accord-covered factories also serve in global clothing and apparel companies recognize as a safe
factory which is fewer risks for them. Accord monitors remediation and inspections functions at
RMG factories. In 2013, Accord provides economic assistance signatory companies to insured
order volumes for a longer duration, higher volumes, and order pre-payment to develop cash-
flows, access to funding or direct cash support. Over 1,600 factories are included under the 2018
Transition Accord arrangement. Alliance serves with 29 major North American leading brands
such as Walmart and H&M to form for Bangladesh Worker Safety. The aim of Alliance to
provides the opportunity for apparel, retail and branded companies to emerge together and ensure
the business transparent, results-oriented and verifiable. Those major actions will digitize RMG
32

factories, attaching factories and authority as well as building both accountability and
accessibility.

4.2 Eco-friendly practice in RMG industry in Bangladesh

4.2.1 Environmental sustainability law for RMG industry in Bangladesh:

Bangladesh's government regulated the Environment Protection law Act 1996 and
Environmental Protection Regulation law 1997 but there is no clear statement to carry out the
Initial Environmental Examination (IEE) and/or Environmental Impact Assessment (EIA). The
ability of the production and reporting of any contamination of factories after a certain period of
closedown, and relocating based on Initial Environmental Examination (IEE) and/or
Environmental Impact Assessment (EIA) report. Industries have to fulfill the IEE and EIA
requirements except for the only new establishment of any industries.

The evolution of economic instruments for industrial pollution Command and Control (CAC)
is categorizing polluting textile industries based on their water pollution status and corporate
approach to the environment. Bangladesh textile industries have a lack of National Effluent
Quality standards (NEQS). 1200 garment factories have been shut down over the last 4 years due
to incomplete compliance standards. Update environmental rules and regulations to maintain
regular environmental compliance monitoring in this sector, institutional potentiality and trained
workers etc are not performed properly. These assessments of report provide great deceptions to
the opportunistic irresponsible to environmental conservation. Therefore, the present condition
calls for an intense review and update environmental rules and regulations of the country along
with:

 Development and implementation of NEQS by setting a close linkage between local

ecological acknowledgment and toxic pollutants in the environment.
 Identification of the factors that influence the NEQS implementation on the basis of cross
country comparison and sharing achievement under local cooperation.
 Effective intervention National Environmental Database (NED) combines the
geographical location of industries to design cost-effective strategies for industrial
pollution control.

The government has reduced corporate tax for the green RMG industry. Green RMG corporate
provides 9 % tax which decreased from the previous 20 % and 12 % for the non-green ones.

For the respective to government organizations, the textile firm‟s R & D institutes, local
communities and employees should practice collective action and maintain it to makes textile
firms more socially and environmentally responsible.
33

4.2.2 Environmental friendly policy in all production stages in RMG sector:

RMG companies regulate their production processing with environment protection for Better
opportunities. Bangladesh's government and partners RMG industry are also concern about
business sustainability. The increasing numbers of garment factory owners of Bangladesh are
now willing to convert their existing factories into green building and go for eco-friendly
production systems.

RMG s Bangladesh textile industry designs its apparel collections by using sustainable raw
materials and Recycled textiles to ensure efficient consumption of the resources used, from raw
material sourcing to sale. New recycled fibers such as polyester, wool and cotton become
popular in the global market of garments which are less consume water, energy and natural
resources in manufacturing the production process. Bangladesh garments industry has set
34

Logistics priority as „„Green to Pack‟‟ in the global market considering the buyers' demand and
requirements.

Recently, Bangladesh factories concentrate on social and environmental compliance practices to

preserve biodiversity and environmental effects. Bangladesh has a large field of executing CP
and ETP in the textile manufacturing process for Environmental compliance. Use of raw
materials, improper pricing of goods, gas, water and other inputs etc are not being used
efficiently in our country. Most of the factories have calculated the cost of social compliance;
environmental compliance as a sunk cost by the industry. With the positive and helpful mindset
of the government and the willingness of the factory owners, the sector is becoming under green
industrialization. Recently (on 17 August 2017) Bangladesh Bank announced a circular relating
to reducing the interest rate of GTF (green transformation fund) for the export-oriented apparel
products and leather manufacturing businesses. Incompetency of the monitoring body of the
Department of Environment (DOE) has penalized many factories for polluting the nearby
environment. A fund of $200 million would be generated soon so that the textile, dyes and
washing factory owners can avail easy financing for the establishment of eco-friendly production
processes and formulate environment protection policy.

Eco-efficient stores become popular in Bangladesh's textile industry. Eco-efficient stores save
20% of electricity and 40% in water consumption. The eco- storing technology is more energy-
saving and more preventing the emissions of carbon dioxide than conventional stores.

As per IFC information, many RMG factories Bangladesh are escorting cleaner and improved
technology and Effluent Treatment Plant (ETP) plans at the behest of some large brands in
partnership with some development institutions. CP and ETP adopter garment factories are
creating a better environment by removing harmful chemicals through Effective manufacturing
and Evaluation of wet processes. In 2018, different bio-solutions under CP (such as de-sizing,
bio-scouring, Coagulation-flocculation), Bangladesh's textile industry saved water equivalent to
3 million from discharged 98,000 cubic meters of wastewater. The Knitwear industry of
Bangladesh undertakes wet processes as ETP (dyeing, washing, printing) to fulfill the demanding
health standards and safety standards. Most of the factory is using Effective treatment of effluent
such as -

 Photochemical processing as Recycling printing of items

 Controlling optimal conditions, the quantity, pH, temperature of the water used to get rid
of ring dyes (uneven color across the fabric)
 Fewer toxic dye solution and finishing agents. `
 Avoid carriers containing chlorine, such as chlorinated aromatics and a variety of
membrane techniques.
35

The factories have not only showcased open-mindedness towards setting but also they have
embraced the implementation of the green production process. Factories realize that it is cost
savings and also significantly improve efficiency and productivity. On the other hand, a large
portion of those factories around Dhaka city do not hold CP, ETPs or do not properly use them.

Although social compliance was a noticeable obstacle in the RMG sector, the buyers and
associations have worked successfully to ensure greater adherence in Bangladesh over the last
decade. In 2013, Eco-friendly solution promoter associations worked for social compliance of
Bangladesh under Corrective Action Plans (CAP).

4.2.3 Eco-friendly process promoter organization in RMG sector in Bangladesh:

Eco-friendly initiatives have already piloted Bangladesh concerning textile and readymade
garment manufacturers to ensuring worker's health and safety through a better working
environment, enhancing productivity and preserving their around environment from being
polluted.

Safety Training

Activities of Sustainable
Monitoring Remediation
promoter organization in
RMG sector in
Bangladesh Resolving Safety
Complaints

Factory Inspections

The Department of Inspection for Factories and Establishments (DIFE):

As part of the Bangladesh government‟s action, the Department of Inspection for Factories and
Establishments (DIFE) inspects to ensure safety at the workplace, secure electrical lines, fire
protection and support to structural problems identified. It orders the garment factory owners to
perform all the reforms by April 2018. The DIFE observed up on -809 factories.

Remediation Coordination Cell (RCC):

Both the Alliance and the Accord will be observed up by the Remediation Coordination Cell
(RCC), a Ministry of Labour and Commissioning body.
36

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

BGMEA is a national trade federation whose responsibilities are controlling and advancing the
safety of factories with the government on behalf of the industry, and generating research to
develop production techniques.

The BEEL (Bangladesh Enterprises Effluent Limitation) Project:

Bangladesh Enterprises Effluent Limitation Project formed by the Stockholm Environment

Institute involves the industry and the social community in the process of the agreement. This
project identifies causes of pollution, introduces industrialists to advances production processes,
substitution toxic chemical inputs and properly treats waste. The project works with industry to
install new and to update existing moderation standards as well as to develop relevant
community-based monitoring of contamination levels. It has also aimed to better apprise buyers
about factories responsible for the environmental standards. The project is in collaboration with
the production function of factories to promote cost-effectiveness by managing effluent outflow
from factories.

National Action Plan (NAP):

National Action Plan (NAP) is an inspection program in the RMG sector formed by The
Government of Bangladesh. National and international platform re-structured Action Plan (NAP)
which obtains safety at the workplace; all factories must have safe electrical lines, fire protection
and support to structural obstacles that have been identified through inspections.

1. The Alliance for Bangladesh Worker Safety (Alliance)

2. The Accord on Fire and Building Safety in Bangladesh (Accord)
3. National Initiative (NI) Factory Inspections

After the Rana Plaza factory collapse, on May 15, 2013, the Alliance for Bangladesh Worker
Safety and the Accord on Fire and Building Safety in Bangladesh were signed. Both the Alliance
and the Accord are terminated of their five-year contract.

The Accord on Fire and Building Safety in Bangladesh :

The Accord is a five-year, autonomous and legally-binding contract between global brands,
retailers and trade unions to establish eco-friendly garment and textile industry in Bangladesh.
Accord signatory importers brands and retailers are committed to list all RMG supplier factories
manufacturing for them in Bangladesh for a safe and healthy RMG industry. Accord Covered
factories are verified Safety inspections and remediation accompanied by Accord engineers.
37

Activities of Accord in Bangladesh:

Accord promotes the practice of inspection, remediation, Safety Training and workplace
programs to all „covered‟ factories.
 1666 Accord Factories.
 Over 190 companies contracted with accord.
 Remediation: 273 factories completed the initial remediation
 Inspections: 37561
 Resolving Safety Complaints.

The Alliance for Bangladesh Worker Safety : Implementation of

initiatives of the
The Alliance for Bangladesh Worker Safety (Alliance) is Alliance
legitimately obligatory for a five-year contract to upgrade
safety in Bangladeshi ready-made garment (RMG) factories.
Standards &
Inspections
Target of Alliance is substantially developing worker safety
in the ready-made-garment (RMG) industry by updating
factories, training workers and administration, empowering
workers, and construction foundations that can strengthen Training
and sustain safe working conditions throughout Bangladesh.
Alliance is combined worker unions, factory owners, NGOs,
engineering and professional and engineering consultants,
Sustainability
trade associations, educational and training institutions, and
the government of Bangladesh to ensure technically sound,
impactful, and sustainable safety.
Worker
The Alliance-affiliated factories will be controlled by the Empowerment
RCC as well. 93 percent of safety remediation has been
finished in factories affiliated with the Alliance for
Remediation
Bangladesh Worker Safety. The Alliance‟s members serve
the preponderance of North American imports of RMG from
Bangladesh.

The National Initiative (NI):

Bangladesh government established another platform – the National Initiative (NI) for RMG
factories with the International Labour Organization‟s (ILO) support. National Initiative (NI) is
not part of the Accord and Alliance but also formed to promote safety standards in the RMG
factories.
38

4.3 Eco-friendly Green infrastructure in RMG Factories in Bangladesh:

Despite the remarkable growth of the RMG industry of Bangladesh, provocations are still there.
The goal of workplace development is to design workplaces in such a way that it would expedite
maximum production, safety environment. Workplace Development activities begin with
checking out the current workplace- building sound infrastructure, production floor, storeroom
and office for highest production and safety.

Multiple owners of readymade garment factories of Bangladesh accepted to look into utilizing a
new combined set of workplace safety measures for clothing manufacturing factories. Designing
the whole factory, store and warehouse by using engineering instruments and systems will
improve the capacity of factories.

This plan covers automaton layout, plant layout, maximum utilization of area, lighting system,
construction safety, fire-fighting tools, availability of engines, all sorts of exit and others. The
workplace of factory design must fulfill all the safety and health standard mentioned by the labor
law 2006.

4.3.1 Green building of Bangladesh‟s readymade garment (RMG) factories:

Textile companies in Bangladesh have enormous potential for the formation of Green Buildings.
Bangladesh RMG Factories is badly required Architectural development to cope with the
competitors. RMG factories of Bangladesh are taking a significant move towards a cleaner and
greener supply chain which makes informed the industry to knowledgeable decisions and
analyze all possible alternatives.

The inspection program assures Green infrastructure in RMG Factories in Bangladesh by

considering safety issue. If the initial inspection symbolizes possible architectural weakness,
factories are obliged to undertake a structural (Detailed) Engineering Assessment (D/EA). D/EA
is including-

 Framed drawings
 Engineering tests
 Qualifying load plans
 Extending retrofitting drawings etc.

Structural retrofitting based on the allowed part of the D/EA can start. D/EAs are administered
by qualified architectural engineers appointed by factories and submitted to the Accord for
inspection.
39

Green building of RMG factories in Bangladesh: Structural

(Detailed) Engineering Assessment in RMG factory in
Bangladesh

8%
Requested factories to conduct a
D/EA

Fully accepted D/EA on-site

verification
37%
55%
D/EA of a building part has been
accepted and the remaining part of
the D/EA must be re-submitted &
reviewed.

I. Activities of Accord in Structural (Detailed) Engineering Assessment in Bangladesh:

The Accord on Fire and Building Safety in Bangladesh (Accord) is granting D/EA verification
for workplace safety issues to RMG factories in Bangladesh. For the Accord acceptance of
D/EAs, the factories are obliged to fulfill the structural remediation and retrofitting operation.
Accord is a Revealed adjustment between D/EA documentation and the factory building.

 1,523 Accord-covered factories have been inquired to attend a D/EA.

 1,033 had D/EA fully on-site verification acceptance.
 226 factories had D/EA partly on-site verification acceptance that the D/EA of building
part of the factory has been accepted and the remaining part of the D/EA must be re-
submitted and reviewed from the Accord.
 The industry Safety Committee with the Accord trainer supervision walk-throughs of
the factory to recognize actual or potential safety risks such as weak performance of
machines, restrictions on the work floor, or poor purifying and lighting. The Safety
Committee further conducts the remediation of these safety concerns.

II. Activities of The Bangladesh Garment Manufacturers and Exporters Association:

The Bangladesh Garment Manufacturers and Exporters Association declared intentions to expel
850 factories from its association due to noncompliance with safety and labor rules.
40

4.3.2 Progress of safety inspection program in Bangladesh:

I. Inspection program of Accord:

Accord engineers handle initial inspections for fire, structural and electrical security. Following
the initial inspections, the factory and the company signatories are forming a Corrective Action
Plan (CAP) that describes the remedial activities with distinct timelines for attainment.

The Accord examines the remediation progress and regularly visits follow-up inspections to
verify that corrective actions have been finished accurately. The Accord has a team of 34 case
handlers who assist in the CAP improvement and implementation, and operate closely with the
Accord engineers to implement factories with any necessary technical supervision.

All listed factories get initial & follow-up inspections to observe and check the remediation
service approximately every four months. Accord engineers are carrying follow-up inspections to
regulate the remediation and confirm that corrective actions have been executed accurately.
Accord factories have encountered more than 37,000 initial and follow-up safety inspections.

Accord‟s safety inspection standard entail:

The Accord Building Standard was formed with consideration to NFPA regulations and
standards and the Bangladesh National Building Code (BNBC), which set minimum standards to
minimize risk to life from the consequences of fire, structural and electrical accidents.

Accord engineers also carry the following targeted inspections:

=> Testing & commissioning verification inspections (T&C Vis) to check that the base of the
fire detection and security systems has been performed as designated by factories according to
their CAP. „Pass‟ in the T&CVI inspection is indicating that the fire systems are determined to
be appropriately fitted to standard and fully operative. Accord engineers use particular guide
sheets to ensure that all parts of the system are performing acceptably.

=> Negative suction non-compliance-related inspections. T&C VIs exposed that almost a
third of Accord-covered factories had fixed the pump of the fire security/hydrant/ sprinkler
arrangements applying negative power, which is non-compliant with the Accord inspection
measure (NFPA). Accord engineers have since attended appointments at Accord factories to
classify solutions to fix the negative suction location, such as fixing a vertical turbine fire pump
or adjusting the position of the water tank vis a vis the fire pump.

=> Boiler safety inspections. In September 2018 the Accord started a Pilot Boiler Safety
Program at Accord-covered factories. The pilot program was granted by the Accord Steering
41

Committee. Initial boiler safety inspections directed at 17 Accord-covered factories have

reported boiler safety risks, including non-compliant or disappeared boiler parts and a loss of
certification. The boiler safety determinations have been involved in the factories‟ CAPs at
Accord Signatories Company.

II. Inspection program of Alliance:

463 Alliance-affiliated factories have finished initial Corrective Action Plans (CAPs) under the
Alliance‟s inspections and safety monitoring program. Already The Alliance has completed the
safety inspection, while the Accord is approximately to complete its job.

III. Inspection program under National Initiative:

The National Initiative (NI) inspections have been undertaken CAPs includes structural safety,
electrical safety and fire safety of listed factories. The National Initiative (NI) asked the factory
owners to finish all the reformation of the factory according to the standard.

Many owners of readymade garment factories accepted to using a new combined set of
workplace safety standards for apparel production factories. The inspections carried out by two
separate inspectors with their experience in the field which is lasting at least five years and
uniting for a minimum total of 20 years.

Complete portion of inspection under National Initiative

Fire safety
27% Structural safety
29%

Electrical safety 31%

42

4.3.3 Workers‟ development under eco-friendly solution in Bangladesh:

Accomplishing occupational safety and safety training, responsible management systems with
proper investment in awareness involves in Workers‟ improvement activities to ensure safety
culture in all workplaces.

Eco-friendly production processes set and maintain the standard of worker facilities such as
wages and benefits, employment conditions, working hours and others according to the labor law
of 2006 and international code of conduct For Workers‟ improvement in Bangladesh's textile
industry. Workers become skills and efficiency once; they are going to be efficient to fulfill the
demand of the competitors.

The new guidelines in the RMG sector of Bangladesh call for heightened training of factory
inspectors. Over 90% of the inspection and training work is finished, and it was continued until
2020.

Many safety regulation organizations are also responded by designing training programs to
inform workers of their constitutional rights. All of these safety regulation organizations such as
Accord, Alliance and programs have conducted extreme change by sealing down non-compliant
factories, promoting worker awareness, and combining advanced safety policies into supervisory
groups.

Safety Training program conduct in RMG sector in Bangladesh

Completed Fire Safety Training program

(Workers in million)

Alliance
Accord
Coverage of Safety education training program
(Workers in million)

0 0.5 1 1.5 2 2.5

43

I. Worker development program of Alliance:

The Alliance makes it's every member and listed factories liable to promote workplaces safety in
Bangladesh's apparel industry that are secure and effective for workers in construction and fire
safety. For this reason, Alliance generate training programs, helpline service etc.

 Alliance managed employee training programs for worker safety. Alliance Trained up 1.2
million employees for safety education under CAPs.
 Alliance open A Helpline service „„Amader Kotha‟‟ in 2019that is available for 24
hours to workers.

II. Worker development program of Accord:

Accord built 1179 safety committees and develops training programs for worker welfare
Bangladesh‟s RMG sector. This committee design training sessions for accord signatory factory
employees. The Safety Committee has operated in monitoring factory remediation,
distinguishing safety hazards, resolving health and safety complaints, and preserving workers‟
rights.

1. Update Safety Training Program

2. Maintaining workplace safety

1. Update Safety Training Program

The Accord promotes joint labor-management Safety Committees with industry professionals for
Accord signatory companies in Bangladesh. Joint labour-management Safety Committees are
trained and all factory workers are familiarized about fundamental workplace safety.

2. Maintaining workplace safety

The Safety Committee and Safety Training Curriculum will maintain at all Accord factories of
Bangladesh. The Safety Committee of Accord is ensuring that factories have a fully operative to
monitor safety of Readymade Garment manufacturing factory.

In 2017, accord has been introduced “Walk-throughs” as a Safety Training Committee for
workplace safety which is covering at over 200 garment factories.

 More than 1,200 Safety Committees have been instructed to recognize, solve and check
health and safety concerns in their factories.
 Accord has 461 complaints Safety solved.
44

4.3.4 Remediation progress in Bangladesh:

The eco-friendly production process promoter association in Bangladesh is separating the

remediation comprised of factories by „Remediation Status'. The remediation expense for 80
percent of the factories was calculated at between $100,000 and $250,000 each.

Percentage of completed remediation by safety regulation groups

1 93% 91%
0.9
0.8
0.7
0.6
0.5
0.4
29%
0.3
0.2
0.1
0
The Alliance The Accord The National Initiative

The all filter options are categorized for „Remediation statuses & „Safety Training Program‟-

1. Completed:

Remediated factories have been successfully verified from all the initial fire, electrical and
structural inspections.

2. Ineligible:

The supplier factory is considered as ineligible for business when it is failure to implement
workplace safety measurements. Constitutional action will be taken against the Ineligible factory
after inspection.
45

I. Remediation progress at RMG factories inspected by the Accord:

Completed remediation by : Accord on Fire and Building Safety

in Bangladesh

Number of factories

0 200 400 600 800 1000 1200

Number of factories
> 90% remediation 1,133
Initial remediation 258

The Accord observes remediation rates and facilitates brand support to the RMG industry of
Bangladesh for remediation. Workers and their delegates have a right to protest unsafe work and
can raise objections with the Accord Safety and Health Complaints Mechanism. Retailer brand is
contracting the Accord to negotiate commercial terms with their supplier factory of Bangladesh
which guarantees financial availability to sustain safe workplaces and comply with the
remediation conditions of the factories.

The Accord already has marked over 100 remediated factories to the Remediation Coordination
Cell (RCC). The target of Accord is complete the structural remediation of the factory and the
establishment of fit fire alarm and fire detection modes are conducted in all Accord covered
RMG factories of Bangladesh.

At the end of the 2013 Accord, 755 factories have been finished the foundation of their fire
safety systems and 578 factories have been under the Detailed Engineering Assessment and use
it to perform the structural remediation task.

In 2017, the Accord arranged the Inactive Factory Remediation Fund, throughout which the
Accord signatories are collectively contributing economic remediation assistance to those
factories that no longer have Accord company signatories as buyers. Until 2018, 5 factories of
RMG got allowance to perform the remediation, including the notable retrofitting work and the
procurement and foundation of the fire detection and hydrant systems.
46

II. Remediation progress at RMG factories inspected by the Alliance:

The Alliance has supervised remediation in the Bangladesh apparel industry. 90% Alliance listed
factory has been got completed status by fulfilling remediation requisition which guarantees zero
risk of life due to a structural, electrical or fire-related misfortune in a manufacturing garment
factory.

Alliance‟s planned transition Safety Monitoring Organization (SMO) that will hold Bangladesh
leadership and supervise safety inspection and monitoring remediation, beginning in 2019.

III. Remediation progress at RMG factories inspected by The National Initiative (NI):

The government-led National Initiative (NI) has performed the remediation works to attract
global recognition in safety standards of RMG workers in Bangladesh which implied both
national and international levels standards to guarantee a better workplace environment. A total
of 107 factories is completed safety remediation under the National Initiative (NI).

Completed remediation by National Initiative

Number of
factories

0 100 200 300 400 500

Number of factories
More than 80% 111
More than 50% 422
47

4.3.5 The growth of LEED-certified green factories in Bangladesh:

Bangladesh is gaining a quiet revolution by inserting up consecutive eco-friendly factories. U.S.

Green Building Council (USGBC) provides the LEED certificate for green industries. LEED is
for „Leadership in Energy and Environmental Design‟.

There is a result of 110 points to meet 9 requirements. 80 points at the „Lead Platinum‟, 60-79
points at „Lead Gold‟, 50-59 points at Lead, Silver, and the 40-49 points at „Lead‟ in the
certificate equivalent.

To achieve a LEED certificate, every factory has to satisfy 9 requirements. The structures of
factory elements have to emit less carbon. The elements of brick, cement, and steel also must fit
with the required standard.

Proper lighting system, solar power, energy-saving bulbs have to be practiced for energy-saving
issues. The factory design should avoid the usage of underground water by storing the rainwater
and water-saving tap. A minimum free space should be preserved also in the production floor.
The workplace should be friendly and update material should be used for production.

According to the USGBC, Bangladesh has the maximum number of green garment factories in
the world. UGSBC established an institution to select for LEED-certificate in Bangladesh.
Bangladesh started the campaign with The U.S. Green Building Council (USGBC) in 2011.
Since 2011, the total of 67 Bangladeshi RMG factories has won LEED certification from
USGBC.
The present situation of the Bangladesh RMG industry is concern about establishing a green
factory. Recently, USGBC has announced the updated list of LEED-certified Green factory,
though new factories are becoming enlisted frequently.

Bangladesh is the land of seven highest-rated green manufacturing factories in the world‟s ten
highest rated factories.

 The total number of LEED-certified garment factories in Bangladesh is 90.

 32 factories have received LEED certification for an infrastructure context, including the
24 platinum-rated buildings.
 More than 280 factories are recorded with USGBC for LEED certification.
 15 buildings may receive the LEED certification from the USGBC soon as they are
nearing the conclusion of processes.
 More than 250 garment factories applied for the LEED certification from the USGBC.
48

List of top 14 LEED Platinum certified factories:

Position LEED Platinum certified factories Score

1st Position Remi Holdings Ltd. 97 points out of 110.

2nd Position Plummy Fashions 92 points out of 110.
3rd Position Vintage Denim Studio 90 points out of 110.
5th Position SQ Celsius 2 85 points out of 110
9th Position SQ Birichina 81 points out of 110
Genesis Washing
SQ Cole Blanc
Echotex
Kaniz Fashions
Certified as top- Tarasima Apparels
ranked Green Columbia Washing Plant
factories Mithela Textile Industries Limited 80 points out of 110
Genesis Fashions
Envoy Textiles Ltd

The USGBC also provides gold and silver ratings and green certification to garment
factories. Green Factory Certification requires more branding, which may raise competition
among the factory owners. They need to be aware of the LEED certification, as a deficiency of
maintenance may also void the certification. Many RMG industry administrators of Bangladesh
are approaching to develop eco-friendly factories.

4.4 Target of Green industrialization:

The Bangladesh government target of $50 billion for RMG trading in 2021. Currently, the
government, BGMEA, and MNCs conduct inspections on factories, but in a disorganized
manner. The BGMEA necessitates installing and follow-up unclear compliance guidelines and
can increase its reliability by maintaining global partnerships.

The government needs to supporting investment and reducing export taxes to encourage this
growth in eco-sustainability. As far as the RMG trade association‟s attempts are concerned in
executing green industrialization, BKMEA (Bangladesh Knitwear manufactures and Exporters
Association) has been assigned to securing sustainable development in the knitwear production
process to shift this growth into green one. In 2021, it aimed to turn one-quarter of the knit
factories into the green ones.

BKMEA has specialists who maintain to provide consultation and assistance to its member
factories ready to turn to green firms under the “Green Industry Development Cell” program.
49

Prominently, as a perception of this titled “Going Green” actions, the trade association group has
turned into the USBC member since 2015 as the first-ever association in Bangladesh.

Bangladesh‟s broad industrial sector‟s green growth is reliant on the RMG sector, particularly for
the manufacturing industrial sector which has been envisioned in both the Seventh Five-Year
Plan (FY2016-FY 2020) and 2030 Sustainable Development Goals.

4.5 Challenge of promoting eco-friendly solutions in Bangladesh:

The growing trade patterns are creating opportunities as well as challenges for the RMG sector
of the country. RMG industry is a golden key for the national achievement of Bangladesh
because of its inexpensive fixed costs and importance on labor-intensive production. These
include the lack of single and specific policy formulation, lack of institutional capacity building
resulting in the lack of adequate indigenous expertise, lack of sufficient green financing with low
costs, suitable price of producing eco-friendly goods from the buyers‟ side etc.

Lack of specific policy formulation

Textile industries in Bangladesh don't have National Effluent Quality Standards (NEQS) and
updated environmental rules and regulations to carry regular environmental compliance
monitoring, infrastructure capacity and trained staff in this sector.

Lack of capacity infrastructure

Although Safety regulator groups continue inspection and remediation RMG sector of
Bangladesh, it has been suffering structural obstacles like inadequate power supplies, low gas
pressure, poor road and transportation facilities etc. The governments in Bangladesh have failed
to provide the expected infrastructure and low production cost such as energy supply, making per
unit production etc which is higher than most of its competitors.

Lack of expertise

Bangladesh RMG industry has a shortage of professional and highly skilled marketing personnel.
Sometimes the RMG industry of Bangladesh specialist personnel appointed from abroad which
is very expensive to hire.

Lack of sufficient green financing

In Bangladesh, the factory owners shifted factory formation into “green factory” installation with
their finance which is very costly and till now it is almost solely financed by the owner‟s money.
50

The lack of available loan facilities:

The financial ability of all factories is not equal. Both the government and the retailer brands
should provide loan facilities to help them sustain the CP facility.

Suitable price of producing eco-friendly goods from the buyers‟ side

Bangladesh has increased RMG products' quality. RMG sector is under pressure not getting
proper prices of products. RMG factory owner has reformed the infrastructure of the factory
according to Accord and Alliance standard which is requiring huge money. But retailer brand
does not maintain responsible purchasing practices. They want to purchase apparel products at
the same cheap rate that was fixed long ago.

Leak of legal support

Bangladesh's apparel industry becomes more aware of the impact on the waters. The eco-friendly
production process requires commitment from local communities and an effective institutional
and legal framework to support it. Without support from local and national government, the local
communities and workers influenced by the textile industry will remain powerless.

Although industry becomes eco-conscious, many factory owners hadn‟t maintained the legal
environmental obligation. Bangladesh's government failed to taken legal initiated against them
for weak legal prosecution.

Political unrest:

The long lingering political uncertainty is one of the most consequential challenges for the RMG
industry in Bangladesh is which seriously threatens production.

High tax rate:

The start of the local formulation RMG industry appears less attractive due to the high tax on the
import of enzyme raw materials, chemicals and machinery.

Risk of harassment:

Experts say that the garment industry developed distinctly in Bangladesh after the end of the
MFA and persuaded social benefits such as empowering women but that enhanced opportunities
for women have been made at the cost of their health and risen risk of harassment.
Chapter -05

Conclusion
52

Chapter-05
Conclusion

Bangladesh has been able to improve its image regionally and abroad taking several actions
including converting factories into green factories, expanding labor wages and improving
product quality.

Now many small factory owners are coping to sustain in the apparel market to meet their cost. So
the government should provide separate funds for them and brand representatives should proceed
to raise the price rate of apparel products of Bangladesh.

However, being green will present Bangladesh more competitive in the global market, will
generate quality employment, attract major new investments, create new marketing
opportunities, develop the standard of life and mostly create brand image apparel products of
Bangladesh.
53

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in RMG factories: Is it sustainable:
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