Two more RMG factories get LEED award for green initiatives

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Sep 18, 2023

Two more garment factories in Bangladesh have been awarded the “Leadership in Energy and Environmental Design (LEED)” by the US Green Building Council (USGBC) for their green initiatives in production.

This raises the number of green garment factories in the country to 202, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Universal Menswear in Narayanganj and Pacific Blue Jeans Wear Ltd in Dhaka received the gold certification, BGMEA said on Sunday.

Currently, Bangladesh has 73 platinum-rated green garment factories, 115 gold-rated, 10 silver-rated and four green-certified units.

Bangladesh is home to 13 out of 15 top-rated LEED green factories in the world, BGMEA President Faruque Hassan said in a press release.

Some 500 factories are in the pipeline to secure the certification from the USGBC.

Enhance Ctg port capacity for higher RMG exports

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RMG Bangladesh

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Sep 18, 2023

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today called for enhancing the capacity of the Chattogram Port in line with the growing demand of export-import sector of Bangladesh, particularly the export-oriented readymade garment industry.

The BGMEA also demanded enhancing the port’s efficiency to help it handle an increased number of export-import cargoes to reduce lead times.

BGMEA President Faruque Hassan made the call during a meeting with Chittagong Port Authority (CPA) Chairman Rear Admiral Mohammad Sohail at Chattogram.

Hassan said the RMG industry of Bangladesh has set a target of achieving $100 billion from garment exports by 2030, which necessitates increasing the capacity of the port to handle export-import goods.

The industry also aims at diversifying from basic to high-end fashion segment to increase its export share in the global market.

In this competitive business world, lead time reduction is necessary to remain ahead in market competition, Hassan added.

The BGMEA president also thanked the CPA for taking necessary steps that have helped the Chattogram port to function smoothly.

Two more RMG factories get LEED Gold certification

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RMG Bangladesh

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Sep 18, 2023

Two more garment factories in Bangladesh have earned Leadership in Energy and Environmental Design (LEED) certification by the United States Green Building Council (USGBC), raising the total number of green factories in the country to 202.

According to the BGMEA, Universal Menswear Ltd, an Adamjee EPZ based Bangladesh-UK company, and Pacific Blue (Jeans Wear) Ltd in Savar, a concern of Al Muslim Group, secured gold ratings.

Bangladesh is the global leader having the highest number of green garment buildings, where 73 are platinum rated, 115 gold rated, 10 silver, and four without any rating, according to the BGMEA.

The country has been receiving the certificate since 2001.

The council honours factories based on several criteria such as transformation performance, energy, water, and waste management. The best performers are rated with platinum, followed by gold and silver.

BGMEA President Faruque Hassan said, “In 2022, we had the highest number of factories with LEED certified in a single year. With 30 factories receiving LEED certification that year, 15 were Platinum and 15 Gold. Fast forward to August 2023, another 20 factories have earned the coveted recognition in eight months, with 13 achieving the esteemed Platinum rating and seven attaining the Gold rating”.

He added that 500 more factories are in the pipeline to get the certification.

ACT, IndustriAll call for minimum wage hike for Bangladesh RMG sector

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RMG Bangladesh

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Sep 18, 2023

Members of the Action, Collaboration, Transformation (ACT), a joint initiative between 19 international garment brands, in partnership with non-profit organisation IndustriALL Global Union, are urging for an increase in the minimum wage for ready-made garment (RMG) workers in Bangladesh.

As the National Minimum Wage Board prepared to determine a new minimum wage for RMG labourers in Bangladesh on 12 September, ACT members and the IndustriALL Global Union sent a letter emphasising the urgent need for a wage level that not only covers the basic necessities of workers and their families but also allows for discretionary income, all earned during legal working hours, reports Just Style magazine.

ACT is one of many organisations in the last couple of months that have been advocating for an increase in minimum wages in Bangladesh. Photo: Collected

The coalition recognises that the long-term sustainability of the RMG industry depends on making substantial progress toward achieving living wages. In addition to the ACT members, IndustriALL also lends its support to ensure that wage gains and increases are regularly adjusted and not eroded by inflation and the rising cost of living.

Brands associated with ACT say they have made commitments to advance the adoption of living wages by practising responsible procurement and engagement with manufacturers and suppliers in Bangladesh in support of higher wages. These efforts are aimed at advocating for increased wages and fostering the necessary conditions for the establishment of an “industry-wide collective bargaining agreement.” IndustriALL is also poised to endorse such an agreement.

Innovations key to attaining $100b apparel export target: Experts

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RMG Bangladesh

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Sep 17, 2023

Experts and Bangladesh’s apparel industry insiders emphasised the need for innovation to achieve the ambitious goal of reaching $100 billion in exports by 2030.

As panel discussants at a seminar on “Road to $100 billion Exports by 2030”, they underscored the significance of implementing purpose-driven, systematic changes across product development, processes, workforce, and organisational culture. Such changes can effectively reduce costs and enhance profitability for businesses in the sector.

The Textile Today Innovation Hub and CEMS-Global jointly hosted the seminar on Wednesday concurrently with the 22nd Textech Bangladesh 2023 International Expo at the Bangabandhu Bangladesh-China Friendship Exhibition Centre at Purbachal, Dhaka.

At the event, Masco Group Executive Director Mahbubul Alam Milton said, “Innovation is already underway, and it is essential to our success. To achieve our export target, we must be innovative. This requires knowledge and collaboration within the team. Invention and innovation are distinct concepts.

“Through innovation, we can make ourselves more competitive. Open innovation involves collaboration with external partners, while closed innovation takes place within the company.”

He added that they have tried to gather some data on the challenges of the $100 billion in exports, but access to such data is difficult.

“Due to a lack of data, we cannot invest in pricier products with confidence. Industry associations can work together to share data, which would help us make more informed decisions about these products,” said Mahbub.

APS Group Chairman Hasib Uddin emphasised the essential role of preparation in achieving export goals. He highlighted several critical factors, including the expansion of factory capacity, addressing the energy crisis, and enhancing backward linkage capability in MMF, among others.

Furthermore, he stressed the significance of investing in human capital development as a key priority and pointed out that tapping into untapped markets represents a significant opportunity to boost exports.

Mashook Mujib Chowdhury, manager (sustainability) at DBL Group, noted the presence of innovation within the industry but highlighted a communication gap. He pointed to Sustainable Development Goal-9, which centers on ‘industry, innovation, and infrastructure.

He also noted that while innovation is indeed present, it often goes unacknowledged except for a few select events.

Tareq Amin, founder and CEO of Textile Today Innovation Hub, in his keynote speech on “Practical Method of Implementing Innovation to Achieve $100bn Export” said, “A small innovation can make a big change. Once we have a systematic innovation process in place, then we will find out the hotspot, and identify an improvement area to work out for change.”

Dr Mohammad Abbas Uddin Shiyak, assistant professor at the Bangladesh University of Textiles, conducted the event.

Extreme weather to affect $27b RMG export from Bangladesh by 2030

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RMG Bangladesh

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Sep 17, 2023

Apparel shipment worth $26.78 billion from Bangladesh may be affected due to extreme weather conditions like heat and floods by 2030, according to a study of Cornell University in the US.

The study carried out by the university’s Global Labor Institute and Schroders finds extreme heat and flooding are threatening key apparel production hubs globally.

Four countries vital for fashion production are at the risk of losing $65 billion in export earnings and 1 million potential jobs by 2030, it said.

In the case of Bangladesh, the impact will be $26.78 billion while Cambodia will lose $6.75 billion, Pakistan $7.59 billion and Vietnam $24.77 billion, the study said.

The study identifies Karachi, Colombo, Managua, Mauritius, and Dhaka as the most climate-vulnerable manufacturing centres.

“The investors say adaptation measures aren’t factored to risk plans because the industry is focused on mitigation.”

The report called for climate adaptation finance that redistributes costs and risks away from apparel workers.

The study compared estimates for future temperatures and flooding in 30 apparel manufacturing hubs around the world. It also looked at the impacts for apparel workers in the four countries and how climate change is already affecting them.

The study suggested changes that unions, employers, governments, apparel buyers and investors should make to protect workers and apparel manufacturing from high heat and intense floods.

BGMEA calls for collaboration to create enabling environment for responsible business practices

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RMG Bangladesh

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Sep 16, 2023

Bangladesh Garment Manufacturers and Exporters Association President Faruque Hassan has emphasised the critical importance of addressing human rights and environmental concerns in today’s interconnected global economy.

Speaking as the chief guest at a seminar on Thursday, he highlighted Bangladesh’s vision for sustainability and outlined BGMEA’s Sustainability Vision 2030, which includes ambitious targets for reducing carbon emissions, sustainable raw material usage, groundwater usage, chemical usage, energy consumption, and deforestation, said a press release.

The vision also emphasises inclusive work practices, gender equality, and good governance, with an online data platform to monitor progress.

Faruque stressed the need for learning about due diligence protocols, capacity building, and transparency to ensure future business success.

Bangladesh-German Chamber of Commerce and Industry (BGCCI) hosted the seminar on the German Due Diligence Supply Chain Act in Dhaka.

The event brought together distinguished industry leaders, policymakers, and stakeholders to discuss the significance of human rights and environmental due diligence in the global business landscape.

Dr Michael Klode, project manager, Programme for Sustainability in the Textile and Leather Sector (STILE), GIZ gave a presentation on German Due Diligence Supply Chain Act, focusing on different aspects of the new law.

M Maksud, president, and Dr Md Kamruzzaman, senior vice president of BGCCI also spoke at the seminar.

BGMEA’s commitment to supporting manufacturers in adapting to new regulations was highlighted with the establishment of the ‘Responsible Business Hub.’ This dedicated unit, supported by GIZ, serves as an information centre, providing training, awareness, and guidance on Human Rights and Environmental Due Diligence.

The BGMEA president also called upon stakeholders, particularly buyers, to consider the cost of compliance and collaborate to share the burden, ensuring competitiveness and fairness.

Faruque emphasised the need for uniformity among different international legislation to avoid conflicting obligations. He stressed the importance of continuous attention and collaboration among supply chain stakeholders to create an enabling environment for responsible business practices.

RMG workers stage protest rally in Ashulia demanding Tk25,000 minimum wage

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RMG Bangladesh

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Sep 16, 2023

Readymade garment (RMG) workers on Friday held a rally in Dhaka’s Ashulia demanding a minimum wage of Tk25,000 for all garment workers.

Besides, they also demanded a 65% basic wage instead of the existing 50%, and an annual increment of 10% instead of 5%.

Bangladesh Garments Sramik Sanghati organised the rally in front of Fantasy Kingdom in Jamgora area of Ashulia on Friday (15 September).

Speaking at the rally, Taslima Akhtar, president of Bangladesh Garments Sramik Sanghati, said in the last 5 years, it has become impossible for the RMG workers to live on a wage of Tk8,000 due to the increase in the prices of daily commodities.

The leaders of the organisation expressed concern that five months have already passed in the six month term of the Wage Board but no decision has been made so far.

They also claimed that according to government data, as the rate of exports and income of the owners are increasing, they (factory owners) can afford to pay a wage of Tk25,000.

Harsh weather to affect $27b RMG export from Bangladesh

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RMG Bangladesh

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Sep 15, 2023

Apparel shipment worth $26.78 billion from Bangladesh might be affected due to extreme weather conditions like heat and floods by 2030, according to a study of Cornell University in the US.

The study carried out by the university’s Global Labor Institute and Schroders finds extreme heat and flooding are threatening key apparel production hubs globally.

Four countries vital for global fashion production are at the risk of losing $65 billion in export earnings and 1 million potential jobs by 2030, it said.

In the case of Bangladesh, the impact will be $26.78 billion while Cambodia will lose $6.75 billion, Pakistan $7.59 billion, and Vietnam $24.77 billion, the study said.

The study identifies Karachi, Colombo, Managua, Mauritius, and Dhaka as the most climate-vulnerable manufacturing centres.

“The investors say adaptation measures aren’t factored in risk plans because the industry is focused on mitigation.”

The report called for climate adaptation finance that redistributes costs and risks away from apparel workers.

The study compared estimates for future temperatures and flooding in 30 apparel manufacturing hubs around the world. It also looked at the impacts on apparel workers in the four countries and how climate change is already affecting them.

The study suggested changes that unions, employers, governments, apparel buyers and investors should make to protect workers and apparel manufacturing from extreme weather events.