RMG industry to ensure sustainability with plan and easier finance

It is believed that improving sustainability in the ready-made garment (RMG) business will require both a long-term sustainability plan and easier, broader access to financing. It’s also important to address knowledge gaps and obstacles that prevent smaller businesses from obtaining financing, as well as to consider environmental challenge issues and take efforts to green production.

According to a press release, the observations were made at a conversation on “Enhancing environmental sustainability of the Bangladesh RMG sector in the aftermath of COVID-19” that took place in Dhaka city on Wednesday. The keynote speaker at the occasion co-hosted by Policy Research Institute (PRI) and the International Finance Corporation was Dr. Ahsan Mansur, executive director of PRI (IFC).

Dr. Mansur is particularly interested in the possibility of rooftop solar power, lowering input materials through improved resource efficiency, recycling, and repurposing garbage.

“To achieve the goals, the procedure must be sped up with our assistance. Important problems involving financing, regulatory adjustments, customs and tax laws, and incentives must be resolved through ongoing coordination and policy discussions with the relevant agencies.”

Since the Partnership for Cleaner Textiles was established by the IFC, according to BGMEA vice-president Miran Ali, the apparel industry has advanced significantly (PaCT). By being accountable and implementing operational improvements that are both financially and cost-effectively viable, PaCT demonstrates to the industry a new path of competitive advantage, he continues.

Mr. Ali emphasizes the significance of building a business case around environmentally friendly solutions in the industry, such as rooftop solar and rainwater harvesting.

According to Martin Holtmann, national manager for Bangladesh, Bhutan, and Nepal at IFC, the RMG industry needs to address environmental issues and take more steps toward greening manufacturing. RMG employs more than 4.5 million people directly, largely women, and accounts for one-fifth of the country’s GDP and more than 80% of export revenues. Among those, there were SREDA member Golam Sarware Kainat, CEO of the Bangladesh Foreign Trade Institute Dr. Md. Jafar Uddin, and Khondkar Morshed Millat, director of the Bangladesh Bank’s Sustainable Finance Department. High officials from the Danish and Dutch embassies as well as representatives from BSTI, BEPZA, BIDA, the Tariff Commission, businesses, and civil society organizations attended the occasion.