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Article

30 Mar 2024

Author:
Rafayet Ullah Mirdha, The Daily Star (Bangladesh)

Bangladesh: Buyers reportedly failing to pay premium for "greened" apparel factories costing suppliers billions of dollars

"Buyers admire green effort, but don’t pay for it,"

Local garment exporters have already spent a few billion dollars to transform their production units, but despite their pleas, international buyers are not paying a premium for the products they source from the eco-friendly factories.

Local suppliers say international retailers and brands prioritise green factories when placing work orders. Therefore, owners of local green factories need not worry about a lack of work orders even in times of crisis...

The BGMEA has a target to export $100 billion worth of garment items by 2030, so owners are greening their units in a bid to retain existing customers and attract new ones.

The main goal of greening factories is to lower carbon emissions, especially considering the changing purchasing patterns of consumers. Now, consumers are more environmentally conscious, meaning they prefer to buy items that create less pollution in the production process. As a result, these green initiatives are attracting more consumers.

On the other hand, such initiatives have led to greater savings for factory owners as they can become more energy-efficient, reduce water use and cut down on water bills by using the harvested rainwater. On average, a green garment factory can reduce its electricity consumption, water consumption, and fuel consumption by 40 percent...

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, says garment suppliers have not invested in greening factories for direct financial benefits, but rather to save the environment from pollution and preserve it for future generations.

"The greening of the sector brightened the image of the country and boosted the confidence of international retailers and brands. This has brought home a lot of business even during tough times."

Part of the following timelines

Global fashion brands' purchasing practices are shifting financial pressure of decarbonisation onto suppliers

Global fashion brands' purchasing practices shifting financial pressure of decarbonisation onto suppliers