Green RMG factories: How Bangladesh became a global champion

Bangladesh's ready-made garment (RMG) sector has transformed remarkably over the past decade, emerging as a global leader in sustainable manufacturing with the highest number of green factories in the world. 

This remarkable shift not only cements Bangladesh's position as an eco-friendly hub for textile production but also brings a host of benefits to the country's economy, workforce, and environment.

In response to growing global demand for sustainable and ethically produced garments, Bangladeshi manufacturers have taken bold steps to 'go green'. The RMG sector has embraced the construction of eco-friendly factories, adopting renewable energy, reducing water usage, and focusing on sustainable waste management practices. 

As of 2024, Bangladesh is home to more than 226 LEED-certified factories, awarded by the US Green Building Council (USGBC). Out of top 100 Platinum certified factories across the world, Bangladesh hosts 60, as the forefront of the green factory movement.

The green transformation began as a necessity to address concerns following the tragic Rana Plaza collapse in 2013, which highlighted the urgent need for better safety and environmental standards. By investing in sustainability, Bangladeshi manufacturers have not only improved working conditions but also gained a competitive edge in the global market.

While talking to TBS, Kutubuddin Ahmed, founder and chairman of Envoy Textiles Ltd, said that LEED certification has some additional costs to maintain certain conditions but it will give more benefits such as low maintenance cost later.

By adopting energy-efficient technologies, green factories in Bangladesh are reducing operating costs. Solar power usage, energy-efficient lighting, and improved water management have lowered utility expenses than traditional technologies, he added. 

Additionally, healthier working environments created through green initiatives have boosted worker productivity, thus enhancing output while lowering absenteeism rates.

"Initially, we wanted to achieve the gold status. Fortunately, we got the Platinum certification and became the world's first LEED-certified denim textile factory," said Kutubuddin Ahmed, who is also a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A couple of years ago, they received the platinum certification after the second review by USGBC. Now, they are opting for full points for LEED Platinum certification. 

Bangladesh's commitment to green manufacturing has enhanced the country's image on the global platform. It is now recognised not just for low-cost production but also for sustainable practices. This international recognition has brought in more investment from foreign buyers keen on associating their brands with environmentally responsible sourcing.

Having received the Platinum LEED certificate, Envoy Textiles Ltd secured the leading position among all textile mills across the world, according to USGBC.

A total of 226 garment factories in Bangladesh have received LEED certifications and 550 more are expected to get them in the future.

"Envoy Textiles Ltd (ETL) of the Envoy Group is a showcase example of sustainable design and demonstrator of leadership in transforming the building industry," the factory's LEED certification reads.

According to industry insiders, Bangladesh's emergence as a global champion in green manufacturing is a testament to the country's resilience, innovation, and dedication to sustainable development. 

As more buyers prioritise environmentally responsible production, the RMG sector stands to gain not just in reputation but in profitability. The journey to becoming a global leader in green factories has not only improved working conditions and reduced environmental impact but is also paying off as the world looks to Bangladesh as a model for sustainable industrialisation.

Global brands such as H&M, Marks & Spencer, and Inditex now prioritise sustainability in their sourcing policies. As a result, Bangladeshi factories with LEED certification have become the go-to choice for retailers seeking eco-friendly partners. These brands are more likely to place large, long-term orders with factories that meet international environmental standards.

Mirza Shams Mahmud Shakti, CEO of SM Sourcing, which operates the highest-rated knit factory in the world, said that while many garment factories struggle to operate at full capacity due to a lack of consistent work orders, his factory, certified with LEED Platinum, enjoys a more favourable situation. Buyers tend to prioritise placing work orders with them, ensuring a steady flow of production.

He also said that while buyers are generally reluctant to pay a premium price for green factories, the advantage of running at full capacity enables growth and generates additional profit. This indirect financial gain is another key benefit of operating a green-certified factory, even without a direct premium from buyers.

The reduced carbon footprint of green factories contributes to the country's broader environmental goals. Factories that minimise waste, conserve water, and reduce harmful emissions are playing a pivotal role in combating climate change and protecting local ecosystems.

Shovon Islam, a director of BGMEA, urges for focusing more on achieving zero emissions, zero discharge, and increased use of renewable energy, especially as many global brands have committed to reducing their carbon footprints, in line with the EU due diligence law.

He further said that the reduction of carbon footprints can be accomplished without necessarily having USGBC green certification.

"However, having a green certification does provide an advantage, as it offers preferential treatment during order placements," he said, stressing that it's a key benefit for green factories.

Shovon said that securing better factories requires several factors- working directly with high-end brands rather than through marketing agencies or buying houses, having in-house design and sampling capabilities, improving product quality, and ensuring timely delivery are all essential to gaining a competitive edge.

"If a green factory works with discount brands, how can they expect premium prices?" he questioned, emphasising the importance of aligning business models with the right brand strategy.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that garment suppliers have not focused on greening factories for immediate financial gain, but rather to reduce pollution and protect the environment for future generations.

"The shift towards sustainable practices has significantly enhanced the global image of Bangladesh's garment industry and strengthened the trust of international retailers and brands," he said, adding, "This environmental commitment has secured substantial business for the sector, even during challenging economic periods."

The greening of the RMG sector, according to Hassan, has proven to be a long-term investment in both the planet and the industry's future.