readymade garments impact on environment and ecology

Running head: Sustainability of Textile and Garments Industry in Bangladesh

Sustainability in Textile and Garments Industry of Bangladesh Presentation Summary

Submitted to, Keith Dewar Faculty of BusinessUniversity of New Brunswick, Saint John Canada

Submitted by, Hasan Haque ID # 3487838MBA Program (2013-2014)

Faculty of BusinessUniversity of New Brunswick, Saint John Canada

Date of Submission: July 18, 2014

Sustainability of Textile and Garments Industry in Bangladesh 1

Abstract

The Ttextile and Garments garment industry is playing a vital role in the

economy of Bangladesh. This sector is earning more than 75 percent of export

earnings and employing more than 4.2 million of people of which 80 percent are

female and non- skilled and semi-skilled workers (reference). While the sector has

contributed to the economic and social well-being of Bangladesh, it has also

n e g a t i v i l y affected the environment and society hazardously and raised the

attention of sustainable development. Cheap labour has attracted the attention of

the retailers and it has become the second largest exporters in the world after China.

Carelessness about the environment by the stakeholders in the industry, rapid and

unplanned expansion of the industry, lack of industrial zone and funding problem

has deteriorated the situation and damaging environment, ecology and bio-diversity

severely. Following the importance of economic and social impact of the industry,

sustainable development in the industry is important and a joint effort by the all the

stakeholders will foster the initiative through up gradation and modernization in the

industry (a bit unclear, social and economic is part of sustainable development). Studies

have y found that, sustainability in the industry is key and critical for future

development and it is possible to achieve sustainability maintaining triple bottom-line.

(what studies? Reference please)

Introduction

Sustainability in the textile and garments industry is an emerging issue in

Bangladesh with the growing demand from socio-economic contexts, pressure from

retailers and other stakeholders maintaining the triple bottom-line as well. The

industry as a key economic player has influenced the economy in a multi-dimensional

way. It is requiring the ways of sustainable development that will further

Sustainability of Textile and Garments Industry in Bangladesh 2contribute to the economy. I have studied and investigated from the various role

players’ perspective in


the industry and it is evident that it is possible to make and maintain sustainable

development by a common effort by the stakeholders.

Research questions & Research Method

In conducting the research, I (try not to use personal pronouns for example: In

conducting this research the researcher … ) have used mixed design (both primary and

secondary data). I have interviewed (formal or semi formal?) (telephone) two

owners from two different companies in Bangladesh, while secondary data

outweigh the former. The research has followed two questions; (1) how to approach

eco-friendly products, (2) how to achieve sustainability in textile and garment

industry of Bangladesh, with the hypothesis that sustainability is achievable in the

industry maintaining triple bottom-line of business.

Results

Analyses focus on possible roles and actions by the stakeholders to achieve

sustainability in the industry. Results showing the individual factories and retailers

success such as DBL, ECOTEX, People Tree and Aranya (Yee, 2013; Sustainable

Fashion, 2011; Sustainia, 2013) and common effort by the stakeholders such as,

companies and retailers, regulatory authorities and development agencies and

implementation and up gradation with modernized technologies and disruptive

innovations, uses of natural dyes and process could contribute to the sustainability

(Yee, 2013; Sustainable Fashion, 2011; Appendix A; Appendix B).

Discussion

I am going toto the presentation will discuss a number of issues and examples to

address the steps towards the sustainability in the industry. Both individual and

joint effort by the companies, retailers, development agencies, government could

Sustainability of Textile and Garments Industry in Bangladesh 4take initiative as DBL Group and

Sustainability of Textile and Garments Industry in Bangladesh5

Ecotex BD installed Effluent Treatment Plant (ETP) and modernize their operation to

reduce the discharge of toxic waste directly to the river, ponds and canals that has the

direct hazardous impact to the environment, bio-diversity and society (Yee, 2013;

Zaker, 2010). Yee (2013) has argued that DBL is showing that they have reduced the

use of water for their operation by 50 percent and saved electricity and gas

significantly and contributed US$ 500,000 to their bottom-line. The study also

indicates that joint effort by 18 other companies has significantly reduced the use of

gas, water, electricity and emissions to the environment. International Finance

Corporation (IFC) stated that installation of ETP and modernization by the half of

the factories in the industry would save US$ 75 million with 63 billion liters of waters

and 650 million cubic meters of gas (Yee, 2013).

Retailers can play a significant role by designing differently and contributing to

the companies’ installation and modernization of hi-tech equipment (Sustainia,

2013). From the example of People Tree - designing differently and price of a polo

shirt in H&M stores - profit margin 60 percent, it is clear that retailers can

contribute by designing different considering the traditional skills, hand weaving

hand skills for which Bangladeshi workers are famous and placing the orders

ahead of time (Sustainable Fashion, 2011; Chua, 2013). Designing differently will

reduce the impact on the environment, increase the employment for more people, and

use of natural dyes (vegetable dyes) and traditional textile techniques will reduce the

cost of production in Bangladeshi context (Sustainable Fashion, 2011, p. 4-19).

Retailers can also contribute to the companies from their extremely high profit

margin (60 percent) to install ETP


and modernize the operation (Yee, 2013).

Textiles and garments industry in Bangladesh are heavily dependent on ground

water and natural gas (Ground water, n.d.). Over use and lack of recycling water

leading the ground water level (aquifer might be a better word if this is underground

water) down and creating imbalance in ozone layer and scientists fearing severe

earthquake especially in Dhaka city (Capital of Bangladesh) as most of the industries

are established in the city. Companies are also discharging toxic waste water

directly to the environment leading to other ecological damage, for example, fresh

water fishes are in the stage of extinction but history says that fresh water fishes

served the countries protein demand (Zaker, 2010). Employment of hi-tech

technologies like, “textile dying without water waste” can lead to a better solution to

the problem as this completely eliminates the use of water and significant reduction in

chemical and energy use (Sustainia, 2013). Using this technology textile industry will

be especially viable in a country like Bangladesh where scarcity of water is going to

be a severe reality.

Financing is a major stumbling block in adopting ETP and other modernized

technologies (Appendix A). Small companies are suffering most from financing and

economies of scale in their operation. Establishing common ETP will be a great

solution in the context as the companies are very closely situated (Islam, 2013;

Appendix B). Bribery and lack of enforcement of laws and regulations has

deteriorated the situation (Appendix A). Bargaining power of producers with

retailers also affects the situation (Appendix B). Large group of companies in the

country have strong bargaining power with the retailers and they can charge higher

prices than the small producers. Many of


the large companies successfully negotiated with the retailers and established ETP and

adopted modernized technologies working together (Appendix A; Sustainable

Fashion, 2011).

Conclusion & Recommendations

In conclusion, it is evident that sustainability in textile and garments industry is

important and attainable maintaining the focus of triple bottom-line of business (Islam,

2013). Importance of sustainability in the industry is paramount because this has

become a burning issue as part of compliance by the retailers that will lead to

economic collapse of the country and danger to the bio-diversity that are causing

problems to the society and environment in numerous ways including living

standard, loss of productivity in other economic activities due to the contamination of

water and land. A number of new diseases hasve resulted from the destructive

environmental impact and study studies shows that the medical spending in those

areas population has increased manifold (a bit awkward). Considering all the facts

and figures I would like to recommend the number of initiatives. First,

establishing common ETP – most of the industries are very close to one another

(Appendix A; Appendix B). So, use of common ETP will reduce the costs and save

energy, water and other resources. Second, strict enforcement of laws and

regulations to environmental compliance is necessary. Government and responsible

departments should take actions to stop bribery to allowthat allows pollution.

Third, retailers should contribute more providing more as production costs to the

producers and help the factories to adopt modernize technologies from their extremely

high profits (assuming the money goes to improvement and not just into the owners

pocket). Fourth, government and other development agencies should come forward

Sustainability of Textile and Garments Industry in Bangladesh 8to fund the small


companies to establish and maintain the compliance issues. And finally, use of natural

dyes and traditional skills could be a revolutionary steps towards sustainability. All

these effort will lead to a sustainable textile and garments industry in Bangladesh

(Figure I).


References

Chua, J. (2013, July 16). INFOGRAPHIC: What Does That $14 Shirt From

Bangladesh Really Cost? Ecouterre. Retrieved June 24, 2014, from

http://www.ecouterre.com/infographic-how-much- does-that-14-t-shirt-really-

cost/

Clark, A. (2014, January 14). Fashion forward: Innovations in sustainable apparel.

Earth People

Media RSS. Retrieved June 26, 2014, from http://earthpeoplemedia.com/fashion-

forward-innovations-drive-sustainable-clothing/

GROUND WATER. (n.d.). arsenic poisoning in Bangladesh/India. Retrieved June 30,

2014, from

http://www.sos-arsenic.net/english/groundwater/

Islam, S. M. (2013). Approaching Sustainability in Textile and Garment Industries,

Bangladesh. Trita xx:xx.

Living Sustainability. (n.d.). Living Sustainability. Retrieved June 18, 2014, from

http://www.huntsman.com/textile_effects/a/Home/Living%20Sustainability

Moffat, C. (2012, February 1). Sustainable Clothing and Sustainable Fashion. - The

Fashion eZine. Retrieved June 29, 2014, from

http://fashion.lilithezine.com/Sustainable-Clothing-Fashion.html

Sustainable Fashion, C. f. (2011). Steps towards Sustainability in Fashion: Snapshot

Bangladesh A resource for fashion students and educators. London: London

College of Fashion.


Sustainia (2013): A guide to 100 Sustainable Solutions (). (2013). Textile Dyeing

without Water or Waste, p. 56

Yee, A. (2013, March 21). Conservation Pays Off for Bangladeshi Factories. The New

York Times.

Zaker, A. (2010, November 9). Cruising through drains!. bdnews24.com.


Appendices

Appendix A

Interview with Managing Director of Shovon Washing Plant, Bangladesh

This is a small company. Their operation includes the washing, dying (small quantity)

of readymade garments. They operate manually employing around 250 to 300 peoples.

Mr. M A Baten is the Managing Director of the company.

Hasan: Assalamu alaikum. How are you?

Mr. Baten: Assalam. I am fine. How are

you?

Hasan: Fine thanks. To begin our conversation, first I would like to know the biggest

problem of establishing ETP in your company?

Mr. Baten: Finance. I have been trying to establish ETP since 5 years and I have the

good intention to establish ETP but I am not getting any loan from any bank because I

am unable to provide any collateral as the property already under another bank as

collateral for other loans.

Hasan: I know, environmental law requires the ETP and you cannot operate without

ETP but I am wondering how you are still operating?

Mr. Baten: See, you are from Bangladesh and you what happens here. To be honest, I

bribe the officers who inspects.

Hasan: What do you think to overcome your problem? How the problem can be

solved? Mr. Baten: As a small company, we do not have sufficient fund and we do not

enjoy the economies of scale. We also get lower price from retailers and larger

factories when we work under subcontract. In the past, I have worked with H&M

and they forced us to


establish ETP and other compliance issues but they did not help us financially to

overcome the situation. Rather, H&M left us that has affected our bottom-line severely

and still we are struggling.

Hasan: So, what do you think, I mean, what do you suggest?

Mr. Baten: I would go for few important options. First, establishing common ETP can

solve the problem. There are four other similar washing plants surrounding my

factories. We can share the common resource and work together to reduce our

costs. Second, Government should patronize the industry providing finance and

technical assistance. Hasan: Thanks for your time. Have a great day.


Appendix B

Interview with Managing Director of Ecotex, Bangladesh

Ecotex is a large composite factory in Bangladesh. They are one of the large group of

companies in Bangaldesh and Mr. Shafiq Hassan is the Managing Director of the

company. The company has been awarded the best environmental award 2013 and

they are operatiing successfully in the industry. Currently they are working with 11,

000 to 12, 000 people.

Hasan: Assalamu alaikum sir. How are you?

Mr. Shafiq: Assalam. I am fine and you?

Hasan: I am fine, thanks. I am conducting a research on sustainability in textile and

garments industry of Bangladesh. I have some issues to know from you. You may

provide me some good insight into it as you have got the best environmental award

2013.

Mr. Shafiq: Sure

Hasan: What is the main issue for environmental and other compliance in the

industry? What is your strong point?

Mr. Shafiq: First, I would like to say that it is all about intention or ethical approach

by the companies. As you know, there are many other large companies, they have

money but they are not following the standards. They are operating their ETP only

when the inspectors are visiting.

Hasan: What are your next points?

Mr. Shafiq: I have some big giant retailers like New Look whom I am working for a


long time and bargained to contribute in adopting modernized equipment’s as part of

business commitment. This has worked and following my large scale operations and

ability to meet very tight and short lead time enables me to charge premium prices

than others.

Hasan: Your Company is large and you exploit the opportunity of premium prices,

economies of scale and strong bargaining power, but what is your suggestions for the

small companies?

Mr. Shafiq: I think, government and development agencies can play key role here both

in terms of finance and technical assistance. Government has different packages for

different industries but surprisingly, they no such packages for this industry thought

this is the major export earners of the country.

Hasan: What can be done by the large factories like you?

Mr. Shafiq: hmm..I did not think yet. But, yes I will look into it.

Hasan: Thank you very much for your time and effort.

Mr. Shafiq: You welcome.

Hasan: Bye

Interesting … the summary is a bit long and at times hard to read … keep practicing your English

writing. Still a good effort. 20/25


Figure I: Sustainability Framework – Textile & Garments, Bangladesh

readymade garments impact on environment and ecology

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