readymade garments impact on environment and ecology
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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
Sustainability of Textile and Garments Industry in Bangladesh 3
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
Sustainability of Textile and Garments Industry in Bangladesh6
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
Sustainability of Textile and Garments Industry in Bangladesh 7
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
Sustainability of Textile and Garments Industry in Bangladesh9
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).
Sustainability of Textile and Garments Industry in Bangladesh 10
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.
Sustainability of Textile and Garments Industry in Bangladesh 11
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.
Sustainability of Textile and Garments Industry in Bangladesh 12
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
Sustainability of Textile and Garments Industry in Bangladesh 10
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.
Sustainability of Textile and Garments Industry in Bangladesh 11
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
Sustainability of Textile and Garments Industry in Bangladesh 12
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
Sustainability of Textile and Garments Industry in Bangladesh 13
Figure I: Sustainability Framework – Textile & Garments, Bangladesh