Industries' care for environment, sustainability on the rise

People living in Dhaka are becoming used to breathing in the world's worst air, with Bangladesh's capital city topping the list of cities worldwide with the most polluted air one the Air Quality Index (AQI). The index classified Dhaka's air as 'very unhealthy' on 30 January, followed by Ghana's Accra, Uganda's Kampala and India's Mumbai as the second, third and fourth most air polluted cities.

Meanwhile, a study published in Nature revealed that only a small fraction of Bangladeshi households outside Dhaka, 5% or less in Barishal and Rangpur divisions, use clean energy due to lack of awareness and basic infrastructure.

In contrast, industries are now growing more environmentally conscious and adopting greener technologies on their own to sustain their growth and meet global standards, especially requirements of export destinations.

RMG well ahead

The apparel industry is the forerunner in the stride for reducing pollution and preserving natural resources. Bangladesh is home to 54 of the world's top 100 green garment factories. The garment industry has 206 LEED (Leadership in Energy and Environmental Design) factories, certified by US Green Building Council and 500 more are in the process.

Energypac Fashions Limited was the latest to join the club in December with verification from Green Business Certification Inc.

These factories use energy-efficient and environment-friendly technology, along with practices that save water and energy and minimise pollution.

The industry also publishes sustainability reports stating its progress and performance in greening the production process and making the industry economically, socially and environmentally sustainable.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has signed the UN fashion industry charter for Climate Action with UNFCCC as a supporting organisation to reduce greenhouse gas emissions of the industry by 30% within 2030. BGMEA has also pledged to the "Green Button Initiative" of the German government, and joined the Fashion Industry Charter for Climate Action — an initiative convened by the UN Climate Change.

BGMEA is one of the key partners of the Water Resources Group 2030 — a public, private, civil society partnership hosted by the World Bank Group which aims to save water through reuse.

Local entrepreneurs have been investing in environment-friendly manufacturing facilities and increasingly finding alternative energy sources like solar power more attractive. Rooftop solar power, in particular, is becoming popular due to its reliability and cost-effectiveness, with the grid power cost rising and supply concerns growing.

Meghna Group of Industries has embarked on a Tk100 crore rooftop solar power project with 23MW capacity. Viyellatex Group, Bitopi Group, Fakir Fashions and Giant Group are among those that have already initiated rooftop solar plants or are negotiating, while rooftop solar meets 12%-15% electricity needs for Pacific Jeans.

For steel, cutting pollution is a new business

Steel industry waste and byproducts, once environmental hazards, have now become foreign exchange earners, giving jobs to many and reducing industrial pollution.

The steel industry wastes like zinc ash, red oxide, and mill scale are finding ways to China, Malaysia, Korea, Vietnam, Thailand, and the Netherlands, fetching $18.77 million in five months to November of the current fiscal year.

Steel giant BSRM is the pioneer in zinc ash export, while PHP, KDS, AKS, Karnaphuli in Chattogram and a few others from Dhaka are now exporting another steel waste — red oxide. At least 30 exporters are doing business with mill scale, a solid waste which was previously dumped in landfills and a source of soil and air pollution.

The success of Bangladesh's steel industry in transforming waste into valuable exports highlights its efforts to achieve environmental sustainability.

Leather lagging behind

But the leather industry has not progressed much towards sustainability as only three factories have so far got Leather Working Group (LWG) certification — a key criteria to enter the global market. The number of LWG-certified suppliers is 253 in India, about 200 in China, 44 in Pakistan and 18 in Vietnam. Of the three LWG-certified companies in Bangladesh, only one is gold rated and two others are silver-certified by the Sustainable Leather Foundation.

Having no LWG certification means limited export destination and 30-40% lower price for Bangladeshi leather goods exporters.

The leather industry's wait for a fully-functioning central effluent treatment plant (CETP) has not ended yet. An Asia Foundation study says tannery factory by-products, if used and processed properly, can be value-added products even for the export market.

"The Bangladesh leather sector is also facing increasing pressure to improve its environmental performance. This requires investment in new technologies and processes to reduce pollution and waste. This requires a significant investment," Ferdaus Ara Begum, CEO of Business Initiative Leading Development (BUILD), wrote in a recent article for The Business Standard.

The leather sector needs a transition to attain and retain its second largest export sector position, getting ready for post-LDC market competition, she added.