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Sustainability and circularity are often conflated but differ significantly. Understanding their distinctions is key to contextualizing the fashion industry’s environmental impact and green initiatives.
Sustainability encompasses systems that meet present needs without jeopardizing future generations, focusing on three pillars:
Circularity specifically addresses environmental sustainability, emphasizing a closed-loop system and a ‘cradle-to-cradle’ approach to product lifecycle management.
Figure 1 The Difference between Sustainability & Circularity[1]
To fully grasp the concept of sustainable and circular business practices it is essential to understand the context of green practices in Bangladesh. Currently, Bangladesh boasts 225+ factories with leadership in energy and environmental design (LEED), demonstrating its commitment to sustainability. However, this commitment may be subject to scrutiny, since the certification of LEED does not necessarily imply the implementation of circularity practices by RMG entrepreneurs.
Sustainability is the overarching goal and has always been a key strategic priority for the RMG industry of Bangladesh in the last few decades. Sustainability is not only about fulfilling social, environmental, and community obligations; it is also about how to remain economically viable through innovation, digitization, diversification, and being more productive in the most resource- efficient way.
While sustainability encompasses all practices aimed at ensuring a viable future, circularity focuses specifically on actions that contribute to sustainability. This includes reusing raw materials, refurbishing used products, and recycling old materials, among other practices. Additionally, sustainability entails maintaining or enduring through the interplay of environmental, social, and economic factors, while Environmental, Social, and Governance (ESG) criteria evaluate a company’s impact on environmental, social, and governance aspects.
The concept of sustainability emerged from the 1972 United Nations Conference on the Environment and was clarified in the 1987 Brundtland Report, which introduced the three pillars: environmental, social, and economic sustainability.[1] Hence, sustainability entails environmental conservation to foster the well-being of workers, thereby enhancing their productivity, which, in turn, contributes to the sector’s competitiveness.
Before understanding the context of ‘Green’ in Bangladesh, let’s take a step back and recall the Rana Plaza tragedy. The collapse of the Rana Plaza factory building in Bangladesh in April 2013 marked the worst industrial incident in the garment industry’s history. It resulted in the loss of 1,134 lives and left thousands more injured. Despite warnings about structural cracks, garment factory owners ignored safety concerns, compelling workers to return to the building, which ultimately led to its collapse. The tragic event shocked the world and highlighted the need for justice for the victims and improved safety standards in the garment industry.[1]
Increased public interest and media scrutiny have generated unprecedented political pressure for change, leading to innovative measures for prevention and redress. The European-based Accord on Fire and Building Safety in Bangladesh was established on May 15, 2013, as a five-year legally binding agreement between global brands, retailers, trade unions, and stakeholders. Its goal is to improve safety standards in Bangladesh’s RMG industry, resulting in significant safety enhancements in our factories.
Similarly, the Alliance for Bangladesh Worker Safety, initiated by 28 leading global retailers in 2013 was formed, a five-year binding commitment aimed at enhancing safety in Bangladeshi RMG factories. Its members collectively represent a significant portion of North American imports of ready-made garments from Bangladesh, sourced from over 650 factories.
The government of Bangladesh has also established the Remediation Coordination Cell (RCC) to undertake the responsibilities of the Accord and Alliance once they phase out in 2026.[2] The RCC’s primary focus is managing the remediation process for garment factories under the Government of Bangladesh’s National Initiative. It will be staffed by members seconded by regulatory bodies such as the Department of Inspections for Factories and Establishments (DIFE), Fire Service and Civil Defense, RAJUK, Chief Electrical Inspector, Public Works Department, and Chittagong Development Authority. Initially, private sector engineers will provide technical expertise for remediation follow-up. The RCC also receives support from the International Labour Organization (ILO).[3]
Fast forward to now, the country has over 200 LEED factories which primarily focus on the design of buildings/factories with respect to environmental standards such as energy, water, and waste management. Visionary entrepreneurs like ABA Group’s Chairman Md Sajjadur Rahman Mridha and Envoy Group’s Chairman Kutubuddin Ahmed, Plummy Fashion’s Managing Director Md Fazlul Hoque developed strategies for eco-friendly factories to meet buyer expectations and gain lasting advantages. They committed to investing at least 25% more to establish green factories, leading to the green revolution as a result of this initiative.
Achieving this milestone marks Bangladesh’s entry into the world of certified environmentally friendly ready-made production factories. In just 12 years, Bangladesh has garnered an impressive count of 200+ factories recognized by the US Green Building Council (USGBC), setting a global benchmark
In 2009, ABA Group initiated the construction of an environmentally friendly readymade garment factory, Vintage Denim Studio, situated in the Ishwardi Export Processing Zone in Pabna. This factory received the esteemed Leadership in Energy and Environmental Design (LEED) platinum certification from the US Green Building Council (USGBC) on May 30, 2012.
To emphasize, LEED certification for factories in Bangladesh primarily pertains to the design aspects of and environmental performance of buildings to measure their sustainability. It focuses on the following areas:
Figure 2: Criteria for LEED Certification, LEED BD+C (LEED Platinum requirements)
Note: Building Design and Construction (BD+C) – designed for new construction projects or major renovations.
The LEED rating system operates on a point-based framework, where buildings accrue points by fulfilling specific criteria across categories like energy efficiency, water conservation, and indoor environmental quality. A building’s LEED rating corresponds to the number of points earned, with four certification levels: Certified (40-49 points), Silver (50-59 points), Gold (60-79 points), and Platinum (80+ points).
The LEED rating system emphasizes energy efficiency and renewable energy, rewarding buildings for utilizing efficient equipment like high-efficiency HVAC systems, LED lighting, solar panels, and data analytics platforms. Points are also granted for employing renewable energy sources such as geothermal, wind, or hydroelectric power. Additionally, water conservation is prioritized, with points awarded for installing water-efficient fixtures, greywater, and rainwater harvesting systems. Indoor environmental quality is another focus, with points given for maintaining optimal air quality, natural light, thermal comfort, and, access to green spaces.
Platinum-certified projects excel in energy efficiency, water conservation, greenhouse gas reduction, and enhancing occupant health. They not only reduce environmental impact but also establish new benchmarks for sustainable design of buildings, motivating others to embrace green building excellence.
Having a LEED certification is different from implementing circular practices, which are now emphasized by both buyers and global policymakers. Circularity mostly deals with the value chain and the preparation of the garment in the most efficient way. In the apparel industry, circularity has been a prominent topic of discussion for some time. The significant water usage in cotton production (approximately 2,700 liters per T-shirt) and the reliance on fossil fuels for polyester fibers contribute to immense pressure on finite resources. With new regulations such as the EU Green Deal framework and the Eco-design for Sustainable Products Regulation (ESPR), emphasizing circularity, decarbonization, and traceability, rising global competition, and increasing demand for recycled materials, Bangladesh’s RMG sector faces the imperative of branding itself as a dependable and circular sourcing destination. Bangladesh is prioritizing the shift towards a circular economy to achieve sustainable growth and maintain long-term competitiveness.
Figure 3: Circular Strategies for Garment’s End-of-Life Moment[1]
A circular fashion system establishes a chain of life-cycle that allows raw materials to be re-integrated and re-used in production, thereby extending its shelf life. Although the loop doesn’t ensure 100% non-leakage or non-wastage, it still can help to keep fibers from landing in landfills too soon. Starting from the design phase, production, use phase (by the consumer), end of life, and back to the input of materials following re-cycling, the circular perspective has to be integrated at each phase of the fashion industry to ensure effective impact. As a sourcing hub, Bangladesh is well poised to play a significant role in the production and input stage (and to some extent design stage too).[1]
A crucial, yet often overlooked, aspect is the design phase, where around 80% of a product’s environmental impact is determined.6 Brands can significantly enhance product circularity by making informed design choices. Designers and their teams can address key issues through:
While Bangladesh faces pressure to adopt circular practices, responsibility also lies with brands to design responsibly. All stakeholders—including product creation teams, manufacturers, logistics, retail operations, investors, and consumers—must collaborate to achieve this goal.
Lastly, decarbonization – is the process of lowering or eliminating carbon emissions. This involves shifting from fossil fuels to low or zero-carbon energy sources such as renewable energy and applies to all the stages of achieving circularity and sustainability. The fashion industry presently contributes up to 10% of global carbon emissions, and the Global Fashion Agenda predicts a 50% increase by 2030. This is why carbon reduction is central to both the UN’s Fashion Charter and the G7 Fashion Pact, two major initiatives aiming to catalyze industry change. Both seek to achieve net-zero emissions by 2050.
However, challenges persist regarding the most effective implementation strategies, including whether the focus should be on carbon offsetting programs like tree-planting or on internal efforts to reduce carbon emissions directly.
In theory, achieving carbon neutrality in the fashion industry entails brands reducing their emissions where feasible and offsetting the remaining footprint by funding projects that remove carbon from the atmosphere elsewhere. However, in practice, there has been a greater emphasis on the latter approach.[1]
As per the 5th Annual Report of the Intergovernmental Panel on Climate Change (IPCC), Bangladesh is among the most vulnerable countries to climate change. Despite being one of the lowest carbon emitters globally, Bangladesh acknowledges the significance of addressing climate change. Consequently, BGMEA has committed to the UN Fashion Industry Charter for Climate Action, with the United Nations Framework Convention on Climate Change (UNFCCC) as a supporting organization, aiming to reduce industry greenhouse gas emissions by 30% by 2030.
Bangladesh’s ready-made garment (RMG) sector is responsible for 15.4% of the country’s greenhouse gas emissions, while the textile sector accounts for 12.4%, making them major contributors to carbon emissions and challenging GHG reduction goals set by the Paris Agreement.[2] Despite their significant GDP contribution, these industries face operational inefficiencies such as inadequate financial incentives, limited technical expertise, and a lack of supportive infrastructure, which hinder the adoption of energy-efficient practices.
Side by side, inefficient production processes, and limited natural resources lead to high energy consumption and increased CO2 emissions. The financial burden of adopting energy-efficient technologies is a significant challenge for many enterprises. Bangladesh’s heavy reliance on fossil fuels like coal and natural gas further intensifies the carbon footprint of its industries. Additionally, substantial waste including chemicals and by-products from dyeing and finishing exacerbates environmental pollution due to poor waste management practices. The industry’s discharge of untreated waste into water bodies also contributes to water pollution, posing risks to both the environment and human health.
Therefore, overcoming these obstacles is crucial to achieving Bangladesh’s updated nationally determined contributions (NDC), which aim for a 6.73% GHG reduction unconditionally and an additional 15.12% with international support by 2030.
As Bangladesh strives to balance economic growth with environmental responsibility, key measures include incentivizing energy-efficient practices, developing technical expertise, and creating policies that support circularity. This involves encouraging textile and RMG manufacturers to adopt energy-efficient technologies through a robust incentive system, such as tax breaks, or financial benefits, to motivate investment in energy-saving innovations.
The RMG sector in Bangladesh faces a critical juncture, balancing the need for ethical and environmentally responsible practices with fair pricing. Pursuing sustainability, including eco-friendly materials and ethical labor practices, often increases production costs, which is a significant challenge in a price-sensitive market.
However, this challenge also presents opportunities for green RMG factories to stand out and succeed. As consumers and brands increasingly value ethical and sustainable practices, there is a growing demand for responsibly sourced garments. By embracing circular practices, Bangladesh can position itself as a leader in Green Apparel. Furthermore, advancements in manufacturing technologies and practices can reduce long-term operational costs. Investing in modern machinery, energy-efficient processes, and waste reduction can lead to significant cost savings over time.
Figure 4 Defining the Areas of Green
Additionally, to truly close the loop, raw materials have to be re-inserted within the system of production, in a way that the quality is not compromised to ensure a longer lifespan of the products. For the apparel sector, this means tearing the fabric down and re-spinning the fibers to produce yarn. The recycled yarn has quickly caught the attention of brands, as brands can market products under green and conscious labels.
Across the world, innovative techniques to recycle fibers from cotton, cotton blends, viscose, polyester, and cellulosic materials are constantly being developed keeping a low carbon footprint, low chemical usage, and low water usage as key factors. Beyond innovation, scalability is also a primary concern for the nascent recycling industry across the globe.
Currently, there are two main types of recycling technologies: mechanical recycling and chemical recycling. Mechanical recycling involves manually shredding fabrics and then re-spinning them, often blending the shredded fibers with virgin cotton to create recycled yarns. This process is most straightforward with cotton-based materials. In contrast, recycling polyesters or synthetic blends is more energy-intensive, as it requires decomposing the polymers and separating the different fibers.
In India, Pakistan, and China, recycling industries predominantly use mechanical methods due to their low machinery costs and reliance on abundant labor. Conversely, chemical recycling employs chemical solutions to alter the molecular structure of fibers and break down blends for recycling. The primary challenge with chemical recycling is its high energy and chemical requirements, which can lead to a higher carbon footprint and potentially harmful effects from chemical discharge. Innovations in chemical recycling are mainly driven by Western companies, necessitating extensive research, development, and substantial investments to implement.
Figure 5: Major areas of innovation in fiber
As Bangladesh aims to become a green sourcing hub amidst upcoming regulations and the removal of GSP facilities, it is crucial to innovate and strengthen its brand identity while reducing dependence on imports. Recycling textile waste and diversifying fibers presents a significant opportunity, especially given the high share of cotton-based products in Bangladesh’s RMG sector. This approach can help build backward linkages and capitalize on the potential for sustainable practices.
Alternative green Input Materials:
While multifaceted challenges persist, a comprehensive approach to sustainability and profitability can lead the way forward. By adopting circularity, efficiency, innovation, and a commitment to ethical practices, factories can not only secure fair pricing from brands but also excel in a more conscious global market. Bangladesh’s garment industry has the potential to set new benchmarks for ethical and sustainable manufacturing, demonstrating that responsible business practices are both feasible and crucial for a better future.
This article was authored by Samiha Anwar, a Senior Business Consultant at LightCastle Partners.For further clarifications, contact here: [email protected]
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