February 7, 2023
DHAKA – Bangladesh became home to half of the top 100 green industrial units worldwide after KDS IDR Limited, a garment factory in Kalurghat, received platinum certification from the Leadership in Energy and Environmental Design (LEED) programme on February 1.
Platinum certification is the highest category in the ranking system while gold is the second highest and silver is the third. There is also a fourth category for industrial units that just meet the minimum requirements.
Being the global champion in LEED certified factories, Bangladesh has 63 platinum rated garment units while another 110 are gold rated, 10 are silver rated and four are just certified.
Besides, more than 500 other garment factories are awaiting LEED certification by the United States Green Building Council (USGBC) for their green initiatives, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
China has the second highest number of platinum rated factories with only 10 while Pakistan places third with nine. Other global leaders in LEED certification include India and Sri Lanka with six each while Taiwan and Vietnam have four.
Meanwhile, Myanmar and the US each have two platinum rated factories while Ireland, Italy, Indonesia, Mexico, Poland, Paraguay, Romania, Turkey and the UAE have one apiece, according to data from the USGBC.
Local businesspeople started building LEED certified structures following two industrial disasters — the fire at Tazreen Fashions in 2012 and collapse of Rana Plaza in 2013 — in a bid to brighten their image and thereby attract more international retailers and brands.
The LEED initiatives indicate that the domestic garment sector does business in line with global environmental and safety standards, said Mohiuddin Rubel, a director of the BGMEA.
It is not mandatory for international clothing retailers and brands to pay extra for goods sourced from LEED certified industries even though these manufacturers spend millions to make their factories green.
Still, buyers prefer to place work orders at green units as they know the goods are produced in compliance with environmental and safety standards.
“So, even if buyers are not eager to pay additional prices in the short term, the suppliers are ultimately benefitted by doing business with global retailers and brands for an extended period,” Rubel added.
Fazlee Shamim Ehsan, proprietor of Fatullah Apparels, the highest rated platinum certified knitwear factory in the world, said buyers may change their minds about paying additional prices for items sourced from green units in the future.
“We have invested money to make the factories green, not for only better prices, but to protect the environment while doing business,” added Ehsan, who runs factory at Narayanganj.
Kutubuddin Ahmed, founder of the Envoy and Sheltech Groups, which has a platinum rated denim textile factory, said buyers do not pay additional prices for green initiatives as they have many suppliers.
“Buyers can get the same products at lower prices from uncertified suppliers and so, they do not care about green initiatives,” he added.