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Research: Demand for CSR among Millennials

Sustainable Transformation in Bangladesh’s Textile & RMG: CSR Progress

The textile and ready-made garment (RMG) industries in Bangladesh are significant contributors to the country's greenhouse gas (GHG) emissions, with RMG accounting for 15.4 percent and textiles for 12.4 percent. This high carbon footprint poses a challenge to meeting the GHG reduction targets outlined in the Paris Agreement. Despite their substantial contribution to the GDP, these industries face operational inefficiencies exacerbated by outdated machinery and ineffective energy management practices.

The increasing energy intensity in industrial operations raises concerns about Bangladesh’s ability to meet rising energy demands while reducing GHG emissions. Limited financial incentives, technical expertise, and a supportive environment hinder the adoption of energy-efficient practices in these sectors.

Failure to address these challenges undermines Bangladesh’s commitments to reduce GHG emissions, as outlined in its nationally determined contributions (NDC). The updated NDC aims for a 6.73 percent reduction in GHG emissions by 2030, with an additional 15.12 percent reduction contingent on international support.

The textile and RMG industries in Bangladesh exhibit high energy intensity due to inefficient production processes and limited natural resource availability. The adoption of energy-efficient technologies faces financial barriers, compounded by the country’s reliance on non-renewable energy sources like coal and natural gas. Additionally, inadequate waste management practices and water pollution further exacerbate environmental concerns.

To mitigate these issues, Bangladesh Bank introduced the Program to Support Safety Retrofits and Environmental Upgrades in the RMG Sector Project (SREUP) in 2018. This initiative provided financial support to factories for implementing environmental upgrades, resulting in notable successes such as Snowtex Outerwear Ltd, which achieved significant reductions in energy consumption and carbon footprint.

Success stories from other countries, such as Welspun India and Mavi in Turkey, demonstrate proactive sustainability efforts in the textile industry. Welspun India prioritizes sustainability through water management and renewable energy integration, while Mavi focuses on using organic and recycled materials in manufacturing processes.

To promote sustainability in Bangladesh’s textile and RMG industries, incentivizing energy-efficient initiatives, enhancing technical expertise through training programs, and implementing robust policy frameworks are crucial steps. Collaborative efforts between the public and private sectors can facilitate knowledge sharing and collective action towards sustainability goals.

Regular environmental impact assessments and reporting by an independent body can ensure accountability and progress tracking in these industries. By prioritizing sustainability, textile and RMG sectors can contribute to a resilient future that balances economic growth with environmental responsibility, ensuring a prosperous and sustainable future for all.

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