Largest collection of Apparel Merchandising, Fashion Merchandising Notes, Tutorials, Tips, Experiences, Resources, Books, Jobs and Others


Eco-friendly industry: New aspect of RMG sector

The factory which uses less water, electricity, fuel, chemical than conventional factory and produces more items by using less machinery is called Eco-friendly factory. Friendly environment is the key point to make such kind of factory. Considering Green environment to protect climate change, global warming, damage to the ozone layer, reversing and the loss of biodiversity is the responsibility of sustainable business plan.

Around 26 Eco-friendly factories have been built in Bangladesh over the last four years. These factories have to maintain international standards than other ordinary companies, but productivity is more efficient than gas-electricity-water utilization. Many entrepreneurs are working now to make this kind of factory. About 122 environment-friendly factories are being set up for an inauguration. Some entrepreneurs of the clothing industry said Bangladesh garment sector is going up to another level through the establishment of these Eco-friendly factories. These attempts will create a positive image to foreign countries regarding our garment industry along with environmental protection.plummy-fashions

The US Green Building Council (USGBC) situated in the United States, provide the certificate of environment-friendly plant named “Leed”. The full extent of Leed is ‘leadership in Energy and Environmental Design. To get the certificate from the USGBC, a project needs to supervise them from establishment to production to keep the highest standard in different subjects.

Leed certification is to comply with nine conditions, and someone has to fulfill all to get the certificate. The main notable condition is to use such materials in construction that will emit less carbon. To meet the demand need to use recycled brick, cement, and prefabricated steel to accomplish construction. Beside this need to assure factory workers housing facilities, schools for children’s, market for shopping, bus or tempo stand for transportation between 500 square meters from factory building. Because if they stay far from the factory premises that will urge them to use vehicles to come. As a resultant, it will incur higher fuel consumption as well as carbon emissions. Moreover need to ensure enough sunlight and solar power utilization to reduce the cost of electricity. To reduce the use of underground water, need to encourage for rainwater reservoir and water-saving faucet. Need to keep about 50% free space of total factory premises. Need to ensure enough trees in the factory ground. Need to keep enough ventilation facilities to protect heat. Need to ensure self anti-fire instruments and training facilities.

According to the USGBC, there require total 110 points to get leed certification by fulfilling nine conditions. Among them, 80 points require for the “Leed Platinum,” 60-79 points for the “Leed Gold,” 50-59 points for the “Leed Silver” and 40-49 points for the “Leed certificate.” Vintage Denim Studio who got the first certified environment-friendly factory in 2012 that situated at Pabna district. Till now around 26 garments factory got Leed certificates from USGBC. Among them seven plants got Platinum, thirteen plants got Gold and five plants got Silver. Only one plants got leed certificate.

Plummy Fashions Limited was the world’s first Eco-friendly knitwear factory. Plummy Fashions got 92 points out of 110 points. Plummy Fashions Ltd situated at Narayanganj has constructed about five and a half acres of land got leed Platinum certificate on 22nd September 2015. Currently, one thousand and five hundred workers are working in Plummy Fashions. Monthly produce about 1 million pieces of T-shirts and polo shirts for boys and girls.

Each month they export garments item to buyer almost 3 million US dollars. Managing director of Plummy Fashions Mr. Ranjan Kumar Dhar said, setting up an environment-friendly factory is to invest more money than ordinary factory. But operating expenses is lower than ordinary factory. So we demand 5-10 percent more than regular market price to survive. Mr. Ranjan Kumar Dhar said, “Our customer representatives admire us for our factory. But most of the time, do not willing to pay more than the regular price of clothes. End of the day we work for them who pay higher prices than others. Currently, we are producing 3-4 European consumers clothing.”

Envoy Textile got Leed Platinum certificate on March 31, 2015. It was an Eco-friendly factory and situated at bhalukaya in Mymensingh district that will produce yarn from cotton and then does dying to make denim fabric. Monthly production capacity is around 40 million meters of denim fabrics.

Envoy Group Managing Director Mr. Abdus Salam Murshedy said, “Eco-friendly factories use less water, electricity, fuel, chemical than a conventional factory. In addition, desires more production by using less machinery. In all, to raise the image and the ability of the organization, we transform our factory to environment-friendly.

Mr. Abdus Salam Murshedy said, ‘Rana Plaza collapse made a negative image to our buyer regarding country’s garment sector. However, Eco-friendly factory will make a positive branding in the world. Beside this, Bangladesh will get to more orders from buyers and increase brand attraction. However, the international market is always very competitive. So garment entrepreneurs should increase bargaining efficiency to get more prices. He requests to the government to arrange low-interest loans for setting up Eco-friendly factories. So that Small and medium entrepreneurs can proceed to set up such type of factories.

On the other hand, BGMEA President Mr. Rahman said, “Environment-friendly plant will improve the image of our garment industry. There are few such factories outside of the country. As a result, a message will be sent to everyone that we are going to a higher position by establishing the environment-friendly industry.”

Merits and demerits of Eco-Friendly Industry:

Eco-Friendly Industry has enough benefits than a conventional factory. Though it has some demerits, those are not big issues comparing a bunch of advantages.


1) Buyer always prefers such type of industry considering environment.

2) More productivity by using less manpower and power supply.

3) Can desire little bit more product value than conventional factory?

4) Owner can deserve more loan facilities from bank or other origination in low interest.

5) It will make a good image to buyer.

6) Buyer can sell their products easily because it produced from an Eco-friendly factory.


1) Need more investment than a conventional factory.

2) Need more free space than conventional factory?

3) Need to pay more money to provide housing and other facilities to employees.

4) Need to pay more money to keep safety and compliance.

5) Can’t make high rise building.

Green fund Loan facility:

In this universe, some elements encompass the relations of all livings. Climate, natural resources, and weather are the main factors that affect human survival and economic activity.


Eco-friendly industries always get the highest priority to obtain low-interest loan facilities from the green fund. But for this, they should gain a “green industry” testimonial from US Green Building Council. Then an entrepreneur is eligible to get about 20 crores taka from “Green Fund” in 9 percent interest. They will get around six years to return the loan.

Bangladesh Bank’s refinancing funds are being provided under the loan. Entrepreneurs have to apply to get such type of loan through 39 banks and 16 financial institutions. Later those banks will pick the benefits from Bangladesh Bank.

According to the Bangladesh Bank, those banks and financial institutions has given a loan of 226 crores taka till now to the Green Industry sector. Among those loans, the government has provided 38 crores, private banks 173 crores, foreign banks nine crores. In addition, other financial institutions have given five crores.

According to Bangladesh Bank circular in this regard, 9 sectors about 44 products are eligible for renewable energy and environment refinancing fund.

Ecological imbalance is a global issue nowadays. We should work together to control climate change, global warming, damage of ozone layer etc. These problems never controlled by some countries. So, all of us should emphasize on green funding to make more Eco-friendly industries in the earth.

You may like: Sustainable Renewable Energy for RMG Industry

Leave a Reply