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Sunday, May 12, 2024

Green-certified factories enjoy cost advantage but not price advantage!

As Bangladesh’s textile sector rushes to attain green certifications the certified companies complain that they do not get a premium on the investments they make in green technology that costs 30 percent more than conventional factories.

The Bangladeshi textile sector came under the scrutiny of global buyers after the Rana plaza incident. They have increased their scrutiny of compliance and regulations issues. The fully compliant and green factories do get preference when orders are placed. This is a handy advantage at a time when global apparel orders are drying. But the buyers are not giving any price advantage to them.

However, green compliance does reduce the cost of energy and water, an advantage that conventional factories do not have. So in a way, the green factories operate at a price advantage compared with non-compliant factories even if they sell their apparel at the same price.

Buyers on their part also look for factories that have the capacity to produce quality products and deliver those on time, he added. LEED certification requires technology to increase efficiency, resulting in a longer lifespan for the factories. Overall costs are also lower than in conventional factories, admitted a certified apparel exporter.

In the meantime the United States Green Building Council recognized three more readymade garment factories in Bangladesh as green, raising the total number of environment-friendly establishments in the country’s apparel sector to 183.

Five hundred more apparel units from Bangladesh units are in the process of achieving the US Green Building Council’s  Leadership in Energy and Environmental Design (LEED) certification.

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