Page 10 - July-August-2020

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COVID-19

SAC: Companies need to incorporate

sustainability in every area of business

To successfully address climate change, company digitally intensive products than large EU companies.
EU’s SMART Project
leaders need to embed sustainability into every part EU SME exports are also a major driver for export-led
of their business as a core element of their values job creation: over 13 million jobs in Europe depend
system and consider how circularity might be on EU SME exports, according to a study.
possible to achieve, says Amina Razvi, executive In 2017, out of 700,000 EU companies who sell
launched in Myanmar
director, Sustainable Apparel Coalition (SAC). products and services outside the EU, some 615,000
were small and medium businesses, says an
As the COVID-19 pandemic unfolded, "CEOs around economic analysis published by the European
the world made difficult decisions and it’s put a Commission. The study considers enterprises with
spotlight on the fact that leaders have a remarkable less than 250 employees as SMEs.
responsibility to put people and the planet first," and Population Permanent Secretary U Myo Aung
The European Union SMART Textile and Garments
during the launch of the project.
writes Razvi in an article in the hard bound fifth These SMEs exported goods worth €476 billion in
project is launching its new project for boosting social
and environmental sustainability in Myanmar’s garment
edition of the Sustainability Compendium - ‘Going 2017, which represented 28 per cent of the total
industry and will bring together brands, trade unions
Circular.’ value of extra-EU exports. In many economic sectors,
“The project’s aim is to further strengthen sustaina-
and business associations on a single platform. EU SMEs account for more than 50 per cent of the
ble production practices and responsible supply
"We must incorporate sustainability into our company total value of EU exports (textiles, furniture, printing
chains in Myanmar and Europe,” said Jacob A.
Clere, team leader of SMART Myanmar. The SMART
The SMART Textile and Garments project will engage
values, strategic plans, and every employee’s and media, agricultural products, wood products),
more than one hundred garment and textile factories
Myanmar project has been working with garment
individual goals. And we need to hold ourselves the analysis said.
accountable to driving real, measurable improvement factories since 2013 to promote sustainable
in Yangon, Mandalay, Bago, Pathein and other
consumption and production (SCP) of garments
regions. The project includes international retailers
and not just incremental progress," adds Razvi in her SME exports are also greener. They have lower
such as H&M, Bestseller and C&A, who will support
bearing the label “Made in Myanmar” – a concept
article 'Integrating Sustainability'. greenhouse gas emissions than an average firm, with
the new programme to boost performance within 70 per cent of SME exports belonging to the low to
with emphasis on resource efficiency and social
responsibility. SMART Textiles and Garments builds
Also, The number of EU exporting small and medium medium-low greenhouse gas emission, the paper
their Myanmar-based supply chains.
enterprises (SMEs) has risen steadily in recent years, titled 'The role of SMEs in extra-EU exports: Key
on SMART Myanmar and will expand training and
and in several sectors they are more competitive in performance indicators' added.
The project will involve local and European experts
capacity building programmes for social and
and deliver on-site assessment and training on environmental performance to more than hundred
topics such as human resource management garment and textile factories in different locations
systems and workplace communications, occupa- across the country.
tional safety and health, chemicals and waste
APTMA demands textile policy capable of doubling exports
management, and energy efficiency. In fiscal year 2018-19, garments made in Myanmar
were among the largest export categories in the
“The European Union’s unwavering commitment and country, with over US$4 billion worth of garments
textile exports in the next five years.
APTMA Chairman Amanullah Machera said that exported, according to the Ministry of Commerce.
support plays an important role in improving decent
Pakistani exporters are facing stiff competition from Since 2013, Myanmar’s garment sector has shown
work conditions and responsible business practices
APTMA officials informed that 70 percent of the textile
Bangladesh and Vietnam. The chairman was of the high export-oriented growth.
in Myanmar,” said Ministry of Labour, Immigration
view that Pakistan can counter the competition only industry is in Punjab, where more than 100 mills have
after exporters get a five year textile policy at hand, been closed due to poor energy policies of the
so they know what will be the tax rates and energy previous governments.
prices.
The previous textile policies have not been much of a
Meanwhile, APTMA Punjab Chairman Adil Bashir has success story, as the Textile Policy 2014-19 failed to
said that the government needs to announce a long achieve all its targets including doubling value
term and comprehensive textile policy if it wants to addition from $1 billion per million cotton bales to $2
see a return of capital investment in the country. The billion per million cotton bales, increasing textile
APTMA Punjab Chairman added that if government exports from $13.1 billion to $26 billion as well as
accepts this demand, they are capable of doubling creation of 3 million jobs in five years.
November/December 2019
July/August 2020