In a landmark achievement for environmental sustainability, over 450 textile and readymade garment (RMG) factories in Bangladesh have slashed their annual freshwater consumption by a staggering 35 billion liters. This reduction, facilitated through the International Finance Corporation (IFC)’s Partnership for Cleaner Textile (PaCT) program, is enough to meet the yearly water needs of more than 1.9 million people. This impressive milestone was announced by the IFC on Sunday, marking a decade of impactful work in Bangladesh’s textile sector through the PaCT initiative.
The participating factories have also made significant strides in energy conservation, saving 3.8 million megawatt hours annually. This reduction in energy use has concurrently led to a decrease in carbon emissions by 723,617 tonnes each year—comparable to taking nearly 160,000 cars off the road.
As the PaCT program embarks on its next phase, the focus will shift towards promoting circular practices and advancing decarbonization efforts. These initiatives aim to further mitigate the industry’s carbon footprint while maintaining its competitive edge in the global market. This strategic pivot will also emphasize high-value product manufacturing, market diversification, and the reduction of environmental, social, and corporate governance (ESG) risks.
The IFC’s PaCT program, backed by support from the governments of Denmark and the Netherlands, has driven systemic change in Bangladesh’s textile value chain over the past decade. By collaborating with major global brands such as VF Corp, PUMA, Levi Strauss & Co, and TESCO, the program has cemented its role as a leader in enhancing energy efficiency and renewable energy adoption within the industry.
“PaCT’s comprehensive approach has made it a market leader in advisory support for energy efficiency and renewable energy,” noted Christian Brix Moller, Ambassador of the Royal Danish Embassy.
Bangladesh, the second-largest exporter in the RMG sector, relies heavily on this industry for its economic growth, providing employment to over four million people—54% of whom are women—and contributing to 85% of the country’s export earnings. The BGMEA vice-president Miran Ali expressed gratitude for the PaCT program’s contributions and optimism for its continued positive impact.
One of the program’s significant achievements is the establishment of the Textile Technology Business Centre, poised to become Bangladesh’s premier knowledge hub for the textile industry. This center represents a pivotal resource for advancing the sector’s sustainability and competitiveness.
Martin Holtmann, IFC Country Manager for Bangladesh, Nepal, and Bhutan, emphasized IFC’s commitment to fostering sustainable growth within the textile industry. “We are dedicated to helping Bangladesh’s RMG sector ascend the global supply chain and meet the demands of a modern, greener market,” he stated.
Henri Rachid Sfeir, Manager of MAS Asia Upstream & Advisory at IFC, highlighted the importance of sustainability for economic growth as Bangladesh advances towards Middle Income status. “Leveraging economic complexity is crucial for sustainable development. The textile industry’s global ties and diverse operations play a vital role in driving innovation, job creation, and powering the economy,” he remarked.
The PaCT program’s decade-long journey showcases a transformative approach to sustainability, reinforcing the textile and garment sector’s resilience and adaptability in a rapidly evolving global market.
