Dhaka, Bangladesh, October 2, 2010—IFC,
a member of the World Bank Group, is working with Bangladesh’s textile
industry to improve environmental standards and promote cleaner production
methods in collaboration with the Dutch-based nongovernmental Solidaridad
and five leading buyers.
This cleaner production initiative,
new in the Bangladesh textile sector, is led by the SouthAsia Enterprise
Development Facility, which is managed by IFC Advisory Services in South
Asia, in partnership with the Norwegian Agency for Development and the
United Kingdom’s Department for International Development.
Under the initiative, IFC will mobilize
regional and international consultants who will transfer knowledge and
build capacity of local consulting firms and service providers. Cleaner-production
auditors will work with management teams at participating textile plants
to assess existing practices, help implement methodologies for improving
performance, and achieve effective waste-management and energy savings.
These efforts are expected to increase the profitability of small and medium
enterprises, allowing them to invest in effluent treatment plants and energy-efficient
Textile manufacturing in Bangladesh
has a huge environmental footprint, annually discharging as much as 56
million tons of waste water, 0.5 million tons of sludge, and consuming
tremendous amounts of energy for steam and hot water. Leading European
and American brands such as H&M, Kappahl, Lindex, Levis, and Mothercare,
which procure their goods from Bangladesh, are optimistic about this initiative.
“This is a big step forward in promoting
responsible environmental practices, and H&M is committed to working
with other stakeholders to promote environment compliance standards in
the industry to ensure its long-term sustainability,” said Basirun Nabi
Khan, CSR Regional Manager, H&M Dhaka.
Ian Crosby, Manager of IFC Advisory
Services in Bangladesh expressed his enthusiasm for the program in Bangladesh,
“Sustainability of the textiles and apparels sector is vital for Bangladesh
to ensure its continued economic growth. Successful completion of this
project will allow Bangladesh textile sector to gain a competitive edge
in the world market by showcasing its efforts towards a greener supply
As part of the initiative, baseline
assessments will be taken at participating factories to help identify areas
of potential cost savings against energy, chemical, and water usage. The
findings will be used to demonstrate better cost control and improved operational
efficiency, helping ensure ongoing competiveness of the textile sector
as well as reduce its environmental footprint.
To learn more about IFC in South
Asia, visit www.ifc.org/southasia.
IFC, a member of the World Bank Group
is the largest development institution focused on the private sector in
developing countries. We create opportunity for people to escape poverty
and improve their lives—by providing financing to help businesses employ
more people and provide essential services, mobilizing capital from others,
and delivering advisory and risk-management services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit