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The country's apparel apex body, BGMEA, has teamed up with Good Fashion Fund (GFF) to finance small and medium enterprises (SMEs) in environmental sustainability.
The GFF will provide long term loan in addition to technical, environmental and social expertise to the manufacturers to adopt sustainable production, according to a statement.
In this connection, BGMEA and GFF signed a Memorandum of Understanding (MoU) on August 25 to support and strengthen the development and uptake of innovative sustainability solutions and particularly to improve environmental and social sustainability of local factories.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan and GFF Fund Director Bob Assenberg signed the MoU at a virtual ceremony on behalf of their respective organisations, the statement added.
Launched in 2019 by Laudes Foundation and Fashion for Good, Good Fashion Fund (www.goodfashionfund.com) is managed by fund manger FOUNT.
Through these joint efforts GFF aims to invest US$ 10 million in textile manufacturing companies in Bangladesh in the next two years out of its total targeted fund worth US$ 25 million.
The collaboration aims to provide manufacturers with access to finance and help them in building a restorative and regenerative apparel supply chain that included the use of recyclable and safe materials, clean and less energy, closed-loop manufacturing and the creation of fair jobs and growth.
Talking at the event, BGMEA President Faruque Hassan said energy efficiency, renewable energy, carbon and water footprint reduction, circular economy has been the core areas of concern for BGMEA as long as sustainability and resilience is concerned.
So, SMEs have to invest in eco-friendly technologies, he said.
Expressing gratitude, he said the collaboration of these two organisations can be prolific to enhance the sustainability standard of the SMEs.
Mr Bob Assenberg said, “We are very excited about partnering with BGMEA and our joined support to apparel manufacturers in Bangladesh to become more sustainable”
They are committed to driving a positive change and good fashion practice in the apparel sector in Bangladesh and look forward to working with forward looking SME’s in the country, he noted.
Explaining GFF vision, he said it aimed to invest in innovations that deliver both economic growth and good fashion practice for manufactures.