Latest news with #MohiuddinRubel
Time of India
a day ago
- Business
- Time of India
Fashion brands move slow on their green promises
The fashion industry is responsible for up to 8% of the world's planet-heating greenhouse gas emissions, according to U.N. figures, which many of its companies have promised to tackle with targets to reach net zero by 2050 or sooner. Yet researchers, companies and industry insiders say that little has been done to push this along in their supply chains in major textile-producing countries like Bangladesh, India and Cambodia. "Brands are moving far too slow," said Todd Paglia, executive director of an environmental non-profit advocacy group based in North America. In 2025, about a third of the 42 brands surveyed in a recent report cut their emissions by 10%, compared to their baseline years - while 40% of brands saw their emissions grow. It found that only a fraction of leading brands are providing funding to cut emissions in their supply chains, which puts pressure on factories and suppliers that lack the financial clout to shift towards cleaner processes. About half of the major global fashion brands have set science-based targets for emission reduction, according to a 2024 report by Fashion Revolution, a non-profit group campaigning for sustainable fashion. Meanwhile, a large number of brands still lack visible efforts to finance their climate plans and support suppliers to decarbonise. "What we are seeing is a dangerous disconnect," said Mohiuddin Rubel, a former director of Bangladesh's garment manufacturers' association who is now director at textile maker Denim Expert Ltd. "Brands are turning their ambitious targets into unfunded mandates placed upon suppliers, who are asked to bear the full financial burden of decarbonising the brands' value chain," he told the Thomson Reuters Foundation. FINANCING GAP Apparel manufacturers can cut factory-level emissions by switching to energy efficient equipment, installing renewable energy and using low-emissions transportation. In Bangladesh, a garment manufacturing hub, 83% of the industry's emissions are due to the on-site burning of fossil fuels, like natural gas, to generate power or run boilers to produce heat and steam, a report by consulting firm FSG said. Many suppliers balk at the high capital investment needed to replace gas-based boilers with more energy-efficient technologies, like heat pumps, according to a study by the Apparel Impact Institute (AII), a non-profit promoting sustainable investments. Overall, Bangladeshi fashion suppliers face an investment gap of $4.8 billion for cutting emissions by half by 2030, AII has said. Clothing makers in India and Vietnam also face challenges in reducing their reliance on fossil fuels in heat and steam generation, which are used to wash, dye and finish fabric production. About half of the brands surveyed by offered some form of support, but much of it involved assessments and audits to measure the carbon footprint or small-scale pilot projects, said Bangladeshi supplier Rubel. "This is a drop in the ocean and does not address the systemic, industry-wide transformation required," he said. Suppliers also need long-term purchase agreements and price premiums from brands that would work as incentives to invest in cleaner production, said Abhishek Bansal, head of sustainability at the Indian textile supplier Arvind Limited. BRAND ACTION Only six brands reported that they offered project financing for suppliers' decarbonisation efforts, the report said. Among them is the Swedish retail giant H&M, which has supported 23 smaller suppliers to invest in low-carbon tech. "Brands need to accept that there will be a cost to climate transition, since expecting no cost for this rapid process is a little bit strange," said Kim Hellstrom, senior sustainability manager at H&M. The retailer is planning to test energy-efficient thermal technologies in places like China, India and Vietnam. "The low-carbon technology is here, and you don't need to talk about innovation - but you need to try them first for this industry," said Hellstrom. If brands put budgets behind their goals, it would establish better partnerships with suppliers, said Kristina Elinder Liljas, senior director of sustainable finance and engagement at AII. "Everybody has skin in the game: For brands, it's about future-proofing their businesses, and for suppliers, to make sure they remain relevant to the brand they are catering to," she said.
Time of India
2 days ago
- Business
- Time of India
Fashion brands move slow on their green promises
Live Events DHAKA: The fashion industry is responsible for up to 8% of the world's planet-heating greenhouse gas emissions, according to U.N. figures, which many of its companies have promised to tackle with targets to reach net zero by 2050 or researchers, companies and industry insiders say that little has been done to push this along in their supply chains in major textile-producing countries like Bangladesh, India and Cambodia."Brands are moving far too slow," said Todd Paglia, executive director of , an environmental non-profit advocacy group based in North 2025, about a third of the 42 brands surveyed in a recent report cut their emissions by 10%, compared to their baseline years - while 40% of brands saw their emissions found that only a fraction of leading brands are providing funding to cut emissions in their supply chains, which puts pressure on factories and suppliers that lack the financial clout to shift towards cleaner half of the major global fashion brands have set science-based targets for emission reduction, according to a 2024 report by Fashion Revolution, a non-profit group campaigning for sustainable a large number of brands still lack visible efforts to finance their climate plans and support suppliers to decarbonise."What we are seeing is a dangerous disconnect," said Mohiuddin Rubel, a former director of Bangladesh's garment manufacturers' association who is now director at textile maker Denim Expert Ltd."Brands are turning their ambitious targets into unfunded mandates placed upon suppliers, who are asked to bear the full financial burden of decarbonising the brands' value chain," he told the Thomson Reuters manufacturers can cut factory-level emissions by switching to energy efficient equipment, installing renewable energy and using low-emissions Bangladesh, a garment manufacturing hub, 83% of the industry's emissions are due to the on-site burning of fossil fuels, like natural gas, to generate power or run boilers to produce heat and steam, a report by consulting firm FSG suppliers balk at the high capital investment needed to replace gas-based boilers with more energy-efficient technologies, like heat pumps, according to a study by the Apparel Impact Institute (AII), a non-profit promoting sustainable Bangladeshi fashion suppliers face an investment gap of $4.8 billion for cutting emissions by half by 2030, AII has makers in India and Vietnam also face challenges in reducing their reliance on fossil fuels in heat and steam generation, which are used to wash, dye and finish fabric half of the brands surveyed by offered some form of support, but much of it involved assessments and audits to measure the carbon footprint or small-scale pilot projects, said Bangladeshi supplier Rubel."This is a drop in the ocean and does not address the systemic, industry-wide transformation required," he also need long-term purchase agreements and price premiums from brands that would work as incentives to invest in cleaner production, said Abhishek Bansal, head of sustainability at the Indian textile supplier Arvind Limited Only six brands reported that they offered project financing for suppliers' decarbonisation efforts, the report said. Among them is the Swedish retail giant H&M, which has supported 23 smaller suppliers to invest in low-carbon tech."Brands need to accept that there will be a cost to climate transition, since expecting no cost for this rapid process is a little bit strange," said Kim Hellstrom, senior sustainability manager at H& retailer is planning to test energy-efficient thermal technologies in places like China, India and Vietnam."The low-carbon technology is here, and you don't need to talk about innovation - but you need to try them first for this industry," said brands put budgets behind their goals, it would establish better partnerships with suppliers, said Kristina Elinder Liljas, senior director of sustainable finance and engagement at AII."Everybody has skin in the game: For brands, it's about future-proofing their businesses, and for suppliers, to make sure they remain relevant to the brand they are catering to," she said.
Al Etihad
3 days ago
- Business
- Al Etihad
Fashion brands moving slow on their green promises
30 June 2025 14:03 DHAKA (THOMSON REUTERS FOUNDATION)The fashion industry is responsible for up to eight percent of the world's planet-heating greenhouse gas emissions, according to UN figures, which many of its companies have promised to tackle with targets to reach net zero by 2050 or researchers, companies and industry insiders say that little has been done to push this along in their supply chains in major textile-producing countries like Bangladesh, India and Cambodia."Brands are moving far too slow," said Todd Paglia, executive director of an environmental non-profit advocacy group based in North 2025, about a third of the 42 brands surveyed in a recent report cut their emissions by 10%, compared to their baseline years - while 40% of brands saw their emissions found that only a fraction of leading brands are providing funding to cut emissions in their supply chains, which puts pressure on factories and suppliers that lack the financial clout to shift towards cleaner half of the major global fashion brands have set science-based targets for emission reduction, according to a 2024 report by Fashion Revolution, a non-profit group campaigning for sustainable a large number of brands still lack visible efforts to finance their climate plans and support suppliers to decarbonise."What we are seeing is a dangerous disconnect," said Mohiuddin Rubel, a former director of Bangladesh's garment manufacturers' association who is now director at textile maker Denim Expert Ltd."Brands are turning their ambitious targets into unfunded mandates placed upon suppliers, who are asked to bear the full financial burden of decarbonising the brands' value chain," he told the Thomson Reuters Foundation. Financing GapApparel manufacturers can cut factory-level emissions by switching to energy efficient equipment, installing renewable energy and using low-emissions transportation. In Bangladesh, a garment manufacturing hub, 83% of the industry's emissions are due to the on-site burning of fossil fuels, like natural gas, to generate power or run boilers to produce heat and steam, a report by consulting firm FSG suppliers balk at the high capital investment needed to replace gas-based boilers with more energy-efficient technologies, like heat pumps, according to a study by the Apparel Impact Institute (AII), a non-profit promoting sustainable Bangladeshi fashion suppliers face an investment gap of $4.8 billion for cutting emissions by half by 2030, AII has makers in India and Vietnam also face challenges in reducing their reliance on fossil fuels in heat and steam generation, which are used to wash, dye and finish fabric production. Only six brands reported that they offered project financing for suppliers' decarbonisation efforts, the report said. Among them is the Swedish retail giant H&M, which has supported 23 smaller suppliers to invest in low-carbon tech.
Yahoo
07-04-2025
- Business
- Yahoo
Bangladesh May Face a Bigger Tariff Bill Than Thought
On Saturday, Mohiuddin Rubel, a former director at the Bangladesh Garment Manufacturers and Exporters Association, called an American reporter in a panic. He had been pouring over President Donald Trump's April 2 executive order directing the federal government to impose so-called 'reciprocal' tariffs on all imports to the United States, including a 37 percent hit on those originating from Bangladesh. That figure alone would be bad enough. But Rubel, an additional managing director at Denim Expert, a jeans manufacturer, also pointed out a clause under the section on implementation: 'The rates of duty established by this order are in addition to any other duties, fees, taxes, exactions or charges applicable to such imported articles,' except as provided in subsections relating to Canada and Mexico. More from Sourcing Journal Macron Puts CMA CGM's $20B US Pledge in Line of Fire Trump Tells China to Drop Retaliatory Duties or Face 50% Tariff Hike Trump Tariffs: India Anxious About the Short Term, but Remains Hopeful The South Asian nation's goods are already subject to U.S. tariffs, including a 15.6 percent duty on apparel. An additional 37 percent hike would mean a tariff of of nearly 53 percent, on par with the 54 percent being levied on China—that is, unless Trump makes good on his most recent threat to slap another 50 percent in import taxes on the superpower if it doesn't withdraw its own 34 percent increase. For the world's second-largest—or third-largest, depending on how Vietnam is doing—exporter of garments after China, this would be an impossible burden to bear. The United States, its third-biggest trading partner after China and India, imported $8.4 billion worth of goods in 2024 alone, according to the Office of the U.S. Trade Representative. And despite existing tariffs, Bangladesh is the third-largest supplier of clothing after China and Vietnam to the United States. The new presidential calculus could change that status dramatically. The White House did not respond to a request for clarification first thing Monday morning. A representative from the American Apparel & Footwear Association, a trade group that represents such household names as Adidas, Gap Inc. Group, H&M Group and Zara owner Inditex, however, affirmed that any new tariff rates going into effect on April 9 will be in addition to prevailing ones. Already, fashion brands are going into defense mode, though the AAFA did not respond to a query relating to what its members are doing. One supplier, who requested anonymity because of concerns about retaliation, said that Gap, Levi Strauss & Co. and Walmart are freezing most of their shipments until April 10. Gap, the supplier continued, has also asked its supply-chain partners to bear the cost of the tariffs. In a note viewed by Sourcing Journal, a logistics company handling freight for Calvin Klein and Under Armour licensee Centric Brands asked vendors to pause shipments 'until further notice.' Both Gap and Levi's said their parts in this account weren't accurate, without elaborating further. Centric Brands and Walmart did not respond to emails seeking confirmation. 'Factory owners are now afraid of cancellation, but no official cancellation has come yet,' the manufacturer said. 'In the past seven months alone, over 50 small and medium-sized factories have shut down in Bangladesh. If additional tariff charges are finally imposed on Bangladeshi garment manufacturers, it will exacerbate the already critical financial stress. This could give a real hard time to many well-performing factories and have a direct negative impact on the livelihoods of thousands of workers.' Rubel agreed. He, too, is seeing requests for cost-sharing, if not the complete absorption of the tariffs, start to trickle in, squeezing suppliers' already sliver-thin margins. They'd be difficult to accede to without putting factories further into the red. In a study of the Bangladesh garment landscape by the University of Aberdeen Business School and the fair-trade nonprofit Transform Trade, for instance, 76 percent of the 1,000 manufacturers surveyed said that order prices did not increase between March 2020 and December 2021 despite the rising cost of energy and materials. More damningly, 8 percent of respondents said they were producing clothes for less than they cost to make, even for the profitable likes of C&A, H&M and Inditex. Of Bangladesh's largest apparel buyers that sell into the United States, only The North Face parent VF Corp. responded to say that it hasn't paused or canceled orders in Bangladesh, though it declined to comment further, citing a quiet period before its earnings announcement. H&M and Inditex both said they didn't have information to share on the matter, while Puma said it is 'currently monitoring the situation' and has not made any decisions. Likewise, Lidl begged off answering, saying it 'cannot comment on such a complex topic on such a short notice.' Companies such as C&A, Aldi, Tommy Hilfiger owner PVH Corp., Uniqlo owner Fast Retailing, The Children's Place, Cotton On, Esprit, Kohl's, Wrangler owner Kontoor Brands, Mango, Next, Target, Tesco, T.J. Maxx operator TJX and Tom Tailor, in addition to Walmart, did not respond to questions about their next moves. Many are likely taking a wait-and-see approach. Bangladesh, like other countries swept up in the 'America First' current, are hopeful that negotiations are still possible despite Commerce Secretary Howard Lutnick telling CBS News' 'Face the Nation' on Sunday that the administration plans to stay the course until Wednesday, saying that 'there is no postponing. They are definitely going to stay in place for days and weeks' and that 'the president needs to reset global trade.' Muhammad Yunus, the Nobel Peace Prize laureate who has been helming Bangladesh's caretaker government, asked Trump in a letter dated Monday to reconsider the reciprocal tariffs. While the White House says that Bangladesh has imposed 74 percent in tariffs on the United States, the number is under dispute, particularly since many U.S. products, including agricultural commodities and scrap metal, enter Bangladesh duty-free. Yunus said that the government is working on halving tariffs on top U.S. export items such as gas turbines, semiconductors and medical equipment. The country is also removing an 'array of non-tariff barriers' to U.S. exports, such as certain testing, labeling and certification requirements to simplify customs procedures, he said. Asking Trump to postpone the implementation of the reciprocal tariff by three months, Yunus said that Bangladesh plans to 'significantly increase' imports of U.S. farm products, including cotton, wheat, corn and soybeans. 'To increase speed to market of U.S. cotton, we are finalizing dedicated bonded warehousing facility in Bangladesh where they will have duty-free access,' he added. But whether Bangladesh will be able to get a last-minute reprieve is anybody's guess. Anticipating the far-reaching effects the tariffs would have on Bangladesh, for which garments make up more than 85 percent of exports, BGMEA administrator Md. Anwar Hossain similarly appealed to global buyers, saying that it's only through 'solidarity and collaboration [that] we will be able to address these challenges effectively.' ''We fully recognize that this has created pressure at your end. The uncertainty surrounding cost structures, supply chain planning and long-term sourcing decisions is significant, and we acknowledge your circumstances with utmost sincerity,' he wrote in a letter also dated Monday. 'We are aware that several brands and retailers have already reached out to their Bangladeshi suppliers, expressing concern, and in some cases, discussing possible measures to mitigate the impact.' Still, Anwar cautioned patience and urged brands and retailers' continued support until a 'peaceful resolution' can be reached. 'We understand the urgency, but transferring the burden downstream to suppliers at this early stage will only exacerbate the stress,' he added. Nazma Akter, president of the Sommilito Garments Sramik Federation, an IndustriALL Global Union affiliate, is likely fearful, writing in a press release that many Bangladeshi suppliers may be forced to withdraw from the American market and, in so doing, result in massive layoffs that will result in widespread unemployment and an increase in harassment and violence. The livelihoods of 4 million workers, many of them women without alternative forms of employment, she said, are 'now at extreme risk and face deep uncertainty.' 'We urge the government of Bangladesh to address this matter with the utmost diplomatic importance, engage in dialogue with the U.S. government, and seek an acceptable resolution,' Akter said. 'At the same time, we call for urgent steps to ensure social protection and alternative employment for affected workers.' The Trump administration rescinding the higher tariffs aside, brands and retailers also have a 'vital role' to play in staving off a crisis at a fraught time for Bangladesh's national progress, she added. 'They must ensure that the burden of price hikes does not fall on workers' wages and on the industry,' Akter said. 'For the sake of workers' secure livelihoods, brands and buyers must practice transparency. In this situation, only buyers can absorb the impact of price increases in a way that still ensures workers receive their fair dues.'
Yahoo
03-04-2025
- Business
- Yahoo
‘A Big Shock': How Bangladesh Woke to News of Trump Tariffs
Mohiuddin Rubel, a former director at the Bangladesh Garment Manufacturers and Exporters Association, was fast asleep at home in Chittagong when someone texted him about President Donald Trump's latest round of tariffs on U.S. imports. He briefly roused, glanced at the message and went back to bed. It was only the following morning, with the sun streaming in through the windows, that he registered the enormity of what had happened overnight. Standing in the Rose Garden of the White House on Wednesday, Trump had announced a whopping 37 percent so-called 'reciprocal' tariff on Bangladeshi exports—nearly 85 percent of which comprise ready-made garments—to the United States. More from Sourcing Journal 'Liberation Day' Tariffs: The Full List Labor Department Bureau's Loss Will 'Put American Workers Last,' Trade Groups Say Trump's 'Liberation Day' Tariffs Pack a Wallop 'It was a big shock,' said Rubel, an additional managing director at Denim Expert, a jean manufacturer. 'We were expecting good growth and good business in the U.S. We never realized that something like this could happen.' The United States is Bangladesh's third-largest trading partner after China and India. In 2024, the United States imported $8.4 billion worth of goods from the South Asian nation, which, in turn, received $2.2 billion in American exports, according to the Office of the U.S. Trade Representative. This created a trade surplus of $6.2 billion—one that was 2 percent higher than the $6 billion from the year before—that put Bangladesh in the sightlines for what Trump has characterized as 'taking advantage' of the United States. But the move could have potentially catastrophic consequences for Bangladesh, which is still coming out of a period of chaos and uncertainty following the violent ouster of former prime minister Sheikh Hasina and her 'crony capitalist' Awami League government. For one thing, the country wasn't prepared for this, Anwar Hossain, who was appointed in October as the BGMEA's temporary administrator following the dissolution of the trade group's board of directors, told local media, saying that 'it came all of a sudden.' At the same time, Muhammad Yunus, the Nobel Peace Prize laureate at the helm of Bangladesh's interim government, said through an intermediary that the country's leaders are hopeful that negotiations are still possible and that 'we can craft out the best deal.' Plenty hinges on this. The orders that had collapsed during that time were showing signs of returning in a pointed swerve from China, which, in the earliest days of the Trump 2.0 administration, had been slapped with 20 percent tariffs that made Bangladesh's then-15 percent appear like a bargain in comparison. But while Bangladesh still has a leg up against the world's second-largest economy—beginning April 9, Chinese imports will be subject to an additional 34 percent hike—the prices of the nation's goods for U.S. buyers will still see an uptick, especially in comparison with its less-sanctioned neighbors India (26 percent) and Pakistan (29 percent). One of its few consolations is that Vietnam, with whom Bangladesh has been jostling for the spot of No. 2 garment exporter, has been dealt a levy of 46 percent. Sri Lanka, another competitor, also has a heavier yoke of 44 percent. Part of the calculus, according to Md. Rafiqul Islam Rana, an assistant professor of retailing at the University of South Carolina, is that Bangladesh has one of the lowest minimum wages for manufacturing, though that has proven to be a problem in and of itself, as the 2023 minimum wage protests have shown. It's important, he said, that Bangladeshi manufacturers 'negotiate smartly' with American buyers to 'keep their edge.' And since the tariff is reciprocal, Bangladesh must also work with delegates to find ways to lower the 74 percent tariff that Trump claims Bangladesh has placed on American imports, which could help ease the overall burden. The figure itself is in dispute, said Abdur Rahman Khan, chairman of the National Board of Revenue. 'They may have cited only the highest-duty items. We are cross-checking the data,' he told The Daily Star. 'The U.S. might have referenced either peak or average rates. We are now analyzing the actual numbers.' Nevertheless, the next few weeks are going to be critical for everyone involved, Rana said. 'First things first, they need to sort out the in-transit orders—who's going to cover the extra costs from the tariff hike?' he added. That's the rub for Rubel. No matter who ultimately foots the bill for the tariffs, goods will undoubtedly get more expensive, which could mean that brands buy less. A number of Bangladesh's 4,000-plus garment factories, most of which haven't diversified beyond cotton-based apparel, have also organized themselves around making clothing exclusively for the American market. Now they could cede business to seemingly more competitive climes such as Jordan, Honduras or Kenya, which are at the lowest 10 percent tariff level. 'We are so dependent on the U.S. market,' he said. 'This is the bad part of this.' Md. Fazlul Hoque, managing director of Plummy Fashion, a 'green' knitwear manufacturer in Narayanganj, said he worried that the price squeeze from buyers on suppliers will intensify, as has reportedly been the case with certain big-box retailers and their Chinese manufacturers. 'My thinking is that they will not go for a price hike at the retail side,' he said. 'Rather, they will pass on the extra tariff percentage to their suppliers, which could mean a huge price pressure even with orders already placed, in production or in transit.' That would also cast another pall on Bangladesh's 4 million garment workers, many of them women, who have had to grapple with the loss of support services from civil society organizations hobbled by America's foreign aid cuts, said Kalpona Akter, executive director of the Bangladesh Center for Worker Solidarity, a workers' rights group. She said she's genuinely worried that this could result in job losses for workers still reeling from the aftermath of the Covid-19 pandemic and the economic downturn stoked by Russia's attack on Ukraine and the Israel-Gaza conflict. Faisal Samad, managing director of Savartex Group, a textile manufacturer in Dhaka, as well as a former BGMEA vice president, agreed, saying that the impact will be 'very high,' both for U.S. buyers and for factories that conduct significant business with the United States. 'Walmart and Target vendors already have to supply prices that are competitive for the styles that buyers are buying out of Bangladesh,' he said. 'Now, with these new tariffs, there will be a significant cost increase on the landed goods. And if tariffs remain, the buyers' position will be to ask factories to reduce their already tight prices to recover the tariff blow.' In the long run, there will have to be some give and take, Samad said, adding that 'adjustments will have to be made from both ends or Bangladesh will have to find an amicable deal for the U.S. government to amend the tariff structure, given the dependency of the RMG trade on the Bangladesh economy.' One solution is to narrow the U.S.-Bangladesh trade gap. Just last month, foreign affairs adviser Md. Touhid Hossain suggested that Bangladesh import more American cotton to deflect additional tariffs. Rubel said that even shrinking the new tariffs by 10 percent would put it on a more even keel with Pakistan and India. There's also the fact that Bangladesh is poised to graduate from the United Nations' Least Developed Countries category next November, meaning that the European Union could impose a 12 percent tariff on apparel imports that had previously gone untaxed. 'It will be a little bit shaky for us after the LDC graduation, for sure,' he said. 'And if the EU acts in the same way as the U.S.? We'll definitely have a bit of a tough time ahead.'
