Wednesday, February 5, 2020

HSBC, IUCN to conduct a study on the Sri Lanka apparel sector


HSBC Sri Lanka, in partnership with the International Union for Nature Conservation (IUCN), has launched a survey to plan greener processes in the apparel industry.

The survey will be focusing on small and medium-sized producers, officials said.
"The apparel industry is a vital income earner for Sri Lanka, and supporting its shift to greener development is crucial for the industry's growth and long-term stability," said Mark Prothero, Chief Executive of HSBC Sri Lanka and Maldives.
"HSBC is moving beyond transactional corporate social responsibility with this project to a more knowledge-based contribution that benefits communities, the environment, and the country as a whole."
"And hopefully the result of this study will be a strategic guide on how small and medium-sized apparel producers can reduce their carbon footprint by becoming greener and more sustainable," he said.
The apparel industry in Sri Lanka is by far the largest export earning industry with sales of US$ 5 billion and has a significant environmental impact. To achieve sustainability, the more substantial industry players have transformed over the years into greener manufacturing methods. Sri Lanka's Chief Financial Officer, Brandix Lanka Limited, Suchitra Surendranath, representing the Joint Apparel Association Forum (JAAF), spoke at the event describing Brandix's steps to create Sri Lanka's first ' net zero carbon ' factory in Batticaloa.
"Typically, 44 percent of power is used for air conditioning in a garment factory," he said. "For example, magnetic bearing chillers could save up to 42 percent of that consumption as compared to rotary chillers."
He further commented, saying, "Replacing conventional LED lighting, gripping servo motor motors, and installing biomass boilers instead of gas boilers are a few steps you might take to create greener garment.”
Sustainable investment has the potential to contribute to several UN Sustainable Development Goals (SDGs) in the fashion and clothing industry. These include providing and maintaining water and sanitation, building robust infrastructure, inclusive and sustainable industrialization and development, integrated, healthy, stable and sustainable communities and human settlements, and fighting climate change and its impacts.
IUCN Country Representative Ananda Mallawatantri said that the strategy would be implemented with the assistance of industry and government officials from organizations such as JAAF, the National Cleaner Production Center (NCPC), and the Investment Board (BOI).
"The consultations envisaged during the development of the strategy will include regulatory agencies, senior managers of the apparel industry and technical staff, environmental auditors who are familiar with the operations and processes of the industry," he said.
OSL Take: The statement by HSBC on Sri Lanka’s apparel industry experts is a clear indication of the continuously growing business/investment opportunities in the country’s apparel exports sector. The growth in sales recorded by Sri Lanka’s multinational textile manufacturer shows the business potential in Sri Lanka’s apparel manufacturing and export sector.
Sri Lanka enjoys the GSP Plus trade concession from the EU and the US GSP facility, which provides added incentives to local manufacturers and exporters. Relationships with fresh clients will diversify the export industry that is needed because of U.S. import dependency. This emphasis will also be here to create long-term relationships with global brands that can enhance the apparel sector. The need to capitalize on automation and the target of US$ 6 billion in apparel export earnings is a beckoning call for foreign businesses/investors to explore business/investment opportunities in Sri Lanka.
VBS/AT/05022020/Z_TB3

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