Over 450 textile and readymade garment factories participating in the IFC’s PaCT (Partnership for Cleaner Textile) program have significantly reduced annual fresh-water consumption by 35 billion liters—enough to fulfill the yearly water needs of over 1.9 million people.

These factories have saved 3.8 million megawatt hours in energy per year and have reduced carbon emissions by 7,23,617 tonnes annually — equivalent to removing nearly 1,60,000 cars from the road annually, as stated by the IFC in a Sunday announcement marking a decade of impact through the PaCT program in Bangladesh.

The upcoming phase of the PaCT program will focus on advancing circular practices and decarbonization initiatives to address the industry’s carbon footprint.

While sustaining industry competitiveness, this strategic shift aims to promote high-value product manufacturing, facilitate market diversification, and mitigate environmental, social, and corporate governance risks.

According to the statement, to drive systemic, positive change in Bangladesh’s textile value chain, the International Finance Corporation (IFC)’s Partnership for Cleaner Textile (PaCT) program has catalyzed transformative advancements over the past 10 years, enhancing the sector’s competitiveness and environmental sustainability.

An IFC advisory program—supported by the Government of Denmark and the Kingdom of the Netherlands—PaCT is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Over the years, PaCT has partnered with leading companies, including VF Corp, PUMA, Levi Strauss & Co, and TESCO.

‘Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy’, said Christian Brix Moller, Ambassador of Royal Danish Embassy.

The second-largest exporter in the ready-made garment (RMG) sector, Bangladesh’s textile industry is a key contributor to the nation’s economic growth and sustainability, providing over four million jobs—54 percent of them are women—and accounting for 85 percent of the country’s export earnings.

‘We appreciate the contribution of the PaCT program by IFC over the past decade. We hope that its impact will continue in the coming decades and our industry will grow at a rapid rate while remaining sustainable and safe,’ said BGMEA vice-president Miran Ali.

The governments of Denmark and the Netherlands have been long-standing partners with Bangladesh in making the textile and apparel sector more sustainable.

Over the past decade, the PaCT program has directly contributed to a positive mindset shift in the Bangladeshi textile industry.

One of its key achievements is the launch of the Textile Technology Business Centre, set to become the country’s leading knowledge hub for the textile industry, the release said.

‘As IFC commemorates a decade of impactful collaboration through our PaCT program, we are committed to fostering sustainable growth within Bangladesh’s textile industry. IFC will continue to help the country’s ready-made garment sector ascend the global supply chain and meet the demands of a more modern and greener market. The sector’s resilience is key to increasing exports and supporting market diversification in Bangladesh,’ said Martin Holtmann, IFC Country Manager for Bangladesh, Nepal, and Bhutan.

‘In our textile sector engagement, we prioritise initiatives like PaCT, recognizing sustainability’s key role in economic growth. As Bangladesh advances to Middle Income status, leveraging economic complexity becomes crucial for sustainable development. The industry’s global ties and diverse operations underscore its importance in driving innovation and job creation, powering the country’s economy,’ said Henri Rachid Sfeir, Manager, MAS Asia Upstream & Advisory, IFC.