Vintage Denim Studio Ltd. - making profits while going green | Knowledge Hub | Circle Economy Foundation
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Business case
Vintage Denim Studio Ltd. - making profits while going green
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Sitting on a 10-acre plot in the Export Processing Zone in Ishwardi, Pabna, Vintage Denim Studio, part of ABA Group, is leading the way on how to save the environment while running a factory, ensure a safe workplace and reduce consumption of natural resources as much as possible, such as water, and bring down power usage as well as carbon emission.

Problem

Today, fashion accounts for up to 10% of global carbon dioxide output—more than international flights and shipping combined, according to the United Nations Environment Programme.

Solution

Vintage Denim was the first factory in Bangladesh to achieve platinum LEED certification. LEED certification credits are focused on a number of concepts. The factory has got 23 out of 26 in sustainable sites, 28 out of 35 in energy efficiency, 6 out of 14 in materials and resources and 13 out of 15 in indoor environment quality. Besides, it secured 10 out 10 in water efficiency, 6 out 6 in innovation and 4 out of 4 in regional priority.

Green factory owners do not get price benefits from its buyers, but green factory owners get priority in getting work orders. "The product price of a non-green factory and a green one is the same, but if it is a green factory, you will get business priority. And that is the benefit," said Sajjadur (ABA Group Chairman). Green factory owners benefit in the long run for sure. The factory has registered a 10% to 15% business growth every year over the last ten years. Even in the midst of Covid-19, the factory has posted 5% to 6% growth. The plant is also saving energy costs by switching to renewable sources. But maintenance costs for a green factory are high as it is necessary to keep its appearance intact. 

Outcome

Energy cost reduction by 46%

Carbon footprint lowered by 45%

Water cost reduction by 53%

10% renewable energy

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