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Go green or outSyed Kollol

The social perception and purchase behaviour of the western society has a direct impact on lessdeveloped and developing countries like Bangladesh. From the late 70's till mid 90's the western worldwas much more focussed on the social issues. We have seen the impact of developed countries social

consciousness on our garment industry. Working environment, wage rate and specially child labour inthe industry emerged as the source of competitive advantage among the garment exporting nations.As a result Bangladesh had to act on these issues to sustain in the world market. Now the child labour,wages rate and working environment related issues of the less developed countries (who are the subcontractors) are believed to be resolved. The western world has now shifted their focus towardsenvironmental issues related with Carbon Emission. This is a moment for the less developed countrieslike Bangladesh to activate their carbon offsetting programmes to sustain in the world market. Thisshort write up is about the "go green" and the future of Bangladesh foreign trade.

"Go Green" movement in the westBusiness at macro and micro level: In the western world "Go Green" is becoming an important part ofthe corporate agenda. Companies are now also under increasing pressure from institutionalshareholders, insurance companies, pressure groups, the government and the media, to demonstratetheir environmental responsibility by reporting their carbon offsetting activities. The companies also

started to respond accordingly. It is very hard to find any company not publishing their carbonoffsetting projects along with the corporate financial report. They are doing this in the sustainabilityreport. Till now most of the companies taking carbon offsetting activities voluntarily but in countriessuch as Australia and UK all the listed companies are bound to put their sustainability report in thecorporate website. Companies like Rio Tinto, BHP Billiton, Nike, and M&S announcing theirresponsibility for the green world. Virgin airlines(Virgin Blue Airlines Australia) boss Richard Bransonhas pledged about $6 billion to developing bio-fuel for his airline fleet and promises that his limousinecompany will become carbon neutral. Skybus, the company that takes passengers to and fromMelbourne Airport, was the first Australian public transport operator to become carbon neutral byplanting 5488 native trees to offset carbon emissions from its bus fleet.Other companies to take action to measure and reduce to net zero their unavoidable emissions includeMazda, Avis, and the United Nations itself (certain key meetings went CarbonNeutral).

Rock and pop culture: "Go green" movement is growing at such fast rate that even the pop androck musicians are announcing their responsibility for the environment. The legendary U2 and Bonoannounced its latest album carbon neutral. The heavy metal band Pearl Jam announced the creation ofits Carbon Portfolio Strategy on 07/11/2006. The centrepiece of the strategy is a total donation of$100,000 to nine different non-profit "doing innovative work around climate change, renewableenergy, and the environment," including the American Solar Energy Society, the BonnevilleEnvironmental Foundation, and the Cascade Land Conservancy. Other contemporary bands like DaveMatthews Band, Alanis Morissette, and Sting already announced their projects for carbon offsetting.This is very important because these bands have enormous influence in the western culture. Likemovie stars, rock stars also influence heavily everyday life style of teenagers and middle agedgenerations.

Cold Play while launching its breakthrough album, A Cold Rush of Blood to the Head, said it would

offset energy use and carbon emissions by planting 10,000 mango trees in the dry Indian state ofKarnataka.

Games and sports: Sports and game activities are also responsible for Co2 emissions as thousandsof people drive to watch a game, international teams fly to a venue and thus generate extra CO2.Australian Football League (AFL) declared that it would offset its CO2 and all the AFL venue will becarbon neutral by 2009. The AFL chief Andrew Demetriou says that by 2009, the AFL will be carbonneutral by offsetting its greenhouse emissions through investment in renewable energy and energyefficiency industries such as solar and wind power. The WinterOlympics in Salt Lake City was climateneutral.

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The grocery shoppers: The grocery shoppers' recent behaviour in the western countries also shiftedtowards "go green". According to Hong Kong Trade development council green consumers whoactively seek out and buy green products are on the rise, accounting for more than 20 percent of theUS and the UK populations, and some 50 percent in western Germany. Grocery chains like Colesexpress, Safeway of Woolworth's stores introduced green recyclable shopping bags in their premises.Till now there are seven different types of bags among which "go Green" bags are most popular.

The retailers: The retailer giant Marks & Spencer announced 17 January 2007 to spend 200 million"going green", as it becomes the frontrunner among British retailers seeking favour with increasinglyenvironmentally conscious shoppers. Marks & Spencer said it would spend the money over the nextfive years to make sure its packaging and clothing was biodegradable or compostable and that none ofits waste would be dumped in tips. It will also label all products on its shelves that have been flown infrom growers and trial using food waste to power its stores, as it aims to become carbon neutral by2012. According to chief executive Stuart Rose, "Every business and individual needs to do their bit totackle the enormous challenges of climate change and waste. We are calling this plan A because thereis no plan B". Retailer Tesco announced it would halve the amount of energy its stores use by 2010. Italso launched a 100 million fund to increase energy efficiency and cut emissions. Tesco CEO declaresto change its supply chain to ensure carbon efficient business.

International agreements

Politically the need for putting a green resolution in a country's policy has become a prime issue.Australian opposition party is increasingly pressurising to adopt green policy as soon as possible.

CNN reported on 17 Jan 2007 that the European Union would urge China to do more to cutgreenhouse gas emissions and cooperate on energy security when it launches negotiations on a broadnew strategic partnership with Beijing.

The leaders of the developed countries are increasingly concerned with Global Warming issue. OnFebruary 16, 2005 a legally binding international agreement among 40 developed and developingnations came into force named as Kyoto Protocol (followed by early '97 agreement). Under thisagreement the related countries will reduce its green house gas emissions by 2012. Different countriesare set to different targets, such as Australia is set to a target to reduce its green house gas 108percent by 2012.

The European Union's Emission Trading Scheme (EUETS) came into force on 1 January 2005 as a wayfor the EU to meet its commitments under the Kyoto Protocol. It imposes emission caps on certainsectors (generally the heavy emitters such as power generation, cement manufacture etc.). It alsoestablishes a trading platform, so that regulated parties and others can trade carbon to ensure thatthe reduction targets are met. The first phase of the EU-ETS runs from 2005-2007. The second phasewill run from 2008-12 -- in parallel with the Kyoto Protocol. It is likely that other sectors, includingtransport, will be included in the second phase.

Over 40 leading US companies have signed up to the Chicago Climate Exchange to voluntarily enterinto a cap and trade system similar to the EU's.

Some useful ways of offsetting carbonHong Kong, China and some other developing countries are making use of voluntary schemes to

highlight the green attributes of their products for marketing purposes. These include making greenclaims, or self-declared environmental claims, for their products, including claims about the use ofenvironmentally-friendly materials in clothing and handbag items. Some have applied environmentallabels to their products, such as Green Seal and Energy Star labels in the US, EU Eco-labels andGerman Blue Angel labels, and the Japanese labels Eco Mark and Eco Leaf. These voluntary claims andlabels can help consumers identify green products, while enabling suppliers to tap the green market ina more effective way.

However to claim as a "green" company is not very difficult. There are many ways as stated above.But the easiest way for Bangladeshi companies is Mass Plantation.

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How to measure Co2 emissions: There are many internationally recognized environmentalorganizations that are using carbon matrix to compute Co2 pollution. According to the matrixdepending on where you live in the world, the average human can produce up to 22.0 tonnes ofCarbon Dioxide (CO2) each year. That's the equivalent of 30 trees which would need to be planted tooffset your personal CO2 emissions. The table shows some CO2 emission average in using varioustypes of cars:

Some benefits from plantation: 1. If a garment factory owner employed 1500 labours and staff inhis factory, then we assume on average the CO2 emission from this factory will be 22.0 tonnes x 1500= 3300,000 tonnes. If for one person the factory needs to plant 30 trees, then the total number oftrees will be 110,000, which will create huge impact on Bangladesh environment. Bangladesh will begreen very soon if carbon offseting plan by plantation could be imposed on factories.

2. Garment factory owners will be benefited from this not only by showing internationally that they aregreen, but also, these plants after few years will give them huge return.

3. Tree planting to offset the carbon emissions and energy use will create jobs.

4. There is a possibility that a new industry for timber products will emerge as there will be highdensed forestry.

Time to act for governmentAs the whole world is shifting their focus towards green consumerism, it's time for Bangladeshgovernment to act on this issue quickly before it's too late. Bangladesh government should do thefollowing:

1. Introduce solar energy systems for power. Bangladesh has an electricity deficit. Using solar powerwill contribute both ways -- going green and reducing deficits. Government can offer credit facility forusing solar power and thus ban use of traditional power in shopping malls and groceries inmetropolitan areas.

2. Bangladesh government can offer tax offsets against carbon offsetting plans for export orientedcompanies.

3. Bangladesh needs to have a green policy for the sake of the global warming issue as well as foritself.

As global warming emerged as a burning issue and a big challenge, there is no way that Bangladeshcan keep mum on them. To exist, to sustain and to lead Bangladesh must have a green policy as earlyas possible. Delaying on this issue will only cause losing global competitiveness and increasingpoverty. Because the message is clear, "GO GREEN OR GOOUT".

Syed Kollol, MBA, writes from Australia.