Brandix proves eco sustainable solutions viable and profitable

By Shanuka Tissera

One of the country’s largest apparel exporters, Brandix, has successfully shown how eco-friendly solutions can be adopted by a large scale enterprise to not only reduce their carbon footprint, but prove a positive correlation between reducing carbon emissions and innovating planning resulting in heftier revenue streams.

Brandix Lanka Head Environment and Energy Management Iresha Somarathna (right) presents the first Sustainability Report as Brandix Lanka Chemical and Water Resource Engineer Punsala Ranasinghe and Brandix Lanka Director Ajit Johnpillai look on – Pic by Daminda Harsha Perera

Goals have been set to further reduce the giant’s environmental footprint by a further 20% by 2020, thus taking sustainability targets both in domestic and international markets higher.

The announcement follows the achievements of environmental goals set for 2012 by the $ 600 million group, which operates 42 facilities in Sri Lanka, India and Bangladesh. Brandix is now the first private company in Sri Lanka to release a Sustainability Report that is on par with global standards.

The details of the sustainability targets were announced at a unique conference powered entirely by renewable energy at Nuga Gama, Cinnamon Grand. The plan is for Brandix to develop their own Eco Index, a tool that will enable companies as well as supply chain partners to benchmark and measure their environmental footprint. Using 2012 as a base year, Brandix will make further investments in processes and innovations that progressively reduce the impact of its operations on the environment.

Year-on-year top line performance is up, business is doing extremely well and momentum with the help of sustainable business models will ensure a continued leadership position. Over the next four years, $ 20 million will be invested into ultra-efficient and green technology with a payback of three years.

The European markets are proving highly profitable for Brandix as market research has shown that a slight premium for eco-friendly manufacturing is favourable over cheaper products. Brandix was also awarded the best manufacturing plant award in Bangladesh by Marks and Spencers in comparison to all other suppliers for the British company.

The three streams of environmental footprint reductions were through, reducing water consumption at apparel factories to 35 litres per head per day. To achieve zero solid waste to landfills by the end of 2012, is thus far 75% fulfilled and will be met by the end of the year. The third and equally important manner how Brandix have reduced their carbon footprint is through the purchasing of ultra-efficient technologies and practises.  “Our vision of being ‘the inspired solution’ encompasses not only the delivery of best quality products to the shelves, but also helping our workforce and community to grow with it, while mitigating any impact of our business on the environment. We believe that in order to crease a sustainable business, all the elements in its success need to be nurtured in return,” Brandix Lanka Ltd. Director Ajit Johnpillai said.

Brandix has taken on the responsibility of managing the lifecycle chain from the raw material stage to distribution. This enables management to account for all manufacturing processes that are under control. The company vision is to account for each and every resource used and all by-products produced within the company.

The group has thus far invested more than $ 3 million in energy efficient processes in 2011, saving a mega 28,000 GJ of energy and an estimated $ 80,000 through its energy management plan. The switch to renewable energy sources such as bio-mass has resulted in the replacement of 115,000 litres of fossil fuel last year. Since March 2008, the apparel giants have made sure that they reduced their carbon dioxide gas emissions by more than 29,000 MT. This resulted in the group’s carbon footprint shrinking by 30.4% as revenue increased by 40%. Brandix Lanka Ltd. Head Environment and Energy Management Iresha Somarathna explained in detail the measures Brandix took to play their part in helping the environment: “156 million litres of water has been saved due to initiatives, resulting in a 43% reduction from the baseline, taking into account an increase in the group’s head count. Our factories have recycled and reused 961,000 cubic meters of treated water, approximately 44% of the group’s total intake and now collect 1,400 cubic metres of rainwater per annum.”

The full 100-page premier Brandix Sustainability Report titles ‘Wear the Future’ gives the specifics of the initiatives that the company undertook. The indices are aligned with Global Reporting Initiatives indicators and the report has been verified by Det Norske Verita, an independent reporter.

Brandix was also the first apparel manufacturer in the Sri Lanka to receive the ISO 50001 certification for energy management systems of its Eco centre at Seeduwa, and in 2008 the Brandix Eco Centre became the first apparel factory in the world to receive a platinum rating from the Leadership in Energy and Environmental Design.

“The concept is not just based on helping the environment, we must account for the people, business and markets. Only by incorporating all factors can we really bear the fruits of our labour. We have shown our competitors a new horizon and proven that eco-friendly business solutions are the step that all companies should look to imitate,” noted Johnpillai.