The past few years have ushered in a sustainability sea change for Pakistan-based manufacturer AGI Denim. Although environmental and social initiatives were already underway, the recent investments and operational shifts have created more standardization and transparency around these efforts.
For one, the company underwent the lengthy process of documenting its social and environmental impact to achieve B Corp certification. “We really liked their slogan, ‘People Planet Profit’—that spoke volumes to what we’re doing here,” AGI director Ahmed Javed explained during a recent fireside chat with Sarah Jones, senior editor, strategic content at Sourcing Journal.
“We felt that we needed an independent body that would look into our practices and say, ‘This company is genuinely doing a lot of good while producing great product.’” Since becoming a B Corp, AGI has built more systems around sustainability, including reporting.
A key priority in social responsibility is diversity and inclusion. Since its start, AGI’s workforce has been largely female. Today, 40 percent of workers are women, and women make up 25 percent of the board and 30 percent of managerial roles. To help women advance, the company has long been a partner for programs such as Gap Inc.’s Personal Advancement & Career Enhancement (P.A.C.E.) Program that provides life skills and technical education to women workers, and it is now introducing a program called She Leads that will teach soft skills needed for leadership.
In environmental action, the main focuses for the denim mill are energy use, water consumption and fiber choice. To cut down on its energy use, AGI built LEED certified factories that cover the entire denim production process. These facilities source a minimum of 25 percent of their energy needs from renewable sources. Developing green instead of conventional buildings tacked on costs and time to these projects, but AGI considers it a worthwhile investment to get ahead of industry demands.
AGI is also embracing innovative eco fibers. Since its vertical facilities begin with spinning, it can control and manage the incorporation of these materials from start to finish. Recently, AGI became one of 47 yarn and textile producers in Renewcell’s Circulose Supplier Network, supporting the recycled material’s commercialization.
Reducing water usage is also a top priority at AGI Denim. The manufacturer has scaled its water recycling to 55 percent, and the goal is to reach zero liquid discharge by 2030. AGI has also reduced its water use by upgrading to efficient washing machines and developing technologies such as its Double Zero dyeing process.
“Pakistan falls in a water scarce region,” said Hasan Javed, director of AGI Denim. “Therefore, we do have to play our part as a responsible manufacturer to do what is necessary when it comes to reducing our own water consumption.”
Watch the video to learn more about AGI Denim’s ESG initiatives, as well as its product expansion and future plans.
