'Sustainability at the core of every operation at Unilever Bangladesh'

At the heart of Bangladesh's industrial landscape lies a factory with a history that spans six decades. Kalurghat Factory (KGF), the birthplace of Unilever Bangladesh, has long been a symbol of manufacturing excellence.

Established in 1964, the factory has evolved alongside the country's development and has played a key role in shaping the nation's consumer goods industry. For more than six decades, the factory has embodied sustainable progress – a legacy of leadership with a vision for the future.

"This factory has stood witness to the evolution of Bangladesh itself," says Ruhul Quddus Khan, supply chain director at Unilever Bangladesh. "What started in 1964 as a cutting-edge soap-making facility in East Pakistan has now become a pioneering model for green industrial transformation in Bangladesh.

"With nine out of ten households in Bangladesh using Unilever products, the company's footprint in the country is substantial. Driven by Unilever's global sustainability framework, KGF has consistently modernised its operations with a focus on long-term impact. Its commitment to sustainability remains a central priority, especially as the world grapples with escalating climate challenges." 

He went on, "Sustainability is not an add-on – it is embedded into how we operate, make decisions, and deliver impact," Khan explains. "It is about creating value responsibly – for the environment, for society, and for the long-term future of our business.

"Built on decades of innovation, KGF has introduced iconic brands like Lux and Lifebuoy and remains a model for sustainable industry transformation."

As the industrial landscape evolved, so did the expectations of sustainability within the sector. Khan reflects on how the company's growth mirrored broader industry shifts, saying, "We have seen a major change in the way companies view their role in the world. Today, sustainability is not just a goal – it is a necessary transformation for the industry."

Why sustainability has become fully integrated

"As our footprint grew, so did our accountability," says Khan. "That's why sustainability has become fully integrated into how we operate – not as an external initiative, but as a fundamental business driver." 

The decarbonisation journey at KGF began in 2010 with the installation of the factory's first solar panel, marking an early commitment to renewable energy. Over the years, KGF's solar capacity grew to 105 kWh, but the factory faced significant challenges – primarily the limited availability of space for further expansion.

According to national energy data, renewable sources currently make up around 4.5% of Bangladesh's total installed power capacity, with solar energy contributing approximately 1.3% to electricity generation.

"That tells us how early we still are in the national renewable journey," Khan explains. "Projects like ours at KGF are not just about internal transformation – they show that large-scale industrial solar is viable and urgently needed."

"Kalurghat is a legacy site," Khan points out. "It is compact, densely built, and doesn't have much room for traditional solar expansion. We needed to think smarter."

"But," Khan notes, "like many industrial operators in Bangladesh, we have faced systemic challenges." 

From land constraints to high capital investment, and from limited access to integrated technology to navigating evolving regulations – the barriers are real. "For many businesses, the issue is not intent, it is infrastructure and enabling conditions."  

The breakthrough came in 2024 with the partnership between Unilever Bangladesh and Solaric, a Singapore-based renewable energy company. This collaboration is set to revolutionise KGF's energy model by installing a rooftop solar system that will increase its solar capacity by 785 kWh, scaling the factory's renewable energy output by more than seven times.

"This is a game-changer," Khan remarks. "We believe this project can serve as a practical model for how even long-established factories can transition to clean energy at scale."  

The urgency of climate action is reflected in global calls for emissions reductions. The United Nations has set a target of reducing emissions by 50% by 2030, with the goal of achieving net-zero by 2050. Unilever is responding through its Climate Transition Action Plan (CTAP), aiming for a 100% reduction in operational greenhouse gas emissions (Scope 1 and 2) by 2030.

"All our factories play a role in achieving this ambitious target", says Khan. "But beyond corporate compliance, we view this as an opportunity to lead the way in Bangladesh's sustainability agenda. The private sector has a crucial role to play in addressing climate change, and it's encouraging to see that more companies are beginning to understand the need for integration of sustainability into their core operations."

"It also highlights the need for innovation not just in technology, but in business models and increased regulatory support – so that sustainability efforts like these can be replicated and scaled across Bangladesh's industrial landscape."

Decarbonisation requires collaboration 

While Unilever Bangladesh is making significant strides in sustainability, Khan stresses that decarbonisation requires collaboration beyond individual companies.

"Bangladesh's green transformation must be a collective effort," he emphasises. "No single company can tackle these challenges alone. We need industry-wide partnerships, regulatory support, and innovative approaches to overcome barriers – such as land constraints – when scaling up renewable energy projects."

Khan acknowledges recent steps by the government to catalyse solar adoption. "We welcome initiatives such as the updated solar guidelines, net metering frameworks, and the target to achieve 15% renewable energy by 2030," he says. "These are positive signals. The next step is to ensure that implementation is smooth and predictable, so the private sector can confidently align long-term investment with national sustainability goals."

Khan also points out that Bangladesh is at a critical juncture. With climate change causing increased volatility, energy security becoming a pressing issue, and international markets demanding responsible sourcing, companies in Bangladesh must embed sustainability into their core operations to stay competitive.

"We are at a crossroads," Khan reflects. "As businesses, we must ask ourselves: How do we adapt and innovate in the face of climate volatility, rising energy costs, and increasing global demand for responsible sourcing? The answer lies in collaboration and a deep commitment to green transformation. It's no longer just about protecting the environment – it is about ensuring long-term business viability in a changing world."

As KGF celebrates its 60th anniversary, the factory's legacy is being redefined. The solar expansion is just one part of the larger commitment to sustainability, and it demonstrates that even the oldest industrial sites can lead the way in creating a greener future.

"The time to treat the environment as an afterthought is long gone," says Khan. "The world is already behind in addressing the climate crisis. That's why every step we take toward sustainability – every kilowatt of solar, every ton of emissions reduced – matters now."

Khan concludes with a vision for the future, "Our goal is clear – embed sustainability into every part of our operations, reduce emissions at scale, and build resilient supply chains for tomorrow's challenges. We are proud to lead, by example, through projects like KGF's solar transformation. But real change requires collective industry action. It's time for manufacturers, regulators, and partners to come together and turn climate ambition into national progress."