It has been over two months since Bangladesh witnessed significant political changes and, despite a few instances of unrest, most industries are now operating at full capacity. However, concerns persist among buyers and suppliers regarding consistent orders and worker-related issues.
At this critical juncture, Cascale, the global non-profit alliance, formerly known as the Sustainable Apparel Coalition and the BGMEA have signed an MoU aimed at advancing sustainability and promoting environmentally and socially responsible practices within the apparel sector.
Cascale, an alliance of 300 leading brands, retailers, manufacturers and sourcing agents, is committed to supporting Bangladesh in ensuring sustainable growth. The organisation has called for responsible sourcing and deeper collaboration with manufacturers.
Carolina van Loenen, Director of Stakeholder Engagement at Cascale, acknowledged the recent volatility in Bangladesh, stating that the country is navigating a period of significant instability. This unrest has disrupted daily life and poses substantial challenges for industries operating in the region. In discussion with Team Apparel Resources, she shared that Cascale seeks to create more robust pathways to drive continuous improvement, transparency and greater alignment with international sustainability standards. Additionally, the organisation will collaborate on advocacy efforts to amplify manufacturers’ voices and perspectives on legislative initiatives, policy measures and reforms.
Navigating instability: The need for sustainable and ethical practices
The current instability in Bangladesh highlights significant challenges and also serves as a reminder of the ongoing need for sustainable and ethical practices in the apparel industry. In times of uncertainty, prioritising human rights, worker safety and responsible business practices are more important than ever. Collaborative efforts between industry stakeholders, including manufacturers, brands and organisations, are key to navigating these challenges and ensuring progress on sustainability, decarbonisation and ethical sourcing continues unabated.
International brands: Critical sourcing support for Bangladesh’s RMG industry
For the RMG industry in Bangladesh, the support of international brands and retailers is critical. Their influence can drive meaningful change, particularly in promoting decent work conditions, fair wages and worker safety. Industry experts believe that this moment calls for brands to focus on responsible sourcing and deepen their collaboration with manufacturers, ensuring that commitments to sustainability and ethical practices are upheld regardless of external pressures.
“Our message to international brands and retailers is clear that now is the time for responsible sourcing and deeper collaboration with manufacturers. As a moral imperative, brands should require their suppliers ensure worker safety, timely payments and fair compensation regardless of the situation, while abiding by all legal procedures. It’s essential for all parties to work together to ensure that progress on sustainability and social responsibility continues uninterrupted,” said van Loenen, adding, “We remain in close contact with key stakeholders as the situation evolves and acknowledge the importance of best practices and resources, such as the Common Framework for Responsible Purchasing Practices and Fair Wear Foundation’s continued guidance.”
Amplifying the voices of manufacturers in policy discussions
Manufacturers, especially in developing markets like Bangladesh, are facing mounting pressure, not only due to market volatility but also from increasing regulatory demands. Apparel manufacturers often voice concerns that their perspectives are overlooked in international policy discussions, particularly when it comes to sustainability and legislative changes. This has led to calls for more inclusive dialogue, where the voices of manufacturers are heard and considered in shaping global policies.
Efforts to amplify the role of manufacturers in international conversations are essential for creating fair and practical policy measures. In the Asia-Pacific (APAC) region, this is especially crucial, as manufacturers contend with complex sustainability challenges. Effective policies should strike a balance between meeting global sustainability goals and addressing the realities faced by manufacturers on the ground. Advocacy for these concerns, through collaborations with key organisations, can ensure that the industry evolves in a way that is equitable for all stakeholders.
Reducing audit burdens: A path towards transparency
Another pressing issue according to van Loenen is the burden of audits and certifications on manufacturers. With the rising pressure on pricing and operational costs, the need to reduce duplicative audits has become urgent. Standardising protocols for social and technical audits could minimise this burden, increasing transparency and efficiency across the supply chain. However, achieving broad acceptance of standardised audits by brands and retailers remains a challenge, though the industry is gradually moving in that direction.
To understand it better, Team AR has put together an example. Let’s consider the case of XYZ Garments that supplies products to multiple international brands. Each brand has its own set of social and technical audit requirements, aimed at ensuring compliance with ethical and sustainability standards. While the intent behind these audits is commendable, the reality for XYZ Garments is a burdensome cycle of duplicative assessments and certifications.
The Audit Challenge
Over the course of a single year, XYZ Garments is subjected to audits from five different brands. Each brand requires:
- Workplace safety inspections
- Worker rights and wage assessments
- Environmental impact evaluations
- Chemical management protocols
Though these audits share similar objectives, they vary slightly in methodology, documentation and standards. As a result, XYZ Garments must dedicate considerable time and resources to meet the differing requirements of each brand.
Tangible costs for the manufacturer
Direct Financial Costs
Each audit requires the engagement of third-party auditors or certification bodies, costing approximately between US $ 2,000 – US $ 8,000 per audit. With five brands auditing XYZ Garments annually, the total direct cost can easily exceed US $ 10,000 – US $ 40,000 or even more a year.
Operational Disruption
Preparing for audits involves halting production for inspections, reviewing documents and training staff. This leads to downtime in production, reducing output and increasing lead times. For a manufacturer operating on tight margins, this downtime can lead to delayed shipments and potential penalties from buyers.
Labour Hours
The compliance team at XYZ Garments spends an estimated 20 per cent – 30 per cent of their working hours preparing for, undergoing and responding to audits. This diverts attention away from other critical activities like improving worker welfare programs or investing in sustainable technologies.
Certifications and Documentation
Each brand often requests specific certifications which may not overlap. Maintaining these certifications can cost XYZ Garments upwards of US $ 15,000 annually, adding another layer of financial burden.
The need for standardisation
If a unified, standardised audit system were in place – where brands accepted a common framework for evaluating ethical and environmental practices – XYZ Garments could significantly reduce these costs. For example, by using a tool like the Higg Index, XYZ Garments would undergo a single comprehensive assessment covering all key sustainability metrics. This would eliminate the need for multiple audits, saving the company both time and money.
In this scenario, audit costs could drop by 40 per cent – 50 per cent and production disruptions would be minimised. Additionally, with fewer redundant audits, the compliance team could focus on longer-term improvements, such as worker training and energy-efficient machinery, which would further enhance XYZ Garments’ sustainability profile.
According to van Loenen, tools like Cascale’s Higg Index and initiatives such as the EU’s Product Environmental Footprint (PEF) are pushing the industry toward a more unified approach. PEF offers science-based, standardised frameworks that allow for consistent measurement of environmental impacts, from raw material sourcing to the end-of-life disposal of products. By aligning with such frameworks, the industry can promote transparency and reduce audit fatigue while continuing to meet sustainability targets.
Ultimately, the path to sustainability requires ongoing collaboration between all stakeholders – brands, manufacturers, industry bodies and policymakers. “By ensuring these efforts continue, even in difficult times, we aim to contribute to the long-term resilience and sustainability of the consumer goods industry,” concluded van Loenen.
