The Global Reporting Initiatives (GRI) standards, a set of 246 globally accepted criteria for reporting environmental, social, and governance (ESG) consequences, are proving difficult for Bangladesh’s apparel industry to implement. A recent roundtable discussion featured a keynote paper that outlined a number of obstacles to compliance, such as a lack of local knowledge, inadequate data, and the absence of encouraging national policies and incentives.
Despite an increasing global demand for sustainable goods, with 66% of consumers and 73% of millennials indicating a willingness to pay more for them, just 33 local garment companies have effectively adopted GRI criteria to date. Additionally, it is projected that the global ESG-related assets under management would reach $33.9 trillion by 2026, accounting for over one-fifth of all global assets.
The vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Md. Akhter Hossain Apurbo, emphasised how eager local exporters are to learn how to increase commerce while adhering to rules. But he warned that the loss of some trade benefits could make things more difficult when Bangladesh moves from a least-developed to a developing country in 2026.
BKMEA vice-president Mohammad Rashed highlighted the difficulty of different compliance standards from foreign purchasers and pointed out the high expenses of implementing GRI. Another major obstacle that makes monitoring industrial operations more difficult is the lack of data, according to GIZ project manager Michael Klode.
Environmental problems are receiving more attention, but social issues like labour and human rights must not be neglected, according to Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD). He mentioned advancements in worker health and workplace safety.