Embracing the Environmental, Social, and Corporate Governance (ESG) compliance framework is essential for businesses in Bangladesh to align their values and strategies with sustainability objectives, foster economic growth, and remain competitive beyond LDC graduation, said DCCI President Ashraf Ahmed.
He highlighted these points during a roundtable discussion titled “Navigating the Challenges and Opportunities of ESG Compliance in Bangladesh,” organized by the Dhaka Chamber of Commerce & Industry (DCCI) on Saturday (May 18).
Ashraf Ahmed emphasised that as Bangladesh becomes more interconnected with the global economy and its international trade continues to grow, ESG compliance is becoming mandatory for businesses. Investors consider ESG factors when assessing a business's potential as they indicate resilience and long-term financial health.
He pointed out the increasing trend of ESG reporting in Bangladesh. Various organizations across different industries have started reporting on their ESG performance, and government bodies have also initiated efforts to promote and encourage ESG reporting. Recognizing the importance of ESG compliance, he recommended developing effective ESG compliance strategies aligned with the global value chain and integrating ESG considerations into decision-making processes and organizational culture.
He underscored the need to educate stakeholders, including employees, management, investors, regulators, and the public, about the importance of ESG compliance and its reporting. Furthermore, ESG compliance should be embedded in other policies such as industrial policy and SME policy, he added.
Md Munim Hassan, Director General, Department of Patent, Design & Trademarks, Ministry of Industries, emphasized that compliance is mandatory in every sector and enhances business credibility. He stressed personal responsibility for environmental and social compliance and noted significant progress in Bangladesh's GI (Geographical Indication) certifications.
Md Anwarul Alam, Director General (Additional Secretary), Bangladesh Accreditation Board (BAB), Ministry of Industries, stated that the BAB is directly linked with ESG, ensuring the quality of goods and services with worldwide acceptance of BAB’s certification. He encouraged lab owners to seek accreditation from BAB and highlighted the interconnection between ESG and the vision of Smart Bangladesh.
Keynote speaker Zaku Uz Zaman, Country Representative for UNIDO, Bangladesh, explained that the term "ESG" emerged in the early 2000s, with roots in the 1990s. ESG evaluates a firm's engagement with environmental, social, and governance factors, and investors are increasingly focused on a company's societal impact. He noted the lack of a defined format for ESG reporting, which challenges management in understanding reporting requirements. Compliance with ESG reporting can help Bangladeshi companies remain competitive post-LDC graduation.
Other speakers, including Dr. M Niaz Asadullah, Visiting Professor of Economics at the University of Reading, UK; Mohammad Bin Quasem, Director of Echotex Ltd.; Yeasmin Akther, Business Manager at Knowledge, Health and Nutrition, SGS Bangladesh Limited; M. Abu Horairah, former Vice President of DCCI; Enamul Haque Patwary, former Director of DCCI; and Rashid Shah Shamrat, former Director of DCCI, also contributed to the discussion. They stressed the need for an ESG policy, creating awareness, and having a monitoring and reporting system. They suggested educating people about ESG, emphasizing environmental safety, and advocating for massive afforestation across the country. The speakers called for concerted efforts and the implementation of rules and regulations to enforce ESG in Bangladesh.
