EU CSDDD is to keep RMG sector sustainable
Experts and industry professionals emphasized that Bangladesh must align with the EU’s Corporate Sustainability Due Diligence Directive (EU CSDDD) and related compliance standards to sustain its garment industry after its graduation from the Least Developed Country (LDC) status in 2026. The EU CSDDD, effective since July, mandates companies to meet sustainability goals, including achieving net-zero carbon emissions by 2030. Non-compliance risks sanctions, penalties, and restricted market access, making adherence essential for Bangladesh’s trade continuity with the EU.
Speakers at a roundtable in the city, underscored the need for Bangladeshi suppliers to invest in energy efficiency, resource management, and worker productivity to align with the EU’s directives. However, they noted that international brands and retailers must offer fair prices, as compliance demands significant investment, particularly challenging for small and medium enterprises.
Experts also highlighted the importance of reliable data disclosure, financing for sustainable projects, and adopting efficient technologies. Building capacity in these areas could enhance Bangladesh’s standing as a sustainable production hub, but buyers must support this transition by sharing the associated costs.
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