Bangladesh Garment Manufacturers and Exporters Association (BGMEA) plans to make environmental, social and governance (ESG) reporting mandatory for all member factories to meet tightening sustainability requirements in international markets, particularly the European Union (EU).
BGMEA President Mahmud Hasan Khan Babu announced the plan on 19 October at the launch of the association’s ESG Dashboard at its Uttara headquarters.
Of around 2,500 active members, only 326 factories have submitted ESG reports, representing approximately 13% of the total, a level the association considers unsatisfactory. Developed in collaboration with the Danish Embassy in Dhaka, BRAC Institute of Governance and Development, and Mapped in Bangladesh, the dashboard aims to strengthen industry-wide sustainability monitoring. BGMEA will also work with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to improve reporting.
EU requirements drive urgency
Sheikh Mustafiz, a BGMEA director overseeing the ESG platform, said buyers would need supply-chain ESG reporting for EU markets from 2029, making timely preparation essential for Bangladeshi suppliers. Factories will need to maintain relevant data regularly and submit reports to BGMEA for monitoring. However, the association has not yet specified when mandatory reporting will begin.
ESG indicators cover energy use, emissions, water and waste management, wages, workplace safety, workers’ rights and corporate governance. With garment exports exceeding $39 billion in FY26, the industry’s ability to improve ESG performance will be increasingly important for retaining international buyers and strengthening Bangladesh’s competitiveness.
