At the Bangladesh Denim Expo, sustainability was discussed not only as an environmental commitment but also as a financial and business challenge. During a panel discussion on financing the industryโs green transition, Muhammad Sohel Sadat, Chairman of Shin Shin Group, offered a candid assessment of the opportunities and obstacles facing Bangladeshโs apparel manufacturers.
Speaking from the perspective of a manufacturer that has invested heavily in sustainability, Sadat argued that while Bangladesh has made remarkable progress in green manufacturing, the countryโs green finance ecosystem still falls short of meeting the practical needs of businessesโparticularly small and medium-sized enterprises (SMEs).
Sustainability Must Go Beyond Business
Sadat emphasized that sustainability should not be viewed merely as a business strategy or a marketing tool.
Instead, he urged the industry to embrace sustainability as a responsibility.
According to him, investments in renewable energy, energy-efficient machinery, water recycling, and resource conservation should be driven by a commitment to protecting the planet rather than by expectations of higher prices or financial rewards.
He highlighted Bangladeshโs global leadership in sustainable manufacturing, noting that the country now hosts 284 LEED-certified green factories, with 62 of the worldโs top 100 LEED-certified garment factories located in Bangladesh. Shin Shin Group is among those manufacturers actively pursuing green industrial development.
He stressed that these achievements demonstrate the commitment of Bangladeshi entrepreneurs, many of whom have invested in cleaner production despite limited financial incentives.
Green Finance Exists but Access Remains Difficult
While acknowledging that Bangladesh Bank has introduced several policy initiatives to promote green finance, Sadat said the reality at the commercial banking level is very different.
According to him, many commercial banks fail to actively promote green financing products or adequately explain available facilities to businesses.
He shared that his own company experienced significant delays in receiving approved financing, with promised funds remaining pending even after two years.
In his view, commercial banks often prioritize their own profitability and lending targets instead of encouraging environmentally responsible investments.
SMEs Face the Greatest Barriers
Sadat expressed particular concern for Bangladeshโs small and medium-sized manufacturers.
He observed that many SMEs are still unfamiliar with sustainability concepts, environmental compliance, ESG requirements, and available green financing opportunities.
Without adequate awareness and technical guidance, these businesses struggle even to understand the financing options designed to support them.
He argued that awareness-building should become a national priority, with government agencies, development partners, industry associations, and financial institutions working together to educate manufacturers.
Simpler Procedures Needed
Another major issue highlighted by Sadat was the complexity of the green financing process.
He suggested that applications should be made more transparent and easier to process.
One recommendation was to establish stronger coordination between commercial banks and Bangladesh Bank so that green loan applications receive proper oversight and cannot simply be ignored at the branch level.
He also pointed out that borrowers sometimes become ineligible because of issues related to their bankโs non-performing loan (NPL) status rather than their own financial performance, creating additional barriers for deserving manufacturers.
Buyers Should Share the Cost of Sustainability
Responding to a second question on international buyersโ role in sustainability, Sadat said expectations from brands have increased significantly, but financial support has not kept pace.
Manufacturers are expected to invest in green buildings, renewable energy, chemical management systems, and worker welfare initiativesโall of which require substantial capital.
However, garment prices rarely reflect these additional investments.
Although he acknowledged that some global brands have begun supporting sustainability through premium pricing and long-term sourcing partnerships, he described such examples as exceptions rather than the norm.
Long-Term Commitments Matter
Sadat argued that one of the strongest incentives buyers could provide is long-term sourcing commitments.
Stable business relationships would give manufacturers greater confidence to invest in expensive sustainability upgrades, knowing that they will have sufficient production volumes to recover those investments.
Such partnerships, he suggested, would create a more balanced approach where both brands and suppliers share responsibility for achieving sustainability goals.
A Call for Practical Collaboration
Sadat concluded that Bangladeshโs green transition requires more than ambitious policies.
He called for greater awareness among manufacturers, simplified financing procedures, improved coordination between regulators and commercial banks, and stronger financial participation from international buyers.
His remarks reflected a growing consensus within the industry that Bangladeshโs sustainability success will ultimately depend not only on the commitment of manufacturers but also on practical financial support and genuine collaboration across the entire global apparel value chain.