Bangladesh’s ready-made garment (RMG) sector worth over $45 billion in annual exports and accounting for nearly 85% of the country’s total export earnings, is approaching a decisive turning point. With the European Union preparing to enforce stricter sustainability and due diligence regulations across supply chains, the question is no longer about progress but preparedness: can Bangladesh ensure full supply chain compliance from raw materials to disposal?
This question anchored a panel discussion on “Supply Chain Sustainability Integration: Practices in the RMG Sector in Bangladesh,” held at Stamford University Bangladesh on May 2, 2026. Organized by the Marketing Discipline of the Department of Business Administration, the session brought together industry leaders, sustainability practitioners, and academia to examine the sector’s readiness in an increasingly demanding global landscape.
The session was graced by the Honorable Vice Chancellor, Professor Dr. Sharif N. As Saber, as Chief Guest. In his remarks, he emphasized that sustainability integration is rapidly evolving from a compliance requirement into a strategic necessity for maintaining Bangladesh’s competitive position in global apparel trade.
He said, “A persistent issue is the pressure on factories to pay higher worker wages while receiving reduced payments from international buyers. This highlights a clear inconsistency: buyers demand wage increases but cut their own payments and avoid responsibility.”
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Setting the Context: Sustainability Beyond Compliance
The keynote address was delivered by ABM Faqrul Alam, Group Sustainability Lead of Urmi Group. His presentation outlined key sustainability priorities, including emissions management, traceability, and data transparency, while also addressing the growing complexity of global regulatory and buyer requirements.
ABM Faqrul Alam said in his keynote speech, “The idea of building internal ‘challenger units’ within large companies is particularly powerful. Innovation in areas like circular materials, green energy, traceability, and digital product passports requires dedicated focus, resources, and autonomy. At the same time, no single company can achieve this transformation alonem strong ecosystem collaboration between recyclers, innovators, financial institutions, buyers, and policymakers will be essential to scale these efforts effectively.”
He also said, “Energy flexibility and microgrid initiatives could become game changers for the industry. Investing in rooftop solar, storage, and smart energy management not only reduces carbon emissions but also lowers operational costs and aligns with global buyers’ decarbonization targets. If combined with better access to green finance and stronger industry–academia collaboration, Bangladesh has a real opportunity to lead the next phase of sustainable growth in the global apparel value chain.”
Bridging Strategy and Practice
The panel featured Monower Hossain of Team Group, Mashook Chowdhury of DBL Group, Sayedul Arefin of the PROGRESS Project under Swisscontact, Md. Omar Faruq of ALDI, and Farjana Yasmin, Climate Change and Environment Specialist. The session was moderated by Md. Rabiul Kabir, Associate Professor at Stamford University Bangladesh and an ESG professional.
Monower Hossain said, “Bangladesh exports over 45 billion US dollars annually, contributing around 11–12% to GDP and employing about 4.4 million people. Nearly 85% of the country’s exports come from the RMG sector, making Bangladesh the world’s second-largest apparel exporter. This reflects the strength of our workforce, entrepreneurs, and management. Now, the challenge is to move to the top.”
He added, “We cannot achieve this through volume alone. Reaching a 100 billion dollar target requires value addition, not just increased production. That value comes from ESG and sustainability. In simple terms, instead of selling more at the same price, we must sell smarter—fewer products at higher value. The additional value comes from how products are made: responsibly, sustainably, and ethically.”
Mashook Chowdhury said, “In many cases, even among brands, these two concepts are often mixed together. They tend to place compliance under sustainability. However, in our approach, we clearly separate them, because compliance is operational.”
He explained, “Compliance includes essential requirements such as health and safety, prevention of forced labor and child labor, and non-discrimination. These are fundamental standards that must be maintained at all times. Sustainability, on the other hand, goes beyond compliance. Compliance helps us stay afloat—but without integrating sustainability, we risk falling behind. Sustainability is not only driven by regulations, such as those from the EU; it is a broader, long-term necessity.”
He added, “For example, we have been publishing sustainability reports since 2014. While we may not be the first in the sector, we believe we are among the pioneers, and we have maintained this practice consistently. These reports are not just text-heavy documents—they are designed in a way that also supports our brand identity.”
“The industry has moved significantly forward. Safety conditions, once a major concern, have improved considerably. Initiatives such as the Alliance for Bangladesh Worker Safety, the Accord on Fire and Building Safety in Bangladesh, and later the RMG Sustainability Council have played a crucial role in driving these improvements,” Mashook Chowdhury said.
“Now, the focus should also shift toward ongoing and future initiatives. For instance, on the environmental side, efforts such as recycling are becoming increasingly important. In knit garment production, waste generated in the cutting section can be recycled and reused—contributing to more sustainable manufacturing practices,” he added.
Md. Omar Faruq said, “Today, sustainability is a cross-cutting issue. This means that no matter what you do, it becomes an integral part of your work. In every action or decision, sustainability must be considered.”
He also said, “As mentioned earlier, at the practice level—especially at the factory level—we often treat compliance and sustainability as the same, or we place sustainability under compliance. Unfortunately, this has become a common approach.”
“However, sustainability goes beyond compliance. It should not be seen merely as a requirement to fulfill, but as a broader responsibility. Many companies and brands, such as Aldi, are already actively working in this direction,” he added.
Sayedul Arefin said, “Large export-oriented companies are generally able to integrate sustainability practices effectively. They prioritize areas such as waste management, water efficiency, renewable energy, and carbon emission reduction. But smaller players—especially those at the lower tiers of the supply chain—often struggle to keep up.”
He added, “This is a critical issue. While Bangladesh’s RMG sector has been a major contributor to national growth for years, and there are clear signs of progress, achieving global transition targets will require greater attention to small and medium enterprises (SMEs).”
“There is a strong need for export-oriented manufacturers and global brands to support SMEs more actively. As global buyers and consumers become increasingly aware of sustainability issues, they will prefer to source from responsible manufacturers. Those who fail to meet these expectations risk being excluded from the market,” he said.
According to Sayedul Arefin, several challenges remain from a development perspective:
First, there are gaps in incentives. Many smaller factories require significant investment to adopt sustainable practices, and while initiatives such as green financing from Bangladesh Bank exist, access to these funds remains limited.
Second, there is a capability gap. Although the demand for sustainability professionals is rising globally, questions remain as to whether the local ecosystem—particularly collaboration between academia and industry—is fully prepared to meet this demand.
Efforts are underway to address this. The goal is to ensure that ESG (Environmental, Social, and Governance) knowledge and technical expertise can be developed locally, rather than relying solely on fragmented online learning or international exposure. Professionals should be able to build strong, relevant skills while being based in Bangladesh.
Farjana Yasmin said, “Some factories are maintaining sustainability standards, but many are still falling behind. In doing so, we risk making the Earth increasingly unlivable. This is our planet—we all share the responsibility to be more aware and act more responsibly.”
The interactive Q&A session saw active participation from students, who raised questions about career opportunities and future skill requirements in sustainability and ESG roles. Panelists encouraged the development of interdisciplinary expertise combining business strategy, environmental science, and data management.
The presence of faculty members and students highlighted the importance of bridging academic learning with industry practice. Such engagements are essential for preparing a future-ready workforce capable of navigating complex sustainability challenges.
The programme concluded with a vote of thanks from the Head of the Department. In his closing remarks, the Vice Chancellor expressed appreciation to the speakers, organizers, and participants. Souvenir crests were presented to the panelists as tokens of appreciation.
