Support and long-term partnerships key to preparing Bangladesh garment sector for EU compliance

Bangladesh Apparel Exchange (BAE) acts as a vital link between Bangladesh's apparel industry and the global fashion market. Beyond export promotion, BAE positions Bangladesh as a responsible and competitive sourcing destination by highlighting the sector's progress—from factory safety reforms after Rana Plaza to embedding sustainability as a core business practice.

As a knowledge platform and industry advocate, BAE connects manufacturers, global brands, policymakers, and civil society through dialogue, research, and industry events, showcasing compliance, sustainability, and manufacturing excellence while helping factories adapt to global standards and connect with responsible buyers.

Bangladesh's competitive advantage lies in our scale, ecosystem maturity, and demonstrated commitment to continuous improvement.

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Water management has become a critical focus for BAE because the apparel industry is inherently water intensive.

We support factories through a multi-pronged approach combining awareness, capacity building, and partnership facilitation.

We also partnered with WaterAid in our multiple events to raise awareness about the water usage practices, organized expos to showcase technologies and business cases for water efficiency and reducing water consumption, connected factories with technology providers specializing in water management systems, facilitating partnerships for water efficiency. 

A decade ago, sustainability was largely a compliance checkbox, but today we are seeing a fundamental shift in mindset.

Bangladesh now has the highest number of LEED-certified green garment factories in the world, with over 200 facilities achieving various levels of certification.

This represents billions of dollars in investment in energy-efficient infrastructure, renewable energy, water recycling systems, and environmentally responsible materials.

Our factories have made significant strides in reducing carbon emissions, with many installing solar panels and shifting to cleaner energy sources.

However, the transformation has been uneven, with larger factories leading while smaller enterprises struggle with upfront investments. We need more inclusive approaches that bring the entire ecosystem along this sustainability journey.

However, where do we stand considering the preparedness? The answer is mixed. The top tier of Bangladeshi manufacturers, particularly those already serving European brands with stringent requirements, are relatively well-positioned.

However, a significant portion of our manufacturing base, especially small and medium enterprises, faces considerable challenges.

Many lack the capital, technical expertise, and management systems needed to meet complex EU requirements like carbon accounting, supply chain mapping, and chemical traceability. The good news is that awareness is high and the industry is mobilizing.

Factory associations, BAE, and government bodies are working to translate EU requirements into actionable steps.

What we need urgently is a more supportive framework with sufficient transition periods and technical assistance. We also need buyers to actively partner with suppliers by providing financial support and committing to stable, long-term relationships so factories can make necessary investments with confidence.

The challenges span financial, technical, and systemic dimensions. Financial constraints top the list—sustainable infrastructure requires significant upfront investment that's difficult for factories operating on 3-5% margins, especially when buyers pressure for lower prices.

Technical capacity gaps are substantial, with many managers lacking expertise to implement complex environmental management systems or navigate international standards.

Infrastructure limitations beyond factory walls create obstacles, and short-term business pressures often force factories to prioritize immediate survival over long-term sustainability.

Regarding cooperation, the Bangladesh government has taken important steps, including establishing the Green Transformation Fund. But the complex procedures of getting green finance are hindering the factories from enjoying access to the finance.

Global brands have launched sustainability programs providing technical assistance and training. Programs like IFC's Partnership for Cleaner Textile, supported by multiple brands, have delivered tangible results.

However, cooperation needs to deepen. Brands must move beyond auditing to commit to longer-term contracts and pay prices that reflect the true cost of sustainable production. The government needs to accelerate infrastructure development and create more accessible financing mechanisms for SMEs.

Now we can take a closer look at the progress made by major garment-exporting countries in this regard. Vietnam is moving faster in automation and digital integration, while China leads in advanced manufacturing technology and renewable energy infrastructure investments.

India has significant capacity in sustainable materials, particularly organic cotton, while Turkey benefits from proximity to European markets and investments in circular economy models.

Bangladesh's competitive advantage lies in our scale, ecosystem maturity, and demonstrated commitment to continuous improvement.

We must accelerate innovation in digitalization, sustainable materials, and circular manufacturing to maintain our position.

Development partners like WaterAid's contribution have been invaluable, particularly in helping the industry understand that water management extends beyond factory walls to community impacts and broader water stewardship.

WaterAid has helped establish water management protocols, conducted assessments to identify efficiency opportunities, and facilitated knowledge sharing between factories. What distinguishes WaterAid's work is its focus on the intersection of industrial water use and community water security.

Their advocacy has been crucial in elevating water issues in policy discussions with government, brands, and manufacturers. However, the scale of the challenge requires even more ambitious interventions.

We need scaled-up programs that combine WaterAid's expertise with significant financial resources to drive industry-wide transformation.

Mostafiz Uddin is the founder and CEO of Bangladesh Apparel Exchange (BAE)