Mostafa Monira Firdouse, Green Finance Advisor of Friends of the Earth (HK)
The garments sector is a big deal for Bangladesh’s economy, providing jobs for millions and contributing more than 11% to the GDP. Thanks to its competitive labour, trade preferences and market liberalisation following WTO membership. Many foreign investors, including those from Hong Kong, have set up garment factories in Bangladesh. This gives rise to sustained demand for textile imports, making them among the leading export markets for Hong Kong.
But with great power comes great responsibility, and the sector has been under the microscope for its environmental, social, and governance (ESG) practices. As the world gets more serious about sustainable and ethical fashion, it’s crucial for Bangladesh’s garments sector to step up its ESG game. Such as:
- The garments industry needs to get efficient to use resources. This means using water and energy efficiently, cutting down on waste, and avoiding harmful chemicals. Cleaner production techniques and sticking to environmental laws are a must.
- Worker Empowerment, strong health and safety measures through training and development programs. Such as offering skill development opportunities, promoting gender equality, and giving workers a voice in decision-making.
To meet the sustainable practice mainly depends on (i) implementing robust policy by government and by companies. (ii) Investing in technology and innovation (iii) skill development.
Hong Kong, with its advanced financial markets, strong regulatory frameworks, and expertise in sustainable practices, is in a great position to support ESG capacity building in Bangladesh’s garments sector. Here are several ways Hong Kong can help:
- Knowledge Transfer and Training
- Workshops and Seminars: Organize events in Bangladesh to share best practices in ESG, covering topics like sustainable resource management, labor rights, and corporate governance.
- Training Programs: Set up training programs for Bangladeshi garment industry professionals, run by Hong Kong-based experts, focusing on practical ESG skills.
- Technical Assistance and Consultancy
- ESG Consultancy Services: Hong Kong-based firms can help develop and implement ESG strategies, conduct audits, and provide guidance on international standards.
- Technical Support: Provide support for adopting advanced technologies that enhance sustainability, like energy-efficient machinery and water recycling systems.
- Financial Support and Investment
- Green Financing: Offer green financing options like green bonds and sustainability-linked loans to Bangladeshi garment manufacturers.
- Investment in ESG Projects: Encourage Hong Kong investors to fund ESG-focused projects in Bangladesh, including renewable energy and sustainable textile production.
- Collaboration and Partnerships
- Industry Partnerships: Foster partnerships between Hong Kong and Bangladeshi garment industry associations to exchange knowledge and best practices.
- Academic Collaboration: Promote joint research projects between universities and research institutions in both regions.
- Policy Advocacy and Support
- Policy Development: Help the Bangladeshi government create policies that promote ESG practices, including regulatory frameworks and incentives.
- Advocacy for International Standards: Support Bangladesh in adopting international ESG standards through global forums.
- Capacity Building Initiatives
- Programs: Develop capacity building programs tailored to the Bangladeshi garments sector, focusing on environmental management, social responsibility, and corporate governance.
- Mentorship and Coaching: Set up mentorship programs where Hong Kong professionals mentor Bangladeshi counterparts.
- Monitoring and Evaluation
- Performance Monitoring: Help set up systems for monitoring and evaluating ESG performance, including key performance indicators (KPIs) and reporting frameworks.
- Third-Party Audits: Facilitate third-party audits to ensure compliance with international ESG standards.
Conclusion
Hong Kong can play a big role in helping Bangladesh’s garments sector improve its ESG practices. Through knowledge transfer, technical assistance, financial support, collaboration, policy advocacy, capacity building initiatives, and monitoring and evaluation, Hong Kong can help Bangladesh become more sustainable and ethical. This collaboration can lead to a better garments industry in Bangladesh, benefiting workers, communities, and the environment while strengthening economic ties between the two regions.
