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EU due diligence key to sustainable RMG business
Say experts as apparel exporters seek premium for compliance
PHOTO: STAR
STAR BUSINESS REPORT
Bangladesh needs to follow the European Union Corporate Sustainability Due Diligence Directive (EU CSDDD) and other compliances strictly so that the country’s garment business does not get affected after Bangladesh’s least developed country club graduation in 2026, according to experts and industry professionals.
They also suggested that international clothing retailers and brands pay higher prices to the local suppliers as the implementation of these compliances needs additional investment.
The EU due diligence, which targets net zero carbon emissions by 2030, has already come into effect in July this year and EU members also started applying the new rules on sourcing companies.
The speakers said these at a roundtable, titled “Bangladesh’s Apparel Edge: Meeting EU’s New Sustainability Directive”, jointly organised by The Daily Star and Solidaridad at The Daily Star Centre yesterday.
Tanjim Ferdous, in-charge of NGOs and foreign missions at The Daily Star, moderated the discussion.
Selim Reza Hasan, country manager of Solidaridad, said the EU CSDDD is very significant for Bangladesh.
He said Bangladesh already has a good volume of annual trade with the EU. Now, it needs sustainability and further increase.
In this case, improving energy efficiency, resources and workforce productivity are important. As Bangladesh looks to be a sustainable production hub, capacity building is important too, he added.
In his keynote paper, Mohammad Yousuf Khan, programme manager of textile and apparel at Solidaridad, said the EU CSDDD came into force in July this year and member states have already adopted it as national law.
Now, compliance is at the core of every value chain, he said.
With the directive, the EU targets net zero carbon emissions by 2030. Due diligence failures may have legal and civil consequences like sanctions, penalties and market access restrictions, he said.
However, with appropriate steps, it could be an opportunity for Bangladesh as well, Khan said, mentioning that the implementation would bring additional burden, especially for the small and medium enterprises, but the buyers also have commitments.
Since Bangladesh is going to graduate to a developing nation, the country needs not only implementation of the EU due diligence, but also other compliances so that the nation’s external trade remains unaffected, he added.
Mohammad Abbas Uddin Shiyak, assistant professor at the Bangladesh University of Textile Engineering (BUTEX), said brands are looking for goods made from recycled materials.
The EU, UK and other countries are also looking for sustainable manmade fibre garments, he said adding that Germany and China had already discarded cheap labour and cheap products and elevated to value-added products.
Although buyers prefer products made in green garment factories, they are not paying enough for that, he also said.