Dhaka, May 18 (UNB)-Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed said embracing Environmental, Social and Corporate Governance (ESG) compliance framework will not only allow the businesses to align their values and strategies with sustainability objectives, foster economic growth but also remain competitive beyond LDC graduation.
 
The absence of culture, weak corporate governance and lack of data are few of the challenges to adopt ESG in Bangladeshi Industries, he also said.
 
The business leader said these in a round table discussion titled "Navigating the Challenges and Opportunities of ESG Compliance in Bangladesh" organised by DCCI on Saturday.
 
He said as Bangladesh is being more connected to the world and the country's international trade is also increasing day by day, the ESG compliance is becoming mandatory for businesses. Investors consider ESG factors when assessing a business's potential since it is a sign of resilience and long-term financial health.
 
It may be mentioned that the trend of ESG reporting is going upward in Bangladesh. Organisations in different industries have started reporting on their ESG performance, and the government bodies have also taken initiatives to promote and encourage ESG reporting.
 
Taking into account the importance of ESG compliance, the DCCI president recommended developing effective ESG compliance strategies in alignment with the global value chain and integrating ESG considerations into decision-making processes and organization culture.
 
He also underscored the need of educating the stakeholders including employees, management, investors, regulators and the mass public about the importance of ESG compliance and its reporting.
 
Moreover, ESG compliance needs to be prioritized in embedding in other policies such as industrial policy, SME policy etc., he added.
 
Md. Munim Hassan, Director General of Department of Patent, Design  and  Trademarks, Ministry of Industries, said that in every sector compliance is mandatory and compliance always increases the credibility of business.
 
He said that for environmental or social compliance all individuals should take responsibility on their own shoulders. All should not look into what others do.
 
The DG later informed that during 2016 to 2022 a total of 17 Bangladeshi products got GI whereas since 2023 to till date already 14 products have got GI certification and 30 more are in pipeline to get GI.
 
Md. Anwarul Alam, Director General (Additional Secretary), Bangladesh Accreditation Board (BAB), Ministry of Industries, said Bangladesh Accreditation Board is directly linked with ESG and it works for ensuring quality of goods and services and BAB's certification is accepted world-wide.
 
He urged all to be compliant and suggested the lab owners get accredited from BAB. The ESG is also interlinked with the vision of Smart Bangladesh.
 
Keynote speaker Zaku Uz Zaman, Country Representative of UNIDO, Bangladesh, said the term "ESG" came into use in the early 2000s, but its foundations were laid in the 1990s. ESG works as an evaluation of a firm's seriousness in engaging with environmental, social and governance factors. Nowadays investors are progressively focused on how a company influences society.
 
He said that there is no defined format for ESG reporting that makes it challenging for the management to understand what is required to be reported. Compliance with ESG reporting can help Bangladeshi companies to be competitive after graduation from LDC.
 
Dr. M Niaz Asadullah, Visiting Professor of Economics, University of Reading, UK, Mohammad Bin Quasem, Director, Echotex Ltd., Yeasmin Akther, Business Manager, Knowledge, Health and Nutrition, SGS Bangladesh Limited, M Abu Horairah, former Vice President, DCCI, Enamul Haque Patwary, former Director, DCCI and Rashid Shah Shamrat, former Director, DCCI also spoke on the occasion.
 
Speakers stressed the need for an ESG policy, creating awareness, having monitoring and reporting systems.
 
They also suggested orienting people about what the ESG is. For the sake of environmental safety a massive afforestation across the country is needed and a concerted effort to implement the rules and regulations for the ESG in the country.
 
End/UNB/MK/SU