As Bangladesh’s Ready-Made Garment (RMG) industry continues to play a vital role in the national economy, its future competitiveness increasingly depends on more than production capacity, export growth, and pricing. Growing international expectations surrounding environmental responsibility, workers’ welfare, transparency, and sustainable supply chains are reshaping the global apparel industry. In this edition of the ECRL Monthly Economic & Business Review, we place “The Future of Bangladesh’s RMG – Sustainability and Competitiveness” at the centre of our analysis.
Our cover story, “The New Competitive Advantage: Sustainability & the Future of Bangladesh’s RMG Sector,” explores how sustainable business practices can influence operational efficiency, financial performance, and long-term competitiveness. The analysis examines the relationship between sustainability and business performance, the growing importance of international disclosure standards such as IFRS S1 and IFRS S2, and the expectations being placed on manufacturers through global supply chains.
The issue also takes a closer look at the current state of Bangladesh’s RMG industry, examining its achievements in green factory development and workplace safety alongside persistent challenges in renewable energy adoption, resource efficiency, workers’ welfare, and export competitiveness. Drawing on ECRL’s survey of participating garment manufacturers, we explore their understanding of sustainability, existing practices, investment priorities, and the barriers affecting wider adoption. The findings highlight growing recognition of sustainability’s importance, while revealing gaps in investment incentives, disclosure preparedness, and implementation capacity.
Complementing the industry analysis, our ECRL Thought examines the impact of Environmental, Social and Governance (ESG) factors on credit ratings in the context of Bangladesh. It explores how environmental risks, human capital, governance structures, and transparency may influence creditworthiness, highlighting the growing relevance of sustainability considerations in financial assessment and risk management.
In our Asking the Expert segment, we feature insights from distinguished professionals offering practical perspectives on sustainability reporting, financial transparency, and Bangladesh’s evolving capital market. Mr. Raqibul Faiaze Mohammad Ikramah, FCCA, CPA, Head of Financial Accounting & Reporting at Grameenphone Ltd., shares his experience on IFRS sustainability disclosure standards, reporting preparedness, governance, and assurance. Mr. Tahmidur Rahman, Head of Business at CAL Bangladesh, provides insights into capital market developments, investment opportunities, credit ratings, and the importance of informed investment decisions.
We also present a stock analysis of Esquire Knit Composite PLC, examining its business operations, financial performance, industry position, and market outlook. This analysis offers an additional perspective on the financial and operational considerations shaping companies within Bangladesh’s export-oriented RMG industry.
Together, the research, industry insights, expert interviews, and financial analysis featured in this special edition highlight an important reality: sustainability is no longer simply a matter of regulatory compliance or corporate responsibility; it is increasingly connected to business resilience, financial performance, and international competitiveness. As Bangladesh prepares for its eventual LDC graduation in November 2029, strengthening sustainable practices, improving productivity, and meeting evolving global expectations will be essential to maintaining its position in international markets.
At Emerging Credit Rating Limited (ECRL), we remain committed to providing research-driven insights that support informed decision-making and contribute to a better understanding of Bangladesh’s evolving economic and business landscape. We hope this edition encourages meaningful discussion and provides valuable perspectives on building a more sustainable, resilient, and competitive future for Bangladesh’s RMG sector.