The European Union's Corporate Sustainability Due Diligence Directive (CSDDD), adopted in July, mandates global fashion brands to make their supply chains more sustainable. Clothing manufacturers in countries like Bangladesh, the world's second-largest clothing exporter, are urging brands to share the financial burden of meeting new environmental and labor standards.
Bangladesh’s garment sector, which employs millions, will need support from global buyers to transition to greener practices. Factories in Asia, including Bangladesh, face challenges in adapting to the EU regulations, which aim to align corporate practices with the Paris Agreement on climate goals. Meeting these standards requires substantial investment and legal changes in garment-producing countries.
Suppliers estimate they will need to increase investments by 20-30% to green their operations. Industry experts stress the complexity of implementing these measures and the need for collaboration between brands and manufacturers to ensure compliance.
Bangladesh’s garment industry has made progress in worker safety and environmental practices, but manufacturers say the responsibility for meeting the EU's green goals should be shared with brands. A $1 trillion investment is needed globally for the fashion industry to reach net-zero emissions by 2050.
Workers' rights are also a key focus of the directive, with unions calling for clear processes to ensure workplace safety and handle human rights complaints. Climate impacts, like flooding and heat, pose additional threats to the industry, potentially costing Bangladesh billions in lost revenue by 2030.
Bangladesh remains well-positioned to adapt to these changes due to its experience in improving labor conditions and environmental standards, but brands must provide financial and logistical support.