ESG for Bangladesh: silent progress to collective commitment

Sustainability is no longer an add-on; it is today an economic and ecological imperative. In Bangladesh, transformation is underway: from green start-ups to ready-made garments, from food to finance, the conversation around Environmental, Social, and Governance (ESG) standards is becoming louder in Bangladesh. But to translate this into real impact, we need to move away from soloed pilot projects towards a collective, system-wide change.

Last month Dhaka hosted its second Sustainability Summit organized by Bangladesh Brand Forum and Sustainable Brand Initiative at the Radisson Blu, an initiative of Bangladesh Innovation Conclave. This time it widened its frame. Along with the multinational corporations, local companies were also brought onto the stage to showcase their action plans on social responsibility, waste reduction, and fair sourcing. This inclusiveness was a key turning point. It showed that ESG is no longer a foreign compliance controlled by regulators or investors. Rather, it is being rebuilt from ground zero-by Bangladeshi youth, farmers, entrepreneurs, and engineers.

But beneath the jargon and signboards lies an even more pressing question: How do we transform ESG from an ad hoc epitome into a functioning, equitable reality?

FROM CSR TO ESG - A NECESSARY MINDSHIFT: Bangladesh has had a long tradition of Corporate Social Responsibility (CSR). Many companies have sponsored philanthropic campaigns, funded educational drives, and entered "green" initiatives. But ESG demands more extensive change. It demands instilling sustainability into the very fibre of an organisation-at every step from the way it acquires materials and treats employees to the way it disposes of waste and communicates with communities.

Unlike CSR, which will usually be on the fringe of strategy, ESG is more about accountability and evidence. This requires robust indicators, credible data, and, above all, a mind shift for many small and medium-sized businesses/enterprises (SMEs). This can feel like an overwhelming shift. Technical nomenclatures of ESG reporting, international norms, and data disclosure requirements can be intimidating, rather than inspiring. But here is the paradox: many of these same companies are already performing ESG-aligned activities albeit without the label.  Whether it is recycling water in a dyeing house, offering childcare to factory workers, or making investments in metal recycling, these activities correspond to ESG principles. The trick is to recognise, support, and scale up these efforts to make ESG accessible and relevant, not just for the business owners, but for the broader economy.

THE MISSING ROADMAP: Along with progressive speeches and high intentions, Bangladesh suffers from a persistent policy-practice gap. Take the case of polythene bags. The recent ban on plastic bags in supermarkets has been in effect, yet plastic keeps clogging our drains and over-filling our landfills. The gap exists because enforcement remains weak, without viable alternatives or incentives, and businesses are ensnared in unsustainable supply chains.

Take the example of Bangladesh's leading electronics conglomerate. Their technologies for metal recycling and e-waste are a form of internal ESG investment and a national priority. But without systems to scale up such technologies -via mutual information sharing, technical transfer, or public-private finance, their impact will be limited. Such technologies must be expanded for the benefit of the system overall, particularly in local markets and municipalities where sustainable technologies are sorely needed but technically and economically out of reach. Besides, there yet remains a question on the willingness of companies to share technological knowledge and information, which may create more jobs in this sustainability sector.

BRIDGING THE DATA GAP: Among the largest obstacles to integrating ESG in Bangladesh is a lack of transparent, aggregated, and reliable data. How much water are we using across industries? What is the emissions footprint of our garment exports? How many informal workers are being reached through social protection schemes? We often don't know.

Others print glossy sustainability reports, but since they have not been verified by third parties, their credibility is doubted. Others, including SMEs, do not report at all because they have no knowledge, resources, or incentives. Meanwhile, government agencies publish contradictory or outdated statistics, making monitoring and planning an impossibility in practice.

This void of information hurts everyone. It hinders good businesses that want to shine a light on their work, enables green washing, and complicates collaboration on shared goals. But perhaps most importantly, it erases many worthwhile stories such as student's clean-up campaigns, informal recyclers, and rural women-led circular businesses-who are critical to the sustainability agenda but do not show up in formal statistics.

If we are to mainstream ESG, we must democratize the data system. Shared data platforms, open access to environmental and social markers, and common frameworks linking local action to national progress.

A CALL FOR A NATIONAL ESG PLATFORM: To move beyond individual initiatives, Bangladesh needs a national ESG and sustainability reporting platform. That platform cannot be yet another top-down bureaucratic effort. Instead, it must be a multi-stakeholder, collaborative platform upon which public institutions, private companies, academia, and civil society collaborate to co-develop standards, provide verification of impact, and promote local innovations.

Such a platform would have three implications. First, it would localize ESG indicators to mirror Bangladesh's development priorities-e.g., climate resilience, gender equality, and SME competitiveness. Second, it would provide capacity-building for business, particularly SMEs, to embrace and report ESG practices meaningfully. Third, it would give voice to underrepresented voices and innovations, pushing the sustainability of conversation from elite boardrooms to grassroots change makers.

WHY ESG MATTERS TO EVERYONE: For ESG to be embraced across society, people must see why it matters. It is not just a company checklist or an investor request but is reflected on the water we drink, the air we breathe, the food we eat, and the work we do. Until such connections are made, ESG will remain abstract and elitist. Generating awareness and establishing trust is therefore imperative, not necessarily only through campaigns but through education reform, youth empowerment, and community dialogue.

FROM POTENTIAL TO PRACTICE: Despite all these issues, Bangladesh has a solid foundation to build on. We already have resilient communities, bold entrepreneurs, and growing awareness for sustainability. The Dhaka Sustainability Summit reminded us on time that we already have the seeds of change. But they must be nurtured: with coordination, infrastructure, and trust.

ESG is a journey, not a destination. It cannot be reduced to checkboxes or PR campaigns. It calls for a culture of integrity, transparency dedication, and learning and collaboration mindset.

If we are committed to developing a green, just, and prosperous Bangladesh, then ESG is not an option-it is a necessity. It is time to move from silent progress to collective resolve. That means not only investing in technology and reports, but in relationships. Because ultimately, sustainability is a journey we share, and a one that Bangladesh cannot undertake alone.

Nayma Akther Jahan and Sameera Zaman are Lecturers at the Center for Sustainable Development at the University of Liberal Arts Bangladesh. They can be reached at nayma.akther@ulab.edu.bd, sameera.zaman@ulab.edu.bd