ESG compliance reporting vital to boost trade, investment: DCCI president
The ESG compliance framework will not only allow businesses to align their values and strategies with sustainability objectives, foster economic growth but also remain competitive beyond LDC graduation, he said
Industries should adhere to the reporting standard of Environmental, Social and Corporate Governance (ESG) compliance to boost trade and investment, Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed has said.
He said the ESG compliance framework will not only allow businesses to align their values and strategies with sustainability objectives, foster economic growth but also remain competitive beyond LDC graduation.
"Absence of culture, weak corporate governance and lack of data are few of the challenges to adopting ESG in Bangladeshi Industries," Ashraf said at a roundtable titled "Navigating the Challenges and Opportunities of ESG Compliance in Bangladesh" organised by the DCCI on Saturday (18 May).
Keep updated, follow The Business Standard's Google news channel
The chamber president said as Bangladesh is becoming more connected to the world and the country's international trade is also increasing day by day, 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," he added.
He further said the trend of ESG reporting is going upward in Bangladesh, while 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.
He recommended developing effective ESG compliance strategies in alignment with the global value chain and integrating ESG considerations into decision-making processes and organisation culture.
Ashraf also underscored the need for 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 prioritised in embedding into other policies such as industrial policy and SME policy, he added.
In his speech, Md Munim Hassan, director general, Department of Patent, Design and Trademarks, Ministry of Industries, said in every sector compliance is mandatory and compliance always increases the credibility of business.
Delivering the keynote speech, Zaku Uz Zaman, country representative, United Nations Industrial Development Organisation, Bangladesh said ESG works as an evaluation of a firm's seriousness in engaging with environmental, social and governance factors.
"Compliance with ESG reporting can help Bangladeshi companies to be competitive after graduation from LDCs," he added.
Md Anwarul Alam, director general, Bangladesh Accreditation Board, 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 Ltd, M Abu Horairah, former vice president of DCCI, and former directors Enamul Haque Patwary and Rashid Shah Shamrat also spoke on the occasion.
