Sustainability in corporate Bangladesh has gained momentum, with seven leading publicly traded companies making it into Bloomberg’s environmental, social, and governance (ESG) ranking. This significant achievement reflects the country’s gradual shift toward sustainable business practices and aligns with the global demand for responsible investment. Companies like Grameenphone, British American Tobacco (BAT) Bangladesh, Marico Bangladesh, Brac Bank, IDLC Finance, Square Pharmaceuticals, and Walton Hi-Tech Industries are now part of an elite group of over 16,000 global companies assessed by Bloomberg for their ESG efforts.
Growing ESG Recognition in Bangladesh
Bangladeshi firms’ Bloomberg ESG scores range from 23 to 40 out of 100, indicating areas for improvement compared to their regional counterparts. In comparison, top Indian companies often score between 50 and 70, signaling a more robust sustainability ecosystem in India. However, these Bangladeshi companies’ ESG initiatives mark an encouraging start, showing their commitment to sustainability and attracting attention from international investors, particularly European institutional investors, who increasingly require ESG compliance.
Leaders in Sustainability: Company Highlights
Each of the seven companies has integrated sustainability into their corporate strategies. Grameenphone, a leader in the telecommunications sector, scored 39.6, the highest among Bangladeshi firms. The company’s focus includes reducing carbon emissions and enhancing digital inclusion. BAT Bangladesh, with a score of 35.4, is making strides toward environmental and social governance, followed closely by Marico Bangladesh at 34.9, which emphasizes ethical manufacturing and fair employee practices.
Brac Bank, known for its SME lending, achieved an ESG score of 33.1, emphasizing ethical banking and community service. IDLC Finance scored 31.1 and has pursued various sustainability initiatives since 2010, aligning with the UN Sustainable Development Goals (SDGs). Square Pharmaceuticals and Walton, scoring 26 and 23.7, respectively, have implemented sustainable production practices, with Walton actively reducing CFC emissions and Square ensuring pollution-free production facilities.
Sustainability Challenges and Regional Comparisons
The ESG scores of Bangladeshi companies lag behind regional peers such as India, where regulations mandate comprehensive ESG disclosures for the top 1,000 publicly listed firms through the Business Responsibility and Sustainability Report (BRSR). This requirement has propelled Indian firms to adopt higher standards of environmental and social governance, reflected in their Bloomberg ESG scores, which often range between 50 and 70. Thailand, another regional leader in sustainable business practices, has also made ESG disclosures mandatory for listed companies, responding to the growing demand from investors for responsible investment options. The absence of similar regulations in Bangladesh creates a regulatory gap, potentially hindering some firms from fully adopting ESG standards. Currently, sustainability reporting is voluntary in Bangladesh unless required by specific stakeholders, such as foreign investors or the central bank. Experts believe implementing mandatory ESG disclosures would help Bangladeshi companies gain competitiveness and attract global investments focused on sustainable practices.
Conclusion
The inclusion of Bangladeshi companies in Bloomberg’s sustainability index underscores a promising shift toward sustainable business practices in Bangladesh. As the country navigates its way toward greater ESG compliance, experts believe that regulators will eventually enforce mandatory sustainability disclosures. In the meantime, firms like Grameenphone, BAT Bangladesh, and Brac Bank are setting a precedent, not only for attracting global investors but also for building resilient and responsible business models. By prioritizing sustainability, Bangladesh can continue to rise as a competitive and conscientious participant in the global market, paving the way for more companies to follow suit and contributing to a healthier, more sustainable future.
