Framework
ESG Pillars
Three pillars — Environmental, Social, and Governance — form the measurement framework for Bangladesh's RMG sector ESG performance.
Environmental
Weight: 40% of composite ESG score
Measures a factory's resource consumption efficiency, emissions intensity, and investment in cleaner production. Factories with solar installations, lower energy intensity per unit, and better water efficiency score higher.
Energy Intensity
Total energy (kWh) per unit of production (pcs or kg). Lower is better.
Renewable Energy Share
Percentage of total energy from solar or other renewable sources.
GHG Emissions (Scope 1+2)
kgCO₂e per production unit. Calculated from energy inputs using Bangladesh grid emission factors.
Water Intensity
Litres of water consumed per production unit.
Waste Management
Solid waste diversion rate; wastewater treatment compliance.
Social
Weight: 30% of composite ESG score
Measures worker welfare, gender equity, safety outcomes, and labour rights compliance. With 203,000 workers across surveyed factories — 51.9% female — social metrics are central to the sector's ESG profile.
Gender Ratio
Percentage of female workers. Sector average: 51.9%.
Wage Compliance
Adherence to minimum wage regulations and timely payment.
Workplace Safety
Lost-time injury rate; safety committee presence; fire drill frequency.
Labour Rights
Freedom of association; grievance mechanism availability.
Worker Training
Hours of safety and skills training per worker per year.
Governance
Weight: 30% of composite ESG score
Measures regulatory compliance, certifications held, permit validity, and audit transparency. The compliance survey covers five regulatory domains each scored independently before rolling up to a composite.
Building Permits
Validity of trade and building licenses; renewal status.
Structural Safety
BNBC compliance; structural assessment completion.
Fire Safety
Fire extinguisher coverage; emergency exit compliance; drill records.
Electrical Safety
Wiring standards; panel labelling; earthing compliance.
Environmental Compliance
ETP operation; environmental clearance validity; chemical storage.
Certifications
GOTS, OEKO-TEX, ISO 14001, LEED and other third-party certifications held.