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Technology for Responsible Accountability in Corporate ESG (TRACE) (en angl.)

The project aims to support the ready-made garment (RMG) industry in transitioning from fragmented, manual sustainability reporting to a digital, data-driven environmental, social and governance (ESG) management system. Through this centralised digital platform, factories, brands and service providers will be able to measure, manage and improve their environmental, social and governance performance, thereby enhancing their global competitiveness, compliance and climate resilience.
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Dhaka, Bangladesh
23.804093
90.4152376
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Narayanganj
23.6237484
90.4998615
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Savar
23.8479013
90.257699
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Chattogram
22.3752075
91.8348606
Bangladesh
Durée du projet
2026 - 2027
Financé par
  • Embassy of Sweden in Bangladesh
  • Embassy of Switzerland in Bangladesh

Bangladesh's ready-made garment sector employs 3.3 million people, 52.28% of whom are women. Significant changes are needed in order for the sector to become environmentally and socially compliant, and to meet the environmental, social and governance (ESG) standards of global buyers and regulators. However, ESG reporting is currently fragmented, manual and costly. Companies are required to comply with multiple standards, which leads to inefficiencies and unreliable data. Many factories, particularly small and medium-sized enterprises, lack the technical expertise, digital tools and affordable services needed to improve their sustainability performance. At the same time, unsustainable production practices contribute to environmental pollution, climate risks and poor working conditions, which affect workers and surrounding communities. Consequently, factories often comply with multiple global frameworks and buyer-specific standards, resulting in fragmented data systems, manual reporting processes, audit fatigue, and escalating compliance costs. Without a structured, scalable solution, these challenges will continue to limit the competitiveness of industries, reduce their market access and hinder Bangladesh’s transition towards sustainable, inclusive economic growth.

The Project

The project aims to develop and implement a digital Environmental, Social and Governance (ESG) platform to help export-oriented industries (primarily the Readymade Garments (RMG) sector) in Bangladesh manage sustainability data, improve compliance and boost competitiveness.

The platform offers three key features:

  1. Centralised data management and reporting, which enables companies to collect, analyse and generate ESG reports that align with international standards.
  2. E-learning and capacity building to help factory staff and managers understand ESG requirements and improve practices.
  3. Matchmaking services that connect companies with verified service providers, auditors and technology solutions.

This integrated approach reduces the reporting burden, improves data accuracy and enables informed decision-making. Advanced features such as automated reporting, real-time data tracking and AI-based insights will support companies further in identifying risks and opportunities.

The project addresses these challenges by taking the following approaches:

  • Develop and test a digital ESG platform that enables factories to input, manage and report environmental, social and governance (ESG) data in line with key global standards.
  • Supporting factories in adopting and using the system effectively through hands-on training and practical guidance on ESG data management and reporting processes.
  • Connecting factories to trusted expertise and market opportunities is achieved through integrated e-learning resources and a digital matchmaking feature that links them with solution providers, experts, brands, and so on.
  • Engage closely with factories, brands, industry associations, institutional partners and international bodies to evolve the platform into a trusted, commercially relevant solution that delivers clear value across the supply chain.
  • Build the platform through a market-oriented approach to make it commercially viable, expanding the services to other sectors seeking ESG compliance in order to cater to regional and global market requirements.

The beneficiaries of this project include:

  • Export-oriented factories (small, medium and large)
  • Workers, particularly women, who would benefit from improved working conditions and social compliance
  • Service providers and sustainability professionals
  • Buyers and regulators requiring reliable ESG data

By strengthening ESG compliance and performance, the project will contribute to improved environmental outcomes, better labour conditions and increased market access.

Expected Results

  • Improved ESG compliance and competitiveness
  • Export-oriented companies adopt digital tools to manage ESG data, improve reporting and strengthen their position in global markets.
  • Enhanced environmental performance: Companies improve resource efficiency and adopt practices that reduce emissions, pollution and environmental impact.
  • Strengthened social compliance and working conditions: improved transparency and monitoring support better labour standards, occupational safety and inclusive workplaces.
  • Strengthened ESG ecosystem and service market: A functioning ecosystem of service providers, technology partners and stakeholders emerges to support ESG compliance and innovation.
  • Increased access to ESG knowledge and skills: Industry actors enhance their understanding and capacity to implement sustainable practices through digital learning and support tools.
  • Sustainable and scalable digital solutions are established: a commercially viable ESG platform is operational, with strong private sector engagement and potential for scaling across sectors and regions.