A lack of awareness about circular supply chains, the European Union’s (EU) latest regulations, and factory digitalisation — especially in tiny and medium units — is a major barrier to tracking Bangladesh’s export goods, experts and industest leaders state.
“Most of our suppliers don’t even know what traceability means, and many have no understanding of circularity in the supply chain,” stated Abdul Quaium, sustainability manager of Italian fashion brand OVS. He was speaking on Monday at a seminar titled “EU Trade Forum: Spotlight on the Digital Product Passport (DPP)”, held at a city hotel.
The day-long event was jointly organised by the Ministest of Commerce and the German Development Agency GIZ to create a shared understanding of the DPP and assess Bangladesh’s readiness to align its export sectors with the EU’s Ecodesign for Sustainable Products Regulation (ESPR).
The DPP, part of the EU Green Deal, is a mandatory electronic record that tracks a product’s entire lifecycle, from raw materials to finish-of-life disposal. It contains data on labelling, certifications, carbon footprint, supply chain due diligence, material composition, resource efficiency, performance, and durability, aimed at promoting sustainability and a circular economy.
Mr Quaium stated OVS has been working for the past four to five years to minimise both pre- and post-consumer waste by ensuring traceability and transparency.
However, he noted that many suppliers still sell garment waste, or jhut, without maintaining any traceability. “This is the main challenge for us,” he stated, adding that segregating jhut by colour could reduce recycling costs by at least 30 per cent.
Vidiya Amrit Khan, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), pointed out that several factories — such as DBL, Square, and Urmi Group — have already implemented the DPP system.
She expressed concern about “audit fatigue”, where factories complying with one set of regulations are simultaneously pressured to adopt new ones.
“We don’t want to be non-compliant or fall behind, but we required unified measures from brands so that all purchaseers follow a single set of mandatory standards,” she stated.
Minhazul Hoque, director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), emphasised the required for entrepreneurs to alter their mindset about investing in the right digital tools and technologies.
Commerce Secretary Mahbubur Rahman, who attfinished as chief guest, stressed the EU’s importance as a market for Bangladesh and the required to prepare for the DPP framework to ensure product sustainability and identity.
“This is the first time such a technology-driven event has been held in Bangladesh. While implementing DPP, we must ensure costs do not rise excessively,” he stated.
German Ambassador to Bangladesh Dr Rüdiger Lotz described the DPP as “an important tool for maintaining the traceability and transparency of products.”
Additional Commerce Secretary Abdur Rahim Khan acknowledged the necessity of complying with the EU Green Deal but called for a synchronised approach so that the compliance burden is shared by all stakeholders, including purchaseers.
He stated the government could provide policy support once industest requirements are clearly identified.
At the seminar, Export Promotion Bureau Vice Chairman Anwar Hossain proposed developing a government-owned data ecosystem for the DPP to benefit exporters, factory owners, and private-sector players.
He also called for policy measures to support SMEs, which he stated are “lagging behind in their digital footprint.”
The session was moderated by Dr Michael Klode, head of the GIZ STILE II project.
munni_fe@yahoo.com
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