Fair Share for the Future: Fashion Brand Roadmap for a Just Energy Transition in Bangladesh

English Report PDF | Bengali Executive Summary PDF

As the climate crisis worsens, global temperatures are now surpassing 1.5°C above pre-industrial levels, and 2.4 billion workers are exposed to heat stress related to climate change worldwide. Bangladesh, the world’s second-largest apparel exporter and the 9th most climate-vulnerable country globally2, sits at the intersection of the need for a fast, fair transition to a cleaner and more equitable fashion industry.

The inequality facing Bangladesh’s garment industry is deep rooted in a triple burden: the Global South was historically exploited to fuel the North’s industrial growth and emissions, it now bears the harshest climate impacts despite contributing least to global emissions, and it is increasingly expected to deliver decarbonisation and compliance for Northern markets without fair finance, technology transfer, or power-sharing. Brands that have historically profited from outsourcing value chain activities to the Global South are now demanding that their manufacturers cut emissions and improve sustainability performance, leaving the suppliers to pick up the bill, and the workers–who earn the least–most vulnerable to climate inaction.

Action by brands is long overdue. Stand.earth’s 2025 Fossil Free Fashion Scorecard, which analysed public materials from 42 global fashion brands, found that just six companies reported providing any kind of decarbonization project financing for suppliers, and only one demonstrated strong evidence of project financing, which was not loan-based, i.e. does not confer debt on the manufacturer. Not one provided clear evidence of specific training, financing or support for climate adaptation to address rising impacts on workers.

Key findings on the ‘State of Play’ in Bangladesh:

1. Climate adaptation is recognized as urgent by five major global brands, but remains underfunded and underdeveloped.
2. Unfair brand purchasing practices externalize climate risk onto suppliers and workers.
3. The lack of accessible, fair financing is a critical obstacle to progress. New, non-debt based financing mechanisms are essential to make decarbonization viable for SMEs.
4. Structural policy barriers limit climate action and disincentivize renewable energy adoption by manufacturers.

Key Recommendations:

As an essential step, brands must publish a robust, inclusive and funded Just Energy Transition plan for their supply chains, incorporating the following:

1. Create and publish specific, locally developed and funded climate adaptation policies in partnership with local stakeholders, which include ring-fenced funding for climate adaptation that includes cooling measures, clean water access, health protections, and community-level resilience.
2. Pay a fair share for upfront decarbonization and efficiency costs and implement fair financing frameworks, including providing non-debt, grant-based and pooled financing to support renewable energy, electrification, and energy efficiency — especially for small and medium-sized suppliers.
3. Enact responsible purchasing practices that rebalance risk and reduce worker vulnerability, including guaranteeing long-term sourcing, absorbing decarbonization costs into prices, and protecting worker incomes during climate disruptions.
4. Support national governments in establishing appropriate policies to advance a Just Energy Transition and address policy gaps, including supporting renewable electricity access, worker climate insurance, enforceable heat protections, and national and global pooled climate finance mechanisms.