ESG Reporting · Bangladesh
ESG and Sustainability Reporting in Bangladesh
Turn energy bills, HR records and board minutes into a credible ESG report. We help banks, listed companies and exporters in Bangladesh meet Bangladesh Bank and IFRS S1 and S2 requirements and answer buyer data requests with confidence.
Definition
What Is ESG and Sustainability Reporting?
ESG and sustainability reporting is a company’s regular, structured disclosure of how environmental, social and governance issues affect the business and how the business affects people and the planet, from energy use and emissions to worker safety and board oversight, prepared to recognised standards such as IFRS S1 and S2, GRI or the EU VSME standard.
In Bangladesh the main drivers are Bangladesh Bank’s disclosure guideline for banks and finance companies, the move to IFRS S1 and S2 for listed companies, and data requests from foreign buyers.
Who reads your report
- 1Bangladesh Bank, BSEC and the Financial Reporting Council
- 2Banks, investors and development lenders
- 3Foreign buyers and their auditors
Who must report
Is ESG Reporting Mandatory in Bangladesh?
It depends on who you are. Pick your type of business to see the rule that applies today and the standard to use.
Banks and finance companies
Bangladesh Bank SFD Circular No. 06, 26 December 2023: Guideline on Sustainability and Climate-related Financial Disclosure for Banks and Finance Companies.
- Built on IFRS S1 and IFRS S2 and the TCFD recommendations
- First disclosure in the annual report for the financial year starting January 2024, phased in over three years
- Separate semi-annual reporting to Bangladesh Bank
Listed companies
The Financial Reporting Council adopted IFRS S1 and IFRS S2 in 2026, and BSEC's draft Corporate Governance Rules 2026 propose ESG disclosure in annual reports.
- Sustainability and climate risks reported alongside the financial statements
- The draft rules give the audit committee oversight of ESG reporting
- Confirm the effective date for your company before you plan the first report
Exporters and suppliers
Large EU buyers that report under the CSRD ask their suppliers for data. After the 2026 Omnibus changes the CSRD covers EU companies with over 1,000 employees and over EUR 450 million turnover.
- If you have 1,000 employees or fewer, an in-scope buyer cannot demand more than the EU voluntary SME standard (VSME) covers
- Expect requests for energy, emissions, water, wage and safety data
- The same data answers Higg FEM and other buyer questionnaires
Private companies
There is no general legal duty for private companies yet, but lenders, investors and partners may ask for ESG information when they lend, invest or sign contracts.
- Start with a short report on the issues that matter most to your business
- Reuse it in loan, investment and tender files
- Build the data habit before rules or buyers require it
Carbon footprint
Scope 1, 2 and 3 Emissions Explained
Greenhouse gas emissions are usually the first number buyers and lenders ask for. The GHG Protocol splits them into three scopes. Scopes 1 and 2 are the part you can read from your own bills. Scope 3, your value chain, is often the largest share and the hardest to measure.
Where Bangladesh companies find them
- 1Gas generators, boilers and company vehicles: Scope 1
- 2Grid electricity from DESCO, DPDC or Palli Bidyut: Scope 2
- 3Fabric, yarn, freight and business travel: Scope 3
Illustrative proportions
Data inventory
The Data Behind an ESG Report
Most of the numbers already exist in your bills, registers and payroll. The work is collecting them the same way every period and naming an owner for each one.
How we work
From First ESG Data to Your First Report
Four stages. Each one leaves you with something you can use, even before the report is published.
Materiality
Decide which ESG issues matter most for your sector, your regulators and your buyers.
Materiality matrixData and baseline
Collect at least a year of data and calculate your Scope 1 and Scope 2 emissions.
Data inventory and GHG baselineReport
Write the report to your chosen standard, with figures, policies, risks and targets.
Draft report ready for the boardAssure and improve
Organise the evidence for external assurance, then repeat and improve every year.
Assurance-ready evidence fileSupplying foreign brands? See export and buyer compliance in Bangladesh. Checking your own suppliers? See third-party risk assessment.
FAQs
ESG Reporting in Bangladesh: FAQs
What is ESG reporting?
ESG reporting is a company’s regular disclosure of its environmental, social and governance performance and risks, such as energy use and emissions, worker safety and wages, and how the board oversees these issues. It follows recognised standards so readers can compare and trust the figures.
Is ESG reporting mandatory in Bangladesh?
For scheduled banks and finance companies, yes. Bangladesh Bank’s December 2023 guideline requires sustainability and climate-related disclosure based on IFRS S1 and S2. The Financial Reporting Council adopted IFRS S1 and S2 in 2026, and BSEC’s draft Corporate Governance Rules 2026 propose ESG disclosure for listed companies. For most private companies it is still voluntary, but buyers, lenders and investors often ask for it.
What are IFRS S1 and IFRS S2?
They are the sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB). IFRS S1 sets the general requirements for reporting sustainability-related risks and opportunities, and IFRS S2 covers climate-related disclosures, including greenhouse gas emissions.
What is the difference between ESG reporting and sustainability reporting?
The terms are often used interchangeably. ESG reporting usually focuses on the risks and opportunities that matter to investors and lenders, while sustainability reporting under standards such as GRI also covers the company’s impact on people and the environment. One well-built report can serve both audiences.
What are Scope 1, 2 and 3 emissions?
Under the GHG Protocol, Scope 1 covers direct emissions from sources you own or control, such as generators, boilers and vehicles. Scope 2 covers emissions from the electricity you buy. Scope 3 covers all other emissions in your value chain, such as purchased materials, freight and business travel.
Do Bangladeshi suppliers have to comply with the EU CSRD?
Not directly. After the 2026 Omnibus changes the CSRD applies to EU companies with over 1,000 employees and over EUR 450 million turnover, and to some non-EU groups with large EU sales. Those companies ask their suppliers for data. If you have 1,000 employees or fewer, they cannot require more than the EU voluntary SME standard (VSME) covers.
Which ESG framework should a Bangladeshi company use?
Banks and finance companies follow Bangladesh Bank’s guideline based on IFRS S1 and S2. Listed companies should prepare for IFRS S1 and S2. Exporters usually start with the GHG Protocol and the VSME standard to answer buyers, and other companies often use GRI. We help you choose one and map it to the others.
How does BPO Bangladesh help with ESG reporting?
We run a gap review, a materiality assessment and a data inventory, calculate your Scope 1 and 2 baseline, draft the report to your chosen standard and organise the evidence file an external assurance provider will ask for. We also prepare answers to buyer questionnaires from the same data.
Start Your ESG Report With the Data You Already Have
Tell us your sector, your size and who is asking for ESG information: Bangladesh Bank, BSEC, a buyer or a lender. We will review what you have, show the gaps and quote a fixed fee for your first report.