The concern is not sustainability itself, but the cost and complexity of compliance. For SMEs, the challenge lies in gathering data from multiple raw material suppliers, integrating it into a unified platform and shouldering the additional cost of implementation.
Bangladesh’s garment SMEs could face a disproportionate burden from EU traceability and DPP rules as they invest in data collection, verification, system integration and training.
Stakeholders seek clearer rules, coordinated data systems, targeted financing and enough preparation time to prevent smaller suppliers bearing excessive compliance costs.
The stakes are considerable. The EU reportedly accounted for more than half of Bangladesh’s total garment exports in FY2024–25, according to some estimates.
Under the EU’s Ecodesign for Sustainable Products Regulation (ESPR), textiles and apparel are a priority sector for product-specific sustainability requirements and digital product passports (DPPs). The European Commission’s indicative timeline envisages adopting the textile-specific delegated act in the fourth quarter of 2027.
That is a planned adoption date, not a confirmed deadline for every garment to carry a digital passport. The precise requirements and compliance timelines will depend on the final rules and subsequent implementation measures.
However, it is important to distinguish between formal compliance deadlines and the time and investment needed to prepare. Businesses may need to upgrade their systems well before formal compliance deadlines take effect.
Some may be able to adapt existing records and software, while others might need new platforms, staff training or monitoring equipment, depending on the information ultimately required. Even where major equipment upgrades are not needed, data collection, verification and coordination can impose substantial recurring costs.
This creates a structural vulnerability: exporters can demonstrate traceability only to the extent that upstream suppliers can provide reliable data in a usable format.
Meanwhile, a DPP-readiness pilot involving Mapped in Bangladesh, BRAC University’s Centre for Entrepreneurship Development, MicelioData and two garment manufacturers had reportedly assessed factories’ existing data, digital preparedness and traceability gaps. The initiative also examined how information is stored and whether it can be connected and exchanged across factory systems.
However, stakeholders believe an effective transition cannot rest on suppliers alone. They have called for clearer requirements, coordinated data systems and targeted financing, particularly for SMEs. They have also emphasised the need for adequate preparation time and called for a longer implementation period.
The EU’s objective of improving product transparency and supporting circularity is legitimate. However, some stakeholders argue that the challenge lies in making the transition workable across the supply chain without leaving smaller suppliers to bear a disproportionate share of the compliance costs.
Fibre2Fashion News Desk (DR)
