2. Introduction

The Business Partnerships for Global Goals (BP4GG) programme funded by the Foreign, Commonwealth and Development Office (FCDO) managed by Mott MacDonald, invested in partnerships with businesses to test and scale shared value initiatives that support reaching the Global Goals.

The VSCF was designed as a rapid COVID-19 response, partnering with 20 UK and international retailers and brands, and 5 not-for-profit organisations, and supporting 296 suppliers in Africa and Asia. Within one year, the programme reached 1.4 million people including workers, families and communities with economic, social and environmental initiatives, 63% of whom live under $5.50 a day, contributing to 8 out of 17 Global Goals. Four of these interventions were implemented in the garment sector in Asia.

This case study describes strategies that were used by VSCF partners in the garment industry to respond to an immediate crisis in the sector and which may also strengthen supply chains making them more resilient to future shocks. Reflecting on lessons learned through these interventions, this case study sets out some recommendations about how stakeholders in the garment sector might continue these efforts to build back better.

“Sustainability is about growing together. For the industry to show real improvements, it needs all stakeholders to agree on common objectives and empathy across the supply chains partners for deeper and more respectful relationships. We need rules, regulations, and enforcement of good governance in the supply chain by establishing transparency and equality.” Mostafiz Uddin, Founder and CEO of

Bangladesh Apparel Exchange, www.theindustrywewant.com

3. Context

When the COVID-19 pandemic struck, global supply chains in the garment sector were hit hard. Throughout 2020 and into 2021, lockdowns in the UK resulted in lower demand for clothing. Lockdowns across Asia also meant factories had to close for long periods in 2020 and 2021.

For garment workers in countries like Bangladesh and Myanmar, where textiles represent a high proportion of exports, the impact has been devastating from both a livelihoods and health perspective. In April 2020, a million garment workers had lost their jobs in Bangladesh, of which 60% were women³. Many others were faced with late, reduced and in some instances no pay⁴. With limited or no wage protection schemes, government safety nets or household savings, many workers had little or no means to support themselves or their families. Those who continued to work faced the risk of contracting COVID-19 in factories where implementing social distancing was difficult and health and safety measures inadequate⁵. The pandemic also put a strain on other aspects of workers’ health, with reports of increased physical abuse, increased mental pressure, and reduction of maternal health care services⁶.

Ready-made garment (RMG) factory workers are predominately female. Female workers were not only faced with the health and livelihood impact of the pandemic. They already encountered “wage gaps and unevenly shared unpaid care and family obligations”7 and have been disproportionality impacted by the effects of COVID-19.

Increasing pressure on the garment sector during the pandemic coupled with broader business reflection on responsible business has provided a ‘moment of introspection’. Businesses are faced with growing demand from consumers for a sustainable, ethical fashion industry that sources products made in factories with demonstrable decent labour and environmental practices.

In addition to pressure from consumers, businesses are also being pressured from an increasing number of investors as the financial community has embraced ESG data to enhance investment decisions. This has resulted in “increased investor focus on ESG metrics driving a race to the top as companies look to raise their ESG profiles”⁸ .

“67% customers also believe that companies will ‘build back better’ by investing in longer-term, sustainable and fair solutions. Consumers have high expectations of medium to large businesses, looking to them to solve many of the world’s major issues. It’s an imperative for consumers that these businesses care for their employees and customers—and they will judge them if they don’t.” Accenture COVID-19

Consumer Pulse Research, August 2020.

³New Dynamics of Bangladesh’s Apparel Enterprises: Perspectives of Upgradation, Restructuring, and Compliance Assurance. Center for Policy Dialogue. May 2019. ⁴Gendered impacts of COVID-19 on the garment sector (ilo.org) ⁵What is the impact of COVID-19 on the global garment industry? | CARE (careinternational.org.uk) ⁶CARE’s rapid gender assessment conducted for BP4GG VSCF project design ⁷ILO - Gendered impacts of COVID-19 on the garment sector, November 2020 ⁸https://privatebank.jpmorgan.com/gl/en/insights/investing/think-esg-may-become-a-bubble-we-dont