How is Laudes Foundation facilitating a more inclusive economy that focuses on labour rights and climate justice?
Our vision at Laudes Foundation is one where global markets value all people and respect nature.
We believe philanthropy -- through its power to take risks, be disruptive and develop, test and scale ideas -- can play an important role in realizing this vision, particularly if we collaborate with like-minded allies in business, finance, government and civil society.
How are you contributing to this vision?
We work through business and industry, specifically the fashion and the built environment industries, both of which have an outsized negative impact on emissions and social inclusion.
At the same time, we focus on the finance and capital markets sector, whose influence extends far and wide, impacting decisions and corporate action throughout the real economy.
For example in the fashion industry, global competition concentrates power at the top of the supply chain and price pressure is borne both by those with the least power to negotiate -- factory workers and farmers -- and by our natural environment, particularly in countries with weaker regulation.
In Bangladesh, we address this challenge by: ensuring a just transition to a climate positive, inclusive economy, including social protection for workers; promoting incentives for accountability, including transparency and regulatory mechanisms; and promoting collective action, the agency of workers and communities, and the organizations that support them.
What made you want to work with this?
When we launched the foundation in 2020, we had a clear mission to address the dual crises of climate breakdown and deepening inequality.
Business has the potential to be a powerful force for good.
Do you think any significant pledges have been made at last year's COP27 to mitigate climate change? If not, what should be done?
I don't think the official outcomes of COP27 go far enough to address the root cause of this existential crisis: fossil fuels.
From the perspective of philanthropy, it's clear we have a powerful role to play in unlocking some of the more than $4 trillion needed in annual investment for just climate action.
At the same time, businesses seem to be stepping up to the challenge.
It was encouraging to see a mid-COP27 effort to gather business leaders to declare that 1.5 degrees is not a target, but a limit.
Bangladesh is extremely vulnerable to climate change, and this has caused a lot of climate migration within the country creating a pool of cheap labour who are vulnerable to exploitation, do you think COP27 has been able to make a framework to address such issues?
I was encouraged to see justice was front and center to the discussions.
A key outcome, as many would attest, was the agreement to set up a loss and damage fund and mechanism for those countries hit by climate disasters -- an important opportunity for Bangladesh.
Any such solution needs to be rights-led, embedding sufficient social protections and ensuring the voice of those who have the most to gain (such as garment workers in Bangladesh) have a seat at the table in designing the solution.
I know from meeting with partners and stakeholders in Dhaka last month, a just transition is top of mind for the government and development agencies alike, and along with our partners, we are working to accelerate activities that can “climate proof” jobs in this important industry as well as help Bangladesh realize its ambitious climate prosperity ambition.
Bangladesh is the second largest exporter of RMG products, and many companies are slowly starting to shift towards a circular economy or sourcing from nearby countries to offset their carbon footprint. How can this industry survive and become climate neutral?
We are just finalizing some research with Cornell's ILR School which is estimating the projected damage by climate change to apparel worker income, employment and investment in four of apparel's largest production centres, including Dhaka (along with Guangzhou, Ho Chi Minh City and Mauritius.)
In short, the projected impact is terrifying, and we need to act.
But for an industry to step up its climate action, the onus is on both the supply and demand side.
As much as the RMG sector needs to prioritize and accelerate their environmental and social performance across various parameters, equally, the brands have a fundamental responsibility towards building resilience and fairness into their existing supply chains.
Through our partnership with Fashion for Good, for example, we are helping brands bring more innovation into their supply chains that can help to tackle the carbon, waste and water issues in the industry.
Ultimately, the most effective lever for accountability is strengthening regulatory mechanisms and implementing progressive policies that hold both businesses and governments to account.
For us, it's critical that workers are part of the solution, and for that reason, we support organizations like Awaj Foundation, which is lifting up women leaders in garment factories to advocate for their rights.
From your perspective, what are the major challenges the industry faces when it comes to industry 4.0?
Research by Cornell University, with data provided by Climate Central, shows that based on current projections, major apparel-producing areas will be underwater by 2030.
For example, Dhaka's projected 2030 sea levels push into nearly 35% of the mapped apparel factories in the city.
That's where Bangladesh's biggest challenge and opportunity lies, and also where we will focus our efforts.
Is Laudes Foundation still working with BGMEA in this regard?
We have a shared commitment to driving supply chain transparency and welcome its strategic support to the Mapped in Bangladesh initiative spearheaded by Brac University.
This is a transformative step for the world's second largest apparel producer as transparency is a proven tool to strengthen accountability and motivate improvement in many contexts, including in the apparel industry.
What policies should private and public corporations adopt to have a more inclusive economy in Bangladesh?
Businesses have a critical role in supporting and complementing government efforts to ensure social protection schemes are developed and implemented, and human rights considerations are duly embedded throughout their supply chains.
The RMG Forum is an excellent platform to enable this.
Likewise, the government plays a critical role by setting the rules of the system under which business and industry operate.
Bangladesh is pioneering this by changing the narrative from climate vulnerability to climate prosperity and encouraging the creativity and innovation needed to create opportunities out of crisis.
