Impact of environmental, social, and governance (ESG) practices on workers’ health and productivity: a comparative study of RMG factories in Bangladesh

Abstract

This study examines the impact of Environmental, Social, and Governance (ESG) practices on workers’ health and productivity in Bangladesh’s Ready-Made Garment (RMG) sector. Using a qualitative multiple-case study, the research compared four export-oriented garment factories with different levels of ESG and compliance implementation. Data were collected through interviews and workplace observations and analyzed thematically. The findings show that factories with stronger ESG compliance generally had better worker training, welfare facilities, childcare, environmental management, and workplace safety systems. These practices were associated with improved worker well-being and productivity. However, challenges such as excessive heat, limited worker participation, inadequate training, and financial constraints remained. The study also highlights the influence of international buyers, government regulations, BGMEA requirements, certifications, and audits in promoting ESG practices. Overall, the research concludes that ESG practices can improve workers’ health and productivity, but effective implementation at the factory level is more important than having formal policies alone.