The leather industry in the second-largest foreign exchange earner for Bangladesh with directly employing approximately 600,000 individuals and an additional 300,000 indirectly. It makes up 0.5% of GDP and 4% of all exports, contributing $1.4 billion to the overall country’s economy (EPB, Bangladesh Bank, 2023). However, the leather sector is labour-intensive and has horizontal ties to the RMG industry, it offers Bangladesh a promising path to further participation in the Global Value Chain (GVC). In spite of having an abundance of raw resources, Bangladesh’s leather exports are still underutilized primarily because to inadequate Central Effluent Treatment Plant (CETP) facilities and a lack of adherence to ESG (Environmental, Social, and Governance) standards. The relocation of tanneries from Hazaribagh to Savar Leather Industrial Estate, which began in 2003, still faces major environmental and operational challenges.

The sector’s long-term viability is threatened by a number of obstacles, such as labor rights violations, environmental pollution, and regulatory inefficiencies. Toxic waste from the factories has contaminated the environment, including rivers and canals. Environmental harm from pollution is ongoing and getting worse. The inability to take the required actions to prevent pollution is causing failure to a significant portion of its market, according to different industry insiders and analysts. Besides, due to a lack of decent working conditions, environmental consciousness, and a strong Environmental and Social Management System (ESMS) the sector’s full potential preventing to move forward. Without addressing these issues, tanneries will continue to miss out on global opportunities and Leather Working Group (LWG) certification. To endorse those issues, the Ethical Trading Initiative (ETI), ETI Bangladesh, Bangladesh Labour Foundation (BLF), and Mondiaal FNV have initiated this project through the Sustainable Manufacturing and Environmental Pollution (SMEP) Programme. The SMEP Programme intends to address some of the most urgent issues related to plastic pollution as well as the effects that the manufacturing sector has on the environment and human health especially in South Asia and sub-Saharan Africa. BLF and other partner organizations have achieved a UK International Development grant regarding a UK International Development grant in order to implement the committed project activities. The grant has been made via the SMEP and it is funded by the Foreign, Commonwealth and Development Office (FCDO) and UN Trade and Development (UNCTAD). The project will be implemented on Tannery Industrial Estate (TIE) situated in Savar area of Dhaka city.