Circular economy adoption and environmental consideration: a study on the actors of recycling in Bangladesh apparel industry and plastic industry

Abstract

There has been a dearth of research related to the circular economy and its consequences in the context of rising economies [Khajuria et al., 2022], as the literature is centered around advanced economies [Jabbour et al., 2019]. This study intends to bridge this gap while making progress on CE research based on the evidence of emerging economies like Bangladesh. The apparel industry of Bangladesh is also actively being addressed by the circularity and sustainability related interventions of stakeholders as the country is in the second position after China in terms of global apparel trade, and holds 7.4 percent market share in the global apparel industry [Shajahan et al. 2023; Star Business Report, 2024]. In this industry, the transition toward circularity is often associated with environmental benefits, achieved by decoupling economic growth from environmental loss and replacing excessive resource extraction [Bukhari et al., 2018; Sandin & Peters, 2018]. Despite the 3R model of recycling, reduce, and reuse being the primary enabler of a circular economy, only the recycling component is widely practiced in Bangladesh [Ahmed et al., 2022]. The objective of the study is to identify what are the ways to circular economy adoption in terms of environmental considerations based on a comparative discussion of two interconnected industries of Bangladesh: apparel industry and plastic industry. The challenges of CE adoption in the context of the Bangladesh apparel industry have been examined by interviewing multiple stakeholders to explore the specific context of environmental consideration during CE adoption. To do so, the qualitative exploration of the study relies on in-depth interviews of the actors of both apparel industry and plastic industry while the quantitative orientation of the study leverages the secondary data of Mapped in Bangladesh database to visualize the certifications in apparel industry related to circular economy, plastic recycling, and environment.

(Acknowledgement: This study uses the data of the “Mapped in Bangladesh” project, funded by Laudes Foundation and the project “Addressing climate change and plastic waste in Bangladesh’s garment industry from a global value chain perspective”, funded by the Danida Fellowship Centre (DFC). Both projects are being implemented by the Centre for Entrepreneurship Development (CED), BRAC University.)