Investors ask companies to stay the course on Bangladesh factory safety accord
A group of 147 investors representing $3.7 trillion has asked signatories of the Accord on Fire and Building Safety to recommit to the landmark agreement signed in 2013. The Accord on Fire and Building Safety in Bangladesh is a five-year independent, legally binding agreement between global brands and retailers and trade unions designed to build a safe and healthy Bangladeshi readymade garment (RMG) industry. The agreement was created in the immediate aftermath of the Rana Plaza building collapse that led to the death of more than 1,100 people and injured more than 2,000.
The accord originally had a May 2018 endpoint, but an agreement was reached to extend for another 3 years. However, to date only 60 of the 220 original signatories have signed on to the new agreement. If more of the original signatories do not sign, many believe that the accord’s leverage, scope, and impact will be weakened.
Investors asking companies to renew their commitment to the accord are part of the Bangladesh Investor Initiative, which is organized by the Interfaith Center on Corporate Responsibility.