DEPARTMENT OF BUSINESS ADMINISTRATION FALL 2025
Course Code: ACC 233
Course Title: Management Accounting
Report On:
ESG Thinking in Beximco Tea Small Units
Submitted To:
DR. Md. Nazmul Hasan
Professor
Department of Business Administration
Submitted By:
Nishi Afroj
Batch: 25th
ID: 22300016
Submitted Date:
23 -08-2025
Page Table of Contents
1 Introduction
1-2 Identification of ESG-related cost
2-3 Analysis of Impact
3-4 ESG Improvement
4 Conclusion
Introduction
Beximco Tea Small Units operate in the local tea processing industry in Bangladesh, focusing on
small-scale tea cultivation, processing industry and packaging. Although Beximco Group is not
publicly known to be directly involved in tea production, this report applies Environmental, Social
and Governance (ESG) principles to small tea processing units.
Importance of ESG:
1. Environmental: Responsible management of natural resources, reducing carbon emissions,
proper waste disposal and adoption of sustainable agriculture practices.
2. Social: Ensuring fair labor practices, promoting community welfare, improving employee
health and safety and contributing to local development.
3. Governance: Implementing ethical management, maintaining transparency, ensuring
compliance with laws and regulations and building trust with stakeholders.
ESG is not just a regulatory requirement but a long-term strategy to achieve sustainability,
reduce operational risks and enhance corporate reputation.
Identification of ESG-Related Costs
Implementing ESG practices involves certain costs and investments across environmental, social
and governance dimensions:
1) Environmental costs:
Eco-friendly fertilizers and pesticides: Switching from chemical-based to organic inputs can
increase operational costs but reduce soil and water pollution.
Water management systems: Installing irrigation, drainage or rainwater harvesting
systems to ensure efficient water use.
Energy-efficient machinery: Upgrading processing units with energy-saving equipment
reduces electricity consumption but requires initial investment.
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2) Social Costs:
Employee training programs: Educating workers about health, safety and sustainable
practices requires resources but ensures better operational efficiency.
Fair wages and labor welfare programs: Paying competitive wages and offering benefits
such as healthcare improves employee satisfaction but adds to operational costs.
Community engagement initiatives: Supporting local schools, healthcare centers or social
projects enhance community relationships but requires financial and managerial resources.
3) Governance Costs:
Compliance systems: Establishing processes to ensure adherence to labor, environmental
and trade regulations requires investment in monitoring tools and personnel.
Monitoring and reporting ESG performance: Conducting regular audits and creating ESG
reports adds administrative and operational costs.
Certification and auditing: Obtaining international certifications like Organic or Fair Trade
improves market reputation but incurs fees and additional administrative work.
Analysis of Impact
ESG practices affect tea processing units in multiple ways:
1. Environmental impact:
a) Reduces soil degradation and contamination of water bodies.
b) Minimizes greenhouse gas emissions and overall energy usage.
c) Promotes biodiversity and long-term sustainability of tea plantations.
2. Social Impact:
a) Improves employee morale, health and retention.
b) Enhances the relationship with local communities, increasing social license to operate.
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c) Contributes to better living standards in nearby areas through education, health and skill
development initiatives.
3. Governance Impact:
a) Strengthens stakeholder trust and corporate reputation.
b) Reduces legal and regulatory risk by adhering to proper procedures and standards.
c) Encourages transparency and accountability in business operations.
ESG of Improvement
To maximize ESG performance in local tea processing units the following strategies can be
adopted:
1. Environment Improvements:
a) Shift to organic fertilizers and reduce chemical usage to protect soil and water quality.
b) Implement rainwater harvesting and use solar power for processing plants to reduce
energy costs and carbon footprint.
c) Adopt biodegradable or recyclable packaging materials to reduce plastic waste.
2) Social Improvement:
a) Provide regular training to workers on health, safety and environmental responsibility.
b) Ensure fair wages, safe working conditions and healthcare benefits for employees.
c) Engage with local communities through education, healthcare and livelihood development
programs.
3) Governance Improvements:
a) Develop ESG policies and integrate them into organizational strategy.
b) Obtain international certifications like Fair Trade or Rainforest Alliance to enhance
credibility.
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c) Maintain transparent communication with investors, regulators and other stakeholders
regarding ESG initiatives and outcomes.
Conclusion
Integrating ESG practices in local tea processing units in Bangladesh provides long-term
environmental sustainability, social responsibility, and strong governance practices. Although
the initial costs may be significant, the long-term benefits are substantial. These include the
protection of natural resources and the reduction of pollution, improved employee satisfaction
and retention, stronger relationships with local communities, alongside an enhanced corporate
reputation and better compliance with regulations that help reduce legal risks. By adopting ESG
principals, Beximco Tea Small Units can position itself as a responsible and forward-looking
enterprise, ensuring both sustainable growth and long-term success.
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