Extreme Heat and Flooding Threaten Apparel Industry Growth

14 September 2023, Mumbai

Production Hubs Risk Losing $65bn in Export Earnings by 2030

A new report by Cornell University's Global Labor Institute and Schroders reveals that extreme heat and flooding are threatening the growth of the apparel industry.

The report, titled "The Climate Risks to the Apparel Industry," found that these climate hazards could slow down production and lead to lost export earnings for apparel production hubs.

Data point; The report analyzed the climate vulnerability of 32 apparel production hubs and found that 22 of them are at high risk of heat stress and flooding.

The four countries most at risk are Bangladesh, Cambodia, Pakistan, and Vietnam. These countries could lose a combined $65 billion in export earnings by 2030 due to climate change.

Workers Are Paying the Price

The report also found that extreme heat and flooding are having a negative impact on the health and income of apparel workers.

In some cases, factory production has been halted due to heat stress, and flooding has caused road blockages and delays in getting to work. These disruptions can lead to lost working days and increased medical costs for workers.

What Can Be Done?

The report calls on brands, investors, and regulators to take action to address the climate risks facing the apparel industry. These stakeholders can support adaptation measures such as heat stress mitigation plans and flood-proofing factories.

They can also advocate for regulations that include standards and protocols for heat and flooding.

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