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 research finds that these climate risks could result in significant disruption days and production losses, slowing down the industry's growth and putting $65 billion worth of apparel exports at risk - equivalent to a 22% decline - between now and 2030 for four countries (Bangladesh, Cambodia, Pakistan and Vietnam).
It also shows that heat and flooding will result in nearly 1 million fewer jobs created, due to slower growth from lost production.
The report also finds that heat and flooding risks are a widespread issue and not limited to the four countries mentioned above. Researchers analyzed the climate-vulnerability of 32 apparel production hubs and found that exposure to these risks is widespread. Specifically, Colombo, Managua, Chittagong, Port Louis (Mauritius), Yangon, Delhi, Bangkok and the Donguuan-Guangdong-Shenzen regions of China all stood out for their vulnerability.
In addition to the economic impacts, the report also highlights the human cost of climate change for apparel workers. Heat and flooding can have a serious impact on worker health and safety, leading to illnesses, injuries and lost wages.
The report calls for brands, investors and regulators to take action to address these risks, including supporting adaptation measures, developing regulations that include standards and protocols for heat and flooding, and ensuring that social protection systems are in place for workers.
The report's findings are a wake-up call for the apparel industry. Climate change is a real and present danger, and the industry must take steps to mitigate its risks. By taking action now, the industry can protect its workers, its profits, and its future.
