Apparel exports from four Asian countries including Pakistan face a $65 billion dent by 2030 due to extreme heat and flooding, according to a report by Cornell University’s Global Labor Institute and Schroders.
The study also traced the supply chains of six undisclosed global fashion brands operating in the four countries. Rising temperatures and extreme flooding represent $65 billion in potential export revenues and roughly one million fewer jobs for important garment-producing regions in 2030, with the figure expected to rise dramatically by 2050.
These countries include Pakistan, Bangladesh, Cambodia, and Vietnam, which account for 18 percent of global garment exports.
According to Angus Bauer, head of sustainable investment research at Schroders, investors should engage with garment firms and their stakeholders to solve the enormous problems of climate impacts on workers and business models.
He lamented that the industry’s climate response is all about mitigation, emissions, and recycling, with little or no regard for flooding and heat. He said, “These issues pose material risks for brands, retailers and investors. Adaptation planning could have positive returns on investment for the industry and is a critical addition to mitigation efforts”.
“There is so little data on this … There are some [apparel] brands not disclosing the factory locations of their suppliers,” he remarked.
According to the report, flooding will force the closure of factories in the four countries. Overall reduction in productivity would result in a $65 billion dip in earnings till 2030, and 950,000 fewer jobs.
By 2050, lost export revenues would total 68.6 percent, with 8.64 million fewer jobs, the report added.