Extreme weather may cost the global fashion industry $65 billion by 2030

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Extreme heat and flooding are set to deal a massive blow to the global fashion industry, with four of the world’s top garment producing countries at risk of missing out on $65 billion in earnings by 2030, according to a study from Cornell University and investment manager Schroders.

Bangladesh, Pakistan, Vietnam and Cambodia are seen to be particularly at risk, with a 22% drop in earnings from exports — and wider economic hit — projected by the end of the decade, according to the findings, which were released Wednesday. Fashion brands that source extensively in these countries should alter work hours and ensure workers get enough rest and hydration in response to the predicted disruption, according to researchers from Schroders and Cornell’s Global Labor Institute.

Using coastal and river flooding data, as well as temperature readings, the team from Cornell and Schroders said it had projected how different scenarios would affect manufacturing workers. The team said its cost estimates of $65 billion by 2030 were based on a “business as usual” scenario amid high heat and flooding, if no measures are taken.

 

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