A new study warns that Bangladesh could face devastating consequences if it fails to adapt to climate change. The research, titled ‘Climate Resilience and Fashion’s Costs of Adaptation,’ predicts a staggering $27 billion annual loss in apparel exports by 2030 due to extreme heat and floods. This economic impact could also translate to job losses for approximately 2.5 lakh garment workers.
Cornell University and the Schroders conducted the study analyzing production hubs in Bangladesh, Cambodia, Pakistan, and Vietnam. Their findings reveal a potential loss of over $65 billion across these regions in export earnings and nearly 1 million jobs by 2030.
Focusing on Bangladesh specifically, the research suggests the long-term impact could be even more severe. By 2050, the nation might lose $711 billion, representing a staggering 68.5% of its total foreign currency earnings from apparel exports.
Researchers emphasize the need for immediate action to address these challenges. They recommend several steps, including treating heat and floods as health hazards with paid leave for related illnesses and providing workers with the right to stop work during extreme weather events.
The study also highlights the importance of investors engaging with apparel companies and stakeholders to bridge the gap in risk management strategies and prioritize adaptation measures.
This includes fostering cooperation through global and national bargaining, establishing binding agreements, and creating formal partnerships between brands, manufacturers, unions, and governments.
The study encourages brands and suppliers to explore the return on investment from adapting to climate change, potentially involving supporting suppliers with retrofitting existing facilities or relocating to lower-risk areas. It also recommends integrating climate adaptation and worker rights into government trade policies.
The research was conducted with support from Mapped in Bangladesh (MiB) and BRAC University’s Centre for Entrepreneurship Development.
Afshana Choudhury, from MiB, emphasized the study’s policy implications, highlighting the need for a multi-pronged approach to tackle climate change’s challenges and opportunities within the fashion industry.