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Extreme heat, flooding in climate calamity

Country risks losing 0.25m jobs, $27b in export earnings

Study forecasts such RMG losses up till 2030


FE REPORT | February 29, 2024 00:00:00


Bangladesh faces dire risks of losing 0.25-million jobs and $27-billion in export earnings in apparel sector alone by 2030 for climate-induced extreme heatwaves and flooding, a study alerts.

The forecast on the country's main export industry--- ready-made garment (RMG)-came Wednesday, when the clothing exports were facing various headwinds blowing from the global market.

Focusing on production hubs like Bangladesh, Cambodia, Pakistan and Vietnam, the survey report reveals that these countries could lose over $65 billion in export earnings and nearly 1.0-million jobs due to climate-induced disruptions.

The report, therefore, carries a clarion call for urgent action to address these oncoming challenges.

Mapped in Bangladesh (MiB) and Cornell University's School of Industrial and Labour Relations (ILR) Global Labour Institute (GLI) jointly published the findings of the study styled 'Climate Resilience and Fashion's Costs of Adaptation' at a Dhaka hotel.

Executive director of GLI Jason Judd presented the findings on the impacts of extreme heat and flooding on apparel-production hubs in key countries of the global supply chain.

"Four countries vital for apparel production risk forgoing $65 billion in export earnings - equivalent to a 22-per cent decline - and nearly 1.0-million new jobs due to slower growth," he told the report-launching meet.

Mr Judd emphasised the need for investors to engage with apparel companies and their stakeholders, highlighting the current gap in risk- management strategies that often overlook adaptation measures.

The study also has examined the supply-chain footprint of six global apparel brands to show the impact of extreme weather conditions on workers and manufacturers.

It has suggested establishing social-protection mechanisms and commitment of climate-adaptation finance to safeguard apparel workers against the effects of climate change.

The study further stressed the need for a collective response, including global and national bargaining, to address the challenges facing the apparel sector.

Apparel workers in Bangladesh surveyed in 2023 for this report noted that workplace heat has been considerably higher in recent years.

In the 2022 survey of Dhaka's 67 apparel workers accustomed to high heat, over three-quarters (78 per cent) wished for cooler working conditions in hottest and most humid months.

"Flooding also interrupts work and life, sometimes dramatically." A minor inundation of 0.25 metres from rainfall, riverine or coastal flooding in factories may cost hours or even days.

"But major flooding of one metre more can halt or slow production and transport for weeks," says the forewarning.

Apparel workers can find themselves stuck in their homes or risking illness by pushing through floodwaters to get to their factories and maintain their incomes, it notes.

As with export earnings, apparel employment climbs in all four countries under both climate-adaptive and high-heat-stress scenarios, but significantly more slowly in Vietnam.

This has been a product of a high apparel job-growth rate in recent years and an export-earning-growth rate lower than the other three countries.

Bangladesh, with a comparatively lower job-growth rate since 2016, fares best, but still faces a fall-off of 1.26 million new jobs in RMG output by 2050, it mentions.

It is estimated that 82 per cent of factory disruptions in Bangladesh will be caused by riverine rather than coastal flooding between 2030 and 2050.

Notable in the riverine analysis is the number of factories at risk of significant flooding in 2050 in a 10-year flood scenario - 349 factories or nearly 10 per cent of the industry.

The comparable figure for 1.0 metre or more of coastal flooding in 2050 is 92 factories, according to it.

Addressing the event, Sheikh HM Mustafiz, managing director of Cute Dress Industry Ltd, discussed the economic and operational implications, emphasising the need for investment and innovation to ensure long-term sustainability and competitiveness.

Kazy Mohammad Iqbal Hossain, climate action lead-Global Supply Chain at Lindex, spoke about brand responsibility and the importance of collaborative efforts to address climate challenges.

Ms Nazma Akter, founder and executive director of Awaj Foundation, elaborated on the study's significance for labour rights and worker welfare, stressing the need for climate-resilient practices that protect both the environment and workers.

MiB technical lead Prof Matin Saad Abdullah also spoke at the panel discussion, moderated by BRAC University treasurer Prof Mohammad Mahboob Rahman.

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