Cornell University report finds cooling systems viable for Bangladesh garment factories

Summary

A report by Cornell University's Global Labor Institute reveals that investing in cooling systems for garment factories in Bangladesh is financially beneficial for manufacturers and their suppliers, as climate change raises significant risks to apparel production. The study indicates that such investments can be recouped within four years and highlights that heat stress has led to a 4.1% loss in annual revenue on average at the surveyed factories in Dhaka. This report coincides with a broader industry response, including a toolkit from the American Apparel and Footwear Association aimed at protecting workers from extreme temperatures, suggesting that brands should share the costs of these necessary cooling measures to support worker safety and mitigate climate-related risks.

Analysis

Jason Judd: Jason Judd serves as executive director of the Global Labor Institute at Cornell University. He provided insights on the report, noting brands' ongoing discussions with suppliers about heat mitigation, emissions goals, and energy alternatives over the past year. American Apparel and Footwear Association: The American Apparel and Footwear Association is a trade organization representing companies in the apparel and footwear sectors. It released a toolkit last week focused on safeguarding workers from extreme heat in supply chains. The group advocated for brands to share resilience costs when investments lack sufficient standalone returns for manufacturers. Cornell University Global Labor Institute: The Cornell University's Global Labor Institute conducts research on labor conditions and supply chain issues in global industries. Its researchers authored the report assessing cooling investments at garment factories in Bangladesh and their financial returns. Executive Director Jason Judd discussed the findings and brand engagement with adaptation costs. Climate Risks: The apparel industry is increasingly recognizing risks from climate change throughout global supply chains and production hubs. Industry Response: The American Apparel and Footwear Association released a toolkit aimed at protecting workers from extreme temperatures and proposed cost-sharing by brands for certain resilience measures. Supply Chain Adaptation: Apparel brands have expressed interest in payback periods for factory cooling investments and engaged with manufacturers on mitigation costs and greenhouse gas targets.

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