Global Labor Institute finds cooling investments in Bangladesh factories pay off in four years
by@Reuters
Summary
A recent report from Cornell University's Global Labor Institute highlighted that investments in cooling systems for Bangladesh's garment factories are financially viable, with costs recoverable within four years. The study revealed that extreme heat, particularly in ironing and finishing sections, resulted in an average revenue loss of 4.1% at eight Dhaka factories. This reflects the growing recognition within the apparel industry of climate change risks affecting supply chains. As brands discuss the financial implications of adapting to heat stress, trade groups, like the American Apparel and Footwear Association, are advocating for cost-sharing measures to protect workers amid increasingly extreme temperatures.
Analysis
Jason Judd: Jason Judd is the executive director of the Global Labor Institute. He discussed the commercial viability of heat adaptation measures and the importance of transparent cost data for investment decisions. Judd highlighted ongoing conversations with apparel brands about mitigation costs and greenhouse gas targets. Global Labor Institute: The Global Labor Institute at Cornell University conducts research on labor conditions, sustainability, and supply chain issues in global industries including apparel. It produced the report analyzing cooling investments for garment factories in Bangladesh. The institute's findings connect heat mitigation directly to manufacturers' financial performance and brand-supplier relationships. American Apparel and Footwear Association: The American Apparel and Footwear Association is a trade group representing apparel and footwear companies. It released a toolkit last week focused on protecting workers from extreme temperatures. The organization advocates for brands to share resilience costs with manufacturers where standalone returns may be insufficient. Industry Response: Apparel brands have engaged in discussions with researchers about payback periods for factory heat adaptation spending. Worker Protection: Trade groups are developing resources to help protect garment workers from rising extreme heat conditions. Supply Chain Risks: The apparel industry is increasingly recognizing risks from climate change across global production hubs.
Categories
macropolitics