Introduction

This research note, jointly prepared by Cornell University’s Global Labor Institute (GLI) and the International Finance Corporation (IFC), with input from the International Labour Organization’s Better Work team, examines the impacts of heat stress and flooding on the apparel industry and its workforce. It explores how rising temperatures and extreme flooding—driven by climate change—are impacting the $1.77 trillion global apparel industry and its 90 million workers.

As heat waves and floods become more severe and frequent, worker health, productivity, job creation, and earnings are increasingly at risk. The analysis shows that by 2030, the apparel industries in Viet Nam, Cambodia, Pakistan, and Bangladesh could lose up to $65.8 billion in potential export earnings and create 1 million fewer new jobs due to climate impacts. By 2050, employment across these four countries could be 8.64 million lower if no adaptation measures are taken. Extreme weather is already disrupting production, delaying orders, and threatening workers’ health and incomes.

Despite these challenges, there is reason for optimism. Across the apparel sector, action is already underway. Governments are introducing and enforcing new standards on workplace heat, ventilation, rest breaks, and access to water. Global brands are adopting voluntary standards to better manage extreme heat and flooding risks across their supply chains. Manufacturers are training workers to identify and respond to heat stress and related illnesses. Meanwhile, IFC initiatives on cooling are helping manufacturers adapt to extreme heat while reducing emissions from cooling. These measures—and decisive actions by all stakeholders—can help protect workers, sustain productivity, and build more resilient supply chains in a rapidly warming world.