According to a recent report, the intense heat in India is causing garment factories that supply companies like Fast Retailing Co.'s Uniqlo, Marks & Spencer Plc, and Tesco Plc to lose up to 10% of their production.
According to a study released on Tuesday by the NYU Stern Center for Business and Human Rights, research conducted at ten sites across four regions revealed that high temperatures are affecting product quality, delivery dependability, and employee absenteeism during the busiest summer months.
According to Lucy Siers, senior research scientist at the NYU Stern Center and main author of the paper, many suppliers are "just about keeping their heads above water" by putting temporary solutions in place to deal with heat extremes.This year, heat waves have affected many parts of the country, with temperatures frequently rising beyond 45 degrees Celsius (113 degrees Fahrenheit), with a town in Uttar Pradesh recording a high of 48.2 degrees last month.
The report's conclusions highlight the particular vulnerability of India's $39 billion garment export sector, which employs 45 million people, 70% of whom are women, and many of them work in hot, muggy conditions. According to interviews the researchers conducted with factory managers, extreme temperatures are creating sweat stains on fabric, dust contamination, stitching errors, and forced production halts.

The World Bank forecasts that by 2030, lost working hours due to excessive heat in all sectors might jeopardise up to 4.5% of India's GDP, or around $150 billion to $250 billion.
Additionally, researchers found flaws in the way international retailers and fashion companies oversee conditions at suppliers' facilities. Only 35% of consumers demanded that suppliers monitor factory temperatures, despite the fact that almost all of them recognised the dangers of excessive heat to productivity. According to Siers, "you can't manage a risk that you don't measure."
A further 12.5% of the companies surveyed were unsure if they had asked manufacturers if excessive heat had affected output, and half of the companies indicated they hadn't.

According to the paper, in order to safeguard their supply chains, clients should enforce heat requirements, require factory temperature monitoring, and modify strict purchasing procedures to allow for delays related to climate change without incurring financial penalties. Additionally, consumers ought to contribute more to the cost of factory ventilation and cooling improvements.
According to Michael Posner, director of the NYU Stern Center, "brands that source from heat-exposed regions have both a business interest and a responsibility to act."

According to the paper, in order to safeguard their supply chains, clients should mandate factory temperature monitoring, establish enforceable heat standards, and modify strict purchasing procedures to allow for climate-related delays without incurring financial penalties. Additionally, consumers should contribute more to the cost of factory ventilation and cooling improvements.
According to Michael Posner, director of the NYU Stern Center, "brands that source from heat-exposed regions have a business interest and a responsibility to act."