The Daily Corporate Desk
Dhaka, 21 September 2026: Investments in cooling systems at Bangladesh’s garment factories can be commercially viable and recover their costs within four years, according to a study by Cornell University’s Global Labor Institute.
The study found that measures such as reflective paint, roof insulation and improved airflow ventilation can help reduce heat stress among garment workers while also supporting manufacturers’ financial performance. It urged global apparel brands to share the cost of cooling investments by offering better pricing to suppliers that take steps to protect workers from extreme heat.
Temperatures inside garment factories often exceed outdoor levels, with workers in ironing and finishing sections facing particularly high exposure to heat, the researchers found. The findings were based on temperature readings collected over six months at eight garment factories in Dhaka.
Heat stress reduced annual revenue by an average of 4.1% at the factories studied, creating financial risks for both manufacturers and the global brands that source from them.
Jason Judd, executive director of Cornell University’s Global Labor Institute, said the report provides buyers and suppliers with a clearer understanding of the scale of investment required to address heat-related risks. He noted that companies may find it difficult to assess cooling investments without knowing the financial losses caused by heat stress.
According to Judd, apparel brands have shown interest in understanding the payback period for heat adaptation measures. Brands have also been discussing mitigation costs, greenhouse gas reduction targets and alternative energy sources with manufacturers.
The study comes after earlier research found that extreme heat and flooding could reduce apparel export earnings from Bangladesh, Cambodia, Pakistan and Vietnam by $65 billion by 2030.
As climate-related risks increase across global supply chains, the apparel industry is paying greater attention to worker protection and factory resilience. However, the extent to which international brands will provide financial support for climate adaptation remains uncertain.
The American Apparel and Footwear Association (AAFA) recently released a toolkit focused on protecting workers from extreme temperatures. The organisation proposed that brands share the costs of resilience measures when such investments do not generate sufficient financial returns for manufacturers to fund them independently.
“As extreme heat becomes an increasingly common reality worldwide, our industry must act to protect the workers who are at the heart of our supply chains,” said Nate Herman, executive vice president of AAFA.
