India’s weather-driven water crisis is deepening, with Maharashtra imposing restrictions that could ripple through agriculture, industry, inflation and economic growth.

Calculating the financial risk associated with inaction can motivate the fashion industry to protect workers, supply chains and the bottom line.

According to the Apparel Impact Institute report “The Cost of Inaction,” brands that fail to address climate risk could lose up to 34% of net profit by 2030, rising to 67% by 2040 under certain scenarios.

As extreme heat intensifies across Asia, the global fashion industry is being forced to redesign factories and rethink supply chains to protect workers, sustain productivity, and build greater climate resilience.

Garment factories in India supplying customers like Fast Retailing Co.’s Uniqlo, Marks & Spencer Plc and Tesco Plc are suffering productivity losses of as much as 10% as a result of the nation’s extreme heat, according to a new report.

The 21st edition of the Global Risks Report 2026, published by the World Economic Forum, paints a stark picture of the world’s current risk landscape. 

Fashion continues to ignore workers’ heat stress despite the multibillion-dollar consequences.