Professional Documents
Culture Documents
Water Risks and Opportunities
Water Risks and Opportunities
Water Risks and Opportunities
1
PART II
EXPLORING WATER
RISKS IN THE
TEXTILE INDUSTRY’S
VALUE CHAIN
© WWF-Canada/Frank Parhizgar
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 3
3 PART REPORT
As part of a series of reports done in collaboration with H&M Group,
Part I explores the touchpoints of water along the industry’s value chain, while
part II (this report) unpacks water risks and opportunity for key clusters, Lastly,
Eau Cou rant ::
arde
RISKS
in Part III we lay out WWF’s vision on water and our water stewardship program
Avant-G
TEREWAR
E WRAST
WATHTE DSHIP
NITIES D
PORLT&U TE AN ILES within the apparel and textiles industry. Part III is scheduled to be released
OPRE
NDPA
IN AAP A P PA REL XT
G
FACIN ES CLUST ERS in Spring 2023. We thank H&M Group’s support in the work towards problem
TEXTIL 1 identification and solution development of these shared water challenges.
Contents
PREFACE BY WWF 6
3. IDENTIFYING COMMON CLUSTER RISK PROFILES FOR SHARED CHALLENGES AND OPPORTUNITIES 24
BOX C: ALLIANCE FOR WATER STEWARDSHIP 29
BOX D: WATER RISKS FACING TIER 4 -- COTTON PRODUCERS 33
ENDNOTES 44
© Charlotta Järnmark / WWF-Sweden
ABOUT WWF 45
5
PREFACE BY WWF
Water is inherently a local issue. It matters in the here and now. Not
only do all living things require water (some daily, some monthly, some
even yearly), but so too do humans - to live, play and conduct business.
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 7
PREFACE BY
OPEN SUPPLY HUB
Consider some of the biggest
social and environmental challenges
supply chains are facing today,
like modern slavery, deforestation
and climate change.
• L
ack of standardization:
There is endless variation in how
production locations are named or
identified across organizations,
making it almost impossible to
compare and combine datasets.
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 9
1. INTRODUCTION: THE APPAREL AND THE FIVE RISKS,
In Part l, the objective was to develop a To understand water risk, one must
shared understanding of how water and understand how water risk varies by cluster
and in turn, appropriate responses for any INCLUDING CLIMATE
to impact it over the next 5-10 years, are all environmental1. within the value chain have not only some
to water risk using spatial analysis to
understand not only the patterns of water
CRISES, AND HUMAN
level of impact upon water systems, but
risks within clusters of sites, but also how ENVIRONMENTAL
are also dependent upon water systems,
hence the need to take a full value-chain
different clusters may be able to learn from DAMAGE, ALL RELATE
each other to respond. Further, the report
These five risks, including climate action As our climate changes, water patterns are perspective when working on water. Further,
highlights opportunities for collaboration TO WATER.
failure, extreme weather, biodiversity growing increasingly unstable and extreme. the report showed the need for the industry to
between sectors. At the core of the analysis,
loss, natural resource crisis, and human In the face of such large-scale challenges, recognize that water is made up of multiple,
this report harnesses a key tool, the WWF
environmental damage, all relate to water. The one thing is clear: there is a growing need interconnected issues including water quality,
Water Risk Filter, and combines this with a
World Bank’s recent research suggested that to understand where and how we can work water quantity, water governance, WASH, and
key data set from Open Supply Hub (formerly
growth in key apparel production regions, such together on these immense, shared water freshwater ecosystems, and these issues also
the Open Apparel Registry). The report
as Pakistan, India and China, are projected challenges. Nowhere is this more true than interact with climate change and biodiversity,
goes on to flag two cases where clusters are
to decrease by up to 6% by 2050 due to water- for the apparel and textiles industry. With and vary through space and time.
mobilizing collective action in response
related impacts2. Lived experience suggests apparel and fiber production often located in
While climate is a global challenge, water is a to water challenges. These solutions, and
that these estimates are indeed realistic. Recent fertile river valleys, water is an acute issue for
local challenge. Water varies temporally and WWF’s broader efforts in the Apparel and
years have illustrated the reality of economic the industry – not only its dependency upon
spatially, making it a highly dynamic issue. Textiles industry, will be the focus of Part lll.
impacts due to water repeatedly throughout the water as a key input resource, but also the
While Part l highlighted the the apparel and
world. From the droughts facing the western exposure that workers have to water challenges,
textiles industry’s impacts and dependencies
United States and Europe, where GDP has been and the impact the industry has on rivers and
on water, Part ll takes us into the geography
materially impacted 3, to the floods affecting ecosystems through pollution.
of the industry’s clusters and their context.
Pakistan and India 4, the economic impacts of
This report is Part ll in a series of apparel
water are here, and here to stay. Indeed, the
and textiles industry reports that aims to
latest Intergovernmental Panel on Climate
drive the industry towards embracing water
Change (IPCC) report 5 made it clear that water-
stewardship through the notion of collective
related climate impacts will only worsen.
action at the basin level.
© Sarah Pietrkiewicz
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 11
BOX A BOX B
INTRODUCTION TO THE WWF WATER RISK FILTER INTRODUCTION TO OPEN SUPPLY HUB
Launched in 2012, the WWF Water using 32 state-of-the-art basin risk Open Supply Hub (OS Hub) is an From 2019 - 2022, OS Hub existed as
Risk Filter is a free, practical, online indicators covering different aspects of accessible, collaborative, supply the Open Apparel Registry, focused
tool to help companies better assess physical, regulatory and reputational chain mapping platform, used and solely on the apparel sector. In
and respond to water risks and water risks. populated by stakeholders across November 2022, with the support
opportunities across their operations sectors and supply chains. With the of cross-sector funders and data
and supply chain. It has become a Operational Risks goal of opening up supply chain data contributors, it expanded to become
leading and trusted tool for over 4 Risks related to a company’s impact/ for the benefit of all, its model is Open Supply Hub and serve retail
thousand active users from a broad performance are assessed using either centered around three core pillars: supply chains more broadly. It now
range of sectors, including apparel a short (10 questions) or a more detailed contains data from some of the world’s
and textiles companies such as (45 questions) site-level questionnaire One Common Facility Registry largest retail brands, including Amazon,
H&M Group, Ralph Lauren covering different aspects of physical, Cross-sector supply chain data is Target and The Walt Disney Company,
Corporation, and PVH Corp. regulatory and reputational water risks. collected in a single place, accessible and is used to advance the missions of
With the support of the UK to all. cross-sector stakeholders, including
Designed to be used as a corporate-
Worker Rights Consortium, Fair
level screening and prioritization tool, Development Finance Institution, British Reliable Data
International Investment (BII), the WWF Factories Clearinghouse, the Alliance
it enables companies to identify water All data contributed to the platform
Water Risk Filter was enhanced in 2020 for Water Stewardship, Global Labor
risk hotspots and prioritize action on is reviewed by the OS Hub team
to provide climate and socio-economic Institute and more.
what and where it matters the most deduplicated by a matching algorithm,
to address water risks for enhancing scenarios of water risks (Optimistic, and then assigned an industry- Open Supply Hub is a neutral,
business resilience and contributing Current trend and Pessimistic standard ID. non-profit organization incorporated
to a sustainable future. pathways) for 2030 and 2050. This new in Delaware, USA.
functionality enables companies to Global Collaboration
To do so, the WWF Water Risk better understand future water risks The user-generated dataset gives
Filter provides a comprehensive and drive more effective corporate visibility into which organizations
assessment of water risks by taking action on climate and water resilience, are connected to which facilities,
into consideration: as recommended by the Task Force on accelerating collaboration.
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 13
Density of Apparel and Textiles Sites
RISK OF APPAREL
AND TEXTILES
CLUSTERS
2.1 The clusters in the Apparel and Textiles Industry
Before discussing the water risks facing the
apparel and textiles industry, it is worth
establishing a common understanding of global
distribution of the industry’s clusters. From a
country perspective, the answer is: Bangladesh,
Brazil, China, India, Italy, Pakistan, Turkey, USA,
and Viet Nam. However, as seen on the heatmap
(Figure 1), the industry’s clusters are actually
concentrated in much smaller regions, typically
in major urban agglomerations, especially those
associated with either (a) large river deltas (e.g.,
Yangtze delta, Mekong delta, Ganges delta, Pearl
delta) or (b) fertile growing regions with a history
of industrialization (e.g., Po valley, Punjab,
Greater Sao Paulo).
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 15
Number of Textile sites
K 2K 4K 6KNumber of8KTextile sites
10K 12K 14K 16K 18K
sites listed in the OS Hub database making Jakarta (Indonesia) 1255 Joinville (Brazil) 2436
Xiamen (China) 2211
1. Shanghai (China): The cluster around Porto (Portugal) 1200
them critical clusters for the industry’s Xinbei (China, Taiwan Province of China) 1160 Jakarta (Indonesia) 1255
the Yangtze delta, located in the Yellow Sea 1054Porto (Portugal) 1200
overall economic well being. São Paulo (Portugal)
and East China Sea basins, contains the Hà Noi (Viet Nam)Xinbei (China,1010
Taiwan Province of China) 1160
Figure 2.
Milan (Italy) 990 São Paulo (Portugal) 1054
highest number of sites (16,450). This cluster It is also worth noting that a few of these Hà Noi (Viet Nam) 1010 Number and
Bologna (Italy) 938
is home to 60 major urban agglomerations clusters – Dhaka, Porto, Karachi, Colombo (Sri Lanka) 798 Milan (Italy) 990
density of sites
Seoul (Republic of Korea) 793 Bologna (Italy) 938
with a population of over 114 million people. Yuzhong, and Denizli – are particularly Colombo (Sri Lanka) 798 in the 82 largest
Lahore (Pakistan) 743
dense clusters, which makes them particularly Karachi (Pakistan) 682 Seoul (Republic of Korea) 793 clusters in the
2. Dhaka (Bangladesh): Located in Mumbai (India) 674 Lahore (Pakistan) 743
well suited to collaboration, but also places Karachi (Pakistan) 682
apparel and
the Meghna river basin (within the Los Angeles (USA) 643
textiles industry
them at even greater risk as water events are Bangladore (India) 612 Mumbai (India) 674
Brahmaputra-Ganges-Meghna delta), Izmir (Turkey) 512 Los Angeles (USA) 643
likely to affect many (even potentially all) Bangalore (India) 612
Dhaka is the second largest cluster (8,226 New York-Newark (USA) 508
of the sites in those clusters. Chennai (India) 463 Izmir (Turkey) 512
sites) and also the densest (number of Tunis (Tunisia) 422New York-Newark (USA) 508
sites/area). It is home to 5 major cities Yangon (Myanmar) 384 Chennai (India) 463
2.3 The physical water risks of the clusters Shantou (China) 381 Tunis (Tunisia) 422
and over 32 million people. Yuzhong (China) 372 Yangon (Myanmar) 384
To assess the physical water risks associated Birminham (UK) 345 Shantou (China) 381
3. Guangzhou (China): The third largest Padova (Italy) 334 Yuzhong (China) 372
with each cluster, we harnessed the WWF Birmingham (UK) 345
cluster is located in the Zhu Jiang river Bangkok (Thailand) 323
Water Risk Filter. Using this tool, we Denizli (Turkey) 300 Padova (Italy) 334
basin (which includes the Zhu Jiang or Ahmadabad (India) 284 Bangkok (Thailand) 323
identified physical risks in the year 2020 (as Denizli (Turkey) 300
Pearl River delta) and contains 7,345 sites. Surat (India) 270
the baseline) and also analyzed how these risks Ludhiana (India) 268 Ahmedabad (India) 284
It is a relatively large cluster spreading Osaka (Japan) 244 Surat (India) 270
will evolve by 2050 considering the changes Ludhiana (India) 268
across 64 thousand km2, covering 19 major Amsterdam (Netherlands) 222
in climate and socio-economics, according to Kolkata (India) 219 Osaka (Japan) 244
cities and over 62 million people. 215 Amsterdam (Netherlands) 222
a pessimistic pathway (See Appendix A for Nagpur (India)
219
Barcelona (Spain) 203 Kolkata (India)
4. Istanbul (Turkey): The cluster around more details). While the tool also has the ability Tanger (Morocco) 196 Nagpur (India) 215
Barcelona (Spain) 203
Istanbul, which is located in the Aegean to unpack regulatory and reputational water London (UK) 191
Thessaloniki (Greece) 189 Tanger (Morocco) 196
Sea river basin (with much of the risk, for the purposes of this analysis, we have Alicante (Spain) 188 London (UK) 191
Thessaloniki (Greece) 189
production within the Ergene basin), is restricted our assessment to physical water Buzau (Romania) 185
Chicago (USA) 183 Alicante (Spain) 188
the fourth largest cluster in terms of risks. Physical water risks account for whether Gaziantep (Turkey) 183 Buzau (Romania) 185
Chicago (USA) 183
number of sites (4,906) and has the fourth water in the river basin is too little (water Manchester (UK) 176
Fermo (Italy) 173 Gaziantep (Turkey) 183
highest density of sites. It is home to 5 scarcity), too much (flooding), unfit for use Nancheng (China) 167 Manchester (UK) 176
173
major cities and over 19 million people. (water quality), and/or the surrounding Guatemala City (Guatemala) 160 Fermo (Italy)
Erfurt Germany) 156 Nanchang (China) 167
ecosystems are degraded, and in turn, Liuan (China) 150 Guatemala City (Guatemala) 160
5. Qingdao (China): The cluster around
negatively impacting freshwater ecosystem Toronto (Canada) 133 Erfurt (Germany) 156
Qingdao, which is located in the Yellow Dalian (China) 130 Liuan (China) 150
services (ecosystem services status). Jaipur (India) 128 Toronto (Canada) 133
Sea and East China Sea basin (and tied Dalian (China) 130
These represent some of the key dimensions Guidonia Montecelio (Italy) 126
into the Huang He or Yellow River delta), Nova Serrana (Brazil) 124 Jaipur (India) 128
affecting the industry, its workers and nature. 119 Guidonia Montecelio (Italy) 126
is the fifth largest cluster in terms of Beijing (China)
124
Shijiazhuang (China) 117 Nova Serrana (Brazil)
number of sites (2,692). Water risk is critical to businesses because it Rio de Janeiro (Brazil) 111 Beijing (China) 119
Shijiazhuang (China) 117
drives various financial impacts, which in turn Adana (Turkey) 99
6. Delhi (India): The cluster around Fortaleza (Brazil) 95 Rio de Janeiro (Brazil) 111
affect shareholders. As noted in the first report Madrid (Spain) 94 Adana (Turkey) 99
Delhi, which is located in the Ganges river Fortaleza (Brazil) 95
(Eau Courant: Water Stewardship in Sao Joao Nepomuceno (Brazil) 93
basin, is the sixth largest cluster with 2,687 Boston (USA) 93 Madrid (Spain) 94
Apparel & Textiles, Figure 2), TCFD offers Kayseri (Turkey) 93Sao Joao Nepomuceno (Brazil) 93
sites. It is home to 8 urban agglomerations
a framework that links physical (water) risks San Salvador (E Salvador ) 87 Boston (USA) 93
and over 36 million people. De Nang (Viet Nam) 86 Kayseri (Turkey) 93
to various financial impacts from decreasing 85 San Salvador (El Salvador ) 87
mexico city (Mexico)
Considering that many clusters are actually revenues (e.g., production constraints driven Lille (France) 85 De Nang (China) 86
Mersin (Turkey) 84 Mexico City (Mexico) 85
close to other clusters, it is worth mentioning by water scarcity) and increased expenditures 83 Lille (France) 85
San Pedro Sula (Honduras)
that Bangalore, Chennai, and Coimbatore are (e.g., increased costs of treating poor water Denver-Aurora (USA) 81 Mersin (Turkey) 84
© Moonstarious Project
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS Density of Sites 17
Figure 3.
Map: Spatial
distribution of the
largest apparel and
Birmingham textiles clusters,
and their respective
physical water risk in
Milan
Porto Istanbul 2020 [Baseline].
New York Alicante
Tunis Figure 4.
Los Angeles Qingdao
(Below): Scatter plot:
Ludhiana Shanghai clusters’ physical
Lahore Delhi
Jaipur water risk in 2020
Karachi Dhaka Xiamen Xinbel (Baseline) and how it
Ahmedabad Guangzhou
Hà Noi is projected to change
Mexico City
Mumbai by 2050 (pessimistic
pathway). Color of
Bangalore dots represent the
Coimbatore Chennai
risk in 2050. Size of
Ho Chi Minh City
dots represent the
number of sites.
The key takeaways from this are: to get worse. Istanbul Jaipur
Birmingham
São Paulo
Istanbul Tunis
• Physical water risks are already high for In the WWF Water Risk Filter, physical Mumbai Karachi Qingdao
in 2020
many of the larger clusters. water risk is composed of four different risk Jakarta
Risk
quality and ecosystem services status. As Ho Chi Minh City Guangzhou Dhaka Shanghai
to face increases in physical water risk by 2 New York
these different physical risk categories affect Xinbei Joinville Xiamen Shanghai
2050, making it critical to prioritize basin Joinville
the apparel and textiles industry in different
resilience planning.
ways, the following pages will describe in 1
• The clusters most exposed to physical water detail these four risk categories and highlight 0 0.4 0.8 1.2
risk are in India and Pakistan. the clusters facing highest risk. Projected
Projected Change Change by 2050
by 2050
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 19
13 clusters, 2.3.1 Water Scarcity and the Apparel It is worth noting that all of these clusters For 6 out of these 8 clusters, flooding risks 53 clusters,
and Textiles Industry (with the exception of Alicante and Madrid) IN CONCLUSION
comprised of more
are projected to increase from very high risk
are projected to face even higher water scarcity to extreme risk by 2050 (exceptions are comprising 64%
than 7 thousand Water scarcity refers to the physical
abundance or lack of freshwater
by 2050. Additionally, 9 other clusters
13 clusters, comprised of more than 7
thousand apparel and textiles sites, are
Lahore and Xiamen). Additionally, 7 other of all apparel and
apparel and textiles resources, which can significantly impact
are projected to change from high risk to
extreme risk, namely:
projected to face extreme risk of water
clusters are projected to increase from high
risk to extreme risk: textiles sites,
sites, are projected business and typically manifest through
• Chennai (India),
scarcity by 2050. The situation is also
• Bangkok (Thailand),
face above medium
production/supply chain disruption,
to face extreme
concerning in the clusters of Qingdao
higher operating costs, and growth • Casablanca (Morocco), (Huai’an) and Shanghai, both on the East • Ahmedabad (India),
flooding risk
risk of water scarcity constraints. Water scarcity is human- China coast, given their large concentration
• Bangalore (India), • Chennai (India),
by 2050 driven and can be aggravated by natural
conditions (e.g., aridity, droughts), and it
of textile sites and the projections
• Tanger (Morocco), that water scarcity will increase by • Bangalore (India),
is generally calculated as a function of the approximately 20 percentage points.
volume of water use/demand relative to the • Los Angeles-Long Beach-Santa Ana • Yangon (Myanmar),
volume of water available in a given area. (USA),
• Lima (Peru), and
In 2020, a total of 26 clusters (14,699 • Karachi (Pakistan),
• Surat (India)
sites, comprising 15% of all OS Hub listed • Shijiazhuang (China), 2.3.2 Flooding and the Apparel and
facility locations) were already facing
• Jaipur (India) and Textiles Industry
above medium water scarcity risk, and FLOODING RISK
this number is projected to increase to • Beijing (China). Flooding is when there is an overflowing of
water onto land that is normally dry. Floods 2020 2050
38 clusters by 2050 (21,993 sites, 23% of
OS Hub listed facility locations). Clusters can happen due to overflowing rivers, lakes,
8
currently facing very high water scarcity WATER SCARCITY RISK or oceans, and are often caused by heavy 14 clusters in extreme risk
risk include: rainfall, rapid snowmelt, when dams or levees
2020 2050 break, or a storm surge from a tropical cyclone,
• Ludhiana (India), hurricane or tsunami in coastal areas. Flood
6 20
• Alicante (Spain), events can interrupt businesses’ operations
13 clusters in extreme risk across their value chain by causing closure 45
• Madrid (Spain),
of operations, supply chain disruptions,
20 13 17
• Ahmedabad (India), limitations to logistics/transportation
and damaging assets.
• Delhi (India) and 12
17
In 2020, a total of 53 clusters (62,350 sites,
• Lahore(Pakistan) 16
11 comprising 64% of all OS Hub listed facility 25 Figure 6.
locations) faced above medium flooding risk. Flooding Risk Level
29 10
This number is projected to slightly decrease to 4 5 in Baseline 2020 vs
Figure 5. 51 clusters (62,983 sites) by 2050, albeit with a 2050 Pessimistic
26 Water Scarcity Risk higher risk for more than half of these sites. pathway
Level in Baseline
L ow
dium
Ver igh
Ext h
e
low
g
r em
A total of 8 clusters faced very high flooding
y hi
10
H
2020 vs 2050
Me
Ver
7 Pessimistic risk in 2020:
pathway
• Guangzhou (China),
L ow
dium
Ver igh
Ext h
e
IN CONCLUSION
low
g
r em
• Nanchang (China),
y hi
H
y
Me
Ver
21
By 2050, 2.3.3 Water Quality and the Apparel and Textiles Industry Out of the 39 very high risk clusters in 2020, regulation, water purification, maintenance In addition, 6 clusters facing medium risk By 2050, half of the
all of them (with exception for Padova, Milan of species’ habitats, and balance of soil in 2020 are projected to face very high risk:
three out of every Water quality indicates whether water resources
and Thessaloniki) are projected to face extreme biodiversity, pests and diseases, among apparel and textiles
• Adana (Turkey),
four apparel and are fit for human use and ecosystems alike. Poor
water quality – water pollution – can impact
risk by 2050. Additionally, 8 other clusters are many others. Therefore, the degradation of industry’s clusters
• Izmir (Turkey),
textile industry
projected to increase from high risk directly to
are projected to
ecosystems typically leads to greater
businesses* indirectly by causing ecosystems
extreme risk, namely: instability in water systems and can result
• Thessaloniki (Greece),
suppliers may destabilization or serious health issues (which in
turn can affect worker productivity) as well as • Kolkata (India),
in businesses having restricted access in face high ecosystem
face high water degradation. But
the long-term to the quantity and quality of • Mersin (Turkey),
directly through increased operating costs of • Bangalore (India), water needed for their activities as well as
quality risk water treatment and limiting production or
• Dhaka (Bangladesh),
other ecosystem services they rely on. This
• Joinville (Brazil) and
there is still time to
growth (not only physically, but also regulatorily
and reputationally). • Karachi (Pakistan),
in turn drives many of the financial impacts • Sao Joao Nepomuceno (Brazil).
bend the curve
already noted: increased operational
In 2020, a total of 56 clusters (49,896 sites, • San Salvador (El Salvador), costs, reduced productivity, and potential
comprising 52% of all OS Hub listed facility impacts to assets. IN CONCLUSION
locations) were already facing above medium • Nagpur (India),
In 2020, a total of 29 clusters (20,005
T he data suggest that this issue is
water quality risk. By 2050, this number is • Bangkok (Thailand) and sites, comprising 21% of all OS Hub listed particularly noteworthy for clusters in
projected to increase to 74 clusters (72,047 sites),
• Chennai (India) facility locations) were already facing above both Turkey and Brazil. With between
meaning 74% of all OS Hub listed facility sites
medium ecosystem services risk, and this 21% of current and 31% of future apparel
will be facing high water quality risk.
number is projected to increase to 41 clusters
and textiles sites facing high ecosystem
(29,955 sites, 31% of all OS Hub listed facility
IN CONCLUSION degradation risk, and given its links to
locations) by 2050.
WATER QUALITY RISK water scarcity, flooding and water quality,
W ith nearly 3/4 of the apparel and textiles
ensuring freshwater ecosystems are
2020 2050 sites projected to face high to extreme risk Out of the 29 high risk clusters in 2020:
functioning properly is also a material
by 2050, it makes water quality a critical
clusters are projected to face extreme
5 issue to the industry.
issue for the industry in the future. Even
risk by 2050:
now, with 52% of all sites facing high risk in
2020, water quality is an issue upon which • Sao Paulo (Brazil),
39 44 clusters in extreme risk
the industry must scale up its efforts. • Denizli (Turkey), ECOSYSTEM SERVICES RISK
Furthermore, a total of 44 clusters are
• Kayseri (Turkey), 2020 2050
projected to face extreme risk by 2050.
• Taguai (Brazil) and
5 clusters in extreme risk
In short, water quality is by far the most
17 11
prominent water risk facing the industry and • Gaziantep (Turkey)
16 Figure 7. 29
is projected to worsen in the coming years.
Water Quality
Risk Level in 5 clusters are projected to face very high
25
21 14 Baseline risk by 2050:
2020 vs 2050
6 Pessimistic
2.3.4 Ecosystem Services Status and the • Buzau (Romania),
5
2 pathway Apparel and Textiles Industry • Nova Serrana (Brazil),
43 26 Figure 8:
Ecosystems provide business, people and • Porto (Portugal), Ecosystem
communities with a wide range of goods
L ow
dium
Ver igh
Ext h
e
low
g
r em
Services Risk
y hi
H
• Madrid (Spain),
y
Me
Ver
L ow
e
dium
Ver igh
Ext h
low
g
r em
y hi
H
y
Me
Ver
© Jaime Rojo / WWF-US
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 23
Birmingham
Milan
São Paulo
3. IDENTIFYING
Joinville
COMMON CLUSTER
RISK PROFILES FOR Depending on the water risk category, from Long Beach-Santa Ana (USA) are separated by
1 G roup 1 are the clusters facing the greatest
SHARED CHALLENGES
water scarcity to ecosystem degradation, thousands of kilometers, they share some of the combined set of high water risks. They are the
different clusters rise to the top. Each site same challenges when it comes to water risks. By clusters with the highest water scarcity risk,
and each cluster faces unique issues on organizing clusters by their most pressing water and are also projected to face the highest increase
AND OPPORTUNITIES
the ground - as they say, water is local and risks, we can help to identify opportunities to in risk, not only in water scarcity, but also in
context always matters. exchange knowledge on which solutions are best flooding and water quality risk.
to address which combination of risks.
Nevertheless, the exercise of mapping
the water risks of clusters does also Harnessing a machine learning group 2 Group 2 are the clusters where flooding is the most
identify some shared challenges. That in analysis (See Appendix for more details) we
pronounced water risk, both today and in the future.
We have seen that there is not a
turn creates opportunities to learn about identified that the global clusters of the apparel
singular angle to define which cluster potentially shared solutions. For example, and textiles industry can be organized into 3 Group 3 are the clusters with the highest risks in
faces or will face highest water risks. while Qingdao (China) and Los Angeles- 3 groups:
water quality and ecosystem services.
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 25
Figure 10
1
Standardized Values
-1
-2
Water Scarcity Change in Water Flooding Change in Flooding Water Quality Change in Water Ecosystem Change in Ecosystem
Scarcity Quality Services Services
TABLE 1
Group 1 Group 2 Group 3 Table 1:
(Left) List of apparel
Ahmedabad (India) Boston (USA) Adana (Turkey)
and textiles clusters
Bangalore (India) Colombo (Sri Lanka) Alicante (Spain)
within the three groups
Bangkok (Thailand) Da Nang (Viet Nam) Amsterdam (Netherlands) of shared challenges
Casablanca (Morocco) Guangzhou (China) Barcelona (Spain) and opportunities.
Chennai (India) Ha Noi (Viet Nam) Beijing (China)
Figure 10.
Coimbatore (India) Ho Chi Minh City (Viet Nam) Birmingham (UK) (Above)
Dalian (China) Joinville (Brazil) Bologna (Italy) Box plot: Grouping of
Delhi (India) Liuan (China) Buzau (Romania) apparel and textiles
clusters based on 2020
Dhaka (Bangladesh) Manchester (UK) Chicago (USA)
(baseline) risks and
Guatemala City (Guatemala) Nanchang (China) Denizli (Turkey)
projected risk changes
Jaipur (India) New York-Newark (USA) Denver-Aurora (USA) (by 2050 pessimistic
Jakarta (China) Nova Serrana (Brazil) Erfurt (Germany) pathway) in water
Karachi (Pakistan) Osaka (Japan) Fermo (Italy) scarcity, flooding,
water quality, and
Kolkata (India) San Salvador (El Salvador) Fortaleza (Brazil)
ecosystem services
Lahore (Pakistan) Sao Joao Nepomuceno Gaziantep (Turkey)
status.
Lima (Peru) (Brazil)
Guidonia Montecelio (Italy)
Sao Paulo (Brazil)
London (UK) Istanbul (Turkey)
Seattle (USA)
Los Angeles-Long Beach-Santa Izmir (Turkey)
Ana (USA) Seoul (Republic of Korea)
Kayseri (Turkey)
Ludhiana (India) Shanghai (China)
Lille (France)
Mexico City (Mexico) Shantou (China)
Madrid (Spain)
Mumbai (India) Taguai (Brazil)
Mersin (Turkey)
Nagpur (India) Xiamen (China)
Milan (Italy)
Qingdao (China) Yangon (Myanmar)
Padova (Italy)
Rio de Janeiro (Brazil)
Porto (Portugal)
San Pedro Sula (Honduras)
Sanclerlandia (Brazil)
Shijiazhuang (China)
Tanger (Morocco)
Surat (India)
Thessaloniki (Greece)
Xinbei (China Taiwan Province)
Toronto (Canada)
© Ola Jennersten
Tunis (Tunisia)
Yuzhong (China)
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 27
There are a few key takeaways by organizing ranging from the Americas (New York, Boston,
the data in this manner: Seattle, Sao Paulo, San Salvador) to Eastern BOX C
Asia (Osaka, Shanghai, Seoul). Development
Group 1
There are significant opportunities to share
agencies with links to Japan and Korea, but
also to China (e.g., JAICA, AIIB, ADB, KOICA)
ALLIANCE FOR WATER STEWARDSHIP
ATHER &
1. G
and even those in the Americas (e.g., IFC, IADB,
lessons learned between India and The Alliance for Water Stewardship
USAID) have an opportunity to foster linkages
ERSTAND
UND
Pakistan (perhaps unsurprisingly given their (AWS) is a global network with
between cities in their respective countries/
general proximity), but also between South
regions and those in Southeast Asia.
over 160 members. Its mission is E
Asia with several apparel hubs to ignite and nurture global and E Data on
& D I S C L O I CAT
red water
2.
in the Americas (Guatemala City, Lima, local leadership in credible water a
R
sh
Group 3 llenges
SU
Greater LA, Mexico City, Rio de Janeiro and San c a
h
& P
D tew lan
stewardship that recognises and
5. C O M M U N
COM N
ev ar
s
effort hip
Pedro Sula). Organizations that bridge these
steward s
elo dship
Lastly, this group includes a predominance of secures freshwater’s social, cultural,
site
s
LA
geographies, such as the Alliance for Water
paw
environmental and economic value.
p
European countries. There are real opportunities
MIT
The
Stewardship (see Box C) offer a pathway to help to learn from the growing efforts in The AWS Standard provides a
ater
translate lessons and solutions. Europe to implement nature-based mechanism through which sites (for
solutions to address water quality issues example, a manufacturing facility)
Group 2
P e ain
an
(e.g., the Dutch Room for Rivers work, efforts in can follow a defined approach to e
p er
ag
or Th
rf
pl
at
There is a general grouping of clusters the Danube to restore wetlands, etc.) and share assess and understand both the site’s st m a sw i
water context (internal and external) th n c e s it e dsh
4.
la n ste w
EN
VA
those clusters outside of Europe that share these and material water risks. Site-level
challenge of flood risk. This is supplemented
E
M
by potential solutions outside of this region common challenges. insights from across a supply chain
LU L
ATE MP
3. I
can then be aggregated to identify
corporate-level water-related risks.
The five steps of the Standard enable The five steps of the
implementers to understand their Alliance for Water
site’s reliance upon and impact on Stewardship Standard
water resources and, crucially, it
steers the site through a process to within existing sustainability-
development of a water stewardship
identify other risks and opportunities focused initiatives – and by rolling
plan. Implementing the AWS
that might exist outside the site out an aligned approach in the
Standard across a supply chain can
itself within the wider catchment (or supply chain. Therefore, AWS has
help inform target and strategy
watershed) and in its supply chain. developed the Implementation
development for brands and
It is through this comprehensive Accelerator Programme, which
suppliers alike. For the Textile &
approach, moving beyond water aims to help brands and their
Apparel sector, the AWS Standard
management to stewardship, that suppliers use the AWS Standard
can be used as a common language
implementers contribute towards the System at scale. By identifying
throughout the supply chain,
five AWS Standard outcomes. priority locations for AWS Standard
reducing competing demands on
Implementation of the AWS Standard suppliers and defining an agreed implementation and facilitating a
takes a site through a process of approach in responding to water collective, a place-based approach,
data collection, to understand challenges across the sector. common objectives and benefits
operational and external risk, Significant value can be created can be achieved more effectively.
before embarking on engagement by embedding globally recognised To find out more information, visit
with local stakeholders and the best water stewardship practices a4ws.org/priority-sectors/textiles/.
© Charlotta Järnmark / WWF-Sweden
collaboration these cluster groupings, it is worth considering located near (or formerly within) wetlands when it comes to supply chain management and
cross-sectoral learnings as well. Looking at Figure and deltas (see Figure 12), providing a reason lessons learned on how to drive efforts with shared
11, we see that there is considerable overlap for cross-sectoral collaboration on wetland suppliers. In that sense, this analysis can offer
between apparel and textiles facility locations and restoration to help alleviate water scarcity, insights (and opportunities) not only to the Apparel
Information and Communications Technology flooding and water quality risks. These sectors and Textiles industry, but to the ICT sector as well.
Beijing Beijing
Dalian Dalian
Tianjin Seoul Tianjin Seoul
Qingdao Nagoya Tokyo Qingdao Nagoya Tokyo
Xi’an Busan Xi’an Busan
Zhengzhou Zhengzhou
Osaka Osaka
Lahore Chengdu Wuhan Hefei Shanghai Lahore Chengdu Wuhan Hefei Shanghai
Delhi Suzhou Delhi Suzhou
Kathmandu Chongqing Nanchang Kathmandu Chongqing Nanchang
Fuzhou Fuzhou
Xiamen Xiamen
Nanning Xinbei Nanning Xinbei
Kolkata Kolkata
Hà Noi Tainan Hà Noi Tainan
Guangzhou Guangzhou
Mumbai Chiang Mai Mumbai Chiang Mai
Nakhon Nakhon
Ratchasima Manila Ratchasima Manila
Bangalore Bangalore
Chennai Bangkok Chennai Bangkok
Ho Chi Minh City Cebu City Ho Chi Minh City Cebu City
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 31
Figure 13.
Global cotton
production regions
and baseline
2020 physical water
risk regions.
BOX D
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 33
4. CLUSTER DEEP DIVES:
We have opted to select two clusters: (1) Lahore,
Pakistan and (2) Ho Chi Minh City, Viet Nam, for
© WWF-Pakistan
and extends this to several other dimensions
covered by the WWF Water Risk Filter (notably
reputational and regulatory risk). Furthermore,
Figures 16 and 19 provide a breakdown of the
brands that have suppliers in these clusters. Main: Ho Chi Minh City, Viet Nam
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 35
HO CHI MINH CITY CLUSTER
RISK PROFILE
HO CHI MINH DRIVING COLLECTIVE ACTION
HO CHI MINH Water Scarcity IN THE GREATER MEKONG DELTA
(HO CHI MINH CITY CLUSTER)
Reputational Flooding “Especially in the Central region, floods and storms are
frequent disasters. The company has experienced a number
of losses at manufacturing sites, such as damage to roofs
of buildings during storms, and machinery and garment
goods inundated in sudden floods. So far, the company sees
the most impact in the disruption of the labor force… work
productivity during floods is low and unstable. This is so
Regulatory Water Quality
far the most detrimental effect to business continuity.”
Mrs. Nguyen Thi Lien, Vice Chairman,
Phong Phu International Joint Stock Corporation (PPJ)
Ecosystem Services
H
Hydropower development along the Mekong river has
caused significant challenges in terms of reduced sediment
Risk in 2020 (Baseline) Risk in 2050 load and habitat fragmentation, which has brought upstream
basin challenges to the forefront of the Ho Chi Minh City
cluster’s challenges. Large parts of the Mekong Delta are
sinking due to depletion of river sediments and groundwater
HO CHIFROM
TOP 20 BRANDS SOURCING MINH CLUSTER
CLUSTER LAHORE
extraction. Even though the delta sinks CLUSTERincreasing
naturally,
Figure 14. land subsidence caused by unsustainable groundwater
Map of Ho Chi Minh City ADIDAS 375 ADIDAS has hastened the
extraction, and a loss of sediment,
Cluster and Apparel ANONYMOUS 317 BOOHOO GROUP 54
process9. Water pollution due to industries, over-exploitation
and Textiles sites COLUMBIA SPORTSWEAR COMPANY 231 MISSGUIDED 34
of groundwater around Ho Chi Minh City, and decreasing
GAP INC 203 THE VERY GROUP 29
aquifer water levels are also affecting water availability in
FAST RETAILING 172 ARCADIA GROUP 26
the basin. Other water risks include floods, saline intrusion,
VF CORPORATION 101 LIDL 23
and drought, all of which are likely to worsen with climate
• As previously mentioned, flooding risk is not only
high presently, but projected to increase by 2050.
•
Based on the disclosures of their sourcing activities
between 2019 and 2022 (see Figure 16), the following
LAHORE TARGET CORPORATION
FOND OF GMBH 79
100 TCHIBO
change, unsustainable sand mining and upstream
LEVI STRAUSS & CO
LAHORE
21
23
LAHORE LAHORE
cluster that would be well served by considering how interest in the stability and resilience of the Ho Chi technical support to manufacturers to enhance water
DECKERS BRANDS 46 based on 2019-2022 EL CORTE INGLÉS 16
restoring floodplains and wetlands could help Minh City cluster and should consider supporting not C&A 45 data, by brand for
effectiveness at the factory-level, promoting green credit
JD SPORTS FASHION 16
to mitigate the impact of flood pulses. only suppliers at the facility level, but also broader H&M GROUP 44 the Ho Chi Minh amongst financial institutions, driving collective
PRIMARK 15 commitment
basin efforts to tackle flooding risks in particular. TU CLOTHING BY SAINSBURY’S 39 cluster for sustainable transformation of
C&A the sector,
13 and advocating
• Working with public and private stakeholders to for green production and industrial parks with local
For a full list of the suppliers in this cluster, please visit
collectively facilitate and strengthen flood industrial authorities. Building on these successes, the work
Open Supply Hub.
resilience and water resources management will continue to aim to mobilize solutions throughout the
capacity through nature-based solutions may basin to tackle shared water challenges.
also benefit such sites, given that this is an area in
need of strengthening. “WWF- Viet Nam initiated the Water Stewardship project
• Ensuring that on site water treatment (especially because there was a need to have an entity that could
put out a call for collective action. One of the drivers of
hazardous chemicals in the event of a flood) and
behaviour change in businesses is pressure from peers and
stormwater management are properly addressed
to improve their public image – so WWF, in association with
would make sense.
© WWF-Viet Nam
VITAS, is using a public platform to drive collective action
• Given the reasonably high density of sites in this for the green transformation of the sector.”
cluster, combined training in this cluster on all of Mrs. Hoang Thi Thanh Nga, Water Stewardship
the above issues would be logical. Programme Manager, WWF-Viet Nam
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 37
LAHORE CLUSTER
RISK PROFILE
LAHORE
DRIVING COLLECTIVE ACTION
Water Scarcity IN THE INDUS RIVER BASIN
(LAHORE CLUSTER)
Reputational Flooding “I have seen that the push from brands has a trickle-down
effect on suppliers, which drives them to focus on reducing
their water use and wastewater volumes.”
Regulatory Water Quality The Apparel and Textiles industry are one of the key
sectors in Pakistan, which banks on the Indus Basin for
the production of cotton, as well as the manufacturing of
textile products. Industrial sectors have caused the water
quality of the basin to deteriorate significantly, with all
Ecosystem Services major tributaries of the basin carrying both sewage and
industrial effluents.
Risk in 2020 (Baseline) Risk in 2050
Despite the government’s commitment to prioritize
integrated water resources management (IWRM), Pakistan
lags in the implementation of water conservation and
nature-based solutions. Recognizing the gaps that exist
Figure 17.
HO CHI MINH CLUSTER LAHORE CLUSTER
TOP 20 BRANDS SOURCING FROM CLUSTER in local water resources management and the textile
sector’s large water footprint, WWF-Pakistan has been
Map of Lahore
ADIDAS 375 ADIDAS 80 engaging businesses and the public sector to drive
Cluster and
Apparel and ANONYMOUS 317 BOOHOO GROUP 54 collective action in the basin.
© WWF-Pakistan
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 39
CONCLUSION
While water has fuelled the growth and ecosystems. Enhancing the health of wetlands
success of the industry, it also is an issue which, represents a multi-pronged way to address the
due to human activities, now poses a risk to array of risks facing sites across most clusters.
these same clusters.
• There are considerable opportunities to share
Part I in this series outlined the key issues learnings between sites and clusters
facing the industry. Part II has sought to unpack around the world. This also extends to sharing
how water risk affects the largest clusters in challenges and solutions with other, co-
the industry. By grouping sites, not only can we located sectors such as the ICT sector and
begin to better understand the shared physical other sectors, which can be explored via the
water risks facing sites (and even co-located sites Open Supply Hub.
in other sectors, such as the Information and Understanding water risks is critical throughout
Communications Technology), but we can also the value chain. While this work focused on
begin to better understand the opportunities to Tiers 1-3 for the most part, understanding water
jointly de-risk key production clusters. risk facing Tier 4 sourcing regions (e.g., raw
material clusters, such as cotton which was briefly
THE LARGE CLUSTERS IN
Several key messages emerge from this report: highlighted in this report) is important, as is THE APPAREL AND TEXTILES
• Much of the industry is concentrated in a understanding how stores and customers can also
be impacted by water risks. After all, shoppers who
INDUSTRY ARE HIGHLY EXPOSED
few large clusters and many of these large
clusters are highly exposed to physical have had their homes flooded are not focused on TO PHYSICAL WATER RISK. TO
water risks. Some clusters are particularly next season’s clothing trends! Moreover, thinking
about the exposure of customers also enables
RESPOND TO THIS, THE
dense (e.g., Dhaka) ensuring they are at
greater risk but also affording them a greater brands to empower their customers to also take INDUSTRY SHOULD CONSIDER
opportunity to collaborate. action through innovative product, service, and PROTECTING, MANAGING AND
marketing/awareness efforts.
• While the industry often focuses on water RESTORING WETLANDS
scarcity and efficiency, broadly speaking, Water is local and responding to its challenges will
flooding risks and water quality are the vary from place to place, and company to company.
key risks for the industry to prioritize However, as we explore the shared water challenges
(both in we face in common basins, we have the opportunity
to enhance collaboration and work together to face
terms of severity and prevalence). As climate
these challenges. Many hands make for light work,
instability increases, the industry must equip
and water will indeed require many hands.
suppliers to enhance their resilience to
avoid supply chain disruptions that are likely With transparent data, brave brand leaders,
to emerge – as evidenced by recent flooding supportive governments and passionate civil
in India and Pakistan. society organizations, we have many of the building
© Adam Oswell / WWF-Cambodia
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 41
6. APPENDIX A –- DATA AND METHODS OPTIMISTIC CURRENT TREND PESSIMISTIC
CLIMATE Moderate emissions Intermediate emissions High emissions
ASPECTS [1] RCP2.6 / RCP4.5 RCP4.5 / RCP6.0 RCP6.0 / RCP8.5
The Open Supply Hub dataset Socioeconomic Pathways – SSP), and For this report,
it is in line with the Task Force on Climate-
Open Supply Hub (formerly the Open
related Financial Disclosure (TCFD) we presented the · M
oderate mitigation · I ntermediate mitigation · B
usiness-as-usual so that
measures so that GHG measures so that GHG GHG emissions continue to
Apparel Registry) is an accessible,
collaborative, supply chain mapping platform,
recommendations. More specifically, the risk results focused emissions are halved by 2050 emissions peak around mid- rise throughout the
primarily on how
scores of the year 2020 (baseline) are added century, then start declining 21st century
used and populated by stakeholders across · I ncrease of global mean
with projected changes based on climate
sectors and supply chains. By September 2022,
the platform had records for 96,866 textile
impact ensemble projections that account physical water risks surface temperature is
unlikely to exceed 2ºC by the
· I ncrease of global mean
surface temperature is likely
· I ncrease of global mean
surface temperature is likely
and apparel sites worldwide, including their
for climate (e.g., temperature, precipitation,
wind) and socio-economic variables (e.g.,
in the cluster regions end of the 21st century to exceed 2ºC by the end of to exceed 4ºC by the end of
location and organizations connected to them
population, GDP, technological developments), will evolve by 2050 the 21st century the 21st century
(like brands whom they supply to). This data
was the base for this report.
and represent the consequences and effects of under a pessimistic SOCIO- Sustainability Middle of the road Regional rivalry
climate and socio-economic changes on water
resources by 2030 and 2050. Accordingly, the scenario. ECONOMIC SSP1 SSP2 SSP3
The WWF Water Risk Filter Scenarios dataset pathways for the Water Risk Filter scenarios ASPECTS, [2]
follow the respective three narratives described · E
mphasis on human and · C
urrent social and economic · E
mphasis on national
The Water Risk Filter scenarios dataset
in table 2 on the right.
EXTENDED nature well-being trends continue issues due to regional
builds on the framework of the tool’s current TOWARDS conflicts and nationalism
For this report, we presented the results · E
ffective and persistent · R
elatively weak coordination
basin risk assessment, but integrates 2030 and
WATER cooperation and and cooperation among · S
ocieties are becoming more
2050 quantitative projections of water risks focused primarily on how physical water
(see the Water Risk Filter Methodology risks in the cluster regions will evolve by AVAILABILITY collaboration across the national and international skeptical about globalization.
for more details). This dataset is based on 2050 under a pessimistic scenario. Whilst it
Table 2.
(Right): Overview
AND USE [3] local, national, regional institutions, the private Global governance,
international scales sector, and civil society institutions and leadership
a combination of the most relevant climate is important to understand exposure to water of the narratives and between public for achieving sustainable are relatively weak
scenarios (IPCC CMIP5 Representative risk under different scenarios, being aware of of the Water Risk organizations, private sector development goals
Concentration Pathways – RCP) and and prepared for the ‘worst case’ pessimistic · L
ow investment in
Filter Scenarios and civil society within
pathway is imperative. · T
echnological progress but technology development
socio-economic scenarios (IIASA Shared pathways and across all scales of
no major breakthroughs
governance · Increase in resource use
· M
odest decline in resource intensity
· Rapid technological change
use intensity
· E
nvironmental policies
· Improved resource efficiency
· M
oderate awareness have very little importance.
· S
ustainability concerns; of the environmental Serious degradation of
more stringent consequences of choices environmental systems in
environmental regulation when using natural some regions
implemented resources. Environmental
· G
rowing population
systems experience
· R
esearch and technology and limited access to
degradation
development reduce the safe water and improved
challenges of access to · A
ccess to safe water and sanitation challenge human
safe water and improved improved sanitation in and natural systems
sanitation low-income countries
makes unsteady progress
[1] IPCC (2014). Climate Change 2014: Synthesis [2] ’Neill, B., Kriegler, E., & Ebi, K. L. (2017).
O [3] Wada, Y., Flörke, M., Hanasaki, N., Eisner, S.,
Report. Contribution of Working Groups I, II Supporting information. Supplementary content Fischer, G., Tramberend, S., ... & Wiberg, D.
and III to the Fifth Assessment Report of the to: the roads ahead: narratives for shared (2016). Modeling global water use for the 21st century:
Intergovernmental Panel on Climate Change socioeconomic pathways describing world The Water Futures and Solutions (WFaS) initiative
[Core Writing Team, R.K. Pachauri and L.A. futures in the 21st century. Glob Environ Chang, and its approaches. Geoscientific Model Development,
© WWF-Viet Nam
Meyer (eds.)]. IPCC, Geneva, Switzerland, 42, 169-180. https://doi.org/10.1016/j. 9(1), 175-222. https://doi.org/10.5194/gmd-9-
151 pp. https://www.ipcc.ch/report/ar5/syr/ gloenvcha.2015.01.004 175-2016
43
WWF – WORD WIDE FUND FOR NATURE – ONE OF THE WORLD’S
Clustering the apparel and textile sites selected in the first iteration. The third iteration, Identifying specific LARGEST CONSERVATION ORGANIZATIONS
once again, added basins with at least the average
Identifying specific sites of highest risk is
number of sites, and were contiguous to any basin sites of highest
definitely of great importance for companies,
however, it does not help the industry as a
selected in the previous iterations. By the fourth risk is definitely of World Wide Fund for Nature (WWF) is one
of the world’s largest and most experienced
Adopting Water Stewardship requires
not only impact reduction activities with
iteration no additional basin was selected given
whole as much as identifying where there the criteria. Thirdly, we used only the selected great importance for independent conservation organizations, manufacturers and materials (i.e., water
are the largest concentrations of sites under
high risk. That is especially the case for
basins and merged the spatially contiguous ones companies, however, with over 5 million supporters and a global management), but also asks companies
similar challenges and opportunities; and 2) 2050 (Pessimistic pathway), based on the area- where there are the harmony with nature, by conserving the
water users work together to create
shared solutions to shared water risks,
results are easier to manage, which makes it
easier to translate into action on the ground.
weighted average. largest concentrations world’s biological diversity, ensuring that
with a focus on collective solutions to
the use of renewable natural resources is
Therefore we focused this analysis on the Grouping clusters of common risk profile of sites under sustainable, and promoting the reduction of
underlying problems and with the goal to
clusters of highest density of sites, where
Looking at the risk profile of the 82 clusters it high risk. pollution and wasteful consumption.
ultimately strengthen water governance in
collective action can make a great impact. partnership with policymakers.
was evident that many clusters share certain As a part of its efforts to achieve this
To delineate clusters we firstly did a spatial risk profiles. With a different perspective, it also You can find out more about WWF’s work
mission, WWF has partnered with many
join to count the number of apparel and textile represents many clusters sharing opportunities on water stewardship here. You can find
fashion companies (e.g., H&M Group, PVH
sites in each HydroSHEDS10 HydroBASINs to exchange knowledge on which solutions are out more about WWF’s on-ground work
Level 7, which are basically river basins Corp and Tommy Hilfiger, Levi Strauss & Co,
best to address which combination of risks, and with the apparel and textiles industry here.
(catchments) of approximately 1,500 km2, the thus learning from each other. With this in mind, Gap Inc., and others) and peer organisations
same watershed division used for the WWF we used machine learning group analysis on an approach called ‘Water Stewardship’.
Water Risk Filter indicators. Secondly, we used to identify groups of clusters where all the
an iterative approach to select only spatially clusters within each group are as similar as
contiguous basins encompassing significantly possible, and all the groups themselves are as Publisher: WWF Germany & WWF Sweden November 2022
high numbers of textile sites. The first iteration different as possible. Similarity was based on the Please cite this report as:
For more information contact:
selected basins that contained >50 textiles sites clusters’ risk profile, i.e., their baseline risk scores Alexis Morgan, Global Water Stewardship Morgan, A.J., Camargo, R., Luthra, P., Baig,
in a basin (2.5 times the average, excluding as well as their projected risk change between Lead, WWF A., Laporte-Bisquit, A., Dar, S. (2022)
the basins with no site). The second iteration 2020 and 2050 in the physical risk categories Alexis.Morgan@wwf.de Avant-garde: the water risks and opportunities
added basins with at least the average number of water scarcity, flooding, water quality, and facing apparel and textiles clusters – Part II,
Payal Luthra, Global Apparel & Textiles
of sites, and that were contiguous to any basin ecosystems services status. Water risk facing the Industry’s value chain.
Lead, WWF
WWF Germany / WWF-Sweden.
p.luthra@wwf.it
ENDNOTES
1. W orld Economic Forum (2022) The 4. World Bank (2022) Pakistan: Flood bridge University Press. Cambridge or concerning the delimitation of its
Global Risks Report 2022. https:// Damages and Economic Losses Over University Press, Cambridge, UK frontiers or boundaries.
www3.weforum.org/docs/WEF_ USD 30 billion and Reconstruction and New York, NY, USA, 3056 pp., 8. C otton 2015 production regions
The_Global_Risks_Report_2022.pdf Needs Over USD 16 billion - New As- doi:10.1017/9781009325844 based on Frolking et al. 2020 https://
2. World Bank Group. 2016. High and sessment https://www.worldbank.org/ 6. Information of 96,866 sites was dataverse.harvard.edu/dataset.
Dry : Climate Change, Water, and the en/news/press-release/2022/10/28/ downloaded from Open Supply Hub xhtml?persistentId=doi:10.7910/
Economy. World Bank, Washing- pakistan-flood-damages-and-econom- on 13 Sep 2022. DVN/KJFUO1
ton, DC. © World Bank. https:// ic-losses-over-usd-30-billion-and-re- 7. Urban agglomeration and country 9. https://phys.org/news/2022-01-
openknowledge.worldbank.org/ construction-needs-over-usd-16-bil- names based on the UN World mekong-delta-vietnam-sediment.html
handle/10986/23665 License: CC BY lion-new-assessme Urbanization Prospects 2018 10.L ehner, B., Grill G. (2013):
3.0 IGO. https://www.worldbank. 5. IPCC, 2022: Climate Change 2022: available at https://population. Global river hydrography and network
org/en/topic/water/publication/high- Impacts, Adaptation and Vulnerabil- un.org/wup/Download/Files/ routing: baseline data and new
and-dry-climate-change-water-and- ity. Contribution of Working Group WUP2018-F12-Cities_Over_300K. approaches to study the world’s large
the-economy II to the Sixth Assessment Report xls. IMPORTANT: The designation river systems. Hydrological Processes,
3. Naumann, G., Cammalleri, C., Men- of the Intergovernmental Panel on of geographical entities do not
WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS 45
© 2022
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WWF-GERMANY / WWF-SWEDEN -- THE WATER RISKS AND OPPORTUNITIES FACING APPAREL AND TEXTILES CLUSTERS