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🇸🇬 Singapore /Economy & Trade

Extreme heat risks losses for Indian suppliers to Uniqlo, Tesco

From The Straits Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Extreme heat in India is causing productivity losses of up to 10% for garment suppliers to major international brands like Uniqlo and Tesco.
  • A report by NYU Stern Center found that high temperatures impact product quality, delivery reliability, and increase employee absenteeism, with suppliers struggling to meet deadlines.
  • The report urges global retailers to set heat standards, mandate temperature tracking, and adjust purchasing practices to support suppliers in mitigating climate risks.

India's crucial apparel export industry faces significant disruptions due to extreme heat, with suppliers to global brands like Uniqlo, Marks & Spencer, and Tesco experiencing productivity losses of up to 10%. A new report from the NYU Stern Center for Business and Human Rights highlights how soaring temperatures are compromising product quality, jeopardizing delivery schedules, and increasing employee absenteeism during peak summer months.

The tipping point is when a delivery deadline is missed and suppliers are no longer able to insulate their buyers.

— Lucy SiersSenior research scientist at the NYU Stern Center and lead author of the report, explaining the critical impact of heat on supplier reliability.

Researchers found that many factories are "just about keeping their heads above water" by implementing temporary solutions to cope with the heat. However, the tipping point arrives when delivery deadlines are missed, leaving suppliers unable to shield their international buyers from the impact. India has endured severe heat waves in 2026, with temperatures frequently exceeding 45 degrees Celsius (113 degrees Fahrenheit).

The findings underscore the vulnerability of India's $39 billion apparel export sector, which employs 45 million people, predominantly women. Factory managers reported issues such as sweat stains on fabrics, dust contamination, stitching errors, and forced production halts directly linked to the extreme temperatures. The World Bank estimates that lost working hours due to extreme heat across all sectors could risk up to 4.5% of India's GDP by 2030.

You can’t manage a risk that you don’t measure.

— Lucy SiersHighlighting the lack of temperature monitoring by global retailers in supplier facilities.

The report also identified a significant gap in how global retailers monitor conditions at their suppliers' facilities. While most surveyed customers acknowledged the risks of extreme heat, only 35% mandated that suppliers track factory temperatures. "You can’t manage a risk that you don’t measure," stated Lucy Siers, the report's lead author. To safeguard their supply chains, the report recommends that customers establish enforceable heat standards, mandate temperature tracking, and revise rigid purchasing practices to accommodate climate-related delays without imposing financial penalties. Brands are also encouraged to share the costs of essential cooling and ventilation upgrades.

Brands that source from heat-exposed regions have both a business interest and a responsibility to act.

— Michael PosnerDirector of the NYU Stern Center, emphasizing the dual role of brands in addressing climate risks.
DistantNews Editorial

Originally published by The Straits Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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