The fashion and apparel sector is a cornerstone of Sri Lanka's economy and provides employment to over 350,000 individuals directly and up to one million indirectly. This industry contributes approximately 7% to the national GDP, with export earnings surpassing USD 5.5 billion in 2023 (MoI, 2023). Given its significant economic role, the sector is increasingly vulnerable to the impacts of climate change, which poses both direct and indirect financial challenges.

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‍Assessing climate change impacts on fashion and apparel value chains

A recent scoping papers by SLYCAN Trust, titled “Ethical, Sustainable, and Climate-Friendly Fashion and Apparel in Sri Lanka,” and “Managing Climate Risks in Sri Lanka’s Fashion and Apparel Sector” aimed to explore the tangible yet often overlooked risks associated with climate impacts on the fashion and apparel value chain. The paper evaluates the economic, social, and environmental vulnerabilities of Sri Lanka’s fashion and apparel sector to climate change, identifying key risk factors such as extreme weather events, water scarcity, and supply chain disruptions. It highlights the urgent need for sustainable and ethical business practices as disruptions caused by climate change lead to both direct and indirect losses. These losses are currently being dismissed by the industry as merely missed or less productive days, but they represent significant economic, social and environmental vulnerabilities. This underscores the need for effective adaptation and mitigation measures as potential solutions.

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To review the findings of the scoping paper and discuss actionable strategies, a validation workshop was held on July 31st, 2024, in Colombo, Sri Lanka. This workshop brought together representatives from the public and private sector, entrepreneurs, and business associations. It facilitated a collaborative dialogue on integrating climate resilience into the fashion and apparel value chain, emphasising the importance of multi-actor partnerships in enhancing disaster risk management and fostering sustainable practices. Participants highlighted the urgency of developing coherent policies, investing in climate-smart technologies, and fostering capacity-building initiatives across the sector. 

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A representative from the Joint Apparel Association Forum (JAAF) noted the transformative potential of collective efforts and strategic innovation in making Sri Lanka's fashion and apparel industry a model of sustainability and resilience. "Innovative practices such as using green energy solutions, natural ventilation, and solar lighting systems can significantly reduce the carbon footprint of the industry while improving working conditions and reducing costs in the long term,” they said. “Sharing these best practices and fostering collective innovation, with robust government support, is crucial for rolling out these initiatives across the industry."

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Recommendations for building a sustainable and resilient fashion and apparel industry

Through coordinated efforts and a commitment to sustainable practices, Sri Lanka's fashion and apparel sector can not only survive the challenges posed by climate change but also thrive in a rapidly changing global market. Key recommendations for building a sustainable and resilient industry include: 

• Conduct thorough analyses of climate scenarios to understand the potential risks within apparel supply chains, enabling proactive measures to mitigate impacts.
• Commit to sourcing and adaptation investments in climate-vulnerable manufacturers, and workers, ensuring the resilience and sustainability of the supply chain.
• Incorporate climate risk assessments into business planning processes to facilitate informed decision-making and the development of effective adaptation strategies.
• Implement social audits to monitor the impacts of climate risks on supply chain worker safety and well-being, safeguarding the workforce from adverse effects.
• Strengthen climate risk management and advance a just transition towards sustainability by leveraging existing alliances within the fashion sector, enhancing the evidence base on climate change implications, supporting capacity-building initiatives, and fostering cross-sector collaborations for comprehensive climate adaptation strategies.

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The role of the Multi-Actor Partnership (MAP)

Multi-actor partnerships are a key pathway to improve coordination, coherence, exchange, and integration among stakeholders from the fashion and apparel sector and related industries. The MAP on climate and disaster risk management and finance by SLYCAN Trust aims to:

1. Strengthen collaboration, coordination, and information-sharing on climate and disaster risk management (CDRM) and climate and disaster risk finance and insurance (CDRFI).
2. Enhance interaction between the public sector, the private sector, entrepreneurs, researchers, academia, civil society, and other stakeholders. 
3. Facilitate collective evidence creation by stakeholders within the sector, to inform and refine strategies for managing climate risks and advancing a just transition towards sustainability.

By leveraging evidence-based insights and fostering collaboration, the sector can better manage climate risks and drive a just transition towards sustainability. The mechanisms of the MAP are detailed in the infographic below, illustrating how these goals are achieved through coordinated efforts.

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Strengthening Sri Lanka's fashion and apparel sector through the MAP

Through continued engagement with the Multi-Actor Partnership, stakeholders in Sri Lanka's fashion and apparel sector can strengthen climate resilience and sustainable business practices within the industry. By facilitating research and learning, the MAP fosters a supportive environment and engages stakeholders to explore opportunities, build frameworks for collaboration, identify challenges, and facilitate a participatory dialogue. Integrating CDRFI solutions into policy frameworks also allows stakeholders across the sector to engage in meaningful ways and strengthen their climate resilience, thereby ensuring sustainable and robust industry growth.