Planet Tracker has released a report highlighting significant water-related risks faced by major fashion brands and retailers, including Adidas, Gap, H&M, Inditex, Levi Strauss, Nike, PVH Corp, Ralph Lauren and VF Corp.

The report looks at increasing water stress in key manufacturing regions, and urges companies and investors to prioritise water risk management for long-term sustainability.

While the direct operations of these companies may seem to have low water-related risks, the report suggests that indirect impacts could pose significant threats to their operations.

It identifies three main classes of water-related risks facing the fashion industry:

• Physical Risks: Operations and supply chains could be jeopardized by water scarcity.
• Regulatory Risks: Potential changes in water costs, access rights, or social license to operate could impact profitability.
• Reputational Risks: Adverse coverage of a brand’s water impacts could damage its reputation.

The report points out that water stress is already significant in many major apparel supplying regions, and projected changes could exacerbate the situation. North American brands, in particular, face a notable increase in water stress.

Read more and download the whole report