A new study has highlighted mounting water challenges in global apparel production. Wet processing facilities are consuming vast amounts of water and generating hazardous discharges, and yet evidence shows that relatively modest investments can deliver substantial financial and environmental benefits. Despite this potential, weak buyer commitments and restrictive lending conditions are hindering smaller suppliers from making improvements, leaving apparel supply chains exposed to escalating risks of disruption, social tension, and reputational damage linked to worsening water stress.
- Textile wet processing remains one of the industry’s largest drivers of water overuse, wastewater generation, and toxic discharges impacting ecosystems and communities worldwide.
- Uncertainty created by shifting sourcing strategies discourages factories from committing capital to long-term water efficiency and cleaner processing technologies.
- The report Accelerating Water Stewardship Investments in Global Apparel Supply Chains, published by Resilient Water Accelerator, was published recently and includes global insights.
THE STUDY: The Resilient Water Accelerator commissioned research to identify pathways for accelerating finance towards water stewardship in apparel supply chains. Centred on Bangladesh’s garment industry, the study documents case evidence showing that targeted water reuse and efficiency technologies deliver both environmental improvements and measurable cost savings, with some interventions paying back in less than a year.
- Water stewardship practices generate notable financial savings alongside reductions in chemical use, energy demand, and water pollution, boosting both supply chain resilience and sustainability.
WHAT’S AT STAKE: The apparel sector remains one of the heaviest users and polluters of global water resources, producing toxic discharges from dyeing and processing. Without investment in sustainable technologies, both production stability and community water security face severe risks. In Bangladesh, factories face mounting water stress, while weak oversight and minimal buyer engagement leave them under pressure and unable to prioritise improvements.
- Dhaka, home to 23 million people and the garment hub, faces falling groundwater levels of up to three metres annually.
- Roughly 68 million people in Bangladesh remain without reliable, safe water access, leaving communities more exposed to pollution and overuse pressures.
- Low prices enforced by buyers discourage factories from allocating resources to water stewardship, limiting progress particularly for smaller suppliers already struggling financially.
- If unchecked, water crises may mirror India’s Haryana experience, where regulators mandated costly zero liquid discharge measures after worsening pollution and scarcity problems.
WHAT THE DATA SHOWS: The research presents clear numerical evidence demonstrating that investment in water stewardship is both environmentally and commercially effective. Across Bangladesh, between 500 and 700 wet processors could significantly cut costs by adopting cleaner technologies. Yet smaller suppliers struggle to secure loans due to restrictive financing terms. Without standardised green lending instruments, large-scale adoption of proven water-saving solutions remains an unresolved challenge.
- One Bangladeshi facility saved US$ 61,000 annually from a US$ 2,500 investment in water reuse, cutting 45 cubic metres of consumption each year.
- Another reported savings of US$ 39,000 annually after investing US$ 50,000, achieving reductions of more than 49,000 cubic metres of water use.
- NRDC audits found reusing cooling water could return investments in as little as four months, saving up to US$ 1 million annually.
- IFC PaCT’s cleaner production initiative reduced wastewater discharges by more than 24 billion litres in Bangladesh, saving money across nearly 400 factories.
- Some hardware solutions, such as Zero Liquid Discharge systems, eliminate wastewater but require investments of up to several million dollars.
- With current financing gaps, smaller Tier 2 processors cannot access efficiency upgrades, leaving significant environmental and financial opportunities unrealised.
- Simple measures including leak repairs, metering, and improved monitoring can achieve large-scale efficiency gains at low cost, yet adoption remains inconsistent.
