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Why Climate Risk Is Moving Up the Agenda for Fashion Investors

New regulations would make it easier for investors to consider companies’ environmental footprint when deciding which businesses to back.
Droughts that threaten cotton crops, flooding in manufacturing hubs like Bangladesh and increasingly frequent wildfires are among the climate risks fashion investors are watching.
Droughts that threaten cotton crops, flooding in manufacturing hubs like Bangladesh and increasingly frequent wildfires are among the climate risks fashion investors are watching. (Shutterstock)
By
  • Whitney Bauck

Fashion executives looking to raise money are schooled in talking up their sales projections, brand penetration and sell-through rates. But increasingly, there’s a new metric investors want to know about: exposure to climate risk.

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