The weather is no longer just small talk—it has become an unpredictable force reshaping global industries. Climate volatility is increasingly affecting farmers, textile manufacturers and brands, disrupting supply chains and challenging long-term planning.
On Friday, the OECD hosted a panel of textile and agricultural experts for the webinar, “Developing Resilience in the Textile Supply Chain Against Climate Change-Induced Disasters.” The discussion highlighted how climate-related risks are no longer distant concerns, but immediate business realities requiring coordinated, cross-sector solutions.
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“It’s very clear that climate change is no longer a distant threat. It’s a present and escalating reality. It’s amplifying risks across the textile value chain and placing increasing strain on the natural systems that underpin production, like water, soil health and biodiversity,” said Payal Luthra, WWF global apparel and textiles lead. “And for this sector, there is nothing abstract about this.”
When cotton yields decline due to drought and floods, business continuity is disrupted. Luthra said textile supply chains must become resilient—to anticipate, withstand, recover from and adapt to climate related shocks. For farms and factories, she said resilience depends on the strength of the broader system in which they operate.
“Businesses rely on healthy ecosystems, functioning infrastructure and stable communities. When those foundations weaken, supply chains become fragile. Building resilience therefore requires system wide approaches, restoring natural systems, supporting communities, embedding climate adaptation into sourcing and investment decisions, and strengthening collaboration throughout,” she said.
Though it’s a region vulnerable to climate impact, WWF recognizes the importance of cotton in Pakistan. For over two decades, the wildlife conservation and environmental protection organization has trained farmers through organic cotton, BCI cotton and most recently regenerative cotton programs. Environmental compliance is also a focus area, particularly as Pakistan’s major experts go into the European market, according to Sohail Ali Naqvi, director of WWF-Pakistan.
WWF’s vision is to “catalyze systemic change across the sector, creating positive outcomes for people nature and business, from advancing nature positive agriculture to strengthening water stewardship and decarbonization and manufacturing to implementing nature-based solutions and surrounding landscapes,” Luthra explained. Deeping the organization’s understanding of the perspectives and challenges of farmers, suppliers and workers are key.
Floods in Pakistan in 2022 and 2025 “exposed the structural vulnerability of the supply chain,” said Akbar Ali Rajwani, Artistic Milliners CSR manager. He added how the catastrophic events brought attention to climate sensitive agriculture and national infrastructure, in general.
For Artistic Milliners, the floods resulted in raw material instability. Rajwani said Artistic Milliners recovered just 20 percent of its regenerative cotton yield in 2022. Additionally, the denim manufacturer had to contend with inconsistent quality and sharp price volatility.
“In denim manufacturing, cotton is the foundation. It is a is a cash crop for us. Disruption at the farm level is quickly translated into cost pressure and sourcing [uncertainty] and production planning challenges,” he said.
Additionally, the floods disrupted Pakistan’s logistic infrastructure. Flooded roads prevented farmers from transporting their crops, which disrupted the movement of yarn and fabric to processing units. As a result, production slowed and export shipments were delayed, creating further challenges across the supply chain. In a globally integrated market—where delivery obligations are critical—such disruptions strain both business relationships and contractual commitments, Rajwani said.
Climate issues are global. Sixth-generation farmer Cannon Michael in California’s Central Valley discussed the complexity of farming, from fluctuating prices and pest pressures to the increasing impacts of climate change. Though California has a history of wet and dry periods, Michael said the region is grappling with extremes. “It’s all just being magnified,” he said.
Managing soil health and inputs like water and installing drip irrigation helps stabilize the yield and quality of cotton. Additionally, strong partnerships have reduced some risk.
“Working with good partners who want to support the work that we’re doing is very, very helpful, because these investments are major investments,” Michael said, adding that the installation of solar panels and drip irrigation were million-dollar investments to help bolster climate resilience and to ensure that its business has a future.
“You certainly want to work with partners who acknowledge that the climate issues are concerning to them and also worker health and safety and environmental health,” he said.
Bergman/Rivera, a Peruvian family-owned company involved in the production and promotion of cotton, is familiar with climate risks. One year a cyclone wiped out 30 percent of farmers’ production. Then El Nino attacked the yields and quality of the fibers, and then there was a drought, which Mariela Calderon, Bergman/Rivera project manager, said prevented farmers from planting.
“The farmers are at a complete risk financially, and that’s where we come in. We try to give the farmers the security and stability to work with their crops and find the brands and market that will face these challenges with them,” she said.
From the beginning, Calderon said the firm’s project was rooted in honoring the way their ancestors cultivated cotton without pesticides and with full transparency throughout the supply chain. In 2010, Bergman/Rivera chose to deepen its involvement with farmers by implementing practices designed not only to improve their well-being, health and income, but also to monitor climate impact and environmental data more closely. Through this process, the company discovered a new way of working with cotton.
“What we do is we give financial aid, technical assistance and inputs to the farmers so they can grow the cotton,” she said.
Instead of viewing cotton as a commodity, Bergman/Rivera views the fiber as a vehicle for transformation. Calderon noted that when farmers grow cotton organically, under fair trade principles, and measure their environmental impact, it becomes more than a cash crop—it becomes a stepping-stone toward greater opportunities and more profitable diversification. This approach enables farmers to improve their livelihoods and build a more secure future.
By 2018, Bergman/Rivera introduced regenerative cotton pilot and were certified two years later. “We decided to bring on board brands to meet the farmers, get to connect with them…not just the cotton itself,” Calderon said. While many brands began their sustainability efforts through storytelling, Calderon said storytelling is not enough.
“We need fact telling, and we need to connect all the actors in the supply chain, especially the most vulnerable, which are the farmers,” she said.
