Financial implications of addressing water-related externalities in the apparel sector

The apparel industry withdraws over 215 billion cubic meters of water annually (Quantis 2018), which is equivalent to the total annual water withdrawals of Indonesia in 2017 (World Bank). The sector is responsible for polluting 20% of the globe’s freshwater (The Sustainable Business Group 2015), triggering global water shortages and water quality problems that impact social, economic, and ecosystem health (Al Jazeera, 2021).