Water performance now shapes sustainability certification outcomes in the apparel sector
Water management has become one of the most decisive sustainability benchmarks in the global apparel supply chain. In IFC's sustainability audits, water is no longer treated as a peripheral compliance issue; it is central to environmental performance, certification outcomes, and export readiness.
We conduct audits across the textile supply chain under internationally recognised sustainability standards, where environmental requirements form a core pillar of assessment. Within this framework, water management receives particular scrutiny. Factories are required to demonstrate full legal compliance, including valid permits, systematic measurement of water consumption, proper record-keeping, and clearly defined targets for continuous improvement. These targets must be reviewed annually, reinforcing the principle that sustainability is an ongoing process rather than a one-time achievement.
Wastewater management is equally critical. Audits place strong emphasis on the effective operation of Effluent Treatment Plants (ETPs), with factories expected to meet all applicable local discharge standards and demonstrate stable, consistent performance. Weak or inconsistent ETP operation is treated seriously, as it directly increases environmental risk and undermines compliance.
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Beyond regulatory requirements, assessments also examine how factories are improving water efficiency, expanding reuse and recycling practices, and managing chemicals in line with international standards. Facilities that successfully reduce water consumption while maintaining strict chemical controls consistently perform better in sustainability assessments. This reflects the growing weight that water stewardship now carries in certification processes.
As global expectations continue to rise, water-intensive factories face increasing risk of audit failure if they do not demonstrate measurable improvement. Buyers and auditors now look for evidence of continuous progress rather than simple regulatory compliance. Weak ETP performance, excessive water use, or inadequate monitoring systems may lead to major or critical non-conformities. If corrective actions are not completed within specified timelines, certification cannot be issued. Water management has therefore become a decisive factor in certification success, not merely an environmental consideration.
Among the interventions most commonly evaluated, ETP performance remains the single most influential factor in overall audit outcomes. A well-managed and properly monitored ETP significantly strengthens a factory's environmental compliance profile. Wet-process optimisation, such as low-liquor dyeing and improved process control, also plays a major role by reducing water consumption while improving operational efficiency. Digital water metering is becoming increasingly important, as it enables accurate tracking, supports data-driven decision-making, and demonstrates a commitment to continuous improvement. Rainwater harvesting further adds value by reducing dependence on groundwater and supporting long-term water sustainability.
Sustainability certifications play a vital role in export readiness. They signal to international buyers that a factory meets globally accepted standards for environmental and social responsibility. Strong water stewardship further enhances buyer confidence by reducing compliance, environmental, and reputational risks. In many cases, robust water practices enable factories to attract higher-value buyers and secure long-term sourcing commitments, strengthening their position in competitive global markets.
Transparent water governance is now non-negotiable. IFC assesses a factory's ability to monitor, track, and report water use and wastewater performance through metering systems, logbooks, laboratory reports, documented policies, improvement plans, and evidence of data analysis over time. We also examine whether this information is actively reviewed and used to guide decision-making. In Bangladesh, gaps are still observed across different components of water reporting, highlighting the need for more systematic and integrated governance frameworks.
For small and medium factories, the main barriers to compliance are financial constraints, limited technical expertise, and, at times, insufficient management focus. Installing and operating effective wastewater treatment and monitoring systems requires significant investment, while trained personnel are often in short supply. Progress will depend not only on stricter regulation but also on access to affordable financing, practical technical guidance, and targeted capacity-building support.
Looking ahead, the urgency of shifting towards responsible water sourcing cannot be overstated. Heavy reliance on groundwater is increasingly unsustainable in water-stressed industrial zones. Over the next decade, the apparel sector must prioritise water efficiency, reuse and recycling, alternative water sources, and stronger environmental governance. These measures are essential not only for certification compliance but also for safeguarding Bangladesh's global competitiveness in apparel manufacturing.
Sabiha Akter is the Southeast Asia Representative of IFC Global Certifications Limited
