Toronto Star

Levi’s to slash emissions in global supply chain by 2025

Retailer to reform factories and mills in 39 countries, starting with first-tier suppliers

- ERICA E. PHILLIPS THE WALL STREET JOURNAL

Levi Strauss & Co. is launching an effort to slash the environmen­tal impact of the factories worldwide that make its apparel and accessorie­s.

By 2025, the denim brand wants to cut greenhouse gas emissions by 40% in its supply chain, a sprawling set of thirdparty factories and mills in 39 countries that produce the bulk of its merchandis­e, from its iconic jeans to T-shirts, jackets and other goods.

Levi’s Vice President of Sustainabi­lity Michael Kobori said the company will start by implementi­ng energy-efficiency programs at about 60 of the more-than 500 vendors in the first tier of its supply chain—the suppliers the company works with directly. He said those vendors represent the biggest share of both the brand’s production volume as well as its carbon footprint.

Many of those factories also produce apparel for other brands and retailers, and Mr. Kobori said Levi’s wants to set an example for its peers. “We really want to encourage our industry colleagues in the apparel sector to join us,” he said. “We want to have an outsize impact beyond our own footprint.”

Across many industries, sup- port has been growing in recent years for broader, collective efforts to address sustainabi­lity and fair labour standards in supply chains. The Consumer Goods Forum, which counts hundreds of the top global retailers and manufactur­ers as members, seeks to develop and implement sustainabi­lity and labour standards worldwide. EcoVadis vets supply chains for about 150 global firms, including Johnson & Johnson, Nestlé SA and Verizon Communicat­ions Inc.

Levi Strauss is planning to follow programs developed by the Internatio­nal Finance Corporatio­n’s Partnershi­p for Cleaner Textiles at its supplier factories. Levi’s emissions targets were approved by the Science Based Targets initiative, a consortium of business and environmen­tal groups aimed at setting standards for environmen­tal plans for companies.

Yossi Sheffi, director of the Massachuse­tts Institute of Technology’s Center for Transporta­tion & Logistics, said common standards set through col- laboration across supplier networks are more likely to stick than varying targets for different vendors. “You have leverage, you don’t make suppliers crazy with different requiremen­ts and you can audit it,” he said.

But there’s still concern that having more companies participat­ing could dilute the requiremen­ts to the “lowest common denominato­r,” he said.

As part of the new sustainabi­lity push, Levi is also committing to use 100% renewable energy and reduce emissions by 90% in its own facilities. But Mr. Kobori said changing practices at its supplier factories will have more of an impact. “It’s a bigger footprint,” he said. “So there’s a big opportunit­y.”

Mr. Sheffi said it can be extremely difficult for companies to calculate their total carbon emissions because the true impact stretches beyond the factories and even fabric mills to raw materials providers and transport operations. The basic production of denim material also uses large amounts of water and produces chemical runoff.

“When they say ‘supply chain,’ I’d ask, ‘How deep in the supply chain?’” he said. “If it’s tier 1, do you even know your tier 2, 3, 4, or 5 suppliers? Would they even talk to you?”

 ?? JEFF CHIU/THE ASSOCIATED PRESS FILE PHOTO ?? As part of the new sustainabi­lity push, Levi is also committing to use 100% renewable energy and to reduce emissions by 90% in its own facilities.
JEFF CHIU/THE ASSOCIATED PRESS FILE PHOTO As part of the new sustainabi­lity push, Levi is also committing to use 100% renewable energy and to reduce emissions by 90% in its own facilities.

Newspapers in English

Newspapers from Canada