Home / Knowledge / News / Apparel/Garments / Levis & IFC team-up to finance garment unit upgrades
Levis & IFC team-up to finance garment unit upgrades
07
Nov '14
Iconic denim apparel marketer - Levi Strauss & Co has partnered with IFC, a member of the World Bank Group to provide financial incentives for garment suppliers in developing countries.

This new supplier finance program, which was announced at the ILO/IFC Better Work Buyers’ Forum in New York City, will help garment factories upgrade environmental, health and safety and labour standards.

IFC’s Global Trade Supplier Finance (GTSF) program has performance ratings attached to its short-term and low cost loans, for those borrowers which score strong performance ratings under Levi Strauss’s environmental and social monitoring system.

“Specifically, this pioneering program will reward vendors that score higher on Levis Strauss ‘Terms of Engagement’ (ToE) assessments, which measure labour, health and safety, and environmental performance,” a press release from IFC informs.

The GTSF program will offer these vendors lower cost rates on working capital financing and higher the vendor’s TOE score, the more they will save.

David Love, Levi Strauss & Co. Chief Supply Chain Officer said, “Levi Strauss believes vendors that score highly on our strict standards, should be recognized and rewarded in ways that allow them to reinvest in their business and improve their sustainability performance.”

“This innovative program provides financial incentives to our vendors who perform well on sustainability metrics. We applaud the IFC for establishing this program and look forward to partnering to make it a success on the ground,” he adds by saying.

“Our experience shows that strong environment and social management correlates with stronger financial performance. Levis is the first major buyer to partner with a financial institution to offer its suppliers a direct financial incentive to improve compliance,” Alzbeta Klein, IFC Director reveals.

IFC provides financing to ready-made garment suppliers through its GTSF program, which provides working capital to suppliers backed by receivables from international buyers.

Supplier finance is a scalable way for suppliers in emerging markets to access affordable financing for their receivables over a period defined by the terms of credit.

Established in 2010, GTSF is a $500 million multicurrency investment and advisory program that provides short-term finance to emerging-market suppliers and small and midsized exporters.

IFC invests in this sector because it is a provider of formal jobs for low-skilled workers that can make an important contribution to poverty reduction in developing countries. IFC’s support to the industry includes its engagement through the Better Work joint-venture program with the ILO.

IFC and Levi Strauss launched this initiative in partnership with GT Nexus, a cloud-based business network and platform for global trade and supply chain management, whose platform optimizes flow of goods, funds and trade information. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 8th Dec 2016

China’s economy on track to meet growth expectations

China’s GDP has grown at 6.7 per cent in the first three quarters of...

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search