US' Levi Strauss & IFC partner to encourage supplier sustainability

The initiative builds on IFC and Levi Strauss & Co’s (LS&Co) existing work together through the global Partnership for Cleaner Textiles (PaCT) and IFC's Global Trade Supplier Finance (GTSF) programme, which can offer working capital, such as trade financing, at lower rates to suppliers in compliance with environmental and social standards, the two entities said in a joint press release.

Suppliers that meet LS&Co's terms of engagement requirements and have made sufficient progress implementing low-carbon investment plans will be eligible for further discounted rates. The overarching goal is to provide an additional positive incentive for suppliers to make investments that can protect against climate change, reduce water use and keep harmful chemicals out of the supply chain.

"We're excited to expand our partnership with IFC and bring added incentives to forward-looking suppliers," said Jeffrey Hogue, LS&Co chief sustainability officer. "Working with a highly respected organisation to make sustainability-linked supply chain financing solutions available will help us meet our own sustainability goals and, ideally, help drive a more sustainable apparel industry."

IFC and LS&Co launched their global PaCT partnership in 2019, supporting participating suppliers and mills in identifying and implementing actions to improve water and energy efficiency and increase their use of renewable energy – steps that can reduce greenhouse gas emissions, water use, and overall operational costs.

The programme provides in-depth assistance to around 40 LS&Co suppliers across countries including Pakistan, Bangladesh, Sri Lanka, India, Mexico, Turkey, Egypt and Vietnam, while also providing ‘lighter touch’ support to other strategic suppliers that are developing action plans for reducing their carbon footprints.

"Such partnerships are essential when it comes to tackling some of the most difficult business challenges of our time," said Tomasz Telma, IFC senior director for global industry manufacturing, agribusiness and services. "This includes addressing climate change risks impacting a company's business operations and meeting ambitious sustainability targets. We are excited about this next phase of our work with Levi Strauss."

Fibre2Fashion News Desk (KD)