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October 26, 2022

Levi Strauss invests in wind energy project to meet goals

Levi Strauss & Co (LS&Co) is joining forces with Walmart Inc, Orsted, Schneider Electric and others on an investment project for renewable wind energy it says will allow it to meet its long-term energy goals.

By Hannah Abdulla

Levi Strauss and a coalition of other organisations have launched what it calls a first-of-its-kind initiative to purchase up front a percentage of the renewable energy that will be produced by the Sunflower Wind Farm in Kansas over the next 12 years, which equates to approximately 250,000 MWh of wind power annually. 

The Gigaton Power Purchasing Agreement (GPPA) will allow Levi Strauss & Co to meet its own long-term energy goals with the denim brand adding it is an indication of how partnerships are critical to making real progress on initiatives designed to reduce emissions and slow climate change.

The agreement will help ensure the long-term viability of the wind farm, which supports the broader wind power industry, and secures a consistent supply of renewable energy that will cover the majority of the brand’s electricity needs for its owned-and-operated facilities in the U.S. and Canada for 12 years, beginning in 2024.

Specifically for Levi Strauss, it will accelerate its progress to reduce Scope 1 and 2 emissions by 90% by 2025, a commitment it announced earlier this month.

The group says that as of 2021 it has achieved an absolute reduction of 66% against its 2016 baseline. With this deal in place, it can anticipate further reductions primarily through a long-term pricing agreement rather than an outsized dependence on market-value renewable energy credits to offset its energy use.

“By working together with other companies on this project, our collective purchasing power is creating a pathway for clean energy,” said Pavan Pamidimarri, senior vice president of finance for operations and sourcing at Levi Strauss & Co. “This agreement will not only bring an energy alternative to market; it also enables LS&Co. to make an investment that delivers on our commitment to meeting our own goals for renewable energy use in our company-operated facilities.”

“The Sunflower Wind Farm and the GPPA serve as reminders that innovative solutions are available to help companies like LS&Co. — and many others — make progress toward our climate goals,” said Jeffrey Hogue, Levi Strauss & Co chief sustainability officer. “While our Scope 1 and 2 emissions make up a small portion our overall carbon footprint, it’s critical we continue to leverage creative solutions to achieve our goal in our company-operated facilities.”

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