The move is aimed at encouraging textile and apparel suppliers to improve energy and water efficiency and reduce greenhouse gas emissions.

It builds on IFC and Levi Strauss & Co’s 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.

Now, suppliers that meet Levi Strauss’ 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.

Jeffrey Hogue, chief sustainability officer for Levi Strauss, says the partnership will bring added incentives to forward-looking suppliers.

“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,” he adds.

IFC and Levi Strauss 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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The programme provides in-depth assistance to around 40 Levi Strauss 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,” saysTomasz 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.”

Earlier this month, Levi Strauss & Co joined the Trust Protocol as part of its commitment to sourcing 100% more sustainably grown cotton.