WASHINGTON – IFC, a member of the World Bank Group, and Levi Strauss & Co have signed an agreement that will help Levi’s reduce greenhouse gas emissions and water use in its supply chain. IFC will work with 42 LS&Co. suppliers and mills in ten countries to implement renewable energy and water-saving interventions that will cut GHG emissions. The work, which will take place in Pakistan, Bangladesh, Sri Lanka, India, Mexico, Lesotho, Colombia, Turkey, Egypt, and Vietnam, will incorporate IFC’s Partnership for Cleaner Textiles approach for reducing resource consumption and wastewater pollution. IFC and LS&Co. are jointly contributing to the costs for implementing the agreement.
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IFC will assess supplier and mill facilities to identify actions that can be taken to bring about environmental benefits — including reduced emissions, improved water efficiency and wider adoption of renewable energy supply options.
“Levi’s strong commitment to sustainability makes it an ideal partner for IFC,” said Tomasz Telma, senior director of manufacturing, agribusiness and services at IFC. “This cooperation agreement shows how IFC can deliver advisory and investment products that help our partners strengthen the sustainability of their supply chains.”
“We are thrilled to be partnering with the IFC to help achieve our science-based climate targets and benefit our vendors and their communities,” added Liz O’Neill, executive vice president, global product and supply chain, at Levi’s. “We hope this program can also benefit others in the apparel industry and help reduce our collective footprint.”
In 2017, IFC and LS&Co. launched a pilot cooperation agreement that helped six Levi’s. suppliers in four countries – Bangladesh, India, Sri Lanka, and Vietnam – cut their carbon footprint by 19 per cent and reduce energy and water consumption, leading to significant savings in operating costs. IFC has also been working with Levi’s to provide financial incentives for garment suppliers in developing countries to upgrade environmental, health and safety and labor performance through its Global Trade Supplier Finance program.