Levi Strauss and IFC Partner in US to Encourage Supplier Sustainability
The initiative builds on the existing collaboration of IFC and Levi Strauss & Co (LS & Co) under the Global Partnership for Cleaner Textiles (PaCT) and IFC’s Global Trade Supplier Finance (GTSF) program, which can offer working capital, such as trade finance, at lower prices to suppliers while respecting environmental and social standards, the two entities said in a joint statement.
Suppliers who meet LS & Co’s terms of engagement and have made sufficient progress in implementing low carbon investment plans will be eligible for additional discounted rates. The overall goal is to provide an additional positive incentive for suppliers to make investments that can protect against climate change, reduce water consumption, and keep harmful chemicals out of the supply chain.
“We are delighted to expand our partnership with IFC and offer additional incentives to forward-looking suppliers,” said Jeffrey Hogue, Director of Sustainable Development at LS & Co. “Working with a well-respected organization to deliver sustainable supply chain finance solutions will help us meet our own sustainability goals and, ideally, help create a more sustainable apparel industry. “
IFC and LS & Co launched their global PaCT partnership in 2019, helping participating suppliers and factories identify and implement actions to improve water and energy efficiency and increase their use of renewable energy – measures that can reduce greenhouse gas emissions, water consumption and overall operational costs.
The program provides in-depth assistance to around 40 LS & Co suppliers in countries such as Pakistan, Bangladesh, Sri Lanka, India, Mexico, Turkey, Egypt and Vietnam, while also providing support “Lighter” to other strategic suppliers who are developing action plans to reduce their carbon footprint.
“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 Manufacturing, Agribusiness and Global Industry Services. “This includes managing the risks associated with climate change that impact a company’s business operations and achieving ambitious sustainability goals. We are excited about this next phase of our work with Levi Strauss. “
Fibre2Fashion Press Office (KD)
To encourage suppliers to improve their energy and water efficiency and reduce greenhouse gas emissions, the World Bank’s International Finance Corporation (IFC) and American brand Levi Strauss & Co have stepped up their joint efforts to offer lower interest rates to suppliers who demonstrate progress in meeting the brand’s climate commitments.