Levi Strauss & Co. (LS&Co.) pledges net zero emissions by 2050 in the company’s first climate transition plan.
The roadmap outlines how the San Francisco-based company will reach its near-term greenhouse gas (GHG) emissions reduction target by 2030 and its goal of being a net zero company by 2050. Improving owned operations, working with suppliers to mitigate Scope 3 emissions and following a holistic business approach through responsible governance and planning are part of denim behemoth’s strategy.
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“Our climate transition plan embodies our commitment to doing our part, reaching our targets, and working with partners across our value chain to enable collective action to address climate change,” said Jeffrey Hogue, LS&Co.’s chief sustainability officer. “These steps will not only move us toward our net zero climate ambition by 2050, but also strengthen our own business’s resilience to the effects of climate change.”
In its own facilities, LS&Co. plans to invest in energy efficient technologies and renewable technology, seek certifications through the U.S. Green Building Council’s LEED green building program and collaborate with utility companies and landlords on decarbonization. A global energy management system to over 1,300 company-operated locations around the world, has informed the company about its energy usage, while partnerships with Wal-Mart and others have secured the Gigaton Power Purchasing Agreement, a virtual power purchasing agreement in the U.S.
The company will integrate climate change KPI’s into its partnerships and procurement processes as well.
The climate transition plan will likely bring LS&Co. closer to its suppliers as the company plans to set climate targets for key suppliers that align with the SBTi and facilitate financing for some suppliers to invest in energy and emission reductions and energy audits. To date, LS&Co. said key suppliers responsible for approximately 80 percent of its final product volume have agreed to emission reduction targets between 40-60 percent.
Additionally, LS&Co. said it will continue to invest in materials that are third-party certified as more sustainable and supports circularity. Levi’s Circular 501 jeans and Plant-based 501 jeans are the result of the brand’s efforts.
To ensure the climate transition plan is integrated across the entire business, LS&Co. will embed climate risks and opportunities into its annual plans, seeking third-party expert feedback on the development and implementation of the plan and using its influence and partnerships to advance policies that support the climate transition. The company’s long-term plan is to link executive compensation to climate and transition plan-related considerations relevant to job functions.
Closer on the horizon, the company is working toward a 90 percent absolute scope 1 and 2 reduction in GHG emissions by 2025, a 42 percent absolute scope 3 GHG emissions reduction from purchased goods and services for apparel production emissions related to tops and bottoms by 2030 and 100 percent renewable electricity in all company-operated facilities by 2025. Additionally, LS&Co. aims to half its freshwater use in manufacturing in areas of high-water stress by 2025.
The company’s path to 2030 has been optimized to deliver the most achievable and impactful solutions. By accelerating what works like establishing new industry partnerships and future-proofing designs with more recycled fibers, LS&Co. is chipping away at its larger pursuit of reaching net-zero by 2050.
A transition plan stakeholder workshop helped inform the plan, which LS&Co. said aligns with the “latest and most ambitious climate science,” as well as the Task Force on Climate-Related Financial Disclosure (TCFD), the CDP, and the We Mean Business Coalition reporting frameworks.
Eliot Metzger, director of sustainable business and innovation at World Resources Institute, participated in the workshop. “In a time where companies may be tempted to stay quiet on sustainability efforts, it’s important to push for this level of transparency. A climate transition plan allows all stakeholders to understand how the company will work together with its value chain. I urge companies to focus on people, inside and outside the company, who will be critical partners in achieving the transition plan,” Metzger said.
