Fashion Giant Levi’s Launches Inaugural Climate Transition Plan – ESG News

Key Impact Points:

• Ambitious Net Zero Goal: Levi Strauss & Co. unveils its first climate transition plan aiming for Net Zero emissions by 2050.
• Strategic Focus Areas: The plan centers on improving operations, engaging the value chain, and ensuring robust governance.
• Concrete Targets Set: Targets include a 90% reduction in scope 1 & 2 emissions by 2025 and a 42% reduction in scope 3 emissions by 2030.

Levi Strauss & Co. (LS&Co.) has released its inaugural climate transition plan, outlining a clear roadmap to reduce greenhouse gas (GHG) emissions and achieve Net Zero status by 2050.

Why it matters: Net Zero commitments and transparent transition plans are the corporate gold standard for emissions reduction efforts, signaling a serious commitment to a 1.5-degree pathway transition.

The plan focuses on three key areas:

1. Improving Operations: LS&Co. aims to reduce scope 1 and scope 2 emissions through investments in energy-efficient technology, renewable energy solutions, and integrating climate considerations into partnerships and procurement processes.
2. Engaging the Value Chain: The company commits to working with its global suppliers to mitigate scope 3 emissions. Strategies include setting Science Based Targets initiative (SBTi)-aligned goals for key suppliers, investing in sustainable materials and innovation, and promoting sustainable cotton farming practices.
3. Ensuring Good Governance and Planning: LS&Co. is embedding climate risks and opportunities across the business, seeking third-party expert feedback, and using its influence to advance policies that support the climate transition.

What they’re saying:

“For years, LS&Co. has been deeply engaged in fighting the climate crisis and sought to lead by example in tackling one of the most pressing and urgent issues of our time. 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. 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,” said Jeffrey Hogue, LS&Co.’s chief sustainability officer.

Related Article: AIIB Commits $100 Million to Climate Transition Investments in Emerging Asia

Key targets include:

• 90% absolute reduction in scope 1 & 2 GHG emissions by 2025 from a 2016 base year.
• 42% absolute reduction in scope 3 GHG emissions from purchased goods and services for apparel production emissions related to tops and bottoms by 2030 from a 2022 base year.
• Achieving 100% renewable electricity in all company-operated facilities by 2025.
• 50% reduction in freshwater use in manufacturing in areas of high-water stress by 2025 (against a 2018 base year).

Industry response:

“The climate crisis is only increasing in urgency, and we applaud companies like Levi Strauss & Co. for not only setting clear, ambitious targets aligned to the Paris Agreement, but for also publicly declaring how they’ll make meaningful progress. 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,” said Eliot Metzger, director of sustainable business and innovation at World Resources Institute.

“Climate change cannot be addressed by any single actor, and Ceres was proud to partner with Levi Strauss & Co. to facilitate a multi-stakeholder discussion on how to practically and holistically achieve the necessary emissions reduction across their value chain. Soliciting thoughtful feedback throughout the transition planning process is critical to building an achievable roadmap and we hope Levi’s journey encourages companies in and outside the apparel sector to commit to the same level of transparency,” added Tyler McCullough, Manager of Corporate Climate Action at Ceres.

Looking ahead: LS&Co. plans to update its climate transition plan at least every three years to maintain alignment with the latest climate science and internationally accepted frameworks. The company remains committed to transparency through regular sustainability reporting, focusing on climate, consumption, and community.