Energy

Climate Change Strategy, Targets, and Progress

Levi Strauss & Co. recognizes that human-produced greenhouse gas emissions are a key contributor to climate change – perhaps one of the greatest challenges of our time. Climate change mitigation is vital to the long-terms success of our business, as well as the health and well-being of the people who make and buy our products. This is why we measured our baseline global climate footprint in 2007 and established a goal to reduce it by 11% by 2011.  We beat that goal, achieving a 13% reduction.

And when it comes to the next stage in our climate change strategy, our ambitious approach is no exception to our legacy: our vision is to reduce carbon dioxide and other greenhouse gases through maximizing energy efficiency and using 100% renewable energy – first in our operations and then throughout the supply chain.

Our new global targets address every major source of our corporate emissions.  This involves engagement at every level of the company, from the front-line employees who operate our stores and make our products, to our financial managers and building operators.  We are committed to transforming our operations and moving towards long-term change in how we do business.

• Offices, Retail, and Distribution: 25% reduction in greenhouse gas emissions by 2020
• Manufacturing: 5% annual reduction in greenhouse gas emissions per product shipped
• All LS&Co.: 20% of energy purchases from renewable sources by 2020

Learn more in our Climate Change Strategy.

Public Policy Leadership

We have been, and will continue to be, outspoken champions for public policies aimed at reducing greenhouse gases. Through participation in the Business for Innovative Climate and Energy Policy (BICEP), we have joined other global companies in calling for leadership and support from the U.S. Administration and Congress to develop energy and climate legislation that promotes energy efficiency, encourages energy and climate innovation, and reduces overall greenhouse gas emissions.

Greenhouse Gas Inventories and Assessments

We are committed to tracking and reporting our greenhouse gas (GHG) emissions.  Our first GHG inventory was conducted in 2006 and included all energy usage and GHG emissions from facilities located in our Americas region.  In 2007, we expanded our inventory to include facilities from all regions. Both 2006 and 2007 inventories were verified by a third party organization that was approved by the EPA Climate Leaders Program and CPA Climate Leaders Program (respectively).

Since 2008, we have annually reported our GHG inventory to the Climate Disclosure Project (CDP). Each inventory is verified by a third party under The Climate Registry General Reporting Protocol and publicly available on The Climate Registry’s website.

In 2010, Levi Strauss & Co. was selected as one of 60 companies worldwide to road-test two new protocols to measure GHG emissions. One was designed to measure the climate change impact of a product and the other to measure the climate change impact of our entire supply chain. These protocols were created by the World Resources Institute and World Business Council for Sustainable Development and have been finalized as of October 2011.

Facilities and Retail Stores

We’ve made a commitment to improve energy efficiency in all of our owned and operated facilities and retail stores. From next-generation lighting systems to maintenance programs that increase the efficiency of heating, ventilation and air conditioning (HVAC) units, we’re pursuing innovative solutions that reduce energy consumption and minimize our contribution to climate change.

• Manufacturing facilities and distribution. We performed energy audits at our owned and operated manufacturing facilities and distribution centers to identify ways to reduce energy consumption. From 2007 to 2010, energy use at these two facility types decreased by over 9% and 21% (respectively).
• Retail stores. Since 2007, average kWh/ft at our U.S. retail stores has declined by over 36% by deploying high-efficiency lighting systems that yield aggregate energy savings of anywhere from 20% to 40%.
• Global headquarters. The Levi Strauss & Co. headquarters in San Francisco has undergone an extensive remodel that featured a wide-array of eco-friendly upgrades including recycled denim insulation throughout the building, upcycled flooring, daylight harvesting light fixtures and sensors, high-efficiency plumbing fixtures, and furniture and construction materials that were either recycled or locally sourced.

Logistics and Supply

Examining energy use in our transportation logistics and global supply chain is essential to our goal of minimizing impact and creating a more sustainable business.

• U.S. inbound logistics. In 2008, we reduced our fuel usage, and consequently, our greenhouse gas emissions in some of our shipping lanes by 50-60%. We did this by using a mixture of trains and trucks for our U.S. domestic transportation. We are now expanding our use of intermodal transport in other routes.
• Supply chain. We have deployed a new information management system that enables us to collect and track our suppliers’ energy use data, and optimize our data collection. We have also been working closely with NGOs and our supply chain partners on a variety of initiatives to reduce our carbon footprint across our supply chain:
  - World Wildlife Federation Low-Carbon Manufacturing Program - China
  - Business for Social Responsibility Energy Efficiency Partnership - China
  - Natural Resources Defense Council Responsible Sourcing Initiative - China
  - Cleaner Production Partnership Program - China
  - Better Factories Cambodia / International Finance Corporation Energy Work - Cambodia
  - International Finance Corporation - Bangladesh

Customer Use

In 2007, we performed a lifecycle assessment of our Levi’s® 501® jeans and Dockers® Original Khakis. Over 400 MJ of energy are consumed during the full product lifecycle of a pair of Levi's® 501s®, with sources ranging from factory operations to heating water for warm washing at home. In response, we launched three initiatives:

• A Care Tag for Our Planet. A first for a retailer, Levi’s® new Care Tags on our products encourage consumers to “wash in cold, line dry when possible and donate used clothes to Goodwill when no longer needed.
• Care to Air Design Challenge.  Our recent “Care to Air” design challenge was the latest "Care Tag" initiative to engage consumers by putting out the call to designers and eco-innovators around the world to “hang out” their best ideas for air drying clothes.
• P&G Coldwater Tide & Signature by Levi Strauss & Co.™ In 2009, we partnered with Alliance to Save Energy and Procter & Gamble, makers of Tide Coldwater, to co-promote our Signature by Levi Strauss & Co.™ jeans in 1,500 Walmart stores, encouraging consumers to save energy by washing their jeans in cold water.