Levi: Traceability, Cotton, and Collaboration: Levi Strauss & Co.'s Drive for More Sustainable Agriculture

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PDF is from Michael Kobori, VP Social and Environmental Sustainability, Levi Strauss & Co.

From the 2010 Responsible Supply Chains Conference at Stanford Graduate School of Business: http://www.gsb.stanford.edu/scforum/ser/conference
For more resources from previous years:
http://www.gsb.stanford.edu/scforum/ser/conference/resources.html

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Levi: Traceability, Cotton, and Collaboration: Levi Strauss & Co.'s Drive for More Sustainable Agriculture

  1. Traceability, Cotton, and Collaboration: Levi Strauss & Co.’s Drive for More Sustainable Agriculture Stanford GSB: Socially and Environmentally Responsible Supply Chain Conference April 29, 20101 | CONFIDENTIAL
  2. Apparel Supply Chain Materials Raw Manufacture Product Materials Manufacture NEW CAPABILITIES End Transportation Disposition Recycling Use & Distribution2 | CONFIDENTIAL
  3. Product Lifecycle Impact of Studied Levi’s 501 Jean ® ® Is Equivalent To: • 78 miles driven by the average auto in the United States • The carbon sequestered by six 32.3 kg of CO2 trees per year (based on EPA representative sequestration rates of tons of carbon per acre per year) • Running a garden hose for 106 minutes • 53 showers (based on 7 3480.5 liters of water minute showers) • 575 flushes of a 3.78 liter/flush low flow toilet • Watching TV on a plasma screen for 318 hours 400.1 MJ of Energy • Powering a computer for 556 hours, which is equivalent to 70 work days (based on 8 hours of computer use per day) Data from LS&CO.’s Life Cycle Assessment on Levi’s® 501® jean for U.S. Market, 2006 production year3 | CONFIDENTIAL
  4. Environmental Impact Global Warming per kg garment 25 Key Takeaway: 20 kg CO2 It is not enough to focus 15 10 on what we control, 5we need to address cotton and 0 fe consumers ce s e ic h il n re ta us - li tto s br ffi ni Re of nt Fa Co O s /fi d- Ce an ew en Je n t/s t io s an Cu bu Je tr i s Di Water use per kg garment 2500 2000 kg water 1500 1000 500 0 fe ce s e ic h il n re ta us - li tto s br ffi ni Re of nt Fa Co O s /fi d- Ce an ew en Je n t/s t io s an Cu bu Je Data from LS&CO.’s Facilities Environmental Impact tr i s Assessment (FEIA) and 2007 Life Cycle Assessment of Di Levi’s® 501® Jean. 4 | CONFIDENTIAL
  5. Social Impact: Uzbek cotton Posted by IWR Report September 25, 2009 Child labour in Uzbek cotton fields: Photo by EJF.5 | CONFIDENTIAL
  6. Challenges • Uzbek cotton situation challenges values, standards • Complex, opaque cotton supply chain. • Company uses less than 1% of global cotton production. How to achieve more sustainable cotton production?6 | CONFIDENTIAL
  7. Our Approach • Support multi-stakeholder efforts to address Uzbek cotton • Establish process to trace origin of cotton • Support Better Cotton Initiative and bring more sustainable cotton into our products7 | CONFIDENTIAL
  8. Uzbek Cotton Initiative • Unique collaboration of socially responsible investors, brands, NGOs • Brands have committed to not source Uzbek cotton • Joint action to influence international organizations and Uzbek government to end forced child labor practices8 | CONFIDENTIAL
  9. Traceability Systems: Historic Futures • Web-based system to trace origin of various types of products---jewelry, cotton • Enables actors in supply chain to request documentation from earlier actor in chain • Reasonable cost • Used by global brands, retailers (Levi Strauss & Co., Ikea, Marks & Spencer, Tesco, Wal-Mart)9 | CONFIDENTIAL
  10. Better Cotton Initiative • Goal: Change the way all cotton is grown worldwide so it is more sustainable (environmental, social, economic) • Members: Retailers, brands, supply chain actors, farmers, NGOs • Model: Support farm-based projects to produce Better Cotton. Brands then ensure uptake and integration into product.10 | CONFIDENTIAL
  11. Collaboration Lessons Success Factors Opportunities • Focus on results on • Complex supply the ground chains • Agree on objectives • Securing leadership • Be willing to act, and support lead! • Costs It is an exciting time: Consumer and societal expectations of companies are changing. You can lead, influence and benefit from the change or be left behind.11 | CONFIDENTIAL

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