The IFC, a part of the World Bank, and Levi’s have partnered to provide financial incentives to garment suppliers to improve the sustainability standards of their production facilities.
The IFC and Levi Strauss & Co. have joined forces under the Global Trade Supplier Finance program to offer low-cost loans to garment suppliers in developing countries, to help them upgrade their facilities and processes to be more sustainable. The program already includes six of Levi’s Asian suppliers , and will continue to expand with the objective of rewarding garment suppliers with low-interest loans in accordance to their performance on social and environmental issues. The higher a supplier scores on the Terms of Engagement, the lower their interest rates will be.
Apart from offering suppliers much-needed financing, the program also offers suppliers a way of differentiating themselves from competitors through upgrading to have better environmental and social performance. The partnership aims to create a sustainability “race to the top” within the Levi’s supply chain and in the garment industry as a whole.
Why you should care
Access to low-cost financing is a challenge for manufacturers in the garment industry. The IFC and Levi Strauss & Co. have structured their partnership to provide this financing and also incentivize vendors to improve their sustainability performance.
How the Global Goals are addressed
Decent Work and Economic Growth
The program supports investment in better working conditions for the many low-skilled workers in the garment industry, and contributes to boosting the local economy.
Industry, Innovation and Infrastructure
Access to low-cost financing is an advantage for suppliers in constant competition, and this partnership ensures that such financing is contingent on improved social and environmental standards.
Responsible Consumption and Production
The partnership ensures production facilities and processes have improved working conditions and reduced environmental impacts, resulting in more sustainable garment options for consumers.
Life on land
Impossible Food claims to use 99% less land for producing their burgers compared with traditional beef burgers, which need both grazing space and agricultural land to grow livestock feed.
About Levi Strauss & Co.
Levi Strauss & Co. is a privately owned American clothing company known worldwide for its Levi’s brand of denim jeans.
About International Finance Corporation
The International Finance Corporation is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries.
Levi Strauss & Co.
International Finance Corporation
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Global Goals addressed
