Levi’s 501’s

Levi’s Dreams Big to Lead Change in the Fashion Industry

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By 2025, the world’s oldest jeans brand will make all of its products from 100 per cent sustainable cotton as part of an ambitious plan to “close the loop” on its supply chain.

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Levi’s plans for 100,000 factory workers to be enrolled in its Worker Well-being programme in 11 countries, representing 60 per cent of its production volume. Image: Levis Strauss

Levi Strauss is dreaming big to close the loop on its manufacturing supply chain, and is looking to revolutionise the apparel sector with ideas that could shakeup the conventional notion of a fashion brand.

By 2025, the world’s oldest jeans brand plans to manufacture all of its products from sustainable cotton.

So in just eight years, the family-run US$4.5 billion firm will use less cotton sourced from cotton fields to make its famous 501s, relying instead on old clothes from people’s closets.

There is just one minor obstacle, though. The technology to turn worn cotton into a quality material that looks like denim hasn’t been invented yet.

But Michael Kobori, the vice president of sustainability at Levi’s, is the optimistic sort. “Anything is possible,” he tells Eco-Business.

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Michael Kobori, vice president, global sustainability, Levi Strauss

Currently, just a fraction of all the cotton Levi’s uses comes from recycled sources, with the rest coming from virgin cotton. To raise the ratio of recycled material will depend on innovations in science.

Recycling cotton involves first chopping up the unwanted clothes. This degrades the quality of the material, so only a limited amount can be used again to make new garments.

Levi’s is working with the technology sector to find a solution, and in May last year announced a venture with Seattle-based tech firm Evrnu to produce the first jeans made from regenerated post-consumer cotton waste.

A prototype was made from five discarded cotton t-shirts, and with 98 per cent less water than virgin cotton products.

Though some virgin cotton was used, Levi’s is claiming it is a breakthrough for a sector that, in the US alone, creates 13.1 million tonnes of textile waste a year, 11 million tonnes of which ends up in landfill.

Recycling old clothes may not be a perfect model for avoiding waste, but Levi’s nevertheless wants to get consumers into the habit.

Levis runs a programme in five major markets – Japan, the United States, Canada, the United Kingdom and Germany – that gives customers a 15 per cent discount on a new Levi’s item if they donate any old clothes (they don’t have to be Levi’s) to be recycled.

The company is refining the initiative before rolling it out in other markets. “We’re trying to learn what works best for the consumer, and what our competitors are doing,” says Kobori.

Other apparel companies, such as H&M, the Swedish brand that pioneered the throwaway clothing culture known as “fast fashion”, run similar recycling schemes.

“We want to encourage consumers to recycle, but we also want to bring in a programme that is unique and differentiates us,” Kobori notes, adding that Levi’s sustainability initiatives are “open source,” so others can copy them.

The ROI of Healthy Factory Workers

Though it is not something the company shouts about in its advertising campaigns, sustainability has long been a point of difference for the 163 year-old brand.

Levi’s was not only the first apparel company, but the first multinational to introduce a labour code of conduct in 1991, to ensure that the workplace standards and business practices of its suppliers lived up to its own.

“When we developed the programme 25 years ago, it was a breakthrough,” says Kobori. “Before then, companies didn’t really think about the sustainability of their supply chains. It was thought to be the government’s job. Now protecting people’s rights is the bare minimum that companies should be doing.”

A quarter of a century on, as the global cotton industry supply chain has come under greater scrutiny, Levi’s is working to improve the lot of factory workers through its Worker Well-being programme.

The programme began in 2011 with a survey of factory workers in five key production bases, Cambodia, Bangladesh, Pakistan, Egypt and Haiti, to find out how their lives could be improved beyond the basic protection of their rights.

So what do factory workers, most of whom are women who have moved from the countryside to the city to work, want? Access to healthcare and financial services, according to the survey. These services are delivered through Levi’s vendors, with the help of NGOs.

The scheme started out as a pilot with five vendors and is now being expanded to 25 suppliers in 11 countries. This will mean better healthcare and financial support for 100,000 workers behind 60 per cent of the company’s production volume.

“By 2020, 80 per cent of our volume will be made through Worker Wellbeing vendors, and 100 percent by 2025,” says Kobori.

Benefits for workers makes good business sense, but factories often need convincing that the upfront cost is worth it, Kobori says.

“The business case has to be there if we’re asking vendors across the industry to do this,” he explains.

“Skilled workers are an increasingly precious commodity. Workers will move factories depending on who gives the best benefits. So vendors are looking for programmes that will help them reduce turnover and increase productivity,” he says.

Levi’s has been working with Harvard University to evaluate the Worker Well-being programme. Early findings show that for every dollar a vendor invests, they get three dollars backs in reduced turnover and increased productivity.

Beyond the Supply Chain

The supply chain has been the focus of Levi’s sustainability efforts, and the company also aims to expand its Water<Less programme, so that 40 per cent of its products are made using less water by 2020.

Now, it plans to move sustainability beyond the supply chain. “Brand, retail, marketing and operations – all are looking at ways to introduce a more sustainable approach,” says Kobori.

Levi’s is also looking to find business opportunities in sustainability. The company is planning to roll out its Levi’s Tailor Shops concept, where customers can get their old clothing repaired, altered or customised, beyond the United States and Japan.

“It’s not just about making garments last longer, but about opening up a potential new revenue stream for us,” Kobori explains.

Showing the business case for sustainability is key for a company that hasn’t had an easy ride in recent years, as increased competition from rival apparel brands now making denim, and currency fluctuation issues have hurt the bottom line.

But the sustainability function has remained intact despite a business overhaul, and return to revenue growth, led by president and chief executive officer Chip Bergh.

After five years of diligent work to turn around Levi’s economic issues, Levi’s finally saw an increase in revenue and profit. The company boasts three consecutive years of growth, many believe due to Bergh’s leadership.

“Our commitment to sustainability doesn’t change because the currency is fluctuating,” says Kobori, who adds that Levi’s sustainability budget has stayed “relatively constant” in recent years, and new initiatives continue to be added and existing programmes expanded.

Sustainability is key for a brand whose core target group and employee base are millennials – 50 per cent of Levi’s workforce belong to this young demographic, people who reached adulthood early this century. Millennials tends to care more about issues such as sustainably produced cotton, and less about Levi’s long heritage.

“For millennials, heritage may be less important, so brands need to stand for something,” says Kobori.

Sustainability is particularly important for Levi’s now, he says, given the change in government in the American brand’s home country and largest market, and also in key emerging markets such as China where millennials are increasingly discerning of how brands behave.

“Society is looking to the private sector to take the lead on the changes that people want to see in the world,” he says, pointing to an announcement from Bergh in support of the right of workers to migrate to the United States.

“He [Bergh] is not in favour of the travel ban that the [Trump] administration has issued, and employees responded with tremendous positivity to the stance he has taken. They’re looking for us to stand up for what’s right.”

“Sustainability is becoming more important for us,” adds Kobori. “Heritage is our bedrock, it’s who we are. But if we are able to articulate to the consumer that we also stand for the right causes and issues, we become much more contemporary and relevant.”

*This story first appeared on Eco-Business

Levi’s Is Radically Redefining Sustainability

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And it all comes down to making a timeless product that the customer will hold on to for many, many years.

How do we make the fashion industry more sustainable? For Paul Dillinger, head of global product innovation at Levi Strauss & Co, it’s not enough to simply plant a few trees to offset carbon dioxide or use less toxic dyes. To make a real impact in the world, you need to help change the way people think about clothes.

Paul Dillinger
Levi’s has always been a leader in sustainability. In 1991, it established “terms of engagement” that laid out the brand’s global code of conduct throughout its supply chain. This meant setting standards for worker’s rights, a healthy work environment, and an ethical engagement with the planet. “It wasn’t an easy thing to do,” Dillinger says. “At the time, we were worried that doing this would drive up our own costs and prices.” In fact, what happened was that these practices were quickly adopted by other companies, who used it as a template to write their own rules. “We were actually leading industry toward new standards,” he says.

These days, Levi’s continues to focus on how it can push the envelope when it comes to being green. Dillinger believes that part of the solution is encouraging people to stop thinking about clothes as disposable. As a designer, his goal is to create durable jeans that customers love and feel good wearing because this increases the likelihood that they will care for them better and keep them longer. In this Creative Conversation, we discuss what it will take to create a real paradigm shift in people’s thinking about fashion.

You’re tasked with creating a product that is fairly timeless and less subject to trends. Are you intentionally changing the narrative about consumption?

Yes. In my wildest dreams, we’d be helping to cultivate a Levi’s consumer who values durability and demonstrates a real attachment to an object. We’d be nurturing the person who doesn’t purchase because of immediate seasonal change, but who purchases for lasting value. This would mean there are shared values between our brand and our consumer.

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A publicity shot for a Levi’s collection that Dillinger designed specifically for urban bicycle commuters.

This seems to run counter to the fashion industry, which values new looks and trends.

Yes, most companies are focused on convincing the consumer that they are not pretty unless they radically change their look; they’re not going to be in, attractive, or cool. They create a false appetite that directly leads to a pattern of hyper-consumption. If someone is pushing boyfriend jeans on you real hard this season, they’re probably going to be pushing a super skinny jegging on you next season. This radical oscillation in silhouette preference is going to make you feel that the thing you just bought is no longer valuable.

Instead, what we’re trying to do is encourage our consumer to be conscious that when they purchase a pair of jeans, that is not an isolated event. The garment had an impact before they purchased it, in terms of people that made it and the waste that was involved in creating it. And its going to exist long after they’re done owning it.

What would happen if we could change culture in such a way that consumers imagined the end of life of the product they bought? So, what if we said that you could mulch your jeans, put them in your garden, and see how the decomposition of your Levi’s could feed the food that you were growing. That’s conceivably how we might dispose of garments in the future. That would prompt the consumer to think about little details like how the color was applied to the garment in the first place. Would the chemicals in the dye affect the garment, my food, and my body? This is the kind of holistic thinking we want to spur in our customers. Fundamentally, asking them to take into account the impact they’re responsible for in the whole system, from the supply chain to the eventual disposal of the garment.

VIDEO: HOW LEVI STRAUSS & CO. KEEPS IMPROVING JEANS

How do you cultivate that consumer?

It starts with the product. Take the 501: It is an anchor product that has endured over time. Sure, it has evolved in some ways, but we don’t offer radical changes in silhouette. We’re owning the history and the provenance of our brand that makes essential, archetypal pieces of clothing.

What we do is we try to maintain a fit portfolio where we ensure that we have the fit you feel best in, not the one you’ve been told to feel best in. Then we make that product available consistently. When you love a pair of jeans, you develop an emotional connection not just with that object, but with the brand. You know that the brand has served you well. If we can make clothes that are really worth loving, then hopefully people will love them longer and care for them better.

We’re choosing not to participate in the fashion cycle. Instead, we’re choosing to cultivate long-term relationships with the consumer and deliver against their needs. And hopefully that participates in the recalibration of consumption broadly, though that is a lofty goal.

You’re known for your forward thinking when it comes to incorporating technology into fabrics. How do you do this, but also ensure that you are making these classic garments?

Technology is a loaded word: It implies gadget. We’re engaged in scientific dialogue with a lot of different people, but not all of it lights up the way you’d expect when you think of tech. There are ideas that we’re bringing to market that you might never notice. One that comes to mind is coming out in the next six months. A lot of people expect performance from clothing now. It’s one of the reasons that yoga pants are winning the market. The solution for performance has often been a mechanical or chemical application to a garment, often in the form of a synthetic fiber blended in. Often these technologies really flatten and dull the vibe of a jean. It starts to look like franken-jean: a jean from an unhappy future.

How do you bring that performance to a garment that is, in many ways, very similar to its original archetype that is now almost 150 years old? We’ve been working on this for two and a half years. The proposition is to bring jeans to market that will be 100% cotton, but that have hollow yarn architectures. We had a polyester that was woven into the yarn, but after weaving the [yarn] together [to make the denim], we were able to dissolve it out. What happens in that process is that we have the ability to wick away moisture and hold in warm air, but the jeans look and feel the way an authentic pair of Levi’s should.

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But I imagine that it is hard to create profound change as one isolated company.

Yes, absolutely. If you look at how the food industry has evolved and shifted, it’s not one chef, or one farmer, or one supermarket choosing to align itself around different values. It’s a whole evolving system of consciousness. Personally, I can only take responsibility for my own behavior and advocate for these values.

But I also think there are other likeminded people that we can seek out. We have a program called the Levi Strauss Collabatory where we bring small designers who share our values and help them integrate sustainability into their young new businesses. We give them the support they need to bring that to life. So we can help nurture the ecosystem.

As a large company, what are you doing to make your manufacturing process more sustainable?

I think it’s important to focus on making products sustainable in every place that we manufacture. It’s very important not to use offshoring as a way to hide the way that we are manufacturing. We believe in transparency. It’s incumbent on us to know that water is a precious resource everywhere in the world. And it’s important for everyone across the entire supply chain—from the farmers to the factory workers to the people disposing of the products—to be conscious of resource conservation. To do this, we have a life cycle assessment that looks at the impact at every stage of the process, all around the world.

It’s also about educating the customer, telling them that there are better ways to care for their clothes. You don’t have to wash your jeans every time you wear them; in fact, this is bad for them. If you hang them to dry, they’ll last longer. A simple message like that allows us to involve the consumer in a much bigger effort to carefully, deliberately draw down on resource consumption.

And importantly, when we unlock proprietary data about water or waste, the best thing we can do with that is share it with everybody. Last year, we hosted a conference here at Levi Strauss where we brought in our competitors and anyone in the industry who was interested, to share every bit of knowledge we had about water-saving best practices. If you figure out how to save water and you don’t tell people about it, you’re kind of a jerk.

*This story first appeared on Fast Company

 

Decoding Sustainability in the Denim Industry: Interview with Michael Kobori, Vice President of Sustainability at Levi Strauss & Co

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The denim industry is regarded as having one of the worst environmental and ethical footprints within fashion . According to a Greenpeace report, it takes 1.7 million tons of chemicals to produce two billion pairs of jeans every year and the water consumption needed for production can go as high as 7,000 litres per one pair. Consequently, it is essential that denim brands hold themselves accountable and invest in innovation for the sake of sustainability and curbing environmental and labour abuse further down the supply chain. Michael Kobori, Vice President of Sustainability at Levi Strauss & Co, talks to Euromonitor International about Levi’s role as a recognised sustainability leader and the journey towards a sustainable, innovation-driven future.

AMONG LARGE DENIM COMPANIES, LS&CO HAS DEMONSTRATED LEADERSHIP WHEN IT COMES TO SUSTAINABILITY AND PROMOTING CIRCULAR ECONOMY. HOW DOES THE SUSTAINABILITY AGENDA FIT INTO THE OVERALL CORPORATE STRATEGY?

At LS&Co, we believe how we make our products is as important  as what we make. This belief is core to our business and means that sustainability is not just an add-on to our corporate strategy, but integrated into everything we do. Running a sustainable company is the right thing to do. It is also good for business.

IS THERE ANY WAY YOU CAN MEASURE THE IMPACT OF THE INVESTMENTS INSUSTAINABILITY ON YOUR SALES REVENUE? WHAT ROLE DOES IT PLAY IN SUPPORTING TOP-LINE GROWTH AND WINNING MARKET SHARE ACROSS KEY MARKETS?

At this point in our sustainability journey, we are not measuring the impact of our investments on sales revenue. That said, we are measuring impacts across our business operations. We look at sustainability from an environmental, social and economic perspective. From our Water Less™ finishing techniques to our Worker Well-being initiative, we have seen reduced costs or improved business throughout our supply chain . We also know that younger consumers increasingly seek out companies that demonstrate social purpose and are more likely to buy from companies that support social and environmental causes.

WHAT ARE THE MAIN SUSTAINABILITY CHALLENGES FOR LS&CO AND THE INDUSTRY AS A WHOLE?

When it comes to reducing our environmental footprint, we know what areas to focus on because we’ve studied our impact and have data to drive our decisions. In 2007 and again in 2015, we conducted an environmental lifecycle assessment on a pair of Levi’s® 501’s. One of our biggest areas of impact – and one of the most critical resources on the planet – is water. From this assessment, we realised that the most water use during the lifecycle is during the cotton growing and consumer care phases.

To help reduce our impacts, we joined with the Better Cotton Initiative (BCI), which helps educate farmers on reducing water and pesticide use while increasing yields. Currently, 19% of the cotton we use is from BCI and we aim to increase that number to 95% by 2020.

For consumers, we expanded our “Care Tag for the Planet” to all LS&Co products. It encourages consumers to wash less, wash cold, line dry and donate when done.

And, even though the impact was smaller, we also set out to innovate in our own production. In 2011, our designers launched our Water Less™ finishing techniques, which can reduce water usage up to 96%.

When it comes to our ethical footprint, LS&Co has long been a leader in protecting and ensuring the rights of workers. In 1991, we were the first company to launch a comprehensive code of conduct for our vendors worldwide – called our Terms of Engagement. In 2011, we saw an opportunity to go even further and create a sustainable model to improve the well-being of workers. Called the Worker Well-being initiative, we work with vendors to identify the unmet needs of workers in factories , then work with local partners and NGOs to implement programmes to meet those needs. Since the pilot, we’ve expanded to 12 countries reaching nearly 100,000 workers. Our aim is to reach 300,000 by 2025.

WHAT ADVANCEMENTS HAVE YOU MADE IN THE CIRCULAR ECONOMY SPACE? IS BECOMING 100% CIRCULAR A VIABLE OBJECTIVE TO ACHIEVE FOR A DENIM BRAND?

Creating a truly circular economy is very challenging for any clothing brand. The biggest challenge we face is taking recycled clothing and converting it into new garments without losing product durability or integrity. Traditionally, when cotton is recycled, it is shredded, which reduces cotton fibre staple length. That degrades the stability and strength of the fibre, leaving consumers with a lower quality garment that won’t last.

Another challenge is in the different materials in jeans today. Many jeans are made with cotton-polyester blends. It is difficult to separate out the cotton fibres to recycle.

So what are we doing? R&D is a big area. We are working both internally and with external companies to find solutions. One example is our work with Evrnu, a company we partnered with that is able to melt or dissolve recycled cotton to the cellulosic level, then re-extrude that as a new fibre with improved strength.

We’re also working to change consumer behaviour. To create new products from old jeans, we need the jeans! We’ve partnered with a company called I:CO to put recycling bins in our stores in the US, Canada, the UK, and Japan to collect any brand of old clothing or shoes. I:CO then recycles and upcycles the items. In the US, we also partner with Goodwill, an American non-profit organisation, through a programme called the “Give Back Box .” When consumers buy clothes online from Levi’s® or Dockers®, we give them a free shipping label to send old clothes from any brand to donate to Goodwill.

These steps help start the journey towards creating a circular economy.

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Source: Levi Strauss & Co

IN SWEDEN, THE GOVERNMENT IS PROPOSING A NEW LAW TO REDUCE TAX FOR CLOTHING AND FOOTWEAR REPAIRS WITH AN AIM OF TACKLING THE THROWAWAY CULTURE. DO YOU ANTICIPATE A REVIVAL IN FASHION REPAIR SERVICES ON A LARGER SCALE?

We’re already seeing a revival in fashion repair, especially when it comes to some of our classic icons and silhouettes such as the 501® and Trucker Jacket. We’re also known for continuously reinventing those classics ourselves with modern touches and customisations.

To follow that mindset, we launched the Levi’s® Tailor Shop at select retail locations around the world, which offers alterations, hemming, repairs and custom embroidery by in-house denim experts. At most ofour retail locations in Europe, Levi’s® tailors are able to provide customers one-of-a-kind pieces, custom styles, and properly repaired denim.

HOW DO CONSUMERS RESPOND TO YOUR SUSTAINABILITY EFFORTS? ARE YOU SEEING ANY SIGNIFICANT SHIFTS IN ATTITUDES TOWARDS BUYING FASHION AND WHAT CHANGES ARE YOU EXPECTING IN THE NEXT FIVE YEARS?

Our CEO, Chip Bergh, often says that millennial customers care about value and values. I think we are starting to see that more and more customers are conscious about how their clothes are made and where they are coming from, and that number will continue to grow in the next five years. Especially as we as a planet continue to face the challenges of climate change and a more connected global economy.

FOSTERING SUSTAINABILITY AND RESPONSIBLE CONSUMERISM IS ON TOP OF THE AGENDA FOR MANY PLAYERS IN THE DENIM INDUSTRY. WHAT OTHER BRANDS DO YOU MOST RESPECT FOR DRIVING SUSTAINABILITY INITIATIVES?

We collaborate and partner with many brands to drive sustainability in the apparel industry. Some brands I really admire in other sectors are Unilever and Interface Carpets.

*This story first appeared on Euromonitor