Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate
• Consumption
• Community

Environmental Achievements

• 57% reduction in Scope 1 and 2 emissions from the 2016 baseline
• 76% of electricity from renewable sources in owned-and-operated facilities
• 83% of cotton from more sustainable sources
• 67% of all LS&Co. products made using Water
• Achieved zero discharge of hazardous chemicals goal in 2020

Social Achievements

• LS&Co. suppliers had active Worker Well-being offerings at 118 sites where more than 195,400 employees worked, fostering improvements in engagement, satisfaction and absenteeism.
• Launched Buy Better, Wear Longer campaign
• Launched Levi’s® SecondHand, a buy-back and resale platform
• No safety non-compliances or recalls from 2018 to 2020

Governance Achievements

• Established anti-corruption training for all employees
• Added Diversity, Equity & Inclusion metrics to long-term compensation calculations
• Chief Operations Officer has greenhouse gas emissions reductions target and renewable energy procurement target built into performance objectives

Climate Goals & Targets

Environmental Challenges

• Inconsistent data quality from suppliers on energy and water reduction efforts
• Challenges to achieve circularity at scale (e.g., cost, lead times, durability of new fibers)
• Global pandemic impacting supply chain and operations
• Overconsumption and overproduction in the apparel industry
• Difficulty in accurately measuring emissions in the supply chain due to diverse sourcing

Mitigation Strategies

• Used estimates based on highly localized lifecycle analyses for supplier data
• Developed alternative sourcing strategies
• Collaborated with suppliers to set clear and ambitious targets and provide support
• Launched Buy Better, Wear Longer campaign to encourage consumers to be more intentional
• Partnered with IFC on PaCT program to provide advisory services and financing to suppliers
• Implemented digital sampling and AI-based forecasting to reduce overproduction
• Worked with suppliers to collect and verify data through Higg FEM and IFC

Supply Chain Management

Supplier Audits: 97% of TOE assessments conducted by third-party monitors in 2019 and 2020

Responsible Procurement

• Global Terms of Engagement (TOE)
• Sustainability Guidebook
• Screened Chemistry program
• Water Recycle & Reuse Standard

Climate-Related Risks & Opportunities

Physical Risks

• Unprecedented fires, heatwaves, droughts, and floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI Standards (2020), SASB Standard (2018) for Apparel, Accessories & Footwear, TCFD recommendations

Certifications: LEED, ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through various programs and partnerships

Sustainable Products & Innovation

• Water
• WellThread® collection
• Products with cottonized hemp
• Products with Circulose® fiber
• Levi’s® by Levi’s® (made from recycled products)

Awards & Recognition

• Fortune’s “World’s Most Admired Companies”
• CDP Climate A List
• Fast Company’s World Changing Idea (for Circulose® jeans)

Environmental Metrics

ESG Focus Areas

• Climate
• Consumption
• Community

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 71% (from a 2016 base year)
• Reduced Scope 3 GHG supply chain emissions by 23% (from a 2016 base year)
• Reached 90% renewable electricity in company-operated facilities
• Reduced freshwater use in manufacturing by 14% in areas of high water stress (from a 2018 base year)

Social Achievements

• Refreshed Worker Well-being (WWB) Guidebook and program in 2022
• Completed a pay equity audit in 2022 for U.S. employees, confirming no systemic pay differences across gender and ethnicity
• Implemented an updated global paid leave policy
• Expanded wellness and mental health programs

Governance Achievements

• Completed a baseline assessment of material value chain impacts and dependencies on biodiversity

Climate Goals & Targets

Environmental Challenges

• Continued volatility in the macroeconomic environment impacting climate goals
• Limitations in greenhouse gas emissions data
• Many suppliers not submitting water usage data on time or at all
• Lack of regulation in some jurisdictions hindering circular economy efforts
• Underdeveloped collection, sorting and recycling technologies

Mitigation Strategies

• Collaborating with key suppliers to ensure their emission reduction targets are at least 40% of the base year
• Redoubling efforts to encourage more water recycling and other water-efficient processes with supply chain partners
• Developing a comprehensive plan to become circular ready by 2026
• Participating in Fashion for Good projects to create solutions for textile waste and study garment recycling
• Developing a process to track strategic garment wet finishing facilities using Screened Chemistry

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Product Safety by Design Framework for Restricted Substances List (RSL)
• Screened Chemistry program
• ZDHC Roadmap to Zero program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, TCFD, UNGC

Certifications: TRUE Zero Waste (target)

Third-party Assurance: Third-party assurance for Scope 1, 2, and 3 (Category 3) emissions and energy information

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Levi's® Circular 501® jeans

Awards & Recognition

• ZDHC’s “Aspirational Level” certification (three years in a row)

Environmental Metrics

ESG Focus Areas

• Climate
• Consumption
• Community

Environmental Achievements

• Reduced supply chain GHG emissions by 8% from the 2022 base year.
• Reduced GHG emissions associated with all company-operated facilities by 77% from the 2016 base year.
• Achieved 97% renewable electricity consumption in company-operated facilities.
• Reduced freshwater use in manufacturing by 27% in areas of high-water stress from the 2018 base year.

Social Achievements

• 62% of key suppliers have well-established and functional worker-management committees.
• 57% of key suppliers with WMC comprised of 50% or proportionate women workforce in decision making.
• No systemic pay differences across gender and ethnicity in the US.
• Increased female representation in Executive Leadership to 61.5% from 46.2% in 2020.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data limitations on proprietary information, certain metrics are measured in calendar months rather than aligned with fiscal periods.
• Challenges in obtaining and calculating waste data from owned and operated facilities.
• Challenges in eliminating single-use plastics in consumer-facing packaging.

Mitigation Strategies

• Accelerated timeline for water usage data presentation.
• Temporarily paused efforts to measure owned and operated waste data while evaluating prioritization.
• Temporarily paused work to eliminate single-use plastics while evaluating prioritization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ZDHC MRSL conformance
• Screened Chemistry certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SBTi

Certifications: TRUE Zero Waste (intended)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed