Levi Strauss & Co · NYSE:LEVI

Levi Strauss & — ESG Presentation (March 2015)

51 slides from Levi Strauss &'s sustainability presentation, March 2015

  1. Slide 1: The Life Cycle of a Jean

    THE LIFE CYCLE OF A JEAN Understanding the environmental impact of a pair of Levi’s® 501® jeans This Lifecycle Assessment uses data, assumptions and inputs from LEVI STRAUSS & CO. © 2015 2015 and earlier and should only be used as an example for the stated timeframe.

  2. Slide 2: Background

    BACKGROUND Levi Strauss & Co. (LS&Co.) conducted the apparel industry’s first lifecycle assessment (LCA) study in 2007 to assess the entire lifecycle impact of a core set of products. The study focused primarily on the company’s U.S. operations and uncovered that the greatest water and energy impact

  3. Slide 3: Background

    BACKGROUND The new study, initiated in 2013, looked at three LS&Co. products: a pair of Levi’s® 501® jeans, a pair of Levi’s® Women’s jeans, and a pair of Dockers® Signature Khakis. This latest study benefited from the latest advancements in LCA scientific methods, tools and data collection processe

  4. Slide 4: What Is an Environmental Life Cycle Assessment?

    WHAT IS AN ENVIRONMENTAL LIFE CYCLE ASSESSEMENT?

  5. Slide 5: Lifecycle Assessment Definition

    LIFECYCLE ASSESSMENT DEFINITION • An LCA is a systems-based, quantitative method for evaluating the environmental impact of a product.* • It is a tool used to assess the stages and impact of a product’s entire life, from raw material extraction (cradle) to waste treatment (grave). • An LCA typically

  6. Slide 6: Lifecycle Assessment Benefits

    LIFECYCLE ASSESSMENT BENEFITS • Allows us to focus on the most significant environmental impacts as we develop and evaluate sustainability programs and policies • Informs product decisions to reduce the environmental impact from design, materials, and manufacturing • Supports engagement with externa

  7. Slide 7: New Areas Studied: Global Cotton Cultivation and New Consumer Markets

    NEW AREAS STUDIED: GLOBAL COTTON CULTIVATION AND NEW CONSUMER MARKETS WORLD’S PRIMARY COTTON LEVI’S® 501® FUNCTIONAL UNIT PRODUCING COUNTRIES STUDIED PRODUCT ATTRIBUTES STUDIED Levi’s® 501® jeans & other • United States • Brazil • 5 fabrics core LS&Co. products • 8 finishes (low to high • India • Ch

  8. Slide 8: The Levi's 501 Lifecycle

    THE LEVI’S®501® LIFECYCLE LEVI STRAUSS & CO. © 2015

  9. Slide 9: The Lifecycle of a Levi's 501 Jean

    THE LIFECYCLE OF A LEVI’S® 501® JEAN LEVI STRAUSS & CO. © 2015

  10. Slide 10: Several Impact Categories Relevant to Apparel Were Analyzed

    SEVERAL IMPACT CATEGORIES RELEVANT TO APPAREL WERE ANALYZED CATEGORY DESCRIPTION UNITS CLIMATE CHANGE Global warming potential of greenhouse gases released to the environment kg CO2-e WATER INTAKE Freshwater taken from the environment liters WATER CONSUMPTION Net freshwater taken from the environmen

  11. Slide 11: Impact Phase Analysis Spanned Areas Inside and Outside Our Direct Control

    IMPACT PHASE ANALYSIS SPANNED AREAS INSIDE AND OUTSIDE OUR DIRECT CONTROL LEVI STRAUSS & CO. © 2015

  12. Slide 12: Executive Summary of Our Findings

    EXECUTIVE SUMMARY OF OUR FINDINGS

  13. Slide 13: Consumer Care and Cotton Cultivation Remain the Most Significant Impact Areas

    CONSUMER CARE AND COTTON CULTIVATION REMAIN THE MOST SIGNIFICANT IMPACT AREAS CONSUMER CARE COTTON CULTIVATION LEVI STRAUSS & CO. © 2015

  14. Slide 14: Cotton and Consumer Habits Have a Big Impact on Water and Energy Use

    COTTON AND CONSUMER HABITS HAVE A BIG IMPACT ON WATER AND ENERGY USE General Findings: Consumer Use Findings: • Water Consumption: Fiber production, • Washing every 10 times a product is worn instead of predominantly cotton, contributes by a wide margin every 2 times reduces energy use, climate chan

  15. Slide 15: Other Stages Still Have an Impact, But to Lesser Degrees

    OTHER STAGES STILL HAVE AN IMPACT, BUT TO LESSER DEGREES Materials, Production and other findings: • Fabric assembly, which includes yarn spinning, dyeing, weaving, and fabric finishing had notable contributions related to climate change impact and non-renewable energy consumption. • Life cycle stag

  16. Slide 16: On 'Auto Pilot' When It Comes to Washing Your Jeans?

    ON ‘AUTO PILOT’ WHEN IT COMES TO WASHING YOUR JEANS? IT’S TIME TO WASH LESS AND LINE DRY.

  17. Slide 17: Levi's 501 Jean Lifecycle Impact

    LEVI’S® 501® JEAN LIFECYCLE IMPACT The entire lifecycle of one pair of Levi’s® 501® jeans equates to: Climate Change: • 69 miles driven by the average US car 33.4 kg CO2-e… • 246 hours of TV on a plasma big-screen Water Consumed: 3 days worth of one US household’s total water needs 3,781 liters… Eut

  18. Slide 18: Consumer Water Consumption Varies by Washing Frequency and Equipment

    CONSUMER WATER CONSUMPTION VARIES DEPENDING ON WASHING FREQUENCY AND EQUIPMENT WATER INTAKE OVER ONE YEAR OF CARE CONVENTIONAL WASHING MACHINE EFFICIENT WASHING MACHINE 958 659 Liters Liters 479 330 221 152 WASHING WASHING WASHING WASHING WASHING WASHING WEEKLY BI-WEEKLY MONTHLY WEEKLY BI-WEEKLY MON

  19. Slide 19: Climate Change Impact of Washing and Drying Jeans Varies Greatly

    THE CLIMATE CHANGE IMPACT OF CONSUMERS WASHING AND DRYING THEIR JEANS VARIES GREATLY DEPENDING ON WASHING FREQUENCY, METHODS, AND EQUIPMENT CLIMATE CHANGE IMPACT FROM ONE YEAR OF CARE WASHING WEEKLY WASHING BI-WEEKLY WASHING MONTHLY CONVENTIONAL WASHING MACHINE EFFICIENT WASHING MACHINE 14.58 Kg CO2

  20. Slide 20: Consumer Climate Impact Varies by Water Temperature and Machine Efficiency

    CONSUMER CLIMATE CHANGE IMPACT VARIES DEPENDING ON WATER TEMPERATURE AND MACHINE EFFICIENCY ONE DAY OF WASHING AROUND THE GLOBE WARM WATER WASH .58 COLD WATER WASH .49 .31 .28 .28 Kg CO2e .25 .20 .19 .20 .20 .15 .15 CONVENTIONAL WASHER EFFICIENT WASHER CONVENTIONAL WASHER EFFICIENT WASHER CONVENTION

  21. Slide 21: Levi's 501 Jeans: Water Consumption

    LEVI’S® 501® JEANS: WATER CONSUMPTION Fiber production, predominantly cotton, contributes by a wide margin to water consumption. CRADLE TO GRAVE WATER CONSUMPTION CRADLE TO GRAVE WATER CONSUMPTION PERCENTAGE BY PHASE AMOUNT BY PHASE (LITERS) 2,565 SUNDRIES & PKGNG CONSUMER CARE 2% 23% CUT, SEW, FINI

  22. Slide 22: Levi's 501 Jeans: Climate Change Impact

    LEVI’S® 501® JEANS: CLIMATE CHANGE IMPACT Consumer Care phase dominates the climate change impact area (driven by high use of non-renewable energy). CRADLE TO GRAVE CLIMATE CHANGE IMPACT CRADLE TO GRAVE CLIMATE CHANGE IMPACTS PERCENTAGE BY PHASE AMOUNT BY PHASE (kg CO2-e) FIBER 12.5 9% 9.0 FABRIC PR

  23. Slide 23: Levi's 501 Jeans: Eutrophication

    LEVI’S® 501® JEANS: EUTROPHICATION (NITROGEN AND PHOSPHOROUS DEPOSIT) Fiber production, predominantly cotton, contributes by a wide margin to eutrophication impact. CRADLE TO GRAVE EUTROPHICATION CRADLE TO GRAVE EUTROPHICATION PERCENTAGE BY PHASE AMOUNT BY PHASE (g PO4-e) TRANSPORT, LOGISTICS, RETAI

  24. Slide 24: Levi's 501 Jeans: Land Occupation

    LEVI’S® 501® JEANS: LAND OCCUPATION Fiber production, predominantly cotton, contributes by a wide margin to land occupation impact. CRADLE TO GRAVE LAND OCCUPATION CRADLE TO GRAVE LAND OCCUPATION PERCENTAGE BY PHASE AMOUNT BY PHASE (m2/year) CONSUMER CARE 14% 9.3 TRANSPORT, LOGISTICS, RETAIL 11% SUN

  25. Slide 25: Consumer Habits Vary by Country

    CONSUMER HABITS VARY BY COUNTRY ©2015

  26. Slide 26: Americans Use More Water and Energy to Wash Their Jeans

    ON AVERAGE, AMERICANS USE MORE WATER AND ENERGY TO WASH THEIR JEANS LIFETIME CONSUMER USE LIFETIME CONSUMER USE NON-RENEWABLE ENERGY (kwh) WATER INTAKE (liters) 60 1,049 53 619 679 17 U.S. U.K./FRANCE CHINA U.S. U.K./FRANCE CHINA For sources and additional consumer use data, please see the Appendix.

  27. Slide 27: Consumers in China Wash Less Frequently

    ON AVERAGE, CONSUMERS IN CHINA WASH LESS FREQUENTLY AVERAGE WASH FREQUENCY BY COUNTRY 3.9 Wears Between Washes 2.3 2.5 U.S. U.K./FRANCE CHINA LEVI STRAUSS & CO. © 2015

  28. Slide 28: In America: Wearing Jeans 10x Before Washing Could Reduce Water Usage by 77%

    IN AMERICA: WEARING JEANS 10X BEFORE WASHING COULD REDUCE WATER USAGE BY 77% AMERICA: LIFETIME WATER INTAKE 2,543 Liters 1,106 1,272 509 254 U.S. AVERAGE WASH EVERY TIME WASH EVERY 2x WASH EVERY 5x WASH EVERY 10x YOU WEAR LEVI STRAUSS & CO. © 2015 Note: Analysis is for one pair of pants worn by the

  29. Slide 29: In the UK/France: Wearing Jeans 10x Could Reduce Water Usage by 75%

    IN THE UK/FRANCE: WEARING JEANS 10X BEFORE WASHING COULD REDUCE WATER USAGE BY 75% UK/FRANCE: LIFETIME WATER INTAKE 1,647.74 659 823.87 Liters 329.55 164.77 U.K./FRANCE AVERAGE WASH EVERY TIME WASH EVERY 2x WASH EVERY 5x WASH EVERY 10x YOU WEAR LEVI STRAUSS & CO. © 2015 Note: Analysis is for one pai

  30. Slide 30: In China: Wearing Jeans 10x Could Reduce Water Usage by 61%

    IN CHINA: WEARING JEANS 10X BEFORE WASHING COULD REDUCE WATER USAGE BY 61% CHINA: LIFETIME WATER INTAKE 2,543 1,272 Liters 697 509 254 CHINA AVERAGE WASH EVERY TIME WASH EVERY 2x WASH EVERY 5x WASH EVERY 10x YOU WEAR LEVI STRAUSS & CO. © 2015 Note: Analysis is for one pair of pants worn by the avera

  31. Slide 31: In America: Wearing Jeans 10x Could Reduce Energy Usage by 77%

    IN AMERICA: WEARING JEANS 10X BEFORE WASHING COULD REDUCE ENERGY USAGE BY 77% AMERICA: LIFETIME CLIMATE CHANGE IMPACT AMERICA: LIFETIME NON-RENEWABLE ENERGY USE 30.77 140.28 Kilowatt Hours Kg CO2-e 15.38 70.14 13.38 60.99 6.15 28.05 3.08 14.03 U.S. WASH WASH WASH WASH U.S. WASH WASH WASH WASH AVERAG

  32. Slide 32: In UK/France: Wearing Jeans 10x Could Reduce Energy Usage by 75%

    IN UK/FRANCE: WEARING JEANS 10X BEFORE WASHING COULD REDUCE ENERGY USAGE BY 75% UK/FRANCE: LIFETIME CLIMATE CHANGE IMPACT UK/FRANCE: LIFETIME NON-RENEWABLE ENERGY USE VARIANCE BY WASHING FREQUENCY VARIANCE BY WASHING FREQUENCY 27.92 153.1 Kilowatt Hours Kg CO2-e 13.96 76.5 11.17 61.2 5.58 30.6 15.3

  33. Slide 33: In China: Wearing Jeans 10x Could Reduce Energy Usage by 61%

    IN CHINA: WEARING JEANS 10X BEFORE WASHING COULD REDUCE ENERGY USAGE BY 61% CHINA: LIFETIME CLIMATE CHANGE IMPACT CHINA: LIFETIME NON-RENEWABLE ENERGY USE VARIANCE BY WASHING FREQUENCY BY WASHING FREQUENCY 46.14 130.2 Kilowatt Hours Kg CO2-e 23.07 65.1 33.4 11.83 26 9.23 13 4.61 CHINA WASH WASH WASH

  34. Slide 34: Wash in Cold vs. Warm by Country

    WASH IN COLD VS. WARM BY COUNTRY CONSUMERS WHO WASH IN COLD CONSUMERS WHO WASH IN WARM 84% 65% 51% 49% 35% 16% U.S. U.K./FRANCE CHINA U.S. U.K./FRANCE CHINA For sources and additional consumer use data, please see the Appendix. LEVI STRAUSS & CO. © 2015

  35. Slide 35: In America: Washing in Cold Reduces Energy Use by 21%

    IN AMERICA: WASHING IN COLD INSTEAD OF WARM REDUCES NON-RENEWABLE ENERGY USE BY 21% AND CLIMATE IMPACT BY 24% AMERICA: LIFETIME CLIMATE CHANGE IMPACT AMERICA: LIFETIME NON-RENEWABLE ENERGY USE 15.9 13.4 70.9 12.1 61 Kilowatt-Hours 56.1 KgCO2e AVERAGE 100% 100% AVERAGE 100% 100% COLD WASH WARM COLD W

  36. Slide 36: In UK/France: Washing in Cold Reduces Energy Use by 20%

    IN U.K./FRANCE: WASHING IN COLD INSTEAD OF WARM REDUCES NON-RENEWABLE ENERGY USE BY 20% AND CLIMATE IMPACT BY 21% UK/FRANCE: LIFETIME CLIMATE CHANGE IMPACT UK/FRANCE: LIFETIME NON-RENEWABLE ENERGY USE Kilowatt-Hours KgCO2e .21 .16 .21 1.13 .90 1.13 AVERAGE 100% 100% AVERAGE 100% 100% COLD WASH WARM

  37. Slide 37: In China: Washing in Cold Reduces Energy Use by 59%

    IN CHINA: WASHING IN COLD INSTEAD OF WARM REDUCES NON-RENEWABLE ENERGY USE BY 59% AND CLIMATE IMPACT BY 69% CHINA: LIFETIME CLIMATE CHANGE IMPACT CHINA: LIFETIME NON-RENEWABLE ENERGY USE Kilowatt-Hours KgCO2e .38 .16 1.07 .12 .54 .44 AVERAGE 100% 100% AVERAGE 100% 100% COLD WASH WARM COLD WASH WARM

  38. Slide 38: Line Dry vs. Dryer by Country

    LINE DRY VS. DRYER BY COUNTRY CONSUMERS WHO LINE DRY CONSUMERS WHO USE A DRYER 88% 82% 68% 32% 18% 12% U.S. U.K./FRANCE CHINA U.S. U.K./FRANCE CHINA LEVI STRAUSS & CO. © 2015

  39. Slide 39: In America: Line Drying Reduces Energy Use by 64%

    IN AMERICA: LINE DRYING INSTEAD OF USING A DRYER REDUCES NON-RENEWABLE ENERGY USE BY 64% AND CLIMATE IMPACT BY 67% AMERICA: LIFETIME CLIMATE CHANGE IMPACT AMERICA: LIFETIME NON-RENEWABLE ENERGY USE 91.9 20.17 62.7 62.7 Kilowatt-Hours 13.84 13.84 51.4 KgCO2e 10.94 22.3 4.61 AMERICA LINE DRY LINE DRY

  40. Slide 40: In UK/France: Line Drying Reduces Energy Use by 65%

    IN UK/FRANCE: LINE DRYING INSTEAD OF USING A DRYER REDUCES NON-RENEWABLE ENERGY USE BY 65% AND CLIMATE IMPACT BY 66% UK/FRANCE: LIFETIME CLIMATE CHANGE IMPACT UK/FRANCE: LIFETIME NON-RENEWABLE ENERGY USE 98.9 18.0 70.7 Kilowatt-Hours 12.9 53.3 52.5 KgCO2e 9.7 9.5 4.4 24.5 UK/FRANCE LINE DRY LINE DRY

  41. Slide 41: In China: Line Drying Reduces Energy Use by 62%

    IN CHINA: LINE DRYING INSTEAD OF USING A DRYER REDUCES NON-RENEWABLE ENERGY USE BY 62% AND CLIMATE IMPACT BY 65% CHINA: LIFETIME CLIMATE CHANGE IMPACT CHINA: LIFETIME NON-RENEWABLE ENERGY USE 18.1 Kilowatt-Hours 11.9 56.3 KgCO2e 10.3 33.3 37.3 5.1 4.1 17.3 14.3 CHINA LINE DRY LINE DRY DRYER DRYER CH

  42. Slide 42: Our Next Steps

    OUR NEXT STEPS LEVI STRAUSS & CO. © 2015 ©2015

  43. Slide 43: Continue to Lead, Educate Consumers & Expand the Better Cotton Initiative

    CONTINUE TO LEAD, EDUCATE CONSUMERS & EXPAND THE BETTER COTTON INITIATIVE LEVI STRAUSS & CO. © 2015

  44. Slide 44: Continue to Lead, Educate Consumers & Expand the Better Cotton Initiative

    CONTINUE TO LEAD, EDUCATE CONSUMERS & EXPAND THE BETTER COTTON INITIATIVE Call to action to Levi’s® fans around the world: 1. Take the quiz to understand your impact and pledge to wash less 2. If you have to wash, use cold water and try our tips 3. Line dry 4. Donate your old jeans to give them a ne

  45. Slide 45: When LS&Co. Leads, Others Follow

    WHEN LS&CO. LEADS, OTHERS FOLLOW LS&Co. water stewardship programs: 1. Water<Less™ 2. Water Recycling & Reuse Standard 3. Global Effluent Guidelines 4. Better Cotton Initiative 5. CEO Water Mandate LS&Co. sustainable product development: 1. Terms of Engagement 2. Chemical Management Programs 3. Resp

  46. Slide 46: Appendix

    APPENDIX

  47. Slide 47: Levi's 501 Jean Lifecycle Impact

    LEVI’S® 501® JEAN LIFECYCLE IMPACT TRANSPORT, FABRIC CUT, SEW, SUNDRIES & FIBER LOGISTICS, CONSUMER CARE END OF LIFE TOTAL ASSEMBLY FINISH PACKAGING RETAIL CLIMATE CHANGE 2.9 9.0 2.6 1.7 3.8 12.5 0.9 33.4 (kg CO2-e) 9% 27% 8% 5% 11% 37% 3% 100% 2,565 236 34 77 10 860 0 3,781 WATER CONSUMPTION (liter

  48. Slide 48: Data Was Collected From Several Sources in the Supply Chain

    DATA WAS COLLECTED FROM SEVERAL SOURCES IN THE SUPPLY CHAIN PHASE PRODUCT DATA FACILITY OR GENERAL DATA Fiber Type Fiber Country of Origin SPINNING Transport Mode and Distance Fiber Loss Fiber Loss DYE, WEAVE, FINISH Chemical Use & Transport Mode & Distance Energy Transport Mode & Distance Water Cut

  49. Slide 49: Sensitivity: Fabric Loss, Fiber Loss, and Wash and Dry Frequency

    SENSITIVITY: FABRIC LOSS, FIBER LOSS, AND WASH AND DRY FREQUENCY ARE IMPORTANT TO THE FINAL RESULTS CHANGE MEASURED IMPACT ON CLIMATE CHANGE IMPACT ON WATER CONSUMPTION FABRIC LOSS ± 10% ± 3.8% ± 7.4% FIBER LOSS ± 10% ± 2.6% ± 6.7% FREQUENCY OF CARE ± 10% ± 3.8% ± 2.3% PRODUCT TRANSPORT ± 50% ± 1.0%

  50. Slide 50: Levi's 501 Jean Global Production Footprint

    LEVI’S® 501® JEAN GLOBAL PRODUCTION FOOTPRINT SPINNING, DISTRIBUTION COTTON SOURCES CUT, SEW, FINISHING SALES CHANNEL CONSUMER END OF LIFE WEAVE, DYE CENTER Mexico United States Retail Haiti US Distribution United Landfill States Nevada United States United States Mexico Egypt Wholesale Kentucky Con

  51. Slide 51: LCA Source Data

    LCA SOURCE DATA References for consumer use habits: • Cotton Council International (2013) Survey of US Laundry Practices, unpublished document, Washington, DC. • Cotton Council International (2013) Survey of Chinese Laundry Practices, unpublished document, Washington, DC. • LS&Co. Consumer Surveys (

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