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

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, 2010
1 | CONFIDENTIAL

2. Apparel Supply Chain
Materials
Raw Manufacture Product
Materials Manufacture
NEW
CAPABILITIES
End Transportation
Disposition Recycling Use & Distribution
2 | 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 year
3 | 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, 5
we need to address cotton and 0
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Water use per kg garment
2500
2000
kg water
1500
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500
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Data from LS&CO.’s Facilities Environmental Impact
tr i
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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 products
7 | 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 practices
8 | 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