The fashion and apparel sector stands at a crossroads in the climate era. Long known for resource-intensive production and wasteful consumption patterns, the industry faces mounting pressure to change course. Global clothing production nearly doubled from 2000 to 2022, feeding a “fast fashion” model where consumers buy 60% more garments but keep them half as long. The environmental toll is staggering: the fashion industry is the world’s second-largest consumer of water and is responsible for an estimated 2-8% of annual global carbon emissions. Each year, 215 trillion litres of water are used along the textile supply chain, and 85% of all textiles end up in landfills or are incinerated rather than recycled.

Amid these challenges, Levi Strauss & Co. (LS&Co.) offers a revealing case study in how a legacy brand can pivot toward sustainability. As the maker of the iconic Levi’s® jeans, LS&Co. operates in one of fashion’s most resource-heavy categories: denim. Producing a single pair of jeans can require up to 3,800 litres of water across its lifecycle, from thirsty cotton fields to water-intensive dyeing and washing. Recognising these impacts, Levi’s leadership has been outspoken about the need for change.

“This is an existential crisis for our planet and for business. In a world of dwindling resources, the only way companies like ours can grow... is if we adopt climate practices that lower our emissions, back a just transition to a low-carbon economy, and support marginalised communities hit hardest by climate impacts,” said CEO Michelle Gass when introducing Levi’s latest climate plan.

Cutting Carbon: Levi’s Path to Net Zero

Levi Strauss & Co. was an early mover on climate goals within the apparel sector. In 2018, it became one of the first fashion companies with a Science-Based Targets initiative (SBTi) - approved emissions reduction plan. Building on that foundation, LS&Co. announced in 2024 a commitment to reach net-zero greenhouse gas emissions by 2050 across its entire value chain. Net-zero by 2050 means cutting absolute emissions by 90% from a 2022 baseline and neutralising the rest of its greenhouse gases. This long-term ambition is paired with aggressive near-term targets: by 2025, Levi’s aims to cut emissions from its own operations (Scopes 1 and 2) by 90% versus 2016 and use 100% renewable electricity in all company-owned facilities.

Progress so far is promising. As of 2023, LS&Co. reports a 77% reduction in operational (Scope 1 and 2) emissions compared to 2016, largely through energy efficiency and a rapid shift to renewable power. The company is on track to hit the 90% reduction goal by 2025. Its offices, stores, and distribution centres now run on 97% renewable electricity. Levi’s has invested heavily in energy-saving retrofits and clean energy procurement to achieve near-100% renewable usage.

💡Levi’s is closing in on its goal of 100% renewable power with 97% of the electricity in company-operated facilities now comes from renewable sources.

The bigger challenge lies beyond Levi’s direct footprint, in its supply chain. Upstream emissions from manufacturing and raw material production account for the vast majority of Levi’s climate impact. To address these Scope 3 emissions, LS&Co. set a target for a 42% absolute reduction in supply chain GHG emissions from purchased goods and services by 2030 (against a 2022 baseline). Achieving this goal requires deep collaboration with the third-party factories that cut, sew, dye, and launder Levi’s products. Levi’s is engaging suppliers through initiatives like the International Finance Corporation’s Partnership for Cleaner Textiles (PaCT) and a sustainability-linked finance program. Under a 2021 collaboration with IFC, for example, Levi’s suppliers that improve their energy and water efficiency can access lower interest rates on loans - an incentive to invest in low-carbon upgrades.

“Working with IFC to make sustainability-linked financing available will help us meet our own sustainability goals and drive a more sustainable apparel industry,” explains Jeffrey Hogue, Levi’s Chief Sustainability Officer.

Levi’s is also pushing suppliers to transition to renewable energy and cleaner processes. The company has mapped carbon “hotspots” in its supplier base to target solutions. The resulting climate transition plan aligns Levi’s growth strategy with a 1.5°C warming trajectory and pinpoints technologies from solar power installations to advanced heat-recovery systems to cut factory emissions. By working closely with experts, peers and its own suppliers, Levi’s aims to amplify these decarbonization efforts and stay on course for net zero.

💡Levi Strauss & Co. has committed to net-zero emissions by 2050, which will require cutting at least 90% of its 2.5 million-ton CO₂ footprint and only offsetting a minimal remainder.

Water, Cotton and Resource Stewardship

1. Water<Less® innovation and industry impact

Levi’s made water stewardship a cornerstone of its sustainability approach with the launch of its Water<Less® program in 2011. By redesigning denim finishing techniques using shorter wash cycles, water recycling systems, and ozone treatments the company significantly cut water use in garment production. These methods have not only reduced Levi’s own footprint but were openly shared with the industry to encourage broader adoption. As a result, the program has saved nearly 13 billion litres of water since its inception, marking one of the most substantial reductions in denim manufacturing globally.

💡Nearly 13 billion litres of water saved since 2011 - a rare achievement in an industry known for high water use.

2. Targeted water reduction in high-stress regions

Levi’s focused its water conservation efforts where the risks are highest. The company set a goal to reduce freshwater use in manufacturing by 50% in areas experiencing high water stress by 2025, using 2018 as a baseline. By 2023, it had already achieved a 27% reduction in those regions. To bridge the remaining gap, Levi’s introduced Recycle & Reuse guidelines that require key supplier factories to recycle at least 20% of the water they consume. Many of these facilities have now installed water treatment systems, enabling them to meet the standard and significantly lower overall consumption. This targeted strategy ensures that conservation efforts are applied where they have the most impact.

3. Sustainable cotton and material innovation

Cotton, which makes up nearly 90% of Levi’s fibre use, is both water-intensive and central to the company’s environmental footprint. In response, Levi’s prioritised sustainable sourcing and by 2024 achieved its goal of sourcing 100% of its cotton from preferred sources, including Better Cotton Initiative farmers, organic and recycled cotton, and members of the U.S. Cotton Trust Protocol. Beyond cotton, Levi’s is investing in alternatives like cottonised hemp, a lower-impact fibre that mimics the look and feel of traditional denim while requiring less water to grow. These shifts reflect a broader effort to decouple product design from resource-heavy inputs.

4. Chemical management and water protection

To further safeguard water systems, Levi’s tightened its chemical protocols across the supply chain. It was one of the first brands to join the Zero Discharge of Hazardous Chemicals program and has since developed its own Screened Chemistry initiative to ensure only safer chemicals are used in denim production. The company’s goal is for all strategic finishing facilities and fabric mills to adopt 100% approved Screened Chemistry processes by 2026.

Closing the Loop: Toward Circular Fashion

Even as Levi’s works to reduce the resource intensity of making jeans, it is reimagining what happens at the end of a product’s life. In conventional fashion, a linear model prevails: make, use, dispose. Levi’s is striving for a more circular model where products last longer and materials are reused rather than wasted.

“The transition to a circular economy remains a massive opportunity for apparel companies. Getting to a point where products are made from safe and renewable inputs and made to be made again is critical,” says CSO Jeffrey Hogue.

To “close the loop,” Levi’s has experimented with new materials and business models.

One such innovation is the Levi’s WellThread® collection - a line of fully recyclable jeans designed from the ground up. Levi’s has also begun incorporating next-generation fibres like Circulose® (a recycled cellulose made from old denim) into its products. In 2022, the company even produced a prototype of its iconic 501® jeans using Circulose® fibre in partnership with Renewcell, showing that even its heritage styles can be made with recycled content.

Equally important is extending the life of each garment. “Buy Better, Wear Longer” is Levi’s consumer campaign encouraging customers to wear their clothes longer and care for them more sustainably. To support this ethos, Levi’s launched a SecondHand program in the U.S. that lets customers trade in used jeans and jackets and purchase pre-owned Levi’s pieces through an official resale platform. By embracing recommerce, Levi’s keeps products in circulation and reduces demand for new, resource-intensive production. The company plans to expand resale and upcycling initiatives to more markets in the coming years, signalling that durability and reuse are becoming integral to its business model.

Waste reduction in operations is another pillar of circularity. LS&Co. has a target of zero waste to landfill in all company-operated facilities by 2030, and at least 50% waste diversion (recycling or reuse) in its strategic suppliers’ facilities by the same year. It is also phasing out disposable plastics in packaging, aiming for 100% reusable, recyclable or compostable packaging by 2030 to eliminate single-use plastics sent to customers.

Empowering Workers and Communities

Sustainability at Levi Strauss & Co. extends to social impact, the “S” in ESG reflecting the company’s heritage of corporate citizenship. A cornerstone of Levi’s social strategy is its Worker Well-being program, launched in 2011 and refreshed in 2022. This initiative partners with garment factories to support projects that improve workers’ health, financial security, and family well-being. By 2024, roughly two-thirds of Levi’s key suppliers had established active worker-management committees to give employees a voice in workplace decisions. In many of these factories, women make up about half of the committee members, helping ensure female workers are represented in decision-making.

Levi Strauss & Co. has also been proactive on labour rights and equity within its own operations. In 2023-24, the company conducted a comprehensive pay equity analysis covering its global workforce. After controlling for factors like role, tenure and location, Levi’s found no statistically significant gender pay gaps among its employees, and pay parity across races/ethnicities in the U.S. The company adjusted compensation where needed and committed to regular reviews to maintain fairness.

💡Levi’s recent internal audit found pay parity with no meaningful differences in compensation by gender globally or by ethnicity in the U.S., after adjusting for role and experience.

The Sustainability Ethos

Levi Strauss & Co.’s sustainability journey shows both the promise and the complexity of transforming a fashion business in line with ESG principles. On one hand, Levi’s has proven that a major apparel brand can set bold goals from climate neutrality to circular fashion and make measurable progress. The company is slashing emissions in its operations, investing in water-saving and eco-friendly materials, and integrating sustainability into decisions up to the boardroom. On the other hand, the scale of the challenge means there is still a long road ahead. Levi’s supply chain emissions, water use, and waste footprint remain substantial, and overcoming industry-wide dependencies (like coal-fired factories or consumer fast-fashion habits) will require ongoing innovation and partnership.

Levi’s intends to keep moving forward.

“We’re committed to doing our part and, while we acknowledge the challenges ahead, we will continue to work with partners across our value chain to enable collective action to address climate change,” affirms CEO Michelle Gass.

That spirit of collaboration with suppliers, NGOs, even competitors will be essential to scaling solutions in the years to come. The iconic denim brand’s embrace of sustainability shows that even a 170-year-old company can innovate and lead on ESG issues. The task now is to maintain momentum. By staying true to its values and candidly measuring progress, Levi Strauss & Co. is charting a path that others in the fashion industry may follow - from blue jeans toward a greener future.

Source: Levi's Strauss Sustainability

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