From iconic jeans to strategic ESG value
Founded in 1853 by Levi Strauss, Levi’s has grown from the original riveted work‑pants business into one of the world’s most recognisable apparel brands. Over time, the company has begun to reimagine its heritage through a sustainability lens, recognising that for a global denim giant, environmental and social performance are now key drivers of business resilience and value.
Today, Levi’s has embedded sustainability across its business strategy, anchored in three core pillars: Climate, Consumption, and Community. As the apparel industry faces rising resource constraints, regulatory pressure, and shifting consumer expectations, Levi’s positioning is clear: sustainability isn’t ancillary; it’s part of how the brand stays relevant and competitive.
A business model designed for sustainability value
Unlike brands that bolt sustainability onto existing operations, Levi’s has aligned major business and brand initiatives around its key ESG pillars. This alignment enables commercial benefits across multiple dimensions:
1. Climate action with measurable targets
Levi’s has committed to net‑zero emissions by 2050, and unveiled a new near‑term goal of reducing Scope 3 emissions 42 percent by 2030 (from a 2022 baseline). When paired with its earlier targets of reducing absolute Scope 1 & 2 emissions by 90 percent by 2025 (2016 baseline), the strategy underscores how Levi’s is shifting to align with 1.5 °C pathways. These targets offer quantitative metrics for measuring performance, mitigating regulatory and investor risks, and sending a clear signal of purpose to modern consumers.
2. Circularity and resource efficiency
Levi’s “Water<Less®” finishing techniques and supplier water‑stewardship programmes are central to its consumption strategy. For example, the company has pledged to reduce freshwater use in manufacturing in high‑water‑stress areas by 50 percent by 2025 (2018 base year). Reduced resource consumption translates to lower input costs and improved resilience against scarcity or volatility in water or energy pricing. Levi’s publicly links efficiency gains with business benefit.
3. Community and value‑chain responsibility
Beyond environmental performance, Levi’s is investing in worker well‑being, supply‑chain transparency and traceable materials. Its Worker Well‑Being initiative, along with commitments to diverse, safe and fair labour practices, support brand trust and minimises ethical risk. A stronger social performance aids in reputational risk mitigation, strengthens stakeholder trust and helps sustain brand loyalty.
Overcoming major sustainability challenges
Levi’s journey hasn’t been without hurdles. Some of the key challenges include:
- Supply‑chain complexity: With denim supply chains often spanning multiple countries and raw‑material sources, mapping and tracing risks (water, chemicals, labour) remains a heavy lift.
- Upstream emissions dominance: For apparel brands, Scope 3 emissions (covering material sourcing and use phases) often account for over 90 percent of the footprint. Levi’s, in fact, reported that 37 percent of the climate impact of its 501® jeans came during the consumer‑care phase and 23 percent from water use.
- Balancing growth with sustainability: As Levi’s expanded its direct‑to‑consumer and global footprint, aligning scaling ambitions with environmental and social performance required careful strategy.
By tackling these issues through clear goals, strategic capital investment, and operational performance improvement, Levi’s has shown that sustainability can be a lever (not a limitation) for business growth.
Business outcomes: Sustainability driving value
Levi’s public disclosures and analyst commentary signal that sustainability action is delivering measurable business benefits:
- Efficiency gains from resource‑use reductions support margin improvement. Analysts noted Levi’s cited cost‐saving initiatives linked to sustainability when raising its profit forecast.
- The brand’s strong reputation for heritage and sustainability helps differentiate it in the competitive denim market, supporting growth in direct‑to‑consumer channels, which accounted for 43 percent of total business in 2023.
- Through credible climate commitments (SBTi‑approved) and robust water‑and‑materials programmes, Levi’s reduces investor risk, improves market perception, and strengthens its resilience to regulatory or supply‑resource shocks.
In short, Levi’s shows how embedding sustainability across business functions – brand, operations, procurement, and innovation – creates both environmental benefit and long‑term company value.
What we can learn from Levi’s
Key takeaways for organisations building their sustainability strategies:
- Structure your sustainability agenda around clear pillars that align with business purpose (e.g., climate, consumption, community).
- Set ambitious, measurable targets (e.g., net‑zero, Scope 3 cuts) and align them to business timelines and investor expectations.
- Focus on resource efficiency and supply‑chain transparency to drive cost savings and mitigate risk.
- Embed sustainability across product innovation, sourcing and stakeholder engagement, not just in the Corporate Social Responsibility (CSR) department.
- Track business performance outcomes from sustainability activities; the environmental and social gains improve long‑term commercial resilience.
Looking ahead: What’s next for Levi’s?
As regulatory pressure mounts (for example, on materials traceability and circular economy models), Levi’s proactive stance gives it an advantage. Its next phase focuses on scaling circular product systems and deepening supplier‑community engagement across value chains. For other companies, the window to act is now. Building internal capability, identifying key performance levers and integrating sustainability into the business model will separate resilient organisations from those reacting to change.
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Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
