Iconic denim apparel marketer – Levi Strauss & Co has partnered with IFC, a member of the World Bank Group to provide financial incentives for garment suppliers in developing countries.
This new supplier finance programme, which was announced at the ILO/IFC Better Work Buyers’ Forum in New York City, will help garment factories upgrade environmental, health and safety and labour standards.
IFC’s Global Trade Supplier Finance (GTSF) programme has performance ratings attached to its short-term and low cost loans, for those borrowers which score strong performance ratings under Levi Strauss’s environmental and social monitoring system.
“Specifically, this pioneering programme will reward vendors that score higher on Levis Strauss ‘Terms of Engagement’ (ToE) assessments, which measure labour, health and safety, and environmental performance, an IFC press release said.
The GTSF programme will offer these vendors lower cost rates on working capital financing and higher the vendor’s TOE score, the more they will save.
Levi Strauss & Co. Chief Supply Chain Officer Mr. David Love said, “Levi Strauss believes vendors that score highly on our strict standards, should be recognized and rewarded in ways that allow them to reinvest in their business and improve their performance.
“This innovative programme provides financial incentives to our vendors who perform well on sustainability metrics. We applaud the IFC for establishing this programme and look forward to partnering to make it a success on the ground, he added.