Protecting our planet

Responsibly managing our environmental footprint while mitigating global climate change is central to our sustainability strategy.

For our own operations, we introduced a plan on carbon reduction by reducing energy use, improving energy efficiency, switching to renewable energy, and raising employees’ awareness.

For our supply chain, we believe we can play an active role in supply chain decarbonization together with our partners. We prioritize our efforts on increasing the data transparency, developing carbon reduction programs, and establishing supplier score cards. We have now over 1,400 factories reported their GHGs emissions to us and disclosed their reduction targets and practices in improving energy efficiency and reducing their carbon emissions. 54 strategic factories participated our climate reduction program and 89% of them successfully achieved their annual targets by the end of 2022 and were able to move forward to the next phase of the program for continuous improvement.

2. Water

Water conservation is a high priority at Li & Fung. The combined effects of population growth, economic development, and climate change have contributed to increasing water stress on a global scale. We are committed to reducing the volume of freshwater taken from the environment, increasing the portion of water being reused within the production units and improving the quality of the wastewater released across the supply chain. We are on track with our water reduction target internally and we are also working with suppliers to reduce the water footprint in our supply chain, especially in tiers utilizing the majority of the water, such as laundry and fabric mills.

3. Materials and Products

Li & Fung actively promotes the use of more sustainable raw materials to our customers as an efficient way to reduce their environmental footprints and enhance the brand’s value of their products. Our teams have been working closely together with supply chain partners to identify more sustainable materials and packaging alternatives. For example, replacing plastic packaging with FSC certified cardboard, reducing polybag size, replacing PET covers with recyclable paper, etc.  We also strengthened our partnership with Textile Exchange and GOTS by implementing their full database of certified factories across the world into our dashboard, making Li & Fung the first and only company to have this access. This allows us to have full visibility of factory certifications, scope of products and operations certifications, as well as validity dates.