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VF Partners with IFC and Target Corporation on Manufacturing Sustainability in Vietnam

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VF Partners with IFC and Target Corporation on Manufacturing Sustainability in Vietnam

March 18, 2016

Partnership represents a ‘natural extension’ of VF’s work

VF Corporation and the International Finance Corporation (IFC) are partnering to promote sustainable manufacturing practices at supplier factories in Vietnam. Target Corporation is also partnering with the IFC, a member of the World Bank Group, on the initiative.

Under the first phase of this program, energy and water efficiency assessments will be conducted at about 30 factories over the next 12 months to help reduce operating costs and improve productivity while contributing to the country’s green growth and climate change targets.

“VF has a long history of manufacturing excellence centered on respect for the people and the environment, and we continuously explore opportunities to further scale these commitments across our global supplier base for greater impact,” said Brad van Voorhees, Senior Manager for Supply Chain Sustainability for VF in Asia. “The collaboration with IFC and Target is a natural extension of our work and enables the collective exchange of knowledge and best practices to green the textile supply chain.” 

The apparel, footwear and retail industries are significant contributors to Vietnam’s economy. In 2015, these sectors’ exports reached $39.2 billion and generated approximately three million jobs, most of which are for women. 

While this sector is energy and water intensive, there are opportunities for reducing resource consumption by 20 percent or higher by using latest technology and good operating practices. Factory assessments at VF’s supplier factories will identify and develop cost-effective measures to improve energy and water efficiency while helping suppliers improve productivity and competitiveness.

“With Vietnam’s increasing participation in trade agreements, including the Trans-Pacific Partnership and the EU Free Trade Agreement, the local textile sector is poised for faster growth, creating increased demand for sustainable energy and water use practices,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR.

Subsequent phases will evaluate opportunities for use of clean energy to meet power needs of the textile supply chain. This initiative is part of IFC’s multi-year Vietnam resource efficiency program that is implementing innovative approaches by engaging with leading global brands and their supply chains, and by intervening in selected industrial zones to promote circular economy concepts among co-located industries.

Sustainability is one of VF’s powerful business platforms and is engrained into VF’s business operations and across its 30-plus brands. 

Last year, VF joined the American Business Act on Climate Pledge, committing to use 100 percent renewable energy by 2025 at its owned and operated facilities. The company also participated in the Conference of Parties (COP) 21 in Paris last December, joining a majority of the world in a commitment to combat climate change.

To learn more about VF’s sustainability practices, please visit VF’s Sustainability & Responsibility page.