Global supply chain firm Li & Fung Limited has launched a new business, LFX, to serve as an incubation, investment and operating platform.

LFX will provide digital solutions and digitally-enabled services across the consumer goods supply chain, and will launch and operate ventures and deliver solutions directly to brands, retailers, e-commerce companies and manufacturers.

Li & Fung CFO Ed Lam has been named CEO of the new business, and said it will focus on reducing environmental impacts of promoting sustainable consumption.

“Roughly 40 million tons of textile waste goes to landfill every year, and it is estimated that just 60 per cent of garments were sold at full price,” Lam said.

“Sustainable consumption requires behavioral shifts, and it starts with the supply chain.”

The business will also focus on 3D digital product development and supply chain fintech, though a venture capital arm has also been formed in order to fund technologies that could “transform global retailing”.

“We have established LFX as a separate company to build on Li & Fung’s supply chain knowledge to bring new ways of thinking and revolutionise how we create, make and sell products,” said executive chairman of both Li & Fung and LFX Spencer Fung.

“Sustainable consumption starts with supply chain digitalization and LFX is forming an ecosystem that connects the innovations, people and companies committed to accelerating digitalization and transforming the retail industry.”