After Mumumelon made a big splash by proving yoga clothes can be manufactured with 100% renewable electricity, lululemon has shared a positive sign of progress towards supply chain decarbonisation.
This week, the brand announced a new renewable energy investment fund which, according to lululemon, will enable its suppliers in China to access renewable electricity from new wind and solar developments:
“lululemon is investing in a renewable energy fund to help accelerate the transition to renewable electricity in its supply chain, supporting progress toward the company’s 2030 climate goals while advancing an emerging investment model.
The investment fund supports the development of new renewable electricity capacity in China. Participation in the fund will enable lululemon to achieve the equivalent of 100% renewable electricity in collaboration with the company’s suppliers* in China Mainland, based on the projected electricity use in 2030.
The fund is managed by Schroders Capital’s Infrastructure team and prioritizes renewable infrastructure investments in late-stage development and construction of wind and solar assets across China. Capital from the fund has been deployed across multiple wind projects that are currently underway and expected to be completed later this year.”
*Supplier facilities include finished goods and raw material vendors. This instance excludes supplier facilities for trims, packaging, and footwear.
Noel Kinder, lululemon’s Senior Vice President of Sustainability, who 1000+ yoga teachers and practitioners recently wrote to, said that the investment “creates a scalable pathway to bring more renewable energy to manufacturing regions where it can have the greatest impact—while contributing to a model that others can build on.”
Following several years of campaigning and incremental change at the company, such as setting renewable electricity targets, we are pleased to see this tangible step forward.
When brands put their money where their mouth is and support real, credible solutions to fossil-fuelled supply chains, it’s a sign of the ‘do-say’ gap on climate starting to close. lululemon’s new fund joins similar efforts from Decathlon, H&M and Bestseller, but most brands are not yet proving their commitment to achieving climate targets.
In fact, last year’s What Fuels Fashion report showed that while 55% of major brands have targets for reducing emissions, only 6% disclose financial support for supplier decarbonisation, or direct investment in grid-scale renewables. It’s becoming increasingly clear that finance is the missing piece in fashion’s sustainability strategies, not just for effective decarbonisation, but for business resilience and energy security, too.
Of course, there is still a lot of work for lululemon to do. Namely, expanding investment in renewable electricity globally, and scaling up support for the electrification of thermal processes, which make up the majority of energy consumption at Tier 2, through clean heat solutions like industrial heat pumps.
That said, based on the information available to us, we commend this investment and look forward to seeing Lululemon report on its impact in reducing greenhouse gas emissions, improving air quality for local communities, and catalysing the replacement of toxic fossil fuels with clean renewables.
Thank you to everyone, from yogis, to athletes, to Mumumelon fans, who have helped us push for positive change throughout this campaign! Follow us on Instagram and subscribe to our newsletter to stay updated as it develops.
