lululemon makes billions promoting itself as a brand that supports health, well-being and sustainability. Yet, greenhouse gas emissions from manufacturing have increased significantly every year, reaching a massive 920,534 metric tonnes of cO2 equivalent in 2023 — almost 20% higher than in 2022. The company has committed to a Science-Based Target of 60% by 2030, however, this Scope 3 emissions reduction target is intensity-based, which means that as the brand continues to grow, absolute emissions continue to rise.
99.7% of lululemon’s greenhouse gas emissions are in Scope 3, mostly produced in the factories they source from to make their products. The vast majority of these emissions are associated with textile production: the processing of the fabrics used to make their clothing. This is because dyeing and processing fabrics require hot water and steam, which traditionally is produced by burning fossil fuels. However, despite having a 2030 coal phase-out target, lululemon hasn’t shared evidence of any actions it's taking to transition from coal to clean renewable electricity, which means suppliers are currently using other harmful fuels like gas or biomass instead.
Most of lululemon’s suppliers are still heavily dependent on fossil fuels for their electricity too, with only 14% of electricity used by their Tier 1 and 2 suppliers coming from renewable sources in 2023. So far, the company has only committed to boosting supply chain renewable electricity up to 50% by 2030. Meanwhile, although it has stated a preference for high-impact sources such as onsite solar and PPAs (power purchase agreements) instead of poor quality EACs (energy attribute certificates), it has yet to share details about how exactly suppliers are being supported to procure this type of energy.
WHY IT MATTERS
The fashion industry contributes roughly 1.8% of the world’s total greenhouse gas emissions, so it is a crucial sector for decarbonizing the global economy.
If we want to limit global warming to 1.5ºC and avoid the most catastrophic consequences of climate change, annual renewable power must triple by 2030. A significant proportion of this will need to be driven by corporate procurement.
lululemon is in a unique leadership position to create positive change in the industry. It has significant financial influence amongst its large global supply chain, which includes countries with important opportunities for transitioning to renewable energy in the near-term. As one of the world’s largest sportswear and apparel brands, lululemon has the opportunity to raise the bar on meaningful action to decarbonise fashion manufacturing, and collaborate with other powerful stakeholders to achieve its climate goals.
lululemon’s market influence means that if it shifts towards 100% renewable energy in its supply chain, it will help create demand for renewable energy globally, and develop the regulatory, technical and financial solutions needed to support real systemic change.
lululemon positions itself as a leader in community health and wellbeing, which is at odds with its reliance on fossil fuels and links to environmental harm. The company has an important opportunity now to align its business model with its core values and become a leader in sustainability, while influencing others to do the same.
