Lululemon fell further behind its competitors in the sportswear subsector in this analysis, continuing its run of drastically increasing emissions taking it further out of alignment with a 1.5 ° C pathway. The company has yet to set an adequate emissions target for its manufacturing, using a less rigorous intensity-based measure. As a priority, Lululemon must publish a detailed roadmap to decarbonize, with a transparent, time-bound and specific 100% renewable energy transition plan, and report annually on its progress and actions. Lululemon has claimed a 15% aggregated supply chain renewable electricity ratio [77], it attributes this primarily to grid renewables in South America and does not provide details. The company needs to provide evidence that it is providing effective financial support and investment into decarbonizing its supply chain in order to curb its emissions growth.
Total Score
Emissions
About the Clean Energy Analysis
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards. It provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands. Their performance is measured against the runway to an equitable fossil fuel phase-out by 2030 on criteria related to energy efficiency and renewable energy, drawing in data shared publicly by manufacturers in their supply chains.
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Score Breakdown
| Target | Brand Commitment | Meets Benchmark |
| Stores and offices GHG Emission reduction target (Scope 1 & 2) | 60% reduction from 2018 levels by 2030 [78] | ✔ |
| Stores and offices Renewable Electricity target (Scope 2) | 100%, achieved in 2022 [79] | ✔ |
| Manufacturing emissions target (Scope 3) | 60% intensity-based reduction from 2018 levels by 2030 [80] | ❌ |
| Manufacturing Renewable Energy target (Scope 3) | No | ❌ |
| Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass | Coal phase out by 2030 | – |
The company reports its Scope 1 to 3 GHG emissions and provides a full breakdown of Scope 3 categories[81], has supplier lists for Tier 1 and Tier 2 available. [82]
In its sustainability report, Lululemon discloses an aggregated percentage of renewable energy in its Tier 1 and 2 manufacturing but does not provide detail on its energy use, renewable electricity sourcing, or provide a breakdown by tier, region or facility.[83] There was no reporting on thermal energy demand across the supply chain.
Lululemon’s emissions have shown staggering growth, heading further away from a 1.5℃ pathway, and increasing by more than 10% in the last year alongside significant revenue growth. Lululemon is far from on track to decarbonize by 2030.
Lululemon does report some growth in renewable electricity in its supply chain. The company states that in 2022, 15% electricity used by Tier 1 and 2 suppliers came from renewable sources, however it is unclear how much of this was as a result of the brand’s actions. It shares that this is a combination of clean grid electricity in parts of South America, as well as contribution from on-site solar.[84]
In its own operations the company reports having reached and maintained 100% renewable electricity since 2022, achieved through a combination of one VPPA in Texas and REC purchases.[85]
Lululemon did not provide evidence showing progress towards phasing out thermal coal.
Step 1: Lululemon provides evidence of support to suppliers to encourage energy efficiency. This includes participation in Carbon Leadership Program with Apparel Impact Institute and RESET carbon, GIZ Fabric partnership as well as internal target setting and energy initiatives.[86] The company reports commissioning a study “to inform the evolution of a manufacturing renewable electricity roadmap”,[87] but it is not clear what current support is available. Currently, the company provides information and training through its Vendor Environmental Manual, Global Vendor Environmental Council as well as the Carbon Leadership Program with the Aii.
Step 2: No evidence provided
Step 3: Lululemon does have climate requirements through the Higg FEM and its Vendor Requirement Manual for suppliers but these are not included as a condition of contract.
Evidence is provided on support to transition away from coal including feasibility studies and a targeted approach inclusive of commitment letters and action plans, partnering with suppliers on feasibility assessments for different fuels and thermal technologies.
The brand mentions biomass briefly in relation to involvement with the UNFCCC coal phase out working group and its efforts to ‘develop sustainable biomass guidelines’. [88]
There is less direct evidence of Lululemon’s wider external efforts to increase additional renewable energy access and procurement, particularly in supply chain regions. In 2022 it provided initial funding to the Aii Fashion Climate Fund. This is a $250m fund which allocates impact program funding to clean by-design energy and water efficiency as well as funding the Carbon Leadership Program, although its direct impact on the company’s supply chain is unclear.[89]
Lululemon’s disclosure also lacks examples of direct engagement beyond membership or signatory status of initiatives and industry associations.[90]
Supply Chain Movement
Nine of the 17 Lululemon supplier companies included in this research have published emissions reduction targets, while four have made specific plans to increase the use of renewable electricity at their factories, either by purchase (Teijin Ltd.) or on-site generation (Crystal International Group Ltd). Of the eight companies that reported their current renewable electricity ratio, the ratios ranged from just 0.52% at Eclat Textile – one of Lululemon’s top suppliers – to 38% at Crystal International Group Ltd. Four supplier companies, including MAS Holdings and Far Eastern New Centruty Corporation, reported using biomass to replace coal-fired boilers, including wood pellets.