However, it still has a long way to go to decarbonise its supply chain, particularly considering that its fast rate of growth led its supply chain emissions to increase by a shocking 83% between 2019 and 2021. Its intensity-based Scope 3 emissions target is still too weak, and it has yet to target 100% renewable energy within its supply chain, which is essential for addressing the greatest source of its GHG emissions. lululemon reported improving its supplier engagement since the 2021 scorecard, including by working partially with suppliers on renewable energy projects. However, its material sourcing remains heavily dependent on fossil fuel derived fabrics, and it has only made limited efforts to increase product circularity. lululemon should prioritise setting a supply chain renewable energy target and working with suppliers to rapidly transition off fossil fuels, as well as greatly reducing its reliance on fossil fuel based fabrics.
Total Score
Emissions
About the Scorecards
The fashion industry is responsible for 2- 8% of global emissions but are fashion brands doing enough to tackle their growing climate impact? The updated 2023 Fossil Free Fashion Scorecard analyses 43 fashion companies on their climate action.
Read ReportScore Breakdown
GHG emissions:
lululemon has set an emissions reduction target for its own operations of 60% by 2030 from a 2018 base year, which is in line with keeping warming below 1.5°C.
The company has also set an intensity-based target of 60% reduction across the global supply chain by 2030 from a 2018 base year, or an equivalent of 30% absolute target. This target is still short of the 55% reduction required.
Renewable energy:
lululemon has set a renewable energy target in its own operations of 100% by 2021, which it has met through a mix of renewable energy credits and one major PPA in the United States.
lululemon has yet to set a target of 100% renewable energy for its supply chain by 2030, which is an essential part of decarbonising its supply chain.
Coal phase out:
lululemon has publicly set a target to phase out coal-fired boilers from its Tier 1 and Tier 2 supply chain by 2030 to reduce air pollution and cut emissions.
GHG emissions:
lululemon publicly reports GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
Energy use:
lululemon does publicly report its energy use for its own operations, including a breakdown of its renewable energy use and how that energy is sourced.
For its supply chain, lululemon does not publicly report its energy use, and does not provide a breakdown of its suppliers’ renewable energy use and how that energy is sourced.
Suppliers:
lululemon provides a partial supplier list into Tier 2.
lululemon reports providing its suppliers with training and resources to help them make energy efficiency improvements through the Carbon Leadership Project with Aii, and claims to provide financial support or incentives for energy efficiency measures. The company does not require suppliers to make energy savings as a condition of contract.
lululemon requires suppliers to reduce thermal coal demand in their manufacturing processes and is developing action plans with suppliers to phase out coal boilers by 2030.
lululemon does report providing its suppliers with training and resources to help them transition to renewable energy, but it does not provide details. The company does report providing financial support or incentives to make the energy transition, including supporting suppliers in Vietnam to transition to renewable energy through PPAs and rooftop solar, and made an initial investment in the Aii Climate Fund for GHG reductions. lululemon does not require suppliers to use renewable energy as a condition of contract.
lululemon does require its suppliers to disclose GHG emissions data and set GHG emissions reduction targets, and it requires Tier 1 and 2 suppliers and subcontractors to provide facility level data via the Higg Index.
lululemon has not made any commitments to phase out fossil fuel based materials.
lululemon has committed to being a non animal-based leather company as part of its policy of not contributing to deforestation. lululemon also has a general policy against contributing to deforestation through other materials including cellulose-based fabrics.
Low-carbon materials:
lululemon is acting to increase closed-loop apparel-to-apparel recycling for synthetics and plant-based materials by piloting textile-to-textile recycling technology, and has made commitments to launch alternative nylon solutions by 2025 and switch to 100% renewable or recycled content nylon for its products by 2030, and sourcing at least 75% recycled polyester by 2025, although the material will be sourced from rPET. lululemon has not committed to reduce the impact of its raw materials sourcing by switching to organic cotton or cotton sourced from regenerative agriculture by 2030, and relies heavily on synthetic fibres in its material mix.
Increasing circularity:
lululemon is partly acting to increase circularity by offering an online resale program, but needs to do more to promote durability, and repair and reduce overproduction faster than its current starting goal of 2025.
lululemon does publicly report its material mix and the volume of materials. And it does publicly report how it manages its material waste. But it does not publicly report its deadstock quantities.
lululemon does report its shipping emissions annually and does include shipping emissions in its GHG reduction targets. But it does not provide a breakdown of its transportation methods.
lululemon does not have a short term commitment to reduce shipping emissions in the supply chain, but does have a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does not have a near-term plan to ship its cargo via cleaner methods, and reported an increase in air freight in 2020/21, leading to a significant increase (108.8%) in shipping emissions from 2019 to 2021.
lululemon has not committed to transitioning to zero emissions vessels (ZEV) by 2030. The company has not used its voice publicly to advocate for Zero Emission Shipping.
lululemon has yet to commit to transitioning its last-mile delivery to zero-emission vehicles.
lululemon is in coalition with 39 other companies to sign the Clean Energy Demand Initiative (CEDI) Global Letter of Intent. This letter calls for a global clean energy transition in partnership with governments, non-profits, and other organizations. lululemon joined 11 other companies in a joint Clean Energy Demand Initiative letter of intent with the Philippines government. CEDI looks to energise private sector investment by leveraging both governmental policy and corporate clean energy commitments that grow renewable energy purchasing. Overall, lululemon was relatively active in supply chain advocacy in the Scorecard period, although it has room to grow.