Stand.earth requests anti-competition investigation into Lululemon’s environmental claims

VANCOUVER, British Columbia — Today, Stand.earth announced at a news conference its anti-competition complaint submitted to the Competition Bureau Canada against Lululemon that claims the company misleads customers about its environmental impact.

Lululemon — one of Canada’s most influential companies and one of the world’s biggest fashion brands — presents itself in its advertisement campaigns as a company whose actions and products contribute to a healthier environment and planet. However, Stand.earth’s position in its complaint is that Lululemon’s business is inconsistent with its public claims to be an environmentally positive company.

• Click here to access the complaint filing

“Lululemon claims to ‘Be Planet’ but their own reporting shows that they have doubled carbon pollution since making the claim. They benefit from a carefully constructed image of environmental sustainability and wellness, and claim to make products that contribute to a healthy environment, but their exponential growth has been built on fossil fuels, from clothing literally made from fracked gas to polluting manufacturing that threatens the health of communities in the Global South. Lululemon’s mantra is supposedly ‘Be Planet,’ when in reality it’s ‘Be Profit,’” said Tzeporah Berman, International Program Director at Stand.earth.

In stark contrast to the company’s slogan, “Be Planet,” Lululemon’s Impact Report released last fall revealed another year of staggering growth in emissions – in fact, a 100% increase in climate pollution (pg. 79) since deploying the slogan. The company also relies heavily on climate-damaging fossil fuels to make its products — more than 60% of the materials it uses are fossil fuel-derived, (pg. 55), materials which contribute to climate pollution, cannot be effectively recycled, do not biodegrade, and release microplastics in the oceans and waterways.

Stand.earth’s complaint seeks a rescission of such claims and highlights the need for brands to make clear and accurate environmental claims that avoid exaggeration.

“Lululemon states that its ‘products and actions avoid environmental harm and contribute to restoring a healthy planet,’ however, its products are made in factories that burn coal for energy, and are made in countries including Vietnam, Cambodia, and Indonesia that rely heavily on fossil fuels to power their production. Despite these claims, some of the company’s biggest suppliers have made no clear strides towards reducing their negative impact on the planet. I would call that greenwashing. If Lululemon wants its words to ring true, it should immediately commit to kicking out coal, and shifting its products from fossil fuels to clean energy.” said Rachel Kitchin, Senior Corporate Climate Campaigner at Stand.earth.

As the climate crisis deepens, there is increased interest and enforcement of greenwash claims by major companies. Among several opened cases, the Competition Bureau just weeks ago confirmed its investigation into oil giant Shell’s “Drive carbon neutral” advertisement campaign for misleading consumers, after which Shell promptly removed all representations of the campaign from its Canadian website and app.

“Based on how Lululemon’s marketing claims contrast with their reliance on fossil fuels in the majority of their products and their growing emissions, this definitely seems to fit my own oft-cited definition of greenwash as ‘communication that misleads people into adopting overly positive beliefs about an organization’s environmental performance, practices, or products.’ In my expert opinion, as well as as a Canadian citizen and consumer who cares about the planet, this is just the type of corporate communication that the Competition Bureau should be examining carefully for greenwashing,” said Wren Montgomery, PhD, Associate Professor of Management and Sustainability at Western University and Co-Founder of the Greenwash Action Lab.

Many Canadians’ concerns about the environment have caused them to shop for their apparel products sustainably, purchase planet-friendly products, and avoid brands that sell products which contribute to climate change or the degradation of the planet. As of this month, nearly 50,000 community members have signed a letter asking Lululemon to quit coal and make its leggings and other apparel with clean, renewable energy.

Lululemon also had scored a ‘C-’ in Stand.earth’s 2023 Fossil Free Fashion Scorecard, which evaluated the company’s performance in taking steps to deploy renewable energy in its supply chain, how its climate targets stack up against others, its state of progress in transitioning from fossil fuel based fabrics to low-carbon materials, and its actions to reduce fossil-fuel pollution from shipping.

Fashion is a multi-trillion dollar industry responsible for producing up to 8% of global greenhouse gas emissions, and those emissions are expected to drastically increase by 2030. The industry’s manufacturing processes disproportionately rely on coal and other fossil fuels, undermining climate stability while also causing a devastating impact on the health of supply chain workers and their communities. A 2021 Harvard University study found that one in five deaths globally can be linked to air pollution caused by the burning of coal and other fossil fuels.

Fossil fuels enter the supply chain through synthetic fibres made from oil and fracked gas, the ongoing practice of burning coal for heat at garment factories, fashion manufacturers’ continued reliance on fossil fuels for electricity, and the heavy fuels required to transport their goods. Fashion companies transitioning their manufacturing to renewable energy is the most important change brands can make to their supply chains to cut emissions.

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Media contact:

Shane Reese, Corporate Campaigns Media Director, shane.reese@stand.earth, +1 919 339 3785 (Eastern Time)