Lululemon (NASDAQ: LULU), the global performance apparel, footwear and accessories company, has announced an investment in a new renewable energy fund targeting its Chinese supply chain.
The fund is designed to accelerate the transition to renewable electricity across Lululemon’s supplier network in Mainland China, with the goal of achieving the equivalent of 100 percent renewable electricity based on projected electricity use in 2030.
The initiative is directly tied to Lululemon’s Impact Agenda 2030, which targets a 60 percent intensity reduction in greenhouse gas emissions by 2030 from a 2018 baseline.
Lululemon achieved its Scope 1 and Scope 2 greenhouse gas emissions target in 2021 and has maintained that performance since, while continuing to work toward its Scope 3 emissions goal.
Schroders Capital’s Infrastructure team will manage the fund, with capital already deployed across multiple wind projects currently underway and expected to be completed later this year.
Noel Kinder, Lululemon’s senior vice president of sustainability, emphasized the broader significance of the approach to supply chain decarbonization.
“Decarbonizing global supply chains requires new ways of thinking about capital, collaboration, and scale,” said Kinder, adding that “this fund demonstrates how companies can pool demand for renewable energy, reduce complexity, and accelerate project development.”
Kinder further noted 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.”
Environmental nonprofit Stand.earth welcomed the announcement, calling it a “significant step” toward Lululemon’s previously stated commitment to 50 percent renewable electricity across core Tier 1 and Tier 2 suppliers by 2030.
Stand.earth has run a multi-year campaign urging apparel makers to transition supply chains away from fossil fuels, pointing to fashion’s responsibility for at least 4 percent of all global climate pollution.
Rachel Kitchin, senior corporate climate campaigner at Stand.earth, said the move could shift momentum across the broader industry, noting that “emissions for the sector continue to increase despite widespread brand promises.”
“With many major brands now starting to look at how they can increase renewable energy and reduce climate pollution from their supply chains, Lululemon’s new promise can be a major momentum-builder toward shifting the sector, making it increasingly difficult for the laggards to ignore their responsibilities,” Kitchin added.
The announcement follows a 2024 complaint led by Stand.earth against Lululemon with Canada’s Competition Bureau over green claims the organization argued were not backed by concrete action.
That investigation resulted in Lululemon removing significant green messaging from its websites and broader communications, making the latest supply chain commitment a meaningful step toward rebuilding its environmental credibility.
