lululemon Invests in Renewable Energy Fund to Accelerate Supply Chain Decarbonization

lululemon is investing in a renewable energy fund to help accelerate the transition to renewable electricity in its supply chain, supporting progress toward the company’s 2030 climate goals while advancing an emerging investment model.

The investment fund supports the development of new renewable electricity capacity in China. Participation in the fund will enable lululemon to achieve the equivalent of 100% renewable electricity in collaboration with the company’s suppliers^{11 Supplier facilities include finished goods and raw material vendors. This instance excludes supplier facilities for trims, packaging, and footwear.} in China Mainland, based on the projected electricity use in 2030. The fund is managed by Schroders Capital’s Infrastructure team and prioritizes renewable infrastructure investments in late-stage development and construction of wind and solar assets across China. Capital from the fund has been deployed across multiple wind projects that are currently underway and expected to be completed later this year.

“Decarbonizing global supply chains requires new ways of thinking—about capital, collaboration, and scale,” said Noel Kinder, Senior Vice President of Sustainability at lululemon. “This fund demonstrates how companies can pool demand for renewable energy, reduce complexity, and accelerate project development. As we work toward our climate goals, this 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.”

Addressing supply chain emissions is a key focus area of lululemon’s Impact Agenda 2030. Increasing the use of renewable electricity in its supply chain is a core component of the company’s roadmap toward its Scope 3 science-based target—a 60% intensity reduction in greenhouse gas emissions by 2030^{22 Our Scope 3 target includes Category 1 (with the exclusion of "other purchased goods and services," which relate to non-product spend) and Category 4 emissions, as defined by the GHG Protocol. This exceeds the SBTi requirement of including at least two-thirds Scope 3 emissions.} from a 2018 baseline. This target tracks progress in managing supply chain emissions relative to business growth.

This investment builds on lululemon’s broader efforts to advance renewable energy and decarbonization across its shared supply chains, including partnerships with Apparel Impact Institute, Asia Clean Energy Coalition, and CEBA’s Clean Energy Procurement Academy. Together, these initiatives reflect lululemon’s commitment to collective action—supporting solutions that extend beyond its own operations to help accelerate industry-wide progress.

Schroders Greencoat, an adviser to the strategy, is one of the largest pureplay renewable energy and energy transition infrastructure managers globally with active management strategies across the clean energy and asset-lifecycle spectrum.

Learn more about lululemon’s climate action commitments here.