Vendor Code of Ethics (VCoE)

We require our suppliers to comply with our VCoE and also expect compliance of their approved subcontractors. Our Sustainability Team, which provides guidance to our vendors and suppliers, and commissioned third-party experts conduct assessments against the requirements of our VCoE at all new and existing facilities.

We assess all cut and sew facilities and raw material mills, including the living conditions in factory dormitories. We are working to include trim suppliers in our assessments, and conduct selective assessments based on risk.

Learn more about our VCoE

Pre-Production Assessment

Before we engage in a new partnership, suppliers sign our VCoE Certificate of Acknowledgement and Agreement, and we conduct a full facility VCOE assessment.

If all zero-tolerance criteria and minimum requirements are met, we begin a business relationship. If non-compliance issues are found, a Corrective and Preventative Action plan (CAPA) is put in place. This includes agreed-upon solutions, a timeframe for implementation, and key responsibilities.

Assessment Activities

All facilities producing for lululemon are regularly assessed for compliance with our VCoE throughout the business relationship.

Assessments by lululemon or by a third-party auditor can be announced, semi-announced, or unannounced. During assessments, we meet with facility management, tour the site (including dormitories and canteens, if applicable), review documents, and interview employees and workers at all levels of the organization, including union representation. Our VCoE assessment tool guides our assessments, which last multiple days, depending on the size of the facility. Each assessment ends with a closing meeting with facility management where our team presents the findings, ratings, and a timeframe for implementation of an action plan is mutually agreed upon, when necessary.

Continuous Improvement

Our zero-tolerance policies must be followed at all times, without exception.

We know that most suppliers will not achieve 100% rating across all other assessment criteria, and in the spirit of continuous improvement, we support our suppliers to develop CAPAs that blend training and consulting to help achieve our standards. The CAPAs include root cause analysis, agreed-upon solutions, a timeframe for implementation, and key responsibilities. This creates positive change and rewards suppliers who improve conditions at their facilities. Our Partner Sustainability Team supports the suppliers and facilities throughout the remediation process, and may also partner with other buying brands in the factories.

Learn more about our remediation efforts in our supplier facilities:

Youngone’s KSI Facility in Bangladesh

Purchasing Practices

Suppliers are classified according to assessment performance, and the result is included in lululemon’s overall vendor scorecard.

Our approach is to achieve change through engagement and incentives. In cases where required improvements are not achieved, we adjust our business or as a last resort, move our business elsewhere. When performance is high, we consider this score and may increase business where business needs and other sourcing criteria are also being met.

Ongoing Assessments and Follow-Up Visits

Our policy is to reassess a facility’s performance on-site at least every 18 months with all facilities and at least annually with strategic suppliers, subject to supplier performance.

We also partner with other brands in assessment and remediation efforts where we share factories.