We collaborate with our suppliers and industry partners to increase energy efficiency, expand access to and use of renewable electricity, and phase out on-site coal boilers.
Increasing the use of renewable electricity in our supply chain is part of the roadmap toward our Scope 31 science-based target and long-term goal of net-zero emissions. We are working to achieve 25 percent renewable electricity among core suppliers2 by 2025, and 50 percent renewable electricity among core suppliers by 2030. We work to prioritize higher impact renewables such as onsite solar and power purchase agreements (PPAs), where feasible. We recognize that Energy Attribute Certificates (EACs) are also necessary in a global transition to clean energy and aspire to minimize the use of lower impact EACs where possible.
Many manufacturing regions face barriers to renewable electricity procurement, including regulatory frameworks, supply of renewable electricity, permitting processes, and complex subsidies. Recognizing the need to advocate for renewable energy development, we joined the Asia Clean Energy Coalition (ACEC) in 2023. ACEC is a coalition of renewable energy buyers, in collaboration with sellers and financiers, working to help strategically shift policy in key Asian national and regional markets to support expansion of and access to renewable electricity.
For example, ACEC provided consultative and technical support for the development of the Vietnam Direct PPA (DPPA) and related policies and has engaged with decision makers in South Korea and other priority markets to discuss challenges and improve procurement options. ACEC also supports policy advancement through technical papers and references. lululemon engages with ACEC through input across member channels, including as an active member of the Vietnam Working Group.
In 2024 lululemon also became a sponsor and active member of the Clean Energy Procurement Academy, an initiative of the Clean Energy Buyers Association (CEBA), which collaborates with ACEC and others to drive access to renewable energy. The CEBA Academy builds supplier capacity through in-person and digital training on local renewable energy procurement options. At the time lululemon joined, the CEBA Academy extended programing into Vietnam and continues to broaden reach to new geographies. To date, a number of lululemon suppliers in China Mainland and Vietnam have participated in the training program.
Among others, we are lead funders in the Fashion Climate Fund, established by the Apparel Impact Institute to unlock $2B in blended capital to accelerate carbon reduction within the apparel industry.
1 Indirect upstream and downstream emissions across our value chain. 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.
2 Core Tier 1 and Tier 2 suppliers represent over 75% of our production volume