Climate Action

Why It Matters

Climate change is damaging ecosystems and causing adverse impacts to human health and wellbeing^{1¹ In the context of our Impact Agenda, we define wellbeing as a lifetime practice of three interconnected elements—physical, social, and mental wellbeing.}, representing an urgent global challenge.^{2² The Intergovernmental Panel on Climate Change, Climate Change 2023 Synthesis Report.} Addressing climate change is complex, and no single organization can do it alone.

What We're Doing

Our approach centers on addressing emissions across our supply chain and supporting collective action for industry-wide change.

Our 2030 Goals

Our strategy to address emissions and work toward our goals focuses on four key areas: product and material innovation, manufacturing, transportation, and our own operations.^{3³ "Own operations" refers to facilities where lululemon has direct operational control: stores, distribution centres, offices, e-commerce operations, and Guest Education Centres. These do not include franchises or manufacturing, transportation, or logistics along our value chain.} We have the following 2030 Science Based Targets initiative^{4⁴ The Science Based Targets initiative (SBTi) develops standards, tools, and guidance that allow companies to set GHG emissions reduction targets. Our 2030 Scope 1, 2, and 3 climate targets were validated by the SBTi in 2020 and re-validated in 2024 alongside our 2050 net-zero target.} validated climate targets:

Scope 1 + 2^{5⁵ Scope 1 emissions: Direct emissions from our own operations. Scope 2 emissions: Indirect emissions from the generation of energy purchased for use in our own operations. Our goal uses market-based emissions. In alignment with the GHG Protocol Scope 2 Guidance, Scope 2 emissions can be reported based on either of two allocation methods. Location-based emissions reflect the average emissions intensity of grids where energy consumption occurs, while market-based emissions are associated with electricity and contractual instruments that companies have purposefully chosen.}: Maintain 60% absolute reduction in GHG emissions^{6⁶ Absolute reduction in GHG emissions is the reduction in the total amount of GHG emissions emitted into the atmosphere over a specific period.} in our own operations from a 2018 baseline^{7⁷The SBTi validated our near-term science-based scope 1 and 2 emissions target. We achieved this goal in 2021 and have maintained it since. This goal is measured on a calendar year basis.}
Scope 3^{8⁸ Scope 3 emissions: Indirect upstream and downstream emissions across the lululemon value chain. Our Scope 3 goal 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.}: Achieve 60% intensity reduction in GHG emissions^{9⁹ Intensity reduction in GHG emissions is the reduction in the amount of GHG emissions per unit of activity, output, or any other organization-specific metric over a specific period. We measure emissions intensity as tCO₂e per $ million USD of gross profit.} in purchased goods and services, and upstream transportation and distribution (Scope 3) from a 2018 baseline^{10¹⁰ The SBTi validated our near-term science-based Scope 3 emissions intensity reduction target. This goal is measured on a calendar year basis.}

We achieved our Scope 1 and 2 target in 2021 and have maintained it since then.

Our 2030 climate roadmap sets out our approach toward maintaining our Scope 1 and 2 target, and progressing toward our Scope 3 target.

Achieving a 60 percent Scope 3 emissions intensity reduction by 2030 requires ambitious action in a dynamic business environment. Our roadmap considers business factors such as product mix, sourcing strategies, inventory levels, and growth expectations, as well as broader market conditions, all of which may affect the pace and scale of our progress.

Beyond 2030, our long-term aim is to achieve net-zero GHG emissions by 2050 from a 2018 baseline. In accordance with the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard, our target is a 90 percent reduction in absolute Scope 1, 2, and 3 GHG emissions, with any residual emissions neutralized through the use of carbon removals, in line with the Net-Zero Standard. The SBTi has validated our net-zero target.^{11¹¹ As stated on the SBTi website, the Corporate Net-Zero Standard is a framework for corporate net-zero target setting in line with climate science. Our target boundary includes land-related emissions and removals from bioenergy feedstocks.} Our approach for our net-zero target focuses on first taking action to meet our near-term 2030 climate targets as we build out a longer-term roadmap. We know that achieving net-zero cannot be done alone, and requires system-wide change over the long term. We are actively helping to support this change through cross-industry collaboration, investments in emerging innovations, and advocacy for global policies.

Focus Areas

Industry Coalitions

Participation in industry coalitions is important for deploying scalable solutions, particularly within the manufacturing supply chain, where supplier facilities are producing fabric and garments for multiple brands. Since 2020, we have been signatories of the UN Fashion Industry Charter for Climate Action. lululemon is also a founding member and lead funder of the Apparel Impact Institute’s (Aii’s) $250 million Fashion Climate Fund, which identifies, funds, scales, and measures solutions to address the industry's supply chain carbon emissions.

Product and Material Innovation

Materials used in products and packaging contribute to GHG emissions in multiple ways, including the energy used to obtain and process raw materials. To drive progress, we focus on investing in and adopting preferred materials^{12¹² We consider materials to be preferred when their production processes have the potential to minimize impacts on areas like climate, nature, or communities, compared to the conventional equivalents, and/or when they align with independent third-party certifications, schemes, or standards. Where applicable, we use the Textile Exchange 2026 Preferred Production Systems guidance to inform the continued development of our framework for evaluating materials. We regularly assess the attributes for preferred materials and evolve our definition as needed. Please see the 2025 Impact Report for details on what preferred materials may include.} and driving circular innovation.

Learn more about our approach to circular innovation.

Manufacturing

We do not own any manufacturing facilities in our supply chain, and contract with suppliers that produce for multiple brands. We focus on engaging with Tier 1 and Tier 2 suppliers to increase energy efficiency and renewable electricity^{13¹³ Renewable energy refers to all forms of unlimited, naturally replenished resources such as the sun, tides, and wind, as opposed to non-renewable fossil fuels such as coal and natural gas. "Renewable electricity" is generated from renewable energy sources, both at the facility level (e.g., on-site rooftop solar arrays) and at the utility scale (e.g., large-scale solar or wind farms).}, and to eliminate on-site coal—priority initiatives that represent our most feasible opportunities to progress towards our Scope 3 target. We are also working with industry and cross-industry partners to explore scalable financing models that can help accelerate progress across these areas.

Our Vendor Environmental Manual outlines our guidelines across these and other environmental programs, including water efficiency, wastewater, and chemistry. Examples of our supplier engagement efforts may include funding or co-funding feasibility studies, training and technical assistance, and engaging directly with supplier facilities to incentivize and support progress and investments.

Supply chain renewable electricity: Increasing the use of renewable electricity in our supply chain is a key component of our roadmap toward our Scope 3 science-based target. We continue to work toward our target to achieve 50 percent renewable electricity collectively among core Tier 1 and Tier 2 suppliers by the end of 2030.^{14¹⁴ Core suppliers are Tier 1 and Tier 2 suppliers representing over 75% of our production volume.}

Where feasible, we work to prioritize higher-impact renewables such as onsite solar and power purchase agreements (PPAs)^{15¹⁵ A PPA is an agreement for the purchase of renewable electricity and associated energy attribute certificates (EACs).}. We recognize that energy attribute certificates^{16¹⁶ According to GHG Protocol Scope 2 Guidance, an EAC is a category of contractual instrument (a type of contract between two parties for the sale and purchase of energy). EACs represent certain information (or attributes) about the energy generated, but do not represent the energy itself. For example, this may include renewable energy certificates (RECs). Under the GHG Protocol Scope 2 Guidance, contractual instruments such as EACs (including those procured via a virtual power purchase agreement) are acceptable methods for reducing market-based Scope 2 GHG emissions. lululemon retires procured EACs on an annual basis.} (EACs) are also necessary in the global transition to clean energy and work to minimize the use of lower-impact EACs where possible.

Access to renewable electricity varies across regions where our suppliers operate, due to barriers such as limited supply, permitting processes, and complex regulations. To help advocate for renewable electricity development, we are members of the Asia Clean Energy Coalition (ACEC), a coalition of renewable energy buyers, in collaboration with sellers and financiers, working to facilitate policy advancements in key Asian markets, and support expansion of and access to renewable electricity. To support supplier adoption of renewable electricity, we provide region-specific training and technical assistance through both direct engagement and external organizations in key manufacturing regions.

We have invested in a renewable energy fund with Schroders Capital's Infrastructure team to support the development of new renewable electricity capacity, while advancing an emerging investment model. Participation in the fund is expected to enable lululemon to achieve the equivalent of 100 percent renewable electricity in collaboration with our suppliers in China Mainland,^{17¹⁷ Includes Tier 1 and Tier 2 supplier facilities. Excludes supplier facilities for trims, packaging, and footwear.} based on the projected electricity use in 2030. Schroders Capital's Infrastructure team has since deployed capital from the fund across multiple wind projects.

Supply chain energy efficiency: We engage suppliers on energy efficiency improvement through technical support, funding, and participation in industry initiatives that drive decarbonization efforts. Through programs such as Aii's Clean by Design and Carbon Leadership Program, we support apparel supply chains in identifying energy efficiency and energy reduction opportunities, conducting carbon benchmarking assessments, setting climate targets, and developing carbon-reduction roadmaps.

On-site coal phase-out: As a signatory of the UN Fashion Industry Charter for Climate Action, we are committed to phasing out coal from supplier sites. We work with Tier 1 and Tier 2 suppliers and select subcontractors^{18¹⁸ Subcontractors refer to facilities completing a process that supports production of a product or material. Subcontractors hold contracts with lululemon suppliers and are not directly engaged by lululemon} toward eliminating on-site use of coal, including having them sign acknowledgement letters and establish roadmaps to phase out existing coal boilers by 2030. Where needed, we engage technical experts who work with our suppliers to conduct feasibility studies on manufacturing processes that require high heat. The studies assess potential alternatives to coal, including options such as biomass, natural gas, and electrification.

We recognize the importance of electrification, paired with renewable electricity, in providing a long-term pathway to process heating decarbonization, while acknowledging near-term challenges—including technology readiness, cost, and access to renewable electricity—can limit broader adoption.^{19¹⁹ Aii, Low-Carbon Thermal Energy Roadmap for the Textile Industry (2025).} To help address these barriers, our partnership with Aii's Fashion Climate Fund helps to advance this transition through thermal roadmap research reports, funded pilots for heat pumps, and grants via the Climate Solutions Portfolio (CSP) and Deployment Gap Grant (DGG), both of which support technologies and supplier projects that aim to accelerate electrification, reduce thermal energy demand, and implement low-carbon technologies.

Transportation

Our transportation initiatives include utilizing lower-carbon transportation modes and supporting advancements in alternative fuel technologies through partnerships and procurement contracts. We also engage with logistics service providers (LSPs) on carbon-reduction opportunities and improvements to emissions data quality. As part of our evaluation process for working with inbound LSPs, we consider their environmental practices, including the existence of GHG emissions targets, freight mode solutions, and projects related to the use of alternative fuels.

Transport modes: The majority of inbound products are shipped using ocean freight. We are working toward reducing the use of air freight, where operationally feasible. We also continue to identify, pilot, and integrate lower-carbon transportation options, including regional trucking and electric vehicles for last-mile delivery. For the final leg of e-commerce deliveries, we use electric vehicles in select key cities in Canada, China Mainland, and South Korea.

Alternative fuel advancement: We are part of the Zero Emission Maritime Buyers Alliance (ZEMBA), a buyers group working to accelerate scalable and economically viable zero-emission shipping solutions for the maritime sector. We are also a member of Smart Freight Centre, an international non-profit organization focused on reducing the emissions impacts of global freight transportation.

Own Operations

Renewable electricity: We have two primary strategies for managing Scope 1 and 2 emissions as we grow globally: procuring renewable electricity and investing in targeted energy efficiency and electrification. Achievement of our Scope 1 and 2 goal is primarily driven by renewable electricity procurement. Our single largest source of renewable electricity comes from a wind Virtual Power Purchase Agreement (VPPA)^{20²⁰ A VPPA is a type of PPA that does not involve the physical transfer of electricity. It is intended to support the project’s development and construction and add new renewables to the grid.} in North America. Additionally, we purchase energy attribute certificates (EACs) from accredited tracking agencies, and, where operationally feasible, from wind and solar sources. We also have solar panels on one of our Canadian distribution centres (DCs)^{21²¹ A specialized warehouse that stores and ships the goods a company produces.}. In certain markets, we procure electricity from renewable utility providers.

Energy efficiency and electrification: We currently focus our energy management program on our North American stores and DCs, where we consume the most energy. We continue to implement targeted electrification and energy efficiency measures, including installing energy management systems to monitor and optimize energy consumption in new stores and store retrofits, where operationally feasible.

Challenges and Dependencies

We actively manage uncertainties related to the initiatives in our roadmap. A key component of our roadmap is the adoption of preferred materials. However, progress in this area is complex, and successful scaling depends on factors such as feedstock availability, commercial availability, and the pace of technology development. We continue to invest in emerging preferred material innovation to support progress.

With respect to manufacturing initiatives, increasing renewable electricity use across our supply chain is both an important and challenging component of our roadmap. The pace of adoption is influenced by factors such as national energy policies and investments, infrastructure development, and the availability of regional procurement mechanisms. We take action by partnering with suppliers, engaging in cross-industry forums, and investing to support renewable energy procurement.

We also aim to identify and manage external risks and uncertainties that may affect our ability to achieve our Scope 3 target, such as geopolitical dynamics, supply chain disruptions, policy shifts, and macroeconomic conditions. Evolving global regulations and carbon accounting methodologies may also affect how emissions are measured and reported.