Lululemon has committed capital to a new renewable energy fund aimed at speeding up decarbonisation across its supplier network in Mainland China, in a move the company says is designed to help it reach the equivalent of 100% renewable electricity use in that market by 2030.
According to the company, the investment is part of its broader Impact Agenda 2030, which sets a target of cutting greenhouse gas emissions by 60% on an intensity basis from a 2018 baseline. Lululemon says ...
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it already met its Scope 1 and Scope 2 emissions goal in 2021 and has sustained that performance since, while it continues to tackle Scope 3 emissions, which cover much of a fashion brand’s wider supply chain footprint.
The fund is being managed by Schroders Capital’s Infrastructure team and has already put money into several wind projects in China that are expected to finish later this year. Lululemon says the structure is intended to simplify access to renewable power for suppliers and to speed the delivery of new generation capacity in manufacturing regions.
Noel Kinder, senior vice president of sustainability at Lululemon, said the initiative reflects a broader shift in how brands approach industrial decarbonisation. He said the fund shows how companies can combine demand, capital and collaboration to reduce complexity and accelerate project development.
The announcement builds on a sustainability framework Lululemon expanded in its FY24 Impact Report, which broadened the company’s focus to include climate action, circularity, nature and wellbeing across employees, supply chain workers and local communities. That roadmap also includes goals for preferred materials and for extending product life through repair, resale and similar services.
Environmental campaigners welcomed the move. Stand.earth called it a significant step towards Lululemon’s earlier commitment to source half of the renewable electricity used by core Tier 1 and Tier 2 suppliers by 2030. The group has argued for years that the apparel sector must move faster on fossil-fuel use, saying fashion is responsible for at least 4% of global climate pollution.
Rachel Kitchin, a senior corporate climate campaigner at Stand.earth, said the company’s new promise could help shift momentum across the industry, especially as many brands are now reassessing how to reduce supply-chain emissions. She said the sector’s emissions continue to rise despite widespread public pledges.
The latest pledge also lands after a dispute last year over Lululemon’s environmental marketing. Stand.earth filed a complaint with Canada’s Competition Bureau in 2024 over green claims it said were not matched by action, prompting the company to scale back some of its sustainability messaging. Against that backdrop, the China renewable fund is being seen as an attempt to turn more of the brand’s climate rhetoric into measurable supply-chain investment.
Source: Noah Wire Services
