This investment is in line with the company’s previous commitment to achieve 50% renewable electricity use across its core tier 1 and 2 suppliers by 2030, a target previously set in response to pressure from environmental group Stand.earth. 

Lululemon stated that the investment would enable a shift in its supply chain operations in China towards renewable energy sources within the next six years.  

The athletic retailer has also previously set a goal of eliminating on-site coal use across its operations by 2030.  

The initiative follows broad sector scrutiny and forms part of a wider push by several advocacy groups for apparel companies to move away from fossil fuel-based energy.  

In 2024, Stand.earth led a complaint against Lululemon with Canada's Competition Bureau, accusing the brand of misleading customers with claims about its environmental performance that were not matched by its actions.  

During the investigation, Lululemon removed some environmental messaging from its website and other communications, notably changing the phrase “Be Planet” to “Planet”. The Competition Bureau later closed the investigation. 

Stand.earth senior corporate climate campaigner Rachel Kitchin said: “We’re excited to see Lululemon match its actions to its promise to ‘Be Planet.’ There’s undoubtedly more work ahead, but with this new investment Lululemon is demonstrating its readiness to deliver an effective, thoughtful, and lasting energy transition across its global supply chains that leads the fashion industry toward truly sustainable practices.” 

Lululemon is among a limited group of brands that are making direct investments to increase the proportion of renewable energy used throughout their supply chains, which some observers suggest could serve as a model for the wider industry.  

The latest Fossil Free Fashion Scorecard identified only six companies, including H&M, Bestseller, and PVH, as providing any direct funding or investment in supply chain renewable energy projects.  

The report noted that if just 10 major brands sourcing from Bangladesh implemented these recommendations, it could represent a substantial move towards achieving quicker and more equitable decarbonisation in one of the world’s key manufacturing centres. 

The fashion industry remains one of the highest contributors to pollution globally, responsible for at least 4% of all climate pollution, according to sector reports. Its manufacturing processes are heavily reliant on coal and fossil fuels, with consequences for climate stability and the health of supply chain workers. 

Recently, Lululemon lowered its full-year (FY26) guidance following a drop in first-quarter revenue across the Americas, despite an overall rise in total revenue.