Canadian Regulators Open ‘Greenwashing’ Investigation into Lululemon

Canada’s competition watchdog has opened an investigation into Lululemon following a greenwashing complaint accusing the Vancouver-based yoga apparel supplier of misleading consumers about its impact on the planet.

“Stand(.earth)’s complaint to the Competition Bureau has been upheld, triggering an official investigation into Lululemon’s anticompetitive greenwashing practices,” said Todd Paglia, executive director of Stand.earth, the environmental nonprofit who sued Lululemon for “pouring gas on a burning planet” in February. “We are pleased that this investigation gives the Competition Bureau the opportunity to ask Lululemon how it can claim to ‘Be Planet’ when it produces more planet-damaging emissions each year than half a million cars.”

In a letter to Stand.earth lawyer Harper Gray dated April 26, Josephine Palumbo, deputy competition commissioner for the Competition Bureau’s Directorate of Deceptive Marketing Practices, said the competition commissioner “has commenced an investigation” aimed at “establishing the facts to determine” regarding allegations that Lululemon violated the Competition Act by “making false, misleading and/or unsubstantiated statements.”

Lululemon said it is aware of the review and is “committed to cooperating” with any next steps.

“We are confident that its review will confirm that the statements we make to the public are accurate and well supported,” a spokesperson said. “’Be Planet’ is a pillar of our impact agenda that outlines our vision, goals and objectives that guide our actions and investments in resources to help create a clothing industry that is more sustainable and addresses the serious impacts of climate change. This work is far from complete.”

The asana-friendly retailer previously told Sourcing Journal that it is “focused on helping create an apparel industry that is more sustainable and addresses the serious impacts of climate change,” including donating $10 million to Apparel Impact’s Fashion Climate Fund Institute to identify and scale solutions that “accelerate collective climate action.”

The company has also committed to its decarbonization plan, which includes making “tangible investments” to achieve 2030 climate goals “on a path” to being a net-zero company by 2050. To date, the Chip Wilson-founded company has achieved its goal of 100 percent renewable electricity and an absolute 60 percent reduction in greenhouse gas emissions across its owned and operated facilities.

“We recognize that the majority of the impact comes from emissions within the broader supply chain,” a spokesperson said at the time. “In 2022, we measured and reported a limited intensity reduction in our scope 3 greenhouse emissions and we are working to accelerate this progress. Like others in the industry, we are working to advance calculation methods to support and obtain independent verification of scope 3 emissions. Addressing the climate crisis and scaling solutions in a meaningful way will require collaboration, investment and transparency across the supply chain.”

But Stand.earth said Lululemon’s emissions have risen by as much as 100 percent since the company deployed its “Be Planet” slogan — alongside “Be Human” and “Be Well” — as a pillar of its so-called impact agenda in 2020. manufacturer of Team Canada, which unveiled its Paris 2024 kit last month, also relies heavily on “climate-damaging” coal and other fossil fuels to make its products, the organization said. More than 60 percent of the products are based on petrochemicals, meaning they “contribute to climate pollution, cannot be effectively recycled, are not biodegradable and release microplastics into the oceans and waterways.”

“As the official kit supplier to Team Canada at the Paris Olympic and Paralympic Games, Lululemon will represent our nation to the world,” said Rachel Kitchin, senior corporate climate campaigner at Stand.earth. “Our athletes deserve to be their best in a brand that aligns with their values ​​as Canadians, and not misled by misleading and greenwashing marketing.”

Should the Competition Bureau find that Lululemon has made materially false and misleading statements to the public, it could fine the athleisure maker up to 3 percent of its gross global profits for each year it has violated the Competition Act, potentially $400 million or more. according to Stand.earth’s estimate. Lululemon should also change or remove offensive marketing.

“Lululemon customers around the world need to know the real impacts of their climate pollution, not the greenwashed version they sell their products with,” Paglia said.

Stand.earth has requested that any funds be disbursed from the Environmental Damages Fund, a government program administered by Environment and Climate Change Canada, and used for climate mitigation and adaptation efforts.

“Lululemon is one of Canada’s most influential companies and one of the largest fashion brands in the world thanks to its ‘Be Planet’ campaign,” Tzeporah Berman, international program director of Stand.earth, said at a press conference in February. “Although Lululemon has taken some actions and set some goals to reduce the harmful impact of its business activities and products, Stand.earth’s position in its complaint is that Lululemon’s activities are inconsistent with its public claims to be an environmentally friendly company .”