Canadian regulator launches greenwashing investigation into Lululemon’s environmental claims

Canadian enforcement agency Competition Bureau Canada has launched an investigation into sportswear company Lululemon following complaints about the company’s allegedly misleading green claims.

A Competition Bureau spokesperson confirmed the investigation “into the alleged deceptive marketing practices” in an emailed statement to ESG Today, noting that “there is no evidence of misconduct at this time.”

In a statement to ESG Today, a spokesperson for lululemon said the company is aware of the review, adding that “we are confident the review will confirm that the statements we make to the public are accurate and sound.” be supported.”

The investigation follows environmental sustainability-focused nonprofit Stand.earth in February, focusing on the company’s claims regarding the green attributes of its products, operations, goals and supply chain, and Be Planet, the environmental pillar of lululemon’s sustainability strategy.

Lululemon launched Be Planet in 2020 as part of the company’s Impact Agenda, with a set of goals, including requiring 100% of products to contain sustainable materials and end-of-use solutions by 2030, and offering customers options to reduce extend the life of its products by offering resale, repair or recycling options by 2025, source 100% renewable electricity for energy companies by 2021, reduce the intensity of CO2 emissions in the global supply chain by 60% by 2030, reduce the intensity reducing freshwater use by 50% for the production of products and reducing the use of plastic packaging by 50% by 2025.

The Stand.earth complaint outlined a series of alleged “false or misleading public statements” from lululemon in the context of its Be Planet program. Types of claims described in the complaint include “direct, unconditional environmental claims,” ​​such as a statement on lululemon’s website that “our products and actions prevent environmental damage and help restore a healthy planet”; “environmental claims that overemphasize small environmental benefits,” such as the company’s statement that consumers who participate in lululemon’s Like New program to find gently used items are “helping restore a healthy planet,”: “Environmental claims related to the goals company’s GHG emissions that are misleading,” noting that lululemon’s goal to reduce Scope 1 and 2 emissions does not mention that they only account for less than 1% of total GHG emissions, and that the Scope 3 target is based on intensity rather than absolute. ; and “Environmental claims about the company’s ‘vision’, ‘goals’ or ‘commitments’ that are unrealistic.”

The complaint also noted that lululemon’s Scope 3 emissions have doubled since the launch of the Be Planet program, and that many of the company’s products are made from fossil fuel-based materials, including nylon and polyester.

Lululemon recently announced a series of partnerships and milestones in its efforts to improve the sustainability of its materials, including the April launch of its first-ever product produced using enzymatically recycled polyester, and the production of its first product using enzymatically recycled nylon 6.6, both based on the company’s collaboration with environmental technology startup Samsara Eco.

In the company’s statement, lululemon’s spokesperson said:

“Be Planet is a pillar of our impact agenda that outlines our vision, goals and objectives that guide our actions and resource investments in helping to create a clothing industry that is more sustainable and tackles the serious impacts of climate change. This work is far from complete.

“We have achieved a 60% absolute reduction in greenhouse gas emissions across our owned and operated facilities, but recognize that most of the impact comes from emissions within the wider supply chain. That is why we have set externally validated (SBTi) climate targets for 2030, and a goal to be Net Zero by 2050, and are taking action.”