Lululemon’s Approach to a Sustainable Materials Supply Chain
Athletic apparel brand Lululemon operates 767 retail locations across the globe. The company's sustainability efforts are overseen by Noel Kinder, who joined as Senior Vice-President of Sustainability in May 2025 after previously serving as Nike's Chief Sustainability Officer.
Now, the brand's 2024 Impact Report has been published, offering transparent insights into its sustainability progress. Lululemon acknowledges it has revised and removed certain targets while demonstrating advancement across various sustainability initiatives.
Calvin McDonald, CEO at Lululemon, explains in the report's introduction: "At lululemon, our commitment to create positive change has guided our impact work over the past five years and continues to shape everything we do.
"We operate our business with integrity and purpose, and remain focused on advancing impact in the areas of greatest relevance to our company and guests, and where we can deliver the most meaningful results."
Resale programmes and circular initiatives
The company's "Like New" initiative enables customers to sell back eligible products they no longer use. Revenue from Like New items, or 2% of sales if greater, funds sustainability projects.
According to the report, 84% of company-operated locations in North America participate in this scheme, though it remains unavailable in Canada. The brand had initially intended to expand this to 100% of North American stores but states that, "due to an evolution in our partnership model", the Canadian rollout has not proceeded as anticipated.
Lululemon is developing a new global resale model for launch in 2030, forming part of its Impact Agenda 2030 resale and repair objectives.
In 2024, the brand partnered with circular.fashion to create circular design guidelines specific to its product range and fabrics. Additionally, it initiated a pilot with Accelerating Circularity focused on recycling post-consumer and post-industrial cotton waste into new items.
Fabric sourcing and packaging goals
The report acknowledges that Lululemon will not achieve its 2025 target of reducing single-use plastic intensity by 50%. The company plans to discontinue this goal from future reporting and is conducting an enterprise-wide packaging review.
Lululemon has exceeded its recycled polyester sub-target one year ahead of schedule, with 77% of total procured polyester now recycled.
The brand sourced 11% renewable or recycled nylon in 2024. The company originally aimed to procure 100% of products containing at least 25% preferred materials by weight by 2030. However, Lululemon is adjusting this target to 90% because innovative preferred materials development "has proven to be complex, requiring years of investment in research and development".
In 2024, 53% of products met this criterion, while 43% contained more than 50% preferred materials by weight.
To address nylon sourcing challenges, the report indicates Lululemon is exploring alternative solutions, including a partnership with ZymoChem to commercialise and scale plant-based inputs for nylon 6,6.
Supply chain carbon footprint
Lululemon does not use carbon offsetting for emissions reduction. Instead, the company implements initiatives spanning product and material innovation, manufacturing and transportation.
The brand has set a 2030 target of achieving a 60% intensity reduction in greenhouse gas emissions from purchased goods and services and upstream transportation and distribution.
The vast majority of Lululemon's emissions originate from its supply chain. In 2024, the company achieved a 29% reduction in emissions relative to profit from a 2018 baseline. However, both total and intensity of Scope 3 emissions increased.
Renewable energy transition
Lululemon achieved its SBTi-validated Scope 1 and 2 emissions reduction target in 2021 and has since sustained it. As of 2024, 35% of Tier 1 and Tier 2 suppliers that previously used coal on site have eliminated its use.
The company participates in the Zero Emission Maritime Buyers Alliance (ZEMBA) and the Sustainable Aviation Buyers Alliance (SABA), which promote zero-emission shipping and sustainable aviation fuel adoption.
Lululemon has established a target for 50% of electricity consumption among core Tier 1 and Tier 2 suppliers to be renewably sourced by 2030. The report indicates this stood at 15% in 2024.
As the brand continues to refine its sustainability strategy, the 2024 Impact Report demonstrates Lululemon's commitment to transparency while navigating the complexities of achieving ambitious environmental targets across its global operations.
