Canada's Competition Bureau investigating Lululemon over greenwashing allegations

Canada's Competition Bureau has initiated a formal probe into Lululemon's environmental claims featured in its marketing campaigns, spurred by allegations of deceptive tactics. Marianne Blondin, a bureau spokesperson, confirmed the investigation to Canadian broadcaster CBC.

Stand.earth, the advocacy group at the forefront of the scrutiny, has accused Lululemon of engaging in greenwashing, citing disparities between the company's professed sustainability commitments and its ecological footprint detailed in a recent impact assessment.

The allegations state that Lululemon's Be Planet sustainability initiative, first launched in 2020 with pledges to curtail greenhouse gas emissions, clashes with findings from its 2022 impact appraisal. Specifically, the report disclosed a notable increase in the firm's Scope 3 greenhouse gas emissions, which also includes emissions from customer product usage.

Amidst mounting pressure, Lululemon has signaled its cooperation with the Competition Bureau's inquiry, asserting confidence in the accuracy of its public representations. Nevertheless, Todd Paglia, Stand.earth's executive director, conveyed to CBC that the withdrawal of the complaint hinges on Lululemon's adoption of robust measures to mitigate climate-related pollution within its supply chain.

Further amplifying the issues, environmental group Actions Speak Louder (ASL) published outcomes from a comprehensive six-month investigation into Lululemon's textile supply chain in April. The probe unveiled a recurrent failure to prevent negative environmental impacts, spanning air and water pollution, greenhouse gas emissions, and a reliance on fossil fuels, notably coal.

Calls for increased transparency

ASL has called for Lululemon to enhance transparency by divulging comprehensive information about its supply chain, including energy usage and environmental repercussions. Additionally, the group advocates for the formulation of renewable energy and absolute emissions reduction targets and a credible decarbonization strategy.

Experts say the greenwashing situation are indicative of a bigger issue in the fashion industry with companies stating they operate eco-friendly when they might not be. There need to be stricter rules for campaigns and reporting, with companies required to be more transparent to customers about how they are helping the environment and curbing their emissions.