Why Lululemon is Struggling with Sustainable Sourcing

Athletic apparel giant Lululemon has released its 2024 Impact Report, detailing progress on sustainability goals.

Lululemon has progressed in several areas while also adjusting some targets. Lululemon’s sustainability efforts are headed by Noel Kinder, who joined as Senior Vice President of Sustainability in May 2025 from Nike.

“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,” says Calvin McDonald, CEO at Lululemon, in the report’s introduction.

“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.”

Noel adds: “Our FY24 Impact Report results demonstrate the collective dedication and learnings of our teams across the organisation and the power of collaboration in driving transformative change.

"We are pleased with our progress over the past year, and as we launch our Impact Agenda 2030, we are focused on where we can make the most significant impact, recognising the path forward will demand continued innovation, resilience and deep partnership across the value chain.”

Resale models and circular procurement

Lululemon’s “Like New” programme is a key part of its circularity strategy, buying back items from customers.

All profits, or 2% of revenue if higher, are channelled into sustainability initiatives. The service is now available in 84% of its company-operated stores in North America.

Lululemon has adjusted its goal to scale the programme to all of North America, citing an “evolution in our partnership model” for not expanding into Canada.

Lululemon is now working on a new global resale and repair goal for 2030. It also began developing circular design guidelines and launched a cotton waste recycling pilot in 2024.

Sourcing sustainable materials and packaging

Lululemon will not meet its 2025 target for a 50% reduction in single-use plastic intensity. The goal is being removed from future reports while it reviews its packaging strategy.

On the materials front, Lululemon met its recycled polyester sub-target a year early with 77% of its procured polyester being recycled.

Sourcing sustainable nylon remains a challenge. The report notes difficulties in finding scalable sources of preferred nylon 6,6. In 2024 only 11% of its nylon was from renewable or recycled sources.

This has led Lululemon to revise a key 2030 target. Its goal for 100% of products to contain at least 25% preferred materials by weight is now 90%.

Lululemon states that developing innovative materials is complex and requires years of investment. To tackle its nylon sourcing issues it is collaborating with ZymoChem to commercialise plant-based inputs for nylon 6,6.

Tackling Scope 3 emissions in the supply chain

Lululemon focuses on direct initiatives to lower its environmental impact rather than using carbon offsetting. Nearly all of Lululemon’s emissions come from its supply chain.

It aims for a 60% intensity reduction in greenhouse gas emissions from its supply chain by 2030. In 2024 it achieved a 29% reduction relative to profit from a 2018 baseline.

The report notes that absolute Scope 3 emissions grew with the business a common issue for expanding companies.

“As with all growth companies, it is a challenge to decrease absolute emissions across Scope 3 while executing business growth.” the report says.

Lululemon maintains its Scope 1 and 2 emissions reduction target achieved in 2021. To decarbonise its supply chain 35% of its Tier 1 and 2 suppliers have eliminated on-site coal use.

Lululemon has also joined the Zero Emission Maritime Buyers Alliance (ZEMBA) and the Sustainable Aviation Buyers Alliance (SABA) to support cleaner logistics.

Calvin says in the report’s introduction: “We recognise that progress is not always linear and requires operating with resilience and adaptability. We also know that industry solutions cannot be realised alone and depend on the innovations we pursue – along with our partners – and the accountability we uphold.”