Competition Bureau Canada (CBC) has initiated an investigation into Canadian athletic apparel retailer Lululemon Athletica, following greenwashing allegations by non-profit advocacy organisation Stand.earth.
The official enquiry examines claims that the retailer has been misrepresenting its environmental practices to consumers.
Stand.earth, which confirmed the launch of the investigation on 6 May 2024, said that the latest investigation stems from a complaint they filed with the CBC three months earlier.
The organisation alleged that Lululemon's marketing campaigns falsely portray the company as environmentally friendly.
Despite its "Be Planet" marketing campaign, Lululemon reported a significant increase in emissions, doubling its climate pollution since the slogan's introduction.
The retailer's reliance on fossil fuels is also under scrutiny, with more than 60% of its materials fossil fuel-derived.
All these materials do not biodegrade, contribute to climate pollution, are challenging to recycle and release microplastics into the environment, according to Stand.earth.
In its anti-competition investigation complaint, Stand.earth senior corporate climate campaigner Rachel Kitchin said: “Lululemon states that its ‘products and actions avoid environmental harm and contribute to restoring a healthy planet.’ However, its products are made in factories that burn coal for energy in countries including Vietnam, Cambodia and Indonesia that rely heavily on fossil fuels to power their production.
“Despite [its] claims, some of the company’s biggest suppliers have made no clear strides towards reducing their negative impact on the planet. I would call that greenwashing.
"If Lululemon wants its words to ring true, it should immediately commit to kicking out coal, and shifting its products from fossil fuels to clean energy.”
According to Stand.earth, the issue has also garnered significant public attention, with almost 50,000 individuals signing a letter urging Lululemon to transition to renewable energy sources for its products.
Stand.earth rated Lululemon a C minus on its 2023 Fossil Free Fashion Scorecard, which assesses brands' efforts to reduce reliance on fossil fuels and implement renewable energy in their supply chains.
