Lululemon faces legal action over sustainability claims amid growing controversy

Lululemon accused of greenwashing in class action lawsuit

Lululemon Athletica Inc. is facing a class action lawsuit in the U.S. District Court of Southern Florida, accusing the brand of misleading consumers with greenwashing tactics.

The lawsuit claims that Lululemon’s “Be Planet” marketing campaign falsely portrays the company as more sustainable and environmentally friendly than it actually is.

Despite the brand’s claims of commitment to sustainability, the 53-page complaint argues that Lululemon’s practices have a significant and growing negative impact on the environment, contradicting the eco-friendly image it promotes.

“Lululemon’s marketing campaign messages are unfair, false, deceptive, and misleading to reasonable consumers as they portray Lululemon as something it is not,” reads the complaint. “The apparel industry is a major contributor to the environmental crisis, and as one of the largest apparel companies in the world, Lululemon has a significant and growing climate and environmental footprint, and its actions and products directly cause harm to the environment and the deterioration of the planet’s health – the opposite of its Be Planet promises and representations.”

While the company has pledged to reduce its environmental footprint, including targets for sustainable materials and water conservation, the lawsuit alleges that its greenhouse gas emissions, particularly those linked to its supply chain, have significantly increased.

Lululemon’s 2022 impact report, cited in the lawsuit, reveals a near-doubling of scope 3 emissions compared to 2020.

More specifically, the class-action lawsuit against Lululemon asserts that the brand is culpable of “significant greenhouse gas emissions, landfill waste, and release of microplastics into the environment,” among other alleged damages.

Why is Lululemon facing scrutiny and legal challenges due to discrepancies between its sustainability claims and actual environmental impact?

Fashion’s environmental footprint
The fashion industry is a significant contributor to global climate emissions, accounting for 2-8% of the total—more than Germany, France, and Canada combined.

Lululemon’s claims vs. reality
Lululemon asserts that their products and actions are designed to avoid environmental harm and help restore the planet. However, their sustainability record paints a different picture:

As Lululemon continues to grow, with its revenue more than doubling to hit 8.1 billion USD between 2018 and 2022, the case alleges that the “Be Planet” marketing campaign is “objectively false, deceptive, and misleading” and stands in violation of almost every Federal Trade Commission guideline for environmental marketing claims.

  • Increased Emissions: The company’s emissions rose by 83% between 2019 and 2021.
  • Material Concerns: 60% of their materials are derived from fossil fuels.
  • Coal Dependency: 48% of the energy used in Lululemon factories comes from coal.
  • Rising Carbon Footprint: In 2022, Lululemon emitted 1.2 million tonnes of CO2e, marking a 65% increase since 2020.

Stand Earth challenges Lululemon
Stand.Earth has been actively filing complaints with authorities in Canada and France, holding Lululemon accountable for its environmental impact. In response, Lululemon has enlisted ExxonMobil’s PR firm to manage the fallout.

The lawsuit filing adds that  Canada’s Competition Bureau has launched a formal investigation into Lululemon over its allegedly deceptive marketing claims.