CBC Radio: Lululemon accused of greenwashing

Lululemon is under fire for claiming its actions and products contribute “to a healthier environment and planet” while simultaneously increasing its emissions. On February 12, 2024, Stand.earth submitted a formal complaint to the Competition Bureau.

Amidst Canadian headlines revolving around the topic, Matt Galloway of CBC’s The Current spoke to Dr. Wren Montgomery of the Ivey Business School and Rachel Kitchin, Senior Corporate Climate Campaigner at Stand.earth.

Wren and Matt discussed the limitations of the Competition Bureau’s current system for regulating greenwashing, what executives want to know about greenwashing, and the role of the young consumer in changing the system.

Why must Lululemon be held accountable?

First, Rachel jumped on the air to explain why Lululemon’s actions are so problematic:

We know that since Lululemon started saying it was 'Be Planet' in 2020, the company's emissions have doubled to … the equivalent to putting more than half a million cars on the road each year. I mean, that doesn't sound to me like a company that's improving the environment.

Evidence of this is not hard to find – it’s in Lululemon’s own reports. In addition to supply chain emissions, fossil-fuel-based materials like polyester, nylon, and plastic are primarily used in Lululemon’s products.

Rachel explains that though some of Lululemon’s sustainability report statistics look exciting and shiny, such as their owned and operated facilities being 100% driven by renewable energy, this doesn’t include Scope 3 emissions. The Scope 3 emissions released through Lululemon's supply chain are where the most damage occurs. 

As one of the biggest fashion companies in the world, Rachel believes Lululemon must be held accountable.

“I think that the thing that Lululemon adds, which is extremely dangerous and misleading to consumers, is this idea that, by buying their products, you're buying into this theory that wellness and that planet and Lululemon products are all interconnected and that you can actually buy sustainability.”

How is greenwashing currently regulated?

As an expert on greenwashing, Wren was asked to chime in. She noted how critical the work that Stand.earth does is. “Canadians really care about this stuff, but the Competition Act has been a little bit difficult to navigate. So we need some of these groups to put the resources behind holding companies to account.”

She explained to Matt the ways the Competition Bureau is lacking and why it manages these kinds of decisions in the first place. Wren notes that the E.U.’s greenwashing legislation is far more advanced than what has been put in place by the Canadian Competition Bureau.

The E.U. has actually banned companies calling things ‘clean,’ ‘climate-friendly,’ and the like without evidence to back it up. And though Canadian Parliament is making amendments to strengthen the greenwashing provisions of the Competition Act, Wren tells Matt that the new wording will not change much and the system is still “clunky” and “relying on consumers to make complaints.”

It's time for change

As a professor in Executive Education programs, Wren’s heard first-hand that most managers want to do the right thing but are lost and confused. They need more guidance.

Listen to the full story to hear more on the topic, including details on what Wren’s 20-year-old students think about the issue and the actions she takes when shopping,. The segment begins at 1:48 with a discussion between Rachel Kitchin of Stand.earth focused on Lululemon’s false claims. Wren begins speaking at 11:50.

Photo by Marco Tjokro