Climate Change Data

Environmental Metrics

ESG Focus Areas

• Inclusion, Diversity, Equity, and Action
• Employee empowerment
• Fair labour practices and wellbeing of people who make our products
• Equitable access to wellbeing tools and resources
• Climate action
• Sustainable product and material innovation
• Circularity and new guest models
• Water and chemistry
• Packaging and waste

Environmental Achievements

• Procured 100% renewable electricity to power all owned and operated facilities
• Achieved a 60% absolute reduction of GHG emissions in all owned and operated facilities (Scope 1 and 2)
• Increased sustainable materials in products to 38%
• Expanded lululemon Like New resale program to all US stores

Social Achievements

• Maintained gender pay equity across the entire global employee population and full pay equity in the US for the fifth year in a row
• Launched the lululemon Centre for Social Impact, investing US$11.9 million in support of wellbeing
• Increased racial diversity of employees in global stores by 6%
• Supported maker wellbeing programs reaching 20,000 makers

Governance Achievements

• Implemented ZDHC Manufacturing Restricted Substances List (MRSL) at 100% of priority suppliers one year ahead of target
• Continued to integrate IDEA into every part of the organization
• Published an updated Vendor Code of Ethics and Compliance Benchmarks

Climate Goals & Targets

Environmental Challenges

• Increasing global inequities in wellbeing
• Interconnectedness of global context and events, and our business and industry operations (e.g., supply chain complexity)
• Legislation and regulatory changes
• Shifting consumer and employee expectations and preferences
• Evolution in product and value chain traceability expectations
• Pandemic supply chain challenges impacting transportation and logistics

Mitigation Strategies

• Listening, engaging with stakeholders, taking intentional steps to make change, and continuously adjusting as we learn
• Launching Climate Activation Council to drive enterprise shifts and enact change
• Developing a Supplier Inclusion and Diversity Strategy
• Implementing a new responsible supply chain data management system
• Working with suppliers to encourage payment of wages despite factory closures
• Exploring more sustainable fuels and transportation modes

Supply Chain Management

Supplier Audits: 183 VCoE assessments in 2021 (128 by lululemon, 38 by third party, 17 self-assessments)

Responsible Procurement

• Vendor Code of Ethics (VCoE)
• Supplier grants for wellbeing projects
• Collaboration on fair compensation roadmap

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Innovation in sustainable materials

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: Null

Third-party Assurance: Apex Companies LLC (limited assurance on select metrics)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13

Initiatives aligned with SDGs related to health, gender equality, affordable and clean energy, decent work, reduced inequalities, responsible consumption and production, and climate action

Sustainable Products & Innovation

• Metal Vent Tech 2.0 shirts with recycled polyester
• Always In Motion boxers with responsibly regenerated cellulosic fabric
• Yoga mats with FSC-certified natural rubber

Awards & Recognition

• #1 retailer for corporate responsibility by Fast Company

Environmental Metrics

ESG Focus Areas

• Inclusion, Diversity, Equity, and Action (IDEA)
• Employee well-being
• Environmental sustainability

Environmental Achievements

• Expanded lululemon Like New resale program to all US stores
• Lead funder in Apparel Impact Institute’s Fashion Climate Fund

Social Achievements

• Achieved goal to increase representation of racially diverse employees in stores a year early
• Broadened inclusive design and IDEA programs
• Expanded mental health first aid training to all global people leaders
• Maintained 100% gender pay equity globally; achieved full pay equity (gender and race) in the US
• Invested $29.4 million in lululemon Centre for Social Impact

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weakening demand for in-home fitness hardware due to challenging market conditions after the COVID-19 pandemic
• Supply chain disruptions

Mitigation Strategies

• Evolving lululemon Studio to focus on digital app-based services, expanding the premium tier to include digital fitness content via a new app for a lower monthly fee
• Improved supply chain issues in the second half of 2022, resulting in lower inbound freight costs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Ethics regarding social and environmental sustainability practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and natural disasters; water scarcity and poor water quality

Transition Risks

• Climate change legislation and regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• lululemon Like New resale program

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• wellbeing of people and the planet
• Inclusion, Diversity, Equity, and Action (IDEA)
• climate-stable future

Environmental Achievements

• announced a new textile-to-textile recycling partnership with the goal of enabling circularity in our supply chain by transforming apparel waste into high quality nylon and polyester

Social Achievements

• continued to advance our Inclusion, Diversity, Equity, and Action (IDEA) commitments across our business and invest in the wellbeing of the people who make our products
• as of January 28, 2024, approximately 50% of our board of directors, 70% of our senior executive leadership team, and 50% of our vice presidents and above are women, while approximately 75% of our overall workforce are women.
• In 2023, the participation rate was approximately 85% and our employee engagement score exceeded the retail industry average.
• invested a total of $44.8 million to date towards advancing equity in wellbeing by 2025

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• supply chain disruption
• macroeconomic conditions
• COVID-19 pandemic
• increasing costs and decreasing selling prices
• intense competition
• climate change

Mitigation Strategies

• improved supply chain in second half of 2022 and during 2023, including reductions in freight costs and reductions in our levels of air freight usage
• monitoring macroeconomic conditions and the trends in consumer demand for our products
• most retail locations were open throughout 2023, 2022, and 2021
• introducing new products and novel technologies
• Not disclosed
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Ethics regarding social and environmental sustainability practices

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions and natural disasters
• water scarcity and poor water quality

Transition Risks

• climate change legislation and regulations

Opportunities

• sustainable innovation

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed