THIS IS AN UNOFFICIAL TRANSLATION OF A FRENCH DOCUMENT. THE FRENCH VERSION IS
THE ORIGINAL AND AUTHORITATIVE VERSION.

REPORTING TO THE DIRECTORATE-GENERAL FOR COMPETITION, CONSUMERAFFAIRS AND FRAUD CONTROLGREENWASHING PRACTICESLULULEMON ATHLETICA INC. AND LULULEMON ATHELTICA FR SARL
24 July 2024

CONTENTSI.

INTRODUCTION ............................................................................................................................. 4II.

SUMMARY OF THE ALERT ...................................................................................................... 5

III.

THE FIGHT AGAINST GREENWASHING: A MAJOR CHALLENGE ........................................ 6A.

Ecological crisis, environmental awareness and consumer choice ........................................... 6

B.

An expanding anti-greenwashing legal arsenal and an active regulator ................................... 8IV.

APPLICABLE PROVISIONS ...................................................................................................... 9A.
Articles L. 121-1 et seq. of the French Consumer Code on unfair and deceptive commercial
practices .............................................................................................................................................. 9
B.
Article L. 541-9-1 of the Environmental Code prohibiting the use of the terms "biodegradable","environmentally friendly" or any other equivalent term on a product or packaging ......................... 11
C.
Article L. 229-68 of the Environmental Code governing claims of carbon neutrality inadvertising ......................................................................................................................................... 12D.

The CNC's Practical Guide to Environmental Claims and other guides for companies .......... 121.

The CNC's Practical Guide to Environmental Claims .......................................................... 12

2.
Other guides for companies: ADEME's Anti-Greenwashing Guide, ARPP's
Recommendations and the ICC Code ........................................................................................... 13
V.
RELEVANT FACTS: ENVIRONMENTAL POLLUTION AND GREENHOUSE GASEMISSIONS CAUSED BY LULULEMON AND THE TEXTILE INDUSTRY.......................................... 13
A.

Greenhouse gas emissions ..................................................................................................... 131.

The textile industry ............................................................................................................... 13

2.

Lululemon ............................................................................................................................ 14

B.

Pollution and the use of resources ........................................................................................... 16
1.

The textile industry ............................................................................................................... 16

2.

Lululemon ............................................................................................................................ 17

VI.
DISCUSSION: LULULEMON'S ENVIRONMENTAL CLAIMS CONSTITUTE MISLEADINGCOMMERCIAL PRACTICES AND FLOUT THE RULES GOVERNING CARBON NEUTRALITY
CLAIMS ................................................................................................................................................. 18
A.

Vague, disproportionate and ambiguous environmental claims .............................................. 19
1.

Claims that are vague, disproportionate, ambiguous and omit substantial information ...... 20

2.

Expressly prohibited as too vague ....................................................................................... 21

B.
Environmental claims relating to aspects that are not significant in relation to the impacts
generated by Lululemon's activities................................................................................................... 21
1.

Claims relating to minor benefits ......................................................................................... 23

2.

Sustainability claims ............................................................................................................ 24

3.

Claims relating to the use of renewable energy .................................................................. 24

C.

VII.

Environmental claims relating to greenhouse gas emissions .................................................. 24
1.

Claims that are false and/or omit essential information ....................................................... 25

2.

Carbon neutrality claims in breach of Article L. 229-68 of the Environmental Code ........... 27
CONCLUSION ......................................................................................................................... 28
2

APPENDIX ............................................................................................................................................ 29

3

I.

INTRODUCTION

1.

Stand and Stand Environmental Society are non-governmental organizations incorporated in the
United States and Canada ("Stand"). Stand's objectives are to conserve and protect theenvironment by ensuring its sustainable use, and to encourage governments and businesses totreat people and the environment with respect.

2.

Lululemon Athletica FR SARL ("Lululemon France") is a company incorporated under French
law whose business is the retail sale of technical athletic clothing marketed under the Lululemon
Athletica brand. Lululemon France is a subsidiary of the Lululemon Athletica group of companies,
whose parent company is Lululemon Athletica Inc. ("Lululemon Inc."), a Canadian company
listed on NASDAQ. Lululemon Inc. and Lululemon France are together referred to as"Lululemon".

3.

For the reasons set out below, Stand considers that Lululemon's environmental claims, and inparticular its Be Planet marketing campaign, clearly fall within the scope of "greenwashing" andas such (i) constitute misleading commercial practices pursuant to Articles L. 121-1 et seq. of theFrench Consumer Code and (ii) breach the provisions of Articles L. 541-9-1 and L. 229-68 of theFrench Environmental Code.

4.

These conclusions are based on the in-depth research carried out by Stand, and this noticeproposes a presentation to the DGCCRF in order to assist it in its missions to monitor theapplication of these major texts for the preservation of the environment, and consequently invites
it to open an investigation into the environmental claims made by Lululemon.

5.

Stand has already filed a complaint with the Canadian Competition Bureau in February 2024,
based on the anti-greenwashing provisions of Canadian law, following which an investigation into
Lululemon was opened in May 2024. 1 However, the practices in question also concern the Frenchmarket and consumers and specifically contravene the anti-greenwashing provisions of Frenchlaw. As a result, and given the importance attached by the public authorities to combating thesepractices, making France one of the pioneering countries on these issues, Stand considers that
it is crucial for the French regulator to take up the practices described below.

6.

The following section (Part II) summarises this alert. It is then structured as follows: first, it briefly
puts into context the current major issue of greenwashing and the recent measures in Franceand Europe that have accompanied this growing awareness (Part III) and details the applicableprovisions (Part IV). It then presents the results of Stand's research into the environmental impact
of Lululemon's activities and those of the textile industry (Part V). Finally, it sets out how Standconsiders, on the basis of its research, that Lululemon's environmental claims - detailed
examples of which are provided - contravene the applicable provisions prohibiting greenwashing.

1 Stand press release "Stand.earth requests anti-competition investigation into Lululemon's environmental

claims", 12 February 2024, online: https://stand.earth/press-releases/stand-earth-anti-competition-investigationinto-lululemon-environmental-claim/; Forbes, "Canada Launches Greenwashing Investigation Into Lululemon", 13
May 2024, online: https://www.forbes.com/sites/jonmcgowan/2024/05/13/canada-launches-greenwashinginvestigation-into-lululemon/

4

II.

SUMMARY OF THE ALERT7.

The challenges of greenwashing. In the context of the urgent need to combat climate change
and environmental pollution "[the] environmental argument is not a sales argument like any other:it brings together a company's commitment and a consumer's involvement in favour ofsustainable development and cannot be based on ambiguity or approximation. In 2022,
consumer expectations regarding the environmental impact of products and services will have adecisive influence on their economic behaviour. 2

8.

France in particular has been a pioneer in the fight against greenwashing for several years now,with the adoption of the law of 10 February 2020 known as the "Anti-Waste and Circular Economy(AGEC)" law and the law of 22 August 2021 known as the "Climate and Resilience" law, whichhave strengthened the legal arsenal available to combat these practices whose profoundly
harmful effects are widely recognised. Greenwashing delays environmental awareness and sows
confusion in the public mind, preventing consumers from making informed choices and genuinely
committed companies from differentiating themselves.

9.

In its 2023 Activity Report, the DGCCRF emphasised the importance of "penalising players who
misuse the ecological argument" and indicated that "the action taken in this area in 2023 willcontinue in 2024". 3 This action is indeed necessary, given the results of the survey it carried out
on environmental claims for non-food products and services in 2021, which concluded that, of
the 1,100 companies targeted, one in four did not comply with the rules on environmental claims. 4

10.

Applicable provisions. Under French law, greenwashing is primarily punishable as a misleading
commercial practice under articles L. 121-1 et seq. of the French Consumer Code. In addition tothese provisions, articles L. 541-9-1 and L. 229-68 of the Environmental Code prohibit certain
overly vague statements and regulate carbon neutrality claims. The Guide Pratique desAllégations Environnementales of the Conseil National de la Consommation (CNC), 2023 edition("CNC Guide") has no regulatory value, but is a very useful reference document setting out
guidelines for the use of environmental claims and on which the DGCCRF services can rely, inparticular to sanction greenwashing as misleading marketing. 5

11.

Highly polluting activities. As explained in Part V of this alert, the textile industry is highly
harmful to the environment and Lululemon's activities are far from being an exception. In
particular :a.

Lululemon is part of a global industry that contributes between 1.8% and 8% of theworld's greenhouse gas emissions, 6 the vast majority of which are generated by its
value chains. 7 Lululemon has a huge supply chain which produces significant
greenhouse gas emissions and, since making its Be Planet commitments, has morethan doubled its scope 3 emissions to 1,691,009 tCO2e. 8 These emissions are also
expected to continue to rise, with Lululemon's stated aim of doubling its sales
between 2021 and 2026. 9b.

Lululemon chooses to transport a higher percentage of its products by air freight
than its competitors, a mode of transport that generates far more greenhouse gas
emissions than sea freight. 10

2 CNC, Guide pratique des allégations environnementales, 2023 edition, infra
3 DGCCRF, Bilan d'activité 2023 Perspective 2024, infra

4 DGCCRF, "Bilan de la première grande enquête de la DGCCRF sur l'écoblanchiment des produits non-alimentaires et des services : un quart d'anomalies et de nombreuses suites", infra

5 CNC, Guide pratique des allégations environnementales, 2023 edition, infra
6 McKinsey & Company study, infra

7 Article by the Apparel Impact Institute, below
8 Lululemon, 2022 Impact Report, infra

9 Lululemon, Five-year growth plan, infra
10 PublicEye article, below

5

12.

c.

The products most commonly used by Lululemon in its material mix - polyester andnylon - are produced from fossil fuels and are known to release significant quantities
of microplastics into the world's oceans and rivers when washed.

d.

Lululemon's supply chain operations used more than 29 billion litres of fresh waterin 2022. 11e.

A significant (but unknown to Stand) quantity of Lululemon clothing and packaging
ends up in landfill every year.

A clear misunderstanding of the applicable provisions. The contradiction between themessage of Lululemon's Be Planet marketing campaign and the actual environmental impact ofLululemon's actions and products is glaring. Part VI details how various examples ofenvironmental claims made by Lululemon fail to comply with the applicable provisions. In
particular :a.

Claims that are vague, disproportionate, ambiguous and omit substantial
information: Lululemon makes numerous claims whose general message is that its
practices, products and actions avoid damaging the environment, contribute to"restoring" it and to a "healthy planet". These claims constitute misleading
commercial practices within the meaning of articles L. 121-2 and 121-3 of theConsumer Code and also use terms that are expressly prohibited under articles L.
121-2 of the Consumer Code and L. 541-9-1 of the Environmental Code because
they are excessively vague.

b.

Environmental claims relating to aspects that are insignificant in relation to
the impacts generated by Lululemon: its marketing greatly overestimates theimportance of certain environmental initiatives that bring only minor improvements
or benefits in relation to the company's overall climate and environmental impact.
These claims therefore also constitute misleading commercial practices within themeaning of articles L. 121-2 and 121-3 of the French Consumer Code.

c.

Environmental claims relating to Lululemon's greenhouse gas emissions: theway in which Lululemon presents its plans to reduce greenhouse gas emissions (i)is vague, disproportionate, ambiguous and omits substantial information, or is evenfalse, and therefore constitutes misleading commercial practices within the meaningof Articles L. 121-2 and 121-3 of the French Consumer Code; and (ii) may also be
assimilated to carbon neutrality claims and therefore contravene the provisions ofarticle L. 229-68 of the French Environmental Code, which governs such claims.

13.

On the basis of these elements, Stand therefore respectfully invites the DGCCRF to open an
investigation into Lululemon's environmental claims.

III.

THE FIGHT AGAINST GREENWASHING: A MAJOR CHALLENGE
A. Ecological crisis, environmental awareness and consumer choice14.

The world is facing serious environmental problems linked to climate change, loss of biodiversity,
pollution and waste. The United Nations describes the situation as follows:"Today, the Earth is in the grip of a triple planetary crisis. Climate change. Loss of natureand biodiversity. Pollution and waste. This triple crisis threatens the well-being and survivalof millions of people around the world. 12

11 Lululemon, 2022 Impact Report, infra

12 United Nations "Climate, biodiversity, pollution: Secretary-General calls on leaders to show ambition anddetermination to tackle triple global emergency", video message from UN Secretary-General António Guterres on
the occasion of International Earth Day (21 April 2022), online: https://press.un.org/fr/2022/sgsm21243.doc.htm

6

15.

The most recent report by the United Nations Intergovernmental Panel on Climate Change(IPCC) concludes that:"Human-induced climate change is already affecting many extreme weather and climate
events in all regions of the world. The result is widespread adverse impacts on food security
and access to water, human health, the economy and society, as well as associated losses
and damage to nature and people (high confidence)." 13

16.

In the Green Pact for Europe, the European Commission stresses that:"Year after year, the atmosphere heats up and the climate changes. Of the eight million
species on our planet, one million are at risk of extinction. Forests and oceans are being
polluted and destroyed. 14

17.

At COP28 in 2023, the Secretary General of the United Nations, António Guterres, reiterated theurgency of responding to this crisis:"We are in a race against time... our planet is just a few minutes away from midnight of the
1.5 degree limit. And the clock is still ticking." 15

18.

The Organisation for Economic Co-operation and Development ("OECD") points out that theworld produces twice as much plastic as it did twenty years ago, with most of it ending up in
landfill, being incinerated or escaping into the environment, and only 9% being successfully
recycled. 16 It is estimated that 11% of the world's plastic waste comes from clothing and textiles. 17
A 2023 European Parliament report estimates that per capita consumption of textiles in theEuropean Union requires an average of 400 m2 of land, 9 m3 of water and 391 kg of raw
materials. 18

19.

It is estimated that textile production is responsible for around 20% of global water pollution fromdyeing and finishing products. 19 The washing of synthetic clothes accounts for 35% of the primary
microplastics released into the environment. 20 A single wash of polyester clothes can release
700,000 microplastic fibres, which can end up in the food chain. 21

20.

The World Health Organisation (WHO) considers air pollution to be one of the greatest
environmental risks to health. The main source of pollution, the burning of fossil fuels, is also
responsible for greenhouse gas emissions that contribute to climate change.

21.

The Ministry of the Economy recognises that "it is crucial to tackle the causes of climate change"
and that "everyone is concerned: elected representatives, economic players, citizens, to reduce
our greenhouse gas emissions, but also to adapt to the changes already underway".

22.

In light of this, many people's environmental concerns have led them to buy their clothes in asustainable way, to buy products that respect the planet and to avoid brands that sell products

13 Synthesis Report of the IPCC Sixth Assessment Cycle (AR6) including contributions from Working Groups I, II,
and III (lead writing team: H. Lee and J. Romero) (2023), online:
https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_FullVolume.pdf
14 European Commission "The Green Pact for Europe" (11 December 2019), online: eur-lex.europa.eu/legalcontent/EN/TXT/HTML/?uri=CELEX:52019DC0640&from=EN
15 United Nations Secretary-General, "Opening remarks by the Secretary-General at the COP28 press briefing"(11 December 2023), online: https://www.un.org/sg/en/content/sg/speeches/2023-12-11/secretary-generalsopening-remarks-press-encounter-cop28
16 OECD, "Plastic pollution continues to grow while waste management and recycling lag behind" (22 February2022), online: https://www.oecd.org/fr/about/news/press-releases/2022/02/plastic-pollution-is-growingrelentlessly-as-waste-management-and-recycling-fall-short.html
17 Ibid.
18 European Parliament, "Textile production and waste: the impact on the environment" (infographics) (lastupdated on 12 April 2024) online:
https://www.europarl.europa.eu/topics/fr/article/20201208STO93327/production-et-dechets-textiles-les-impactssur-l-environnement-infographies
19 Ibid.
20 Ibid.
21 Ibid.

7

that contribute to climate change or the degradation of the planet. In other words, these issues
are at the heart of the concerns of many consumers in France and around the world. The Carbon
Disclosure Project's 2023 report from Lululemon Inc. underlines this:"Consumers, particularly generations Y and Z, are more inclined to adopt brands that they
can trust, that express their values and that are good for people and the planet."
23.

As the CNC Guide points out, "The environmental argument is not a sales argument like anyother: it brings together a company's commitment and a consumer's involvement in favour ofsustainable development and cannot be based on ambiguity or approximation. In 2022,
consumer expectations regarding the environmental impact of products and services will have adecisive influence on their economic behaviour". 22

24.

To avoid misleading consumers, it is vital that companies' statements about their contribution to
the climate crisis and environmental pollution are not only truthful, but also clear and transparent.
B. An expanding anti-greenwashing legal arsenal and an active regulator

25.

Faced with these challenges, France is a pioneer, having adopted legislation aimed at improving
the information provided to consumers about the environmental impact of products and services
in general, and at combating greenwashing - corporate communications that misuse theecological argument 23 - in particular.

26.

The profoundly harmful effects of this practice are widely acknowledged. The French
Environment and Energy Management Agency ("ADEME") sums up: "The abusive use of theecological argument poses several problems: greenwashing delays awareness and confuses the
public about the reality of the efforts to be made; [and] it prevents companies that are genuinely
committed and communicate fairly from differentiating themselves". Combating greenwashingmeans enabling consumers to make informed choices, but also "protecting [the most virtuouscompanies] from a distortion of competition based on unfounded claims". 24

27.

The two key texts adopted in recent years demonstrate the importance attached to combatingthese practices:

28.

a.

The law of 10 February 2020, known as the "Anti-Waste and Circular Economy Act"(AGEC), strengthened environmental information for consumers and provided astricter framework, or even prohibited, the use of certain environmental claims, atthe same time as creating new tools to support consumers in their new consumption
practices (consumer information on the environmental qualities and characteristics
of waste-generating products, reparability index and soon sustainability index,
information on endocrine disruptors, simplification of the sorting process,development of deposits and bulk packaging, ban on claims considered to be allencompassing).

b.

The law of 22 August 2021, known as the "Climate and Resilience" law, hasperpetuated and deepened the legislator's guidelines by adopting new measuresenabling consumers to make informed choices (for example, the creation of a
product sustainability index to replace the reparability index). In addition, one of theemblematic measures of this law is the ban on "greenwashing" as a fully-fledged
misleading commercial practice, with reinforced penalties.

In its 2023 report, the DGCCRF also reiterated the importance of "penalising players who misuse
the ecological argument" and that "the action taken in this direction in 2023 will continue in

22 CNC, Guide pratique des allégations environnementales, 2023 edition:

https://www.economie.gouv.fr/files/files/directions_services/dgccrf/documentation/publications/publications_exter
nes/bro-guide-cnc-VF.pdf?v=1685000021 p. 3
23 CNC, Practical Guide, supra, p. 12
24 CNC, Practical Guide, supra, p. 4

8

2024". 25 As a sign of the need to monitor and enforce these texts, the DGCCRF, in its survey ofenvironmental claims on non-food products and services carried out in 2021, concluded that, of
the 1,100 companies targeted, one in four did not comply with the rules on environmental
claims. 26 In a study carried out in 2020, the European Commission found that 53.3% of the 150
environmental claims examined were vague or misleading. 27
29.

Finally, the fight against greenwashing is also a resolutely European issue, with the recent
European Directive against greenwashing, 28 which Member States have until 27 March 2026 totranspose into national law and must apply the measures adopted from 27 September 2026. Its
aim is to give consumers the means to act in favour of the green transition through better
protection against unfair practices and better information. In particular, it strengthens the rules on
this type of claim, requiring companies to provide solid evidence to back up their environmental
and ecological claims.

IV.

THE APPLICABLE PROVISIONS

30.

Under French law, greenwashing is primarily punishable as a misleading commercial practiceunder articles L. 121-1 et seq. of the French Consumer Code. In addition to these provisions,articles L. 541-9-1 and L. 229-68 of the French Environment Code prohibit certain overly vague
statements and regulate carbon neutrality claims.

31.

The CNC's Practical Guide to Environmental Claims, 2023 edition ("CNC Guide") has no
regulatory value, but it is a reference document setting out guidelines for the use of environmental
claims. The CNC Guide states in its introduction that "Although there are no penalties for noncompliance with this guide, the DGCCRF services may, in any event, as part of their control
mission, rely on its content to identify and penalise breaches or infringements of the legal
provisions in force, particularly with regard to misleading commercial practices". 29

32.

Finally, ADEME has also published an Anti-Greenwashing Guide ("ADEME Guide") 30 to help
companies, who can also refer to the ARPP Recommendations 31 and the ICC Code. 32
A. Articles L. 121-1 et seq. of the French Consumer Code on unfair and deceptivecommercial practices

25 DGCCRF, Bilan d'activité 2023 Perspective 2024, online:
https://www.economie.gouv.fr/files/files/directions_services/dgccrf/dgccrf/rapports_activite/2023/bilan_activit%C3%A9-DGCCRF_2023.pdf?v=1716302325
26 DGCCRF, "Bilan de la première grande enquête de la DGCCRF sur l'écoblanchiment des produits nonalimentaires et des services": un quart d'anomalies et de nombreuses suites, online:
https://www.economie.gouv.fr/dgccrf/bilan-de-la-premiere-grande-enquete-de-la-dgccrf-sur-lecoblanchiment-desproduits-non-1
27 European Commission, Environmental claims in the EU - Inventory and reliability assessment: final report(2020), online: https://op.europa.eu/fr/publication-detail/-/publication/f7c4cb8b-f877-11ee-a251-01aa75ed71a1
28 Directive (EU) 2024/815 of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU to empower
consumers to act in favour of the green transition through better protection against unfair practices and better
information amending Directives 2005/29/EC and 2011/83/EU to empower consumers to act in favour of thegreen transition through better protection against unfair practices and better information, online: https://eurlex.europa.eu/legal-content/FR/TXT/HTML/?uri=OJ:L_202400825
29 CNC, Practical Guide, supra, p. 430 ADEME, Anti-Greenwashing Guide, July 2023, online: https://communication-

responsable.ademe.fr/sites/default/files/2023-10/20230727_ademe_guide_antigreenwashing_webvdef-min.pdf
31 Autorité de Régulation Professionnelle de la Publicité (ARPP), ARPP Recommendations, online:

https://www.arpp.org/nous-consulter/regles/regles-dedeontologie/#:~:text=Les%20Recommandations%20de%20l'ARPP,d%C3%A9ontologique%20de%20l'expression%20publicitaire
32 International Chamber of Commerce, ICC Advertising and Marketing Communication Code, 2018 edition,
online: https://iccwbo.org/wp-content/uploads/sites/3/2018/09/icc-advertising-and-marketing-communicationscode-int.pdf

9

33.

Articles L. 121-1 et seq. of the French Consumer Code, which transpose Directive 2005/29/EC
of 11 May 2005 33 into French law, prohibit misleading commercial practices.

34.

Principles. A commercial practice is said to be misleading when it is based on claims, indications
or presentations that are false or likely to mislead and relate to a certain number of elements
listed in article L. 121-2 of the Consumer Code, including the essential characteristics of the goodor service or the scope of the advertiser's commitments:
Article L. 121-2
A commercial practice is misleading if it is committed in any of the following circumstances:(...)
2° If it is based on false or misleading allegations, indications or presentations
concerning one or more of the following elements:(...)b) The essential characteristics of the good or service, namely : its substantial qualities, its
composition, its accessories, its origin, in particular with regard to the rules justifying the useof the terms "fabriqué en France" or "origine France" or any equivalent term, sign or symbol
within the meaning of the Union Customs Code on the non-preferential origin of products, its
quantity, method and date of manufacture, the conditions of its use and its fitness for use, its
properties and the results expected from its use, in particular its environmental impact,
as well as the results and main characteristics of the tests and checks carried out on the goodor service ;(...)e) The extent of the advertiser's commitments, particularly with regard to theenvironment, and the nature, process or reason for the sale or provision of services

35.

Article L. 121-3 of the French Consumer Code also states that a commercial practice is also
misleading if, taking into account the limitations of the means of communication used and thesurrounding circumstances, it omits, conceals or provides unintelligible, ambiguous or untimely
material information.

36.

It follows from these provisions that all environmental claims must be explicit and precise so as
not to mislead consumers or sow doubt in their minds. The information provided must therefore
be clear, proportionate, unambiguous and justified by precise and measurable elements. It must
aim to inform consumers fairly about the environmental characteristics of the product or service
and must be based on scientific evidence or recognised methods. 34

37.

It should be noted that a visual related to ecology or sustainable development but disconnectedfrom the product or approach in question will also be considered as misleading the consumer.
According to the ADEME Guide, this is one of the three most widespread forms ofgreenwashing. 35

38.

Claims to be avoided. It follows from the guidelines 36 of Directive 2005/29/EC22 thatenvironmental or ecological claims must be presented in a clear, specific, accurate and

33 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair

business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC,
Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation(EC) No 2006/2004 of the European Parliament and of the Council ("Unfair Commercial Practices Directive"),
online: https://eur-lex.europa.eu/legal-content/FR/TXT/HTML/?uri=CELEX:32005L0029
34 CNC, Practical Guide, supra, p. 23
35 ADEME, Guide anti-greenwashing, supra p. 8
36 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair
business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC,

10

unambiguous manner, and that any generic claim that is not based on accessible andunderstandable evidence is therefore prohibited. In this respect, the CNC Guide indicates thatthe terms "respectful of the environment", "green", "nature-friendly", "ecological", "ecologicallycorrect", "climate-friendly" or "preserves the environment" should be avoided. 37
39.

Complete representation. The environmental claim must also relate to a significant
environmental aspect with regard to the impacts generated by the product, its packaging, or the
product-packaging combination. 38 The assessment of an environmental claim takes into accountthe most significant environmental impacts generated by the product during its life cycle, including
its supply chain. Highly polluting industries must therefore ensure that their environmental claims
are precise in this sense, by being formulated in a relative manner. 39

40.

An environmental claim highlighting only one of the significant impacts generated by the producton the environment, among several others, may therefore be considered misleading.
Professionals must also refrain from distorting claims relating to the composition of the product(including raw materials), its use, its manufacturing process, its transport or its end-of-life impact,
in particular by unduly stressing the importance of its positive aspects when these are in fact only
marginal, or that the overall environmental impact of the product throughout its life cycle isnegative. 40

41.

Finally, the benefit claimed by the environmental claim must not lead to pollution displacement,
i.e. it must not create or worsen other environmental impacts of the product at any stage of its
life cycle. 41

42.

Penalties. Article L. 132-2 of the French Consumer Code punishes the use of misleading
commercial practices with 2 years' imprisonment and a fine of 300,000 euros, which may be
increased, in proportion to the benefits derived from the offence, to 10% of average annual sales(calculated on the basis of the last three annual sales known on the date of the offence), or 50%of the expenditure incurred in carrying out the advertising or practice constituting the offence this rate being increased to 80% in the case of the misleading commercial practices referred toin b) (essential characteristics of the goods or services) and e) (scope of the commitments inparticular) of 2° of article L. 121-2, when they are based on environmental claims.
B. Article L. 541-9-1 of the French Environment Code prohibits the use of the terms"biodegradable", "environmentally friendly" or any other equivalent wording on a
product or packaging.

43.

Principle. In a similar spirit to the prohibition of certain excessively vague terms under theprovisions on misleading commercial practices (see paragraph 38 above), article L. 541-9-1 of
the Environment Code, enacted by article 13 of the EC Anti-Waste Act, adds: "It is forbidden to
use the terms "biodegradable", "environmentally friendly" or any other equivalent term on a
product or packaging". In this way, the legislator has sought to prevent the terms used on
products or packaging from misleading consumers by using terms that are too vague, leading to
confusion, particularly when it comes to sorting or disposing of the product concerned. 42

44.

The CNC Guide lists several examples of all-encompassing claims that may be considered
equivalent to "environmentally friendly": "eco-responsible"; "bio-responsible"; "biocompatible";"nature-friendly"; "planet-friendly"; "environment-friendly"; "good for the environment"; "good for

Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation(EC) No 2006/2004 of the European Parliament and of the Council ("Unfair Commercial Practices Directive"),
online: https://eur-lex.europa.eu/legal-content/FR/TXT/?uri=celex%3A32005L0029
37 ADEME, Guide anti-greenwashing, supra, p. 25
38 Ibid. p. 12
39 Ibid. p. 24 - citing: Guidance on the interpretation and application of Directive 2005/29/EC of the European
Parliament and of the Council concerning unfair business-to-consumer commercial practices in the internalmarket: https://eur-lex.europa.eu/legal-content/FR/TXT/?uri=CELEX:52021XC1229(05)40 Ibid. p. 24
41 Ibid. p. 24
42 Ibid. p. 25

11the climate"; "good for the planet"; "ecological"; "eco-friendly"; "green"; or "nature-friendly". 43 It
adds that this list is not exhaustive and that other all-encompassing claims may be considered
equivalent, such as "better for the environment" or "better for the planet" when they are not used
for comparison purposes. 44
45.

Penalties. Pursuant to article L. 541-9-4-1, "Any breach of the information obligations mentioned
in article L. 541-9-1 is punishable by an administrative fine of up to €3,000 for a natural person
and up to €15,000 for a legal entity.
C. Article L. 229-68 of the French Environment Code governing claims of carbon neutrality
in advertising46.

Principle. Article L. 229-68 of the French Environment Code prohibits claims in advertising thata product (good or service) is carbon neutral, or the use of any wording of equivalent meaning or
scope, unless the advertiser makes readily available to the public a certain amount of information
attesting to the implementation of a virtuous approach aimed primarily at reducing GHG
emissions, and ultimately offsetting them, in compliance with high environmental quality
standards.
Article L. 229-68 of the Environment Code" I. - It is forbidden to state in an advertisement that a product or service is carbon neutral or
to use any wording of equivalent meaning or scope, unless the advertiser makes the following
elements readily available to the public:
1° A greenhouse gas emissions balance sheet incorporating the direct and indirect emissionsof the product or service;
2° The process by which the greenhouse gas emissions of the product or service are first
avoided, then reduced and finally offset. The greenhouse gas emission reduction trajectory is
described using quantified annual progress targets;
3° Terms and conditions for offsetting residual greenhouse gas emissions that comply withminimum standards defined by decree.

47.

Penalties. In the event of non-compliance with these provisions, the DGCCRF may, in
accordance with article L. 229-69 of the Environment Code, impose a fine of €20,000 for anindividual and €100,000 for a legal entity. These amounts may be increased up to the full amountof the expenditure devoted to the illegal operation.
D. The CNC's Practical Guide to Environmental Claims and other guides for companies
1. The CNC's Practical Guide to Environmental Claims

48.

The CNC Guide, in addition to clarifying the general application of the aforementioned provisions
to environmental claims, (i) addresses the notion of claims concerning a company as a wholeand (ii) provides examples of specific claims and sets out the conditions under which they may
constitute greenwashing.
The specific case of allegations concerning a company

49.

The CNC Guide specifies that environmental claims are also regulated when they relate to thecompany itself - i.e. its efforts to reduce its environmental impact through its commercial policy,
its production methods or its commitment to various actions - rather than to the products and/or
their packaging:"The claim must specify whether it concerns all of the company's activities, theproduction process or one of the product development stages. The company mustjustify that it has reduced the main environmental impacts associated with its activities.

43 Ibid. p. 26
44 Ibid. p. 26

12

Explanations of the company's approach must be easily accessible to consumers.
When reading the claim, the consumer must understand the company's exact
approach.
In all cases, these claims must be qualified: "our company limits its significant impact
on the environment".
The company must justify its actions and make them easily accessible (e.g. on a
website) by providing concrete, measurable, relevant, significant and verifiable
evidence (e.g. in terms of eco-design, limiting the use of polluting substances andgreenhouse gas emissions, controlled management of natural resources, energy andwaste, etc.) proving that the main environmental impacts associated with thecompany have been significantly reduced". 45
Specific examples
50.

The CNC Guide then devotes entire sections to a number of common claims such as"sustainable" or "use of renewable resources", and details the circumstances in which their use
constitutes greenwashing.

51.

These sections are referred to at greater length where relevant in part V of this notice.
2. Other guides for companies: ADEME's Anti-Greenwashing Guide 46 , ARPP's
Recommendations 47 and the ICC Code. 48

52.

Alongside the CNC Guide, ADEME has also published an Anti-Greenwashing Guide designed tohelp companies comply with the rules in force. In particular, the ADEME Guide contains several
self-assessment questionnaires and identifies the "most common bad habits that turn the use of
the ecological argument and the "sustainable development" argument into abuse", including :c.

A disproportionate promise;d.

Vague words;e.

Insufficient information;f.

An irrelevant focus; andg.

Non-existent evidence. 49

53.

Finally, companies can also refer to the ARPP Recommendations 50 and the ICC Code. 51

V.

RELEVANT FACTS: ENVIRONMENTAL POLLUTION AND GREENHOUSE GAS EMISSIONS
GENERATED BY LULULEMON AND THE TEXTILE INDUSTRY
A. Greenhouse gas emissions
1. The textile industry

54.

It is estimated that the clothing industry contributes between 1.8% and 8% of global greenhousegas emissions. 52

45 CNC, Practical Guide, supra, p. 65-66

46 ADEME, Anti-Greenwashing Guide, supra
47 ARPP, ARPP Recommendations, supra

48 International Chamber of Commerce, Code on Advertising and Commercial Communications, supra.
49 ADEME, Guide Anti-Greenwashing, supra, p. 9-1050 ARPP, ARPP Recommendations, supra

51 International Chamber of Commerce, Code on Advertising and Commercial Communications, supra.

52 Apparel Impact Institute, "Taking Stock of Progress Against the Roadmap to Net Zero" (June 2023), online:

https://apparelimpact.org/wp-content/uploads/2023/06/Aii_RoadmapReport-752.pdf; McKinsey & Company study

13

55.

The vast majority of the clothing industry's emissions are generated by its value chains. 53 The
Greenhouse Gas Protocol (GHG Protocol), 54 a global standard framework for measuring andmanaging emissions from private and public activities, classifies these value chain emissions as"Scope 3 emissions". 55 Scope 3 emissions are all indirect greenhouse gas emissions (excluding
purchased energy production) that occur in a company's value chain, including upstream anddownstream emissions. In the clothing industry, upstream emissions include emissions from aclothing company's supply chain, such as the production of raw materials, transport anddistribution. Downstream emissions include those associated with the use and disposal ofclothing products. 56

56.

Based on a study of clothing and footwear brands, the Apparel Impact Institute and the World
Resources Institute have calculated that 96% of the sector's total greenhouse gas emissions are
Scope 3 emissions, 80% of which come from upstream manufacturing, production and raw
materials. 57 To stay within the 1.5°C target, the Apparel Impact Institute predicts that the industry
must reduce its emissions by at least 45% by 2030. 58 In other words, to be part of the global
solution to climate change, apparel companies must significantly reduce their absoluteemissions, including emissions from their supply chains.
2. Lululemon

57.

The vast majority of Lululemon's greenhouse gas emissions are scope 3 emissions created byits supply chain. 59 Since Lululemon launched its Be Planet marketing campaign in 2020, insteadof seeing a reduction in Lululemon's greenhouse gas emissions, these emissions have increased
significantly. Lululemon's own reports indicate that its scope 3 emissions have more than doubled
since 2020, as follows: 60•

2020: 829.456 tCO2e34 61

entitled "Fashion on climate: How the fashion industry can urgently act to reduce its greenhouse gas emissions"(2020), online:
https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/fashion%20on%20climate/fashionon-climate-full-report.pdf; Quantis, "Measuring Fashion: Insights from the Environmental Impact of the Global"(2018), online: https://quantis.com/wpcontent/uploads/2019/11/measuringfashion_globalimpactstudy_quantis_2018.pdf.
53 World Resource Institute, "Roadmap to Net Zero: Delivering Science Based Targets in the Apparel Sector"(November 2021), p. 7, online: https://files.wri.org/d8/s3fs-public/2021-11/roadmap-net-zero-delivering-sciencebased-targets-apparel-sector.pdf?VersionId=LxrwUSv9dHytM7zybuQgoJ8LUHBZVgM1
54 GHG Protocol, online: https://ghgprotocol.org/standards-guidance
55 GHG Protocol, Greenhouse Gas Protocol " FAQ " online:
https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf. The GHG Protocol Corporate Standard
classifies a company's greenhouse gas emissions into three types. Scope 1 emissions are direct emissions from
owned or controlled sources. Scope 2 emissions are indirect emissions from the production of purchased energy.
Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the reporting company's
value chain, including upstream and downstream emissions.
56 World Resources Institute and Science Based Targets initiative, "Apparel and Footwear Sector: Science-Based
Targets Guidance" at points 4 and 25, figure 8, online:
https://sciencebasedtargets.org/resources/files/SBT_App_Guide_final_0718.pdf
57 Apparel Impact Institute and World Resources Institute, supra
58 Apparel Impact Institute, supra
59 Based on the information contained in Lululemon's 2022 Impact Report, it has been calculated that
Lululemon's Scope 3 emissions represent 99.7% of its total emissions: Lululemon, 2022 Impact Report, online:
https://corporate.lululemon.com/~/media/Files/L/Lululemon/our-impact/reporting-and-disclosure/2022-lululemonimpact-report.pdf
60 Lululemon's report omits certain categories of Scope 3 emissions and these values therefore do not represent
all of the company's emissions: Ibid, p. 79.
61 Lululemon, 2020 Impact Report, online: https://corporate.lululemon.com/~/media/Files/L/Lululemon/ourimpact/our-impact-agenda/2020-full-impact-report.pdf. The figures disclosed for greenhouse gas emissions in
Lululemon's impact reports appear to include those of its subsidiaries, including Lululemon France. The impact
reports state that they "cover global business activity performance from our direct operations (including offices,
retail outlets, e-commerce, guest training centres and distribution centres) and supply chain (including
manufacturing suppliers and distribution logistics)."14•2021: 1,343,649 tCO2e35 62•

2022: 1,691.009 tCO2e36 63

58.

The greenhouse gas emissions reported for Lululemon France are relatively low, including scope
3 emissions and are included in the overall emissions for Europe (excluding UK and Ireland) as
described in the 2022 impact report. However, this does not reflect the extent of Lululemon's
scope 3 emissions in its global supply chain to which Lululemon France has access. 64

59.

Lululemon's emissions in 2022 are equivalent to burning more than 720 million litres of petrol,
more than 3.8 million barrels of oil or powering more than 518,000 passenger vehicles for one
year. 65

60.

It appears that these emissions will continue to increase significantly as Lululemon has a statedgoal of doubling its 2021 sales by 2026, 66 which will mean an increase in garment manufacturing
through its supply chain and a corresponding increase in scope 3 emissions.

61.

In addition, more than 80% of Lululemon's manufacturers and suppliers are located in countries
that are highly dependent on fossil fuels and have minimal renewable energy networks, including
Vietnam, Cambodia, Sri Lanka, Bangladesh and Indonesia. 67 Vietnam, for example, where
Lululemon sources 39% of its products, 68 is the fastest-growing coal-consuming country inSoutheast Asia, with an annual growth rate of 11%. 69 By 2021, coal will account for 47% of thecountry's electricity generation mix 70 and Vietnam's CO2 emissions will have risen by more than
50% between 2017 and 2020 (and more than 540% between 2000 and 2021). 71

62.

In addition, although Lululemon claims to be committed to working with its suppliers to increase
the use of renewable energy and eliminate coal-fired boilers on site, 72 these claims are not easily
verifiable. Many of Lululemon's key suppliers do not publish information about their coal use orplans to switch to renewable energy. For example, Tan De Co Ltd, which Stand has identified as
one of Lululemon's largest suppliers, does not publicly state that it uses renewable energy to
power its factories, has not set public targets to reduce its emissions and has not published aplan to phase out the use of coal. If the DGCCRF decides to open an investigation into thepractices of Lululemon described in this alert, it would certainly be useful to obtain from Lululemon
the past and present environmental reports of its suppliers, including information on their relianceon coal and plans to switch to renewable energy.

62 Lululemon, 2021 Impact Report, online: https://corporate.lululemon.com/~/media/Files/L/Lululemon/ourimpact/reporting-and-disclosure/2022-lululemon-impact-report.pdf
63 Lululemon, 2020 Impact Report, supra, p. 79.
64 Lululemon, Impact Report 2022, supra, p. 75
65 Natural Resources Canada, Greenhouse Gas Equivalency Calculator, online:
https://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/calculator/ghg-calculator.cfm#results
66 Lululemon, "Lululemon Announces Five-Year Growth Plan to Double Revenue by 2026 to $12.5 Billion", (20April 2022), online: https://corporate.lululemon.com/media/press-releases/2022/04-20-2022113017957#:~:text=Leveraging%20its%20proven%20formula%20and%20supported%20by%20the,including%20
product%20innovation%2C%20guest%20experience%2C%20and%20market%20expansion .
67 Lululemon, Impact Report 2022, supra. In 2022, around 39% of their products were manufactured in Vietnam,
14% in Cambodia, 12% in Sri Lanka, 8% in Bangladesh and 7% in Indonesia, with the remainder manufactured
in other regions.
68 Ibid.
69 Thang Nam Do and Paul J. Burke, "Phasing out coal power in a developing country context: Insights from
Vietnam": Insights from Vietnam" (2023) Energy Policy, online:
https://www.sciencedirect.com/science/article/pii/S0301421523000976?via%3Dihub
70 Ibid.
71 International Energy Agency (IEA), Calculateur de l'émission totale de CO due aux sources d'énergie pour le2Viêt Nam, online: https://www.iea.org/countries/viet-nam/emissions
72 2022 Impact Report, supra

15

63.

It is also important to note that many of Lululemon's products are made from polyester and nylon,
which are produced from fossil fuels. 73

64.

The negative impact of Lululemon's products and actions on the environment is further
compounded by the company's use of air and sea freight to transport its products. Air freight inparticular generates around 47 times more CO2 emissions than sea freight in tonne-miles. 74,75
Consequently, a company such as Lululemon, which presents itself as taking steps to contributeto the health of the planet, should reasonably minimise its use of air freight. However, faced withthe supply chain difficulties caused by the COVID-19 pandemic, Lululemon made the opposite
choice by significantly increasing its use of air freight, disregarding the increased negative impact
on the environment. Lululemon explains the switch to air freight in its 2022 impact report:"In early 2022, the COVID-19 pandemic contributed to supply chain disruption. As a result,
we experienced longer lead times and delivery challenges, including pressure on sea freightand seaports. This resulted in a continued reliance on increased air freight in the first half of2022, impacting our scope 3 emissions target performance." 7665.

A study assessing the use of air freight by leading apparel companies also highlighted
Lululemon's significantly more aggressive use of air freight compared to other companies in the
sector. According to the study, Lululemon transports around 30% of its products manufactured in
Vietnam and Sri Lanka by air freight, while competitors such as Nike, Adidas and Puma transportless than 5% of their products from Vietnam by air freight. 77

B. Pollution and the use of resources
1. The textile industry
66.

The pollution and waste created by the clothing industry is well documented.

67.

Between 80 and 100 billion new garments are produced every year worldwide, 78 an increasing
proportion of which are made from synthetic fabrics such as nylon, acrylic and polyester materials made from plastic. 79 When these materials are washed, they release plastic fibres into
the water, which end up in our rivers and oceans. 80 Researchers estimate that every year,
clothing releases 500,000 tonnes of microplastics into the ocean - the equivalent of more than
50 billion plastic bottles. 81 Microplastic pollution is one of the most widespread environmental

73 Gelfland Center, Carnegie Melon University, "Natural vs. Synthetic Polymers", online:

https://www.cmu.edu/gelfand/lgc-educational-media/polymers/natural-synthetic-polymers/index.html
74 Vitality, "Air Freight vs Sea Freight Carbon Footprint: Which is Lower?" (2022), online: https://vitality.io/airfreight-vs-sea-freight-carbonfootprint/#:~:text=Airfreight%20generates%2047%20times%20more,10%2D40%20grams%20per%20kilometer.
75 According to the OECD, in addition to CO emissions at high altitudes, "in the upper troposphere (up to 10
2kilometres), where most aircraft kilometres are recorded, NOx emissions can react with other gases to formozone, which is a potent greenhouse gas at this altitude. Although aviation accounts for only two per cent of
global NOx emissions, their direct release into the upper troposphere can significantly increase their impact onozone formation". OECD, "The Environmental Effects of Freight" (1997), p. 19, online (pdf):
https://www.oecd.org/environment/envtrade/2386636.pdf.
76 Lululemon, 2022 Impact Report, supra
77 PublicEye, "In the wake of Zara: how many other brands are flying?" (18 December 2023), online:
https://www.publiceye.ch/fr/news/detail/dans-le-sillage-de-zara-combien-dautres-marques-prennent-lavion
78 TheRoundup.org, "17 Most Worrying Textile Waste Statistics & Facts" (last updated: 18 March 2024), online:
https://theroundup.org/textile-waste-statistics
79 Aravin Prince Periyasamy, Ali Tehrani-Bagha, "A review on microplastic emission from textile materials and its
reduction techniques" (2022), Polymer Degradation and Stability, Volume 199, online:
https://www.sciencedirect.com/science/article/pii/S0141391022000878.
80 Concordia Precious Plastic Project, "Microplastic Pollution and the Fast Fashion Industry", online:
https://www.cp3montreal.com/articles/microplastic-pollution-and-the-fast-fashion-industry.
81 Ibid.

16

problems, raising concerns about its impact on water quality, its effects on ecosystems and on
human health. 82
68.

The massive use of synthetic materials in the textile industry makes many garments impossible
to recycle. 83 It is estimated that 92 million tonnes of textile waste are produced worldwide every
year, and that clothing and textiles account for at least 7% of the total amount of waste in landfill
sites worldwide. 84 Synthetic fibres are not biodegradable and can remain in landfill sites for up to
200 years. 85

69.

The textile industry was the third largest source of water degradation and land use in 2020. That
year, it took an average of 9 m3 of water, 400 m2 of land and 391 kg of raw materials to makeclothes and shoes for every EU citizen. 86

70.

Water scarcity is also a growing global problem, with an estimated 2.3 billion people living inwater-stressed countries in 2018. 87 The clothing industry exacerbates this problem by using large
quantities of fresh water throughout the production and manufacturing process. 88

71.

The maritime transport used by industry also causes significant damage to the environment.
According to the OECD:"Maritime transport poses a threat to the environment, both on inland waterways and on theoceans. These problems stem from six main sources routine discharges of oily bilge andballast water from shipping; the discharge of non-biodegradable solid waste into the ocean;
accidental spills of oil, toxic products or other cargoes or fuels in ports and en route; airemissions from the power supply of ships; the construction and management of ports andinland waterways; and ecological damage due to the introduction of exotic species carriedon board ships". 89
2. Lululemon

72.

According to Stand's research, Lululemon's actions and products also harm the environment in
the ways described above.

73.

According to information available to Stand, Lululemon uses a lot of synthetic fabrics in its
products, with polyester and nylon accounting for over 60% of the materials used by thecompany. 90 Therefore, as explained above, when Lululemon's polyester and nylon products are
washed by consumers, significant quantities of microplastics are released. Although Lululemon
claims that it uses recycled polyester and nylon in its products, 91 experts do not consider theseproducts to be a truly sustainable alternative, as they consume a lot of energy to manufacture,
are not biodegradable and still release microplastics. 92 Worse still, a study carried out in 2021

82 OECD, "Policies to Reduce Microplastics Pollution in Water: Focus on Textiles and Tyres" OECD Publishing,(2021), online: https://www.oecd-ilibrary.org/environment/policies-to-reduce-microplastics-pollution-inwater_7ec7e5ef-en
83 Concordia Precious Plastic Project, "Microplastic Pollution and the Fast Fashion Industry", supra.
84 TheRoundup.org, "17 Most Worrying Textile Waste Statistics & Facts", supra
85 Concordia Precious Plastic Project, "Microplastic Pollution and the Fast Fashion Industry", supra.
86 European Parliament, "Textile production and waste: impacts on the environment" (infographics), supra.
87 United Nations Statistics Division, SDG 6 "Clean Water and Sanitation: Ensure availability and sustainable
management of water and sanitation for all": Ensure availability and sustainable management of water andsanitation for all", online: https://unstats.un.org/sdgs/report/2021/goal06/#:~:text=In%202018%2C%202.3%20billion%20people,by%20over%202%20per%20cent.
88 Lululemon, 2022 Impact Report, supra
89 OECD, Impact environnemental du fret supra
90 Lululemon, 2022 Impact Report, supra
91 Ibid.
92 Veronica Bates Kassatly and Dorothee Baumann-Pauly, "The Great Greenwashing Machine - Part 2: The Useand Misuse of Sustainability Metrics In Fashion" Eco-Age, online: https://eco-age.com/wpcontent/uploads/2022/03/Great-Green-Washing-Machine-Report-Part-2_FINAL.pdf, p. 33-39.

17

showed that washing a recycled polyester fabric, used by Lululemon, 93 releases 2.3 times more
microfibres than virgin polyester. 94
74.

It is also very likely that millions of Lululemon products will end up in landfill, as Lululemon sells
millions of garments every year. Many of Lululemon's products are made from synthetic textile
materials that cannot or are not recycled, 95 which means they contribute to the 92 million tonnesof textile waste that fill the world's landfills every year. 96

75.

In addition, in 2022, Lululemon reported that its main suppliers, who produce around 84% of
Lululemon's production value, used 29.2 billion litres of fresh water. 97

76.

Finally, as we have seen above, Lululemon's supply chain is sourced from countries that rely
heavily on fossil fuels, particularly coal. 98 In addition, Lululemon reports that in 2022, only 15%of the electricity used by its manufacturers and materials suppliers came from renewable sources.
Although Lululemon claims to be committed to eliminating the use of coal on site, its suppliers
continue to use coal-fired boilers. 99 Burning coal not only emits greenhouse gases, but also toxic
and carcinogenic pollutants into the air, water and land - UN Secretary General António Guterres
has urged governments and private companies to end their reliance on coal, calling it "the single
most important step towards meeting the Paris Agreement's 1.5 degree target". 100

VI.

DISCUSSION: LULULEMON'S ENVIRONMENTAL CLAIMS CONSTITUTE MISLEADINGCOMMERCIAL PRACTICES AND FAIL TO COMPLY WITH THE RULES GOVERNINGCARBON NEUTRALITY CLAIMS

77.

As mentioned earlier, Lululemon launched its Be Planet marketing campaign in 2020. 101 The
contradiction between the message of Lululemon's Be Planet marketing campaign and the actual
environmental impact of Lululemon's actions and products, as outlined in the previous section, isglaring. This section identifies examples of Lululemon communications containing environmental
claims and explains how they fail to comply with the applicable provisions.

78.

The main media for these claims area.

The "Our sustainable impact" page of the French Lululemon website 102 - the various
statements on this page do not contain hyperlinks to more detailed pages;b.

The "Our Planet" page on Lululemon's international English-language website 103
and linked pages - this is considerably more detailed than the French site, but some

93 See, for example, the Lululemon France online shop: "Ultra-lightweight waist-length T-shirt", online:

https://www.lululemon.fr/fr-fr/p/t-shirt-ultra-l e ger-longueur-taille/prod11680552.html. This T-shirt is described as
ultra-light and is made from 100% recycled polyester. It is also treated with a "natural additive derived from plantseeds" to wick away sweat.
94 İlkan Özkan & Sedat Gündoğdu, "Investigation on the microfiber release under controlled washings from theknitted fabrics produced by recycled and virgin polyester yarns" (2021) The Journal of The Textile Institute, 112:2,
264-272, online: https://www.tandfonline.com/doi/full/10.1080/00405000.2020.1741760.
95 Concordia Precious Plastic Project, "Microplastic Pollution and the Fast Fashion Industry", supra.
96 TheRoundup.org, "17 Most Worrying Textile Waste Statistics & Facts", supra
97 Lululemon, 2022 Impact Report, supra
98 Ibid.
99 Ibid.
100 United Nations Climate Change, "UN Chief Calls for Immediate Global Action to Phase Out Coal" (2 March
2021), online: https://unfccc.int/fr/node/268711.
101 Lululemon - Press Releases "Lululemon athletica Inc. releases Impact Agenda, Unveiling its Social andEnvironmental Goals and Strategies to Create a Healthier Future": Lululemon Athletica Inc. Releases Impact
Agenda, Unveiling its Social and Environmental Goals and Strategies to Create a Healthier Future) (28 October2020), online: https://corporate.lululemon.com/media/press-releases/2020/10-28-2020-085826103
102 Lululemon France, Our Sustainable Impact, online: https://www.lululemon.fr/fr-fr/c/communaute/apropos/notre-impact-durable (screenshots attached)
103 Lululemon Inc, Our Impact, online: https://shop.lululemon.com/en-ca/story/sustainability (screenshot attached)18

of the statements made there are included in the brochure mentioned in the next
point;c.

The French-language brochures "Notre Impact Environnemental 2020" 104 dated
October 2020 and "Points saillants de l'impact 2021" ; 105d.

The various Programmes and more detailed Impact Reports, available in English
only, from the pages of the two sites mentioned above.

79.

Copies and screenshots of these media as seen by the public are provided in the Annex to thisnotice. Where the French version of a claim is not available, we have provided a free translationin the tables below.

80.

The declarations concerned can be divided into 3 groups:a.

Vague, disproportionate and ambiguous environmental claims;b.

Environmental claims relating to aspects that are insignificant in relation to theimpacts generated by Lululemon; andc.

Environmental claims relating to Lululemon's greenhouse gas emissions.

A. Vague, disproportionate and ambiguous environmental claims
81.

Lululemon makes a number of claims - specific examples are listed in the table below - thegeneral message of which is that its practices, products and actions avoid damaging theenvironment, help to "restore" it and contribute to a "healthy planet".

82.

Stand maintains that

83.

a.

These claims are vague, disproportionate, ambiguous and omit substantial
information , and therefore constitute misleading commercial practices within themeaning of Articles L. 121-2 and 121-3 of the Consumer Code; andb.

In particular, the terms underlined in the table below are expressly prohibited under
Articles L. 121-2 of the French Consumer Code and L. 541-9-1 of the French
Environmental Code as being excessively vague.

Examples of claims in this category :Source(s)Lululemon: Our impact(screenshot attached)
Our sustainable impact |lululemon France(screenshot attached)
Lululemon, Impact
summary 2020
(screenshot in appendix,
p. 18)

Claims in English
Our products and actions avoid
environmental harm andcontribute to restoring a healthyplanet.

Claims in French / translations
Our products and actions reduce our
impact on the environment and help
restore a balanced world.

Our lives are one with the healthof the planet. Our products andactions avoid environmental
harm and contribute to restoringa healthy planet.

Our lives are linked to the health of theplanet. Our products and our actions
avoid damaging the environment andcontribute to restoring a healthy planet.

104 Lululemon, Our environmental impact 2020, online:

https://pnimages.lululemon.com/content/dam/lululemon/wwwimages/Footer/Sustainability/FR_Impact_Agenda_October_2020_Summary_Hyperlink_FR.pdf (appendix)
105 Lululemon, Highlights of the 2021 impact, online:
https://images.lululemon.com/is/content/lululemon/EMEA%20SALESFORCE/Community%202.0/Sustainability/lul
ulemon%20Impact%20Report%20Highlights_FR-FR.pdf (in appendix)

19

Lululemon: Our planet (s ite du groupe)(screenshot attached)
Our sustainable impact |lululemon France(screenshot attached)
Lululemon: Our imp a ct
(screenshot attached)
Our sustainable impact |lululemon France(screenshot attached)
Lululemon, Prog r
amme d'impact 2020
(in English)
Lululemon, Ourenvironmental impact
2020 (in appendix)

By adopting and evolving
practices and mindful solutions,
we enhance the products weoffer and contribute to restoring
the environment.

We are committed to creating better
products for people and the planet. We
adopt practices and create solutions that
improve our products, reduce impact andhelp restore the environment.

We're adopting practices andcreating solutions that enhance
our products, minimize negative
impact, and contribute torestoring the environment.

We adopt practices and create solutions
that improve our products, reduce impact
and help restore the environment.

We envision a future where wethrive within the limits of our one
planet. That is why we act toavoid environmental harm andcontribute to restoring a healthyplanet.

Our products and our actions prevent
ecological damage and help restore ahealthy planet.

1. Claims that are vague, disproportionate, ambiguous and omit substantial information
84.

Lululemon's environmental claims, and in particular the examples above, are clearly extremelyvague and disproportionate. In particular, the claim that the company "avoids harm to theenvironment" and contributes to "restoring a balanced world" does not meet the criteria of clarity
and justification through precise and measurable elements required by Article L. 121-2 of theConsumer Code.

85.

With regard to claims relating specifically to the company's own approach (rather than to its
products and/or their packaging), the CNC Guide adds that "The claim must specify whether it
concerns all of the company's activities, the production process or one of the productdevelopment stages. The company must justify that it has reduced the main environmental
impacts associated with its activities. [...] When reading the claim, the consumer must understandthe exact approach taken by the company". 106 In all cases, claims must be qualified. 107 Clearly,
Lululemon's claims lack precision, justification and nuance.

86.

In addition to their lack of clarity and proportionality, these claims omit substantial information(within the meaning of Article L. 121-3 of the French Consumer Code) concerning Lululemon's
activities. As explained above, the information available to Stand paints a very different picture of
the company:•

Lululemon is part of a global industry that contributes between 1.8% and 8% of the world's
greenhouse gas emissions, 108 the vast majority of which are generated by its value
chains. 109•

Lululemon has a huge supply chain which produces significant greenhouse gas emissions
and, since making its Be Planet commitments, has more than doubled its scope 3
emissions to 1,691,009 tCO2e. 110 These emissions are also expected to continue to rise,with Lululemon's stated aim of doubling its sales in 2021 by 2026. 111

106 CNC, Practical Guide, p. 65-66
107 CNC, Practical Guide, p. 65-66

108 McKinsey & Company study, supra

109 Apparel Impact Institute and World Resources Institute studies, supra
110 Lululemon, 2022 Impact Report, supra

111 Lululemon, Press release on five-year growth plan, supra20•The products most commonly used by Lululemon in its material mix - polyester and nylon- are produced from fossil fuels and are known to release significant quantities of
microplastics into the world's oceans and rivers when washed.

•

Lululemon chooses to transport a higher percentage of its products by air freight than its
competitors, a mode of transport that generates far more greenhouse gas emissions thansea freight. 112•

Lululemon's supply chain operations used more than 29 billion litres of fresh water in
2022. 113•

A significant (but unknown to Stand) quantity of Lululemon clothing and packaging ends up
in landfill every year.

87.

References to "restoring the environment" are particularly problematic: while Lululemon mentions
on its website and in its latest Programme and Impact Report 114 certain initiatives aimed at
reducing certain harmful effects on the environment linked to its activities, the notion of "restoring"goes further in the consumer's mind and none of these initiatives seem to justify it.

88.

Finally, the imagery used by Lululemon in combination with its message contributes to themisleading nature of the Be Planet marketing campaign. The images of rivers, healthy forests
and nature do not reflect the nature of Lululemon's business or the impact of its activities andproducts on the environment.
2. Expressly prohibited as too vague

89.

The terms underlined in the table above are expressly prohibited by articles L. 121-2 of theFrench Consumer Code and L. 541-9-1 of the French Environmental Code as being too vague.
In particular:

90.

The expressions "reduce our impact on the environment" and "contribute to restoring a balanced
world" and "contribute to restoring the environment" are equivalent to the examples of"environmentally friendly", "nature-friendly", "climate-friendly" or "preserves the environment"
listed in the CNC Guide as contravening the provisions of Article L. 121-2 of the Consumer Code;
and

91.

The expressions "reduce our impact on the environment" and "contribute to restoring a balanced
world" and "contribute to restoring the environment" are clearly equivalent to the words"respectful of the environment" referred to in article L. 541-9-1 of the French Environment Codeand the examples of equivalent terms listed in the CNC Guide, such as "eco-responsible";"nature-friendly"; "planet-friendly"; "environment-friendly"; "good for the environment"; "good forthe climate"; "good for the planet"; or "nature-friendly".
B. Environmental claims relating to aspects that are insignificant in relation to the impacts
generated by Lululemon's activities

92.

Lululemon uses its extensive marketing presence to overstate the importance of certain
environmental initiatives that provide only minor improvements or benefits in relation to thecompany's overall climate and environmental footprint. This type of marketing is expressly
targeted by the applicable texts, as it has the effect of distracting attention from the significant
environmental damage caused by the company's activity and of giving consumers the general
impression of a company that respects the planet.

93.

Stand maintains that:

112 Article by PublicEye, supra

113 Lululemon, Impact Report 2022, supra

114 Lululemon, Impact Report 2022, supra

21

94.

a.

These claims relate to minor advantages and therefore constitute misleading
commercial practices within the meaning of Articles L. 121-2 and 121-3 of theFrench Consumer Code; andb.

The references to the sustainability of materials and the use of renewable energy,
apart from being general references to minor benefits, do not comply with the criteria
laid down by the CNC Guide for the use of these terms in particular, and are
therefore all the more misleading.

Examples of claims in this category :Source(s)Lululemon Like New
website: About Like
New (screenshot
attached)

Lululemon, 2020
Impact Programme(in English)
Lululemon, Ourenvironmental impact
2020 (in appendix)

Lululemon Like New
website: About Like
New (Screenshot
attached)

Lululemon Press
Release: lululemon
Delivers on its

Claims in English
Getting after our goals.

Claims in French / translations
Pursuing our objectives.

Like New is part of lululemon'scommitment to support a circular
ecosystem. By lengthening thelifecycle of gear that's built to bereused and recycled, we'removing towards our goal of
having an end-of-use solution for
100% of our products by 2030.
We're also reducing greenhousegas emissions within our supply
chain and have been sourcing
only renewable electricity for ourowned and operated facilities
since 2021.
SUSTAINABLE PRODUCTINNOVATION Make 100 percent
of our products with sustainable
materials and end-of-use
solutions, towards a circular
ecosystem by 2030.
SUSTAINABLE MATERIALS
Achieve at least 75 percent
sustainable materials for our
products by 2025.
CIRCULARITY Offer our guests
new options to extend the life of
our products by 2025.
CLIMATE CHANGE Source 100%
renewable electricity to power ourown operations by 2021 andreduce carbon emissions acrossour global supply chain by 60
percent per unit of value added,
meeting our Science-Based
Targets by 2030.
Good feelings all around.

Like New is part of Lululemon's commitment
to supporting a circular ecosystem. By
extending the life cycle of equipment
designed to be reused and recycled, we aremoving closer to our goal of having an endof-use solution for 100% of our products by
2030. We are also reducing greenhouse gas
emissions within our supply chain and, since2021, we have been sourcing exclusively
renewable electricity for the facilities we own
and operate.

What's better than great finds on
gently used lululemon gear?
Knowing you're choosing
better for the planet byextending the lifecycle of every
score.
The new initiatives are the latest
efforts from the brand under its Be
Planet pillar, which is focused on
22

SUSTAINABLE PRODUCT INNOVATION
Manufacture 100% of our products fromsustainable materials and use end-of-life
solutions that promote a circular ecosystemby 2030.
SUSTAINABLE MATERIALS To achieve atleast 75% use of sustainable materials in
our products by 2025.
CIRCULARITY Offering our guests new
options to extend the life of our products by
2025.
CLIMATE CHANGE Procure 100%
renewable electricity to power our own
operations by 2021, and reduce carbon
emissions throughout our supply chain by
60% per unit of value added to meet ourscience-based targets by 2030.

What's better than great finds in used
Lululemon clothing? Knowing that you'remaking a better choice for the planet byextending the life cycle of each piece.

These new initiatives are the brand's latest
efforts under its Be Planet pillar, which

Impact Agenda
Commitments with
Two New
Sustainability
Initiatives Launchingin May(Screenshot
attached)

making products that are better inevery way for people and theplanet.
Lululemon is actively working tohelp create a healthier future, ...

focuses on making products that are betterfor people and the planet.
Lululemon is actively working to create ahealthier future, ...

1. Claims relating to minor benefits
95.

In order not to be considered a misleading commercial practice, an environmental claim must still
relate to a significant environmental aspect in terms of the impacts generated by the product, its
packaging, or the product-packaging combination. 115 The evaluation of an environmental claim
takes into account the most significant environmental impacts generated by the product during
its life cycle, including its supply chain. The CNC Guide thus expressly states that highly polluting
industries must therefore ensure that their environmental claims are precise in this sense, by
being formulated in a relative manner, 116 and that it is advisable to refrain from unduly
emphasising the importance of its positive aspects when these are in reality only marginal orwhen the overall environmental impact of the product throughout its life cycle is negative. 117

96.

An example of how Lululemon highlights its efforts to reduce environmental damage can be foundin the messaging around its Like New programme. 118 This marketing uses the relatively minor
benefits of this programme to repeat and emphasise the message that Lululemon is "helping torestore a healthier planet".

97.

Although this scheme may lead to relatively minor reductions in the environmental damage
caused by the company, it is misleading and disproportionate to use the scheme to suggest thata consumer who participates in it is "helping to restore a healthier planet":

98.

a.

Even if it were extremely well designed, such a programme would have only a minor
impact on the company's impact, and an even more minor impact on the planet's'health'.

b.

In addition, the programme is not well designed to achieve meaningful circularity.
Products must be returned in 'as new' condition and gift cards given in exchange for'as new' products can only be used for new items. In other words, while potentiallyencouraging the use of certain garments for longer periods, the programme also
encourages increased consumption of new garments. While some discarded
clothing may avoid landfill for a few years, nothing about this programme will "restore
a healthier planet".

c.

The programme is not available in France or in Europe more widely, but Lululemon
refers to it in its communications, particularly in France. 119

The programme also lacks transparency, as Lululemon does not disclose any information on the
total quantity of its products sold in Canada or worldwide that are disposed of in landfill sites oron the relative proportion of products returned under this programme that are resold.

115 CNC, Practical Guide supra, p. 12

116 Ibid. - citing: Guidance on the interpretation and application of Directive 2005/29/EC of the European
Parliament and of the Council concerning unfair business-to-consumer commercial practices in the internalmarket: https://eur-lex.europa.eu/legal-content/FR/TXT/?uri=CELEX:52021XC1229(05)117 Ibid. p. 24
118 Lululemon Like New, online: https://likenew.lululemon.com/pages/about
119 Like New is only available in the US, not in Europe. See Frequently Asked Questions available on the Like
New website, in particular the answer to the question "Where can I buy Lululemon Like New?", online:
https://likenewlululemon.zendesk.com/hc/en-us/articles/5135015128087-Where-can-I-buy-lululemon-Like-Newitems

23

2. Sustainability claims
99.

The claim that Lululemon is on track to "manufacture 100% of its products with sustainable
materials by 2030" also appears to be based on a marginal benefit, as well as being ambiguous.
The amount of 'sustainable' materials that will be used in each product is not mentioned - in otherwords, Lululemon does not mention that each of its products will not be made from 100%'sustainable' materials, nor how much of each product will be made from such materials, nor how
this notion is defined. Moreover, for the reasons given above, Lululemon's products, even if madefrom recycled polyester or nylon, will continue to harm the environment. 120

100. In addition, the CNC Guide indicates that a claim may only contain the term "sustainable" to referto a product's ability to last over time or to its consideration of sustainable development issues.
In the first case, the claim must include information on the additional lifespan of the productcompared to the average lifespan of similar products on the market. In the second case, it must
relate to the company's approach and not to a product, at the risk of being misleading. 121 The
above claims do not meet these criteria and use the term "sustainable" in a misleading way.
3. Claims relating to the use of renewable energy
101. Finally, Lululemon states that "we source 100% renewable electricity for the facilities we own andoperate". However, Lululemon fails to tell consumers the extent to which this reduces thecompany's total greenhouse gas emissions: the facilities owned and operated by Lululemon have
only ever accounted for an extremely small percentage of the company's greenhouse gas
emissions, whereas the company's scope 3 greenhouse gas emissions accounted for over 99.7%of the company's emissions in 2022, 122 and these continue to rise. This claim is therefore also
misleading as it not only relates to a very minor aspect of the impact of Lululemon's activities, butalso omits substantial information.
102. The CNC Guide also provides a framework for claims relating to the use of renewable resources.
It specifies that the company must be able to specify the type of renewable energy used(photovoltaic, solar-thermal, wind, hydro, biomass, geothermal, etc.) and the overall proportionof renewable energy used in the product's production process. It even goes on to say that if acompany wishes to highlight the fact that it uses renewable energy on its product, the proportionof renewable energy in the product's production process must be substantial in relation to the
product's life cycle. 123 This makes it all the more clear that these claims are misleading.

C. Environmental claims relating to greenhouse gas emissions
103. The way in which Lululemon publicly presents its plans to reduce greenhouse gas emissions
omits important information that makes these claims misleading.
104. Stand maintains that:a.

These claims are vague, disproportionate, ambiguous and omit substantial
information, or are even false, and therefore constitute misleading commercial
practices within the meaning of Articles L. 121-2 and 121-3 of the Consumer Code;andb.

In addition, some of these claims may be assimilated to carbon neutrality claims andtherefore contravene the provisions of article L. 229-68 of the French Environment
Code.

120 While Lululemon includes rPET (recycled polyester) in its definition of a sustainable material, its use posessignificant environmental problems, as we saw earlier in the document.
121 CNC, Practical Guide supra, p. 44
122 Lululemon, 2022 Impact Report supra
123 CNC, Practical Guide supra, p.50

24

105. Examples of claims in this category :Source(s)(English version)
Lululemon website: Our
Planet(Screenshot attached)(French version)
Lululemon, Highlights ofthe 2021 impact (inappendix)

Groupe Lululemon
website: Our planet(English version)(screenshot attached)
Lululemon, Highlights of
the impact 2021, (inappendix)
Lululemon, Impact 2020
Programme (screenshot
attached)
Our sustainable impact |lululemon France(screenshot attached)
Lululemon, Impact 2020
Programme (English
version)(screenshot attached)Groupe Lululemon
website: Our action for the
climate(English version)(screenshot attached)

Claims in English
Climate Action

Claims in French / translations
Climate action

Meet our science-based climate
targets by achieving:• 60% absolute reduction ofgreenhouse
gas
(GHG)
emissions in all owned andoperated facilities2 (Scope 1
and 2) by 2030
• 60% intensity reduction of
GHG emissions across ourglobal supply chain3 (Scope 3)
by 2030[Objective] Ongoing: Achieving ourscience-based climate targets for 2030
• [60%] absolute reduction in GHG
emissions from all owned andoperated facilities (scope 1 and 2)• [-60%] reduction in GHG intensity ingoods and services purchased, and in
upstream transport and distribution(Scope 3)

Goal Met: Achieve 100%
renewable electricity to power
owned and operated facilities by
2021[Objective] Completed: To use [100%]
renewable electricity to power the facilities
we own and operate.

We're working toward a carbonneutral future, starting with cutting
our own emissions across ourvalue chain and supporting a
global movement for action.

By 2030, we will decarbonize ourvalue chain, meeting ambitious,
science-based targets.

We are working towards a carbonneutral future, starting by cutting our own
emissions. We are setting science-basedtargets approved by Science Based
Targets. To achieve these targets, we are
implementing strategies to invest in thetransition to renewable energy, carbon
footprint reduction and energy efficiency
across our supply chains.
By 2030, we will decarbonise our value
chain, achieving ambitious targets basedon science.

We are making progress on our
climate goals around carbon
reduction.

We are making progress towards our
climate targets for reducing carbon
emissions.

1. Claims that are false and/or omit essential information
106. The evidence available to Stand shows that Lululemon's claims concerning its greenhouse gas
emissions are false, or at the very least omit a large amount of substantial information, andtherefore constitute misleading commercial practices within the meaning of Articles L. 121-2 andL. 121-3 of the French Consumer Code.
107. In particular, Lululemon claims to be "working towards a carbon-neutral future, starting by
reducing [its] own emissions throughout [its] value chain". However, these claims areincompatible with the following factual elements:a.

Lululemon's scope 3 emissions, which account for over 99% of the company's
carbon footprint, have more than doubled since 2020. 124

124 Lululemon, 2022 Impact Report, supra

25

b.

The vast majority of Lululemon's supply chain is located in countries that rely heavily
on fossil fuels and have minimal renewable energy networks, including Vietnam,
Cambodia, Sri Lanka, Bangladesh and Indonesia. 125c.

Vietnam is the country where Lululemon sources the most coal (39%). 126 Of all thecountries in South-East Asia, Vietnam is the fastest-growing in terms of coalconsumption, with an annual growth rate of 11%. 127 By 2021, coal will account for
47% of the country's electricity production. 128 What's more, between 2017 and 2020,
Vietnam's carbon emissions rose by more than 50%. 129

108. Lululemon also omits extremely substantial information by describing its greenhouse gas
emission targets more precisely, making them at the very least misleading, if not false byomission. To illustrate these practices, the entire first statement in the table above is presented
and commented on: 130
Climate action•

Achieve our science-based climate targets by :•60% absolute reduction in greenhouse gas (GHG) emissions from all owned andoperated facilities2 (scope 1 and 2) by 2030•

60% reduction in GHG emissions intensity across our global supply chain3 (scope 3) by2030•

Becoming a net zero company by 20504•

Objective achieved: to use 100% renewable electricity to power the facilities we own andoperate by 2021.
2 The facilities owned and operated are those over which Lululemon has direct

operational control. This target refers to Scope 1 and 2 emissions.

3 Including purchased goods and services, as well as upstream transport and distribution

only. The reduction in intensity is calculated in relation to the net income from operations.
4 The Science Based Target Initiative's (SBTi) Net-Zero standard requires companies toreduce their emissions by more than 90% and to use permanent carbon removal andstorage to offset the last <10% of residual emissions that cannot be eliminated. SBTi has
validated our target for 2024.

109. This representation poses three serious problems.
a.

First of all, Lululemon presents its objectives of reducing Scope 1 and 2 emissions
by 60%, without mentioning that these emissions only represent around 0.3% of
Lululemon's total greenhouse gas emissions. In other words, the website does not
explain that achieving this target will have a negligible impact on Lululemon's overall
greenhouse gas emissions. By presenting the scope 1 and 2 emissions reduction
targets in this way, Lululemon gives the general (and false) impression that it isaiming for significant reductions in its greenhouse gas emissions.

b.

Secondly, Lululemon presents its scope 3 emissions reduction targets as "intensitybased". However, intensity-based targets measure the metric tonnes of CO2 emitted
per unit of production, not in absolute terms. Intensity-based decarbonisation targets

125 Ibid, above. In 2022, around 39% of their products were manufactured in Vietnam, 14% in Cambodia, 12% in

Sri Lanka, 8% in Bangladesh and 7% in Indonesia, and the rest in other regions.

126 Ibid.

127 Do and Burke, supra
128 Ibid.

129 International Energy Agency (IEA), supra

130 Groupe Lululemon website, "Our planet", online: https://corporate.lululemon.com/our-impact/our-planet26

are therefore controversial, as they do not guarantee absolute reductions inemissions, particularly in circumstances where a company anticipates significant
growth in turnover. 131 The misleading impression conveyed by this representation isthat Lululemon's greenhouse gas emissions will reduce to net zero, when in fact
they are increasing - since production volume is increasing faster than emissions
intensity is decreasing. If Lululemon achieves its sales growth targets for 2026, 132 it
is likely that the company's scope 3 emissions will continue to increase.
c.

Finally, despite Lululemon's many statements about its commitment to restoring ahealthy planet, the company is not even on track to meet its own scope 3 emissions
reduction target. In its latest impact report, Lululemon states that progress towards
the target is not on track: the company's emissions intensity has only decreased by
7%. 133 The report states that this environmental initiative "needs to beaccelerated". 134

110. As well as misrepresenting its targets, Lululemon makes a number of general statements about
its carbon emissions, including claims that the company is working towards a 'carbon neutral'
future, that it is 'decarbonising' its value chain and that it is making progress towards its climate
targets. These statements give the misleading impression that Lululemon is reducing carbon
emissions throughout its supply chain. This impression is directly contrary to the fact that
Lululemon's carbon emissions have increased significantly since the launch of the Be Planet
marketing campaign, with its total scope 3 emissions doubling between 2020 and 2022. 135
2. Carbon neutrality claims in breach of article L. 229-68 of the French Environment Code111. Article L. 229-68 of the French Environment Code applies when an advertisement claims that a
product or service is carbon neutral, or any other wording "of equivalent meaning or scope".
112. Through the claims "We are working towards a carbon neutral future" and "By 2030, we will
decarbonise our value chain", Lululemon is giving consumers the impression that its activities
are moving towards carbon neutrality and will achieve it in the very near future. The company
should therefore comply with the transparency requirements governing carbon neutrality claims,
namely to make readily available to the publica.

A greenhouse gas emissions balance sheet that includes the direct and indirectemissions of the product or service;b.

The process by which the product's or service's greenhouse gas emissions are first
avoided, then reduced and finally offset, with the greenhouse gas emission
reduction trajectory described using quantified annual progress targets; andc.

Terms and conditions for offsetting residual greenhouse gas emissions.

113. As explained in the previous section, the information provided by Lululemon in relation to its
claims concerning greenhouse gas emissions is inadequate and omits a number of key elements.
114. Most of this information is only available in long Impact Reports or other documents available
only in English. Lululemon's French-language communication is limited to the few media listed in
the tables above and in the Appendix.

131 Jack Arnold and Perrine Toledano, "Corporate Net-Zero Pledges: The Bad and the Ugly" Columbia Center on

Sustainable Development, (1er December 2021), online: https://ccsi.columbia.edu/news/corporate-net-zeropledges-bad-and-ugly
132 Lululemon, Five-Year Growth Plan, supra
133 Lululemon, 2022 Impact Report, supra
134 Ibid.
135 Lululemon impact reports 2020, 2021 and 2022, supra

27

VII.

CONCLUSION

115. The urgent need to combat climate change and environmental pollution requires the clothing
industry to be clear and transparent with its customers about the climate and environmental
impacts caused by its activity. Consumers, who make choices on the basis of climate andenvironmental information, must not be misled, and companies making sincere efforts must not
be put at a disadvantage by greenwashing.
116. As a clothing company responsible for significant greenhouse gas emissions, large quantities ofwaste and the release of microplastics into the environment, Lululemon should not present itself
as a company whose products and actions contribute to "restoring a healthy planet". 136
Representations of this nature are misleading because they take no account of these harmful
effects and are extremely vague and disproportionate.
117. This warning is not, of course, intended as a criticism of the efforts actually made by Lululemon
to reduce the impact of its business and its products on the environment. Reducing the amountof virgin polyester in its products, increasing the energy efficiency of its shops, reducing theintensity of water use and water pollution, developing a clothing reuse programme and reducing
single-use plastic are all commendable initiatives. However, they do not allow Lululemon to
overuse environmental claims in its marketing.
118. On the basis of the in-depth research carried out by Stand, for which this alert proposes apresentation to the DGCCRF in order to assist it in its fight against greenwashing, it seems clearthat the Be Planet campaign and in particular the claims examined in the previous section
contravene the applicable provisions of French law in this area.
119. Stand therefore respectfully invites the DGCCRF to open an investigation into Lululemon's
environmental claims and remains at its disposal for any further information.

136 Lululemon France, Our impact, : https://www.lululemon.fr/fr-fr/c/communaute/a-propos/notre-impact-durable.

See the "Be Planet" section.

28

APPENDIX

29