Lululemon is expanding its commitment to renewable energy.

On Thursday, the global performance apparel, footwear and accessories company announced its investment in a new renewable energy fund to accelerate the transition to renewable electricity across its Chinese supply chain.

Participation in the fund will enable Lululemon to achieve the equivalent of 100 percent renewable electricity in collaboration with the company’s suppliers in Mainland China, based on the projected electricity use in 2030.

The investment aligns with Lululemon’s Impact Agenda 2030, which targets a 60 percent intensity reduction in greenhouse gas emissions by 2030 from a 2018 baseline. Lululemon achieved the target for Scope 1 and 2 target in 2021 and have maintained it since then. It continues to work toward the goal for Scope 3 GHG emissions.

“Decarbonizing global supply chains requires new ways of thinking—about capital, collaboration, and scale,” said Noel Kinder, Lululemon senior vice president of sustainability. “This fund demonstrates how companies can pool demand for renewable energy, reduce complexity, and accelerate project development. As we work toward our climate goals, this investment creates a scalable pathway to bring more renewable energy to manufacturing regions where it can have the greatest impact—while contributing to a model that others can build on.”

Schroders Capital’s Infrastructure team will manage the fund. Lululemon said capital from the fund has been deployed across multiple wind projects that are currently underway and expected to be completed later this year.

Stand.earth applauded Lululemon’s decision to ramp up its renewable electricity generation. The nonprofit environmental advocacy organization said it represents a “significant step” toward meeting Lululemon’s previously announced commitment to 50 percent renewable electricity across core Tier 1 and Tier 2 suppliers by 2030.

Stand.earth’s multi-year campaign urges apparel maker to transition its supply chain away from fossil fuels and toward clean, renewable energy sources. The campaign highlights how fashion is responsible for at least 4 percent of all climate pollution.

“Emissions for the sector continue to increase despite widespread brand promises, but concrete actions like those committed to by Lululemon today can and must reverse this trend. With many major brands now starting to look at how they can increase renewable energy and reduce climate pollution from their supply chains, Lululemon’s new promise can be a major momentum-builder toward shifting the sector, making it increasingly difficult for the laggards to ignore their responsibilities,” said Rachel Kitchin, senior corporate climate campaigner at Stand.earth.

In 2024, Stand.earth led a complaint against Lululemon with Canada’s Competition Bureau for misleading customers with green claims that were not backed up by action. The investigation led to Lululemon removing significant green messaging from its websites and communication.