• lululemon’s investment supports new wind and solar capacity in China, one of its key manufacturing regions.
• The fund is expected to help lululemon reach the equivalent of 100% renewable electricity with suppliers in China Mainland by 2030.
• The move supports lululemon’s Scope 3 target to cut greenhouse gas emissions intensity by 60% by 2030 from a 2018 baseline.

lululemon Backs Renewable Power in China Supply Chain

lululemon is investing in a renewable energy fund aimed at accelerating clean electricity use across its supply chain in China, placing supplier decarbonization at the center of its 2030 climate strategy.

The fund supports the development of new renewable electricity capacity in China Mainland. For lululemon, the investment offers a route to address one of the hardest areas of corporate climate action: Scope 3 emissions linked to manufacturing.

Based on projected supplier electricity use in 2030, participation in the fund will enable lululemon to achieve the equivalent of 100% renewable electricity with its suppliers in China Mainland. The company said the investment supports its wider Impact Agenda 2030 and its science-based climate target.

That target aims for a 60% intensity reduction in greenhouse gas emissions by 2030, compared with a 2018 baseline. The metric tracks emissions relative to business growth, which is critical for fast-growing consumer brands with complex production networks.

Fund Targets Wind and Solar Projects

The fund is managed by Schroders Capital’s Infrastructure team. It focuses on renewable infrastructure investments in late-stage development and construction, including wind and solar assets across China.

Capital from the fund has already been deployed across multiple wind projects. These projects are now underway and are expected to be completed later this year.

For global apparel and retail companies, this type of financing model responds to a core market challenge. Many suppliers operate in regions where direct corporate power purchase agreements can be complex, fragmented or limited by local market rules.

By pooling demand through an infrastructure fund, companies can help bring new renewable capacity into manufacturing regions. This can reduce procurement complexity and support cleaner grids where supplier emissions are concentrated.

“Decarbonizing global supply chains requires new ways of thinking—about capital, collaboration, and scale,” said Noel Kinder, Senior Vice President of Sustainability at lululemon. “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.”

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Scope 3 Pressure Rises for Apparel Brands

lululemon’s investment comes as apparel brands face rising scrutiny over Scope 3 emissions. These emissions often sit outside direct operations but account for a large share of climate impact across sourcing, materials, manufacturing, logistics and product use.

For executives, the governance challenge is clear. Climate targets increasingly require companies to influence suppliers, not only decarbonize offices, stores and distribution centers.

That shift requires more than renewable energy certificates. Investors, regulators and customers are paying closer attention to whether corporate climate spending supports additional clean power capacity in relevant markets.

In China, the stakes are significant. The country remains a major manufacturing base for global apparel and consumer goods. It is also the world’s largest renewable energy market. However, companies must still navigate local procurement systems, grid structures and regional differences in clean power access.

lululemon’s fund participation points to a broader corporate finance trend. Brands are using infrastructure investment to shape emissions outcomes in their value chains. This approach can give suppliers access to cleaner electricity while helping buyers manage climate risk.

Partnerships Extend Beyond Direct Operations

The investment builds on lululemon’s broader efforts to advance renewable energy and decarbonization across shared supply chains. The company has worked with Apparel Impact Institute, Asia Clean Energy Coalition and CEBA’s Clean Energy Procurement Academy.

Together, these initiatives show how climate action in apparel is shifting from company-level targets to sector-wide collaboration. Suppliers often serve multiple brands, which means shared solutions can reduce duplication and accelerate adoption.

Schroders Greencoat, an adviser to the strategy, is one of the largest pureplay renewable energy and energy transition infrastructure managers globally. Its work spans active management strategies across clean energy and the asset-lifecycle spectrum.

For C-suite leaders, the takeaway is practical. Supply chain decarbonization now requires capital allocation, supplier engagement and market-specific procurement tools. It also demands governance structures that connect climate goals with sourcing decisions.

For investors, lululemon’s move shows how consumer companies may use infrastructure finance to reduce transition risk. It also offers a model for other sectors with manufacturing-heavy footprints.

The regional relevance is equally important. If more global brands direct capital toward renewable infrastructure in production hubs, supply chain climate action could move closer to the factories where emissions occur.

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