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1、 LULULEMON 2021 IMPACT REPORTWelcomeThis is lululemons 2021 Impact Report,a detailed account of the progress we are making in our commitments to support the wellbeing of people and restore a healthier planet.Our ambition is to be a brand leader in creating a positive impact for our planet and its pe
2、ople.Our transformative role is to help our industry accelerate wellbeing for all by celebrating our interconnectedness,relentlessly pursuing progress,and advancing collective action.This report lays out our growth throughout 2021 on our path to realizing this vision.Front Cover Illustration“We begi
3、n our breathing journey at the point when we become aware with the intensity of our emotions.We feel compressed,rhythm is short,fast movement.Lines are tighter with focus on the colour red(power,makes heartbeat faster,commands attention).”Jacquie Comrie,report illustrator2 LULULEMON 2021 IMPACT REPO
4、RTIntroduction Be Human Be Well Be Planet Supplement CONTENTS Introduction4 A note from our CEO5 A note from our impact leadership 6 Who we are 7 Our enterprise strategy8 How we create value 9 Our Impact Agenda10 How we govern impact11 A year of progress and learning13 16 goals for a healthier futur
5、e Be Human17 Inclusion,Diversity,Equity,and Action 20 Employee empowerment22 People who make our products Be Well29 Our approach to wellbeing31 Global wellbeing33 Community wellbeing35 Maker wellbeing37 Frontline wellbeing Be Planet 40 Climate action45 Sustainable product and material innovation51 C
6、ircularity and new guest models 53 Water and chemistry 55 Packaging and waste Supplement 58 Partnering for change60 Stakeholder engagement 61 Material topics62 Responsible supply chain data63 Climate data 68 SASB Disclosures 70 GRI Standards 74 Glossary75 Assurance statement 77 Forward-looking state
7、ments 78 Artist statement ABOUT THIS REPORTThis report serves as a platform to share lululemons enterprise impact strategy.It discloses our progress against publicly stated goals as well as performance related to environmental,social,and governance(ESG)topics under the three pillars of our Impact Ag
8、endaBe Human,Be Well,and Be Planet.It covers global business activity performance for our direct operations(including offices,retail locations,e-commerce,guest education centres,and distribution centres)and supply chain(including manufacturing suppliers and distribution logistics).Were reporting for
9、 the fiscal year ending January 31,2022(referred to throughout this report as“2021”),unless otherwise noted.Except for greenhouse gas(GHG)emissions data in the Climate Action section,our report does not include information on MIRROR,which we acquired in 2020 and represents a small portion of our bus
10、iness.As our business evolves,we will continue to assess our reporting approach.Our Supplement includes detailed performance information.It was developed in line with the Sustainable Accounting Standards Board(SASB)framework and references select Global Reporting Initiative(GRI)Standards.We have obt
11、ained limited external assurance on select reported metrics,including energy consumption and renewable electricity use inownedand operated facilities,Scope 1 and 2 GHG emissions,and Scope 3 emissions from business travel.3 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet Supplemen
12、tA note from our CEOThank you for taking the time to read our second annual Impact Report.This report represents our commitment to transparently sharing our impact journey progress and details our work in implementing and further developing innovative solutions to accelerate lasting,positive change
13、for our people,communities,and environment.The world continues to face many challengesfrom the ongoing COVID-19 pandemic to challenges related to mental wellbeing,from racial injustice to the impacts of climate change.At lululemon,we are guided by our three Impact Agenda pillars:Be Human,Be Well,and
14、 Be Planet.This holistic approach enables us to drive our actions in support of our people,the wellbeing of our communities,and a healthier planet for us all.Earlier this year,we evolved our purpose at lululemon to elevate human potential by helping people feel their best.I am pleased to see how our
15、 purpose is reflected throughout this report,as we embed our impact into our day-to-day practices in order to underpin our company growth strategy and to inspire innovation and progress across our entire organization.To preview our report,here are just a few examples of our actions to help drive cha
16、nge.In support of our people and communities,we have continued to deliver against our Inclusion,Diversity,Equity,and Action(IDEA)commitments.We increased the diversity of our employees to better reflect the communities we serve,broadened our inclusive design programs,maintained gender pay equity for
17、 the fifth year in a row,and maintained full pay equity for 100 percent of all US employees.In addition,through the launch of the lululemon Centre for Social Impact,we invested US$11.9 million in support of our goal to provide access to wellbeing tools to 10 million people by 2025.To help create a h
18、ealthier planet,and as part of our climate action plan,lululemon procures 100 percent renewable electricity to power all our owned and operated facilities.In our mens business,our products are now made with more than 75 percent sustainable materials,and we are almost a third of the way toward our go
19、al of 100 percent sustainable products by 2030.And in our work toward a circular ecosystem,on Earth Day,we expanded our lululemon Like New resale program to all stores within the United States to keep our products in use longer,which is one of many actions that helped us earn recognition by Fast Com
20、pany as the#1 retailer for corporate responsibility.To take our actions even further,we recognize that we cannot do this alone,and we have continued to invest in strategic partnerships to accelerate innovation.We partnered with Genomatica to take a leadership role in raw material innovation,developi
21、ng the first plant-based nylon in the world.And we were especially proud to be one of the two lead investors in the creation of the Apparel Impact Institute Fashion Climate Fund,a US$250 million fund to decarbonize the fashion value chain.On behalf of everyone at lululemon,I am proud of the contribu
22、tions we have made over the past year to create a healthier world.Our progress reinforces the importance of the impact we can continue to make in the years ahead.While we remain early in our journey,one thing is clearwe are more focused than ever on bringing about thoughtful,more sustainable innovat
23、ion and design,creating ways to connect and inspire,and seizing the opportunity to disrupt and lead our industry for people and planet.I want to close by thanking our teams around the world for their continued passion and commitment to advancing wellbeing for all.It is the hard work and creativity o
24、f our people that makes all of this possible,and enables all that we have yet to achieve.Sincerely,CA LV I N M C D O N A L D Chief Executive Officer4 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementA note from our impact leadershipAs a global business rooted in wellbein
25、g and mindfulness,wehave a responsibility and opportunity to contribute to the wellbeing of people and our planet.Since setting lululemons Impact Agenda two years ago,we have continued to accelerate our pace toward achieving our social and environmental ambitions.In the last year,we have continued t
26、o build our foundation and move toward more transformational and collective initiatives.Through our Centre for Social Impact,we have engaged with both local and global social impact organizationssuch as The Trevor Project,the Girls Opportunity Alliance,and The Resilience Fund for Women in Global Val
27、ue Chainsthat help scale solutions to deeply rooted systemic issues around mental health,wellbeing,and empowerment.Our roots in materials innovation lead us to help unlock new technologies for our products and planet,with industry leaders such as LanzaTech and Genomatica.Recognizing the importance o
28、f collaboration,we are especially proud of being a lead investor in the Apparel Impact Institute Fashion Climate Fund,to help decarbonize apparel manufacturing and supply chains.Our employees and partners around the world are creating conditions that help us move toward a more equitable,sustainable,
29、and healthy future.We know the goals in our Impact Agenda are bold,and require courage,energy,and learning.We are thrilled toshare our second annual Impact Report with you,celebrating and reflecting on our progress and path,and will continue toshare the successes and challenges along the way.Join us
30、 on our journey to achieve our impact goals.E ST H E R S P E C K Vice President,Sustainable Business and ImpactOur IDEA mission at lululemon is to expand being well to encompass a culture of inclusion where diversity is celebrated,equity is the norm,and action is the commitment.At the heart of that
31、mission is expanding our definition of wellbeing and our commitment to action.This second annual report highlights the strides we have made by listening,learning,and,most importantly,acting.We have integrated IDEA throughout the business and established targeted programs that advance accessibility,a
32、ddress systemic barriers,promote career development for all,including traditionally underserved groups,and positively impact our broader communities.For everything we create whether it be employment policies,how we design our stores,how we interact with business partners,or how we engage with our gu
33、ests and communitieswe strive to approach it from a place of inclusive design.We centre those most impacted and those who may be currently experiencing the greatest barriers so that we generate delightful and equitable experiences for all.Together,we are building an ecosystem of inclusion that resul
34、ts in increased representation and a healthier work-andmarketplace.We know that the path forward is together and that it will not be a sprint.It will require endurance,courage,integrity,and mutual care.I invite you to celebrate and reflect on our progress and fuel upfor the journey we have ahead of
35、us.5 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementSTAC I A J O N E S Vice President,Inclusion,Diversity,Equity,and ActionWho we areWe are lululemon.Our vision is to create transformative products and experiences that build meaningful connections,unlocking greater pos
36、sibility and wellbeing for all.We are a business rooted in purpose:we elevate human potential by helping people feel their best.With a company history that dates back nearly a quarter century,we are working to leverage our passion for product innovation,wellbeing,and mindfulness into platforms from
37、which we can inspire and accelerate positive change.We are using our expanding global presence to support people and communities,develop innovative products and services for our varied markets,and engage partners toward achieving a sustainable,healthy,and inclusive future,together.1 Included within
38、the Peoples Republic of China as of January 31,2022,there were nine stores in Hong Kong Special Administrative Region,five stores in Taiwan,and two stores in Macao Special Administrative Region.Europe 37storesPeoples Republic of China1 86storesAsia-Pacific 64storesNorth America387storeslululemon in
39、2021 numbers53new stores opened574stores29,000+employees17countries where we have retail stores240,000+workers of suppliers who make our products 6 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementOur visionWe create transformative products and experiences that build mea
40、ningful connections,unlocking greater possibility and wellbeing for allBe HumanOur people succeed because we create an environment that is equitable,inclusive,and fosters growthBe WellOur communities thrive because we contribute to conditions that support physical,mental,and social wellbeingBe Plane
41、tOur products and actions avoid environmental harm and contribute to restoring a healthy planetProduct innovationCreate ongoing“Oh shit!”moments in the industry and for our guests“Double Mens”Guest experienceA guest-centric experience that creates connection,celebrates product,and cultivates communi
42、ty“Double Digital”Market expansionA truly global brand that expands lululemon to new guests and communities around the world“Quadrupole International”The Power of Three 2 is our enterprise growth plan to 2026.It builds on the success of our achievements and speaks to the priorities that will drive r
43、evenue over the next five years.It is underpinned by our Impact Agenda.Our Impact Agenda is our strategy toward a sustainable,equitable,healthy future.It guides the goals we have set to advance positive social and environmental impact as part of enacting our enterprise growth plan.Together,the Power
44、 of Three 2 and our Impact Agenda form our enterprise strategy,a comprehensive and strategic roadmap for delivering on our purpose as a business.Our enterprise strategy Our valuesPersonal responsibility We act with honesty and integrity,taking full accountability for our choices and their impact.Inc
45、lusionWe remove barriers to equity so that everyone has a sense of belonging.ConnectionWe build trusting relationships by valuing and celebrating each humans uniqueness.CourageWe have the heart and strength to do big,challenging,and important things for each other and our planet.FunWe infuse fun and
46、 laughter into all we do,which allows us to turn work into play.Our purposeWe elevate human potential by helping people feel their bestPeopleTo develop inclusive leaders who enable growth and wellbeing for allPlanetLead the way in reducing environmental harm and contribute to restoring a healthy pla
47、net7 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementHow we create valueValue creation modelWe create societal,environmental,and economic value throughout our value chain.Below are key examples of value creation and how we track progress.SELECT 2021 METRICSInnovation an
48、d designWe advance more sustainable materials and circular,inclusive product design,innovate manufacturing processes,and deliver guest opportunities that extend product life and divert product from landfill.3 innovative partnerships(Mylo Consortium,Genomatica,LanzaTech)38%more sustainable materials
49、in products60 cross-functional leaders certified in inclusive designpracticeManufacturing and supplierecosystemManufacturing and supplier ecosystems contribute to economic value and job creation in countries around the world.We prioritize our work with suppliers to foster more sustainable and equita
50、ble initiatives.These include safe and respectful working conditions,as well as wellbeing and empowerment initiatives.We also work with our suppliers to improve manufacturing processes that use less water and energy,better chemistry,and more sustainable packaging solutions.240k+makers 20k makers wit
51、h access to wellbeing tools and resources US$2.4M+on maker wellbeing programsLogistics and distributionWe have six owned distribution centres and operate a global system of logistics and transportation.While pandemic supply chain challenges make this difficult,we are working to advance more carbon-e
52、fficient ways to get our products from factory to retail.We are maintaining zero waste status in our owned distribution centres and have shifted to renewable electricity by purchasing Energy Attributes Certificates(EACs)for our owned and operated facilities.100%renewable electricity 6 zero waste dis
53、tribution centresLeadership and employeesWe are a team of committed people who care deeply for each other,believe anything is possible,and relentlessly pursue our growth together.We employ over 29,000 people globally.Our highest focus is on employee growth and development.Our inclusive leadership pr
54、ograms support employees in developing their skills and growing as leaders in the world.5,500+employees attended leadership training programs,including a new 1x1 coaching program429 mentees and mentors participated in our Mentorship program Omni-channel guest experienceOur products and experiences s
55、upport physical,mental,and social wellbeing.Through our omni-channel strategy,we deliver product options that meet the diverse needs of our guests,as well as experiences that strengthen community connections around the world.400+new styles launched 10k+classes on demand through MIRRORCommunity engag
56、ementWith our Educators,ambassadors,and events,our ecosystems support thriving studios and livelihoods,as well as more equitable access to wellbeing through social impact grants and partnerships with local non-profit organizations.Globally,we build large-scale partnerships and support organizations
57、that offer tools and resources for physical,mental,and social wellbeing.750+organizations collaborated with Centre for Social Impact since 20161.4M people accessed tools and resources for wellbeing550+global and store ambassadorsBe HumanBe WellBe PlanetK E Y8 LULULEMON 2021 IMPACT REPORTIntroduction
58、 Be Human Be Well Be Planet SupplementOur Impact AgendaOur Impact Agenda guidesand is integrated intoour business strategy and operations,helping to accelerate inclusive and more sustainable progress and advance a shared culture of positive impact throughout lululemon.We recognize that the wellbeing
59、 of people,communities,and the planet are connected.This holistic approach is reflected through the three pillars of our Impact Agenda:Be Human,Be Well,and Be Planet.We created our Impact Agenda in response to the need for businesses to deliver end-to-end impact,accelerating a step change in how our
60、 companyand the wider industryoperates.Refining our focusTo drive positive change,we must understand the global sustainability context as well as the landscape of our industry today,including the social and environmental topics that matter most to our business and stakeholders.In 2019,we conducted a
61、 materiality assessment to define key issues that would inform our strategy,laying the groundwork for meaningful,measurable action.In 2022,we conducted research and interviewed select stakeholders,including academics,non-governmental organizations(NGOs),and industry associations,to review and refres
62、h the issues that matter most.Our analysis did not change our Impact Agenda focus areas or goals but did highlight emerging topics such as biodiversity.Detailed results of this strategic refresh can be found in the Supplement.We map each key issue to focus areas within our Impact Agenda and relevant
63、 sections of our Impact Report,ensuring our strategy and efforts target and positively impact these critical areas.To ensure alignment of our impact with global requirements,we align our three pillars with relevant United Nations Sustainable Development Goals(SDGs).We then activate them by:Embedding
64、 the pillars in our culture and building accountability foractioning goalsLeading by example and partnering to innovate for the futureCommunicating with and engaging our collectiveCollaborating and advocating for systems changeBe PlanetClimate actionSustainable product and material innovationCircula
65、rity and new guest modelsWater and chemistry Packaging and waste7.Affordable and Clean Energy12.Responsible Consumption and Production13.Climate ActionSDGs supportedBe WellEquitable access to wellbeing tools and resourcesResearch,advocacy,andinclusive innovation3.Good Health andWell-beingSDGs suppor
66、tedBe HumanInclusion,diversity,equity,and actionEmployee empowermentFair labour practices and wellbeing of people who make our products 5.Gender Equality8.Decent Work and Economic Growth10.Reduced InequalitiesSDGs supported25.Gender Equality10.Reduced Inequalities2 Numbers tied to UN Sustainable Dev
67、elopment Goals9 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementHow we govern impactGROUPRESPONSIBILITYBoard of DirectorsIncluding:Corporate Responsibility,Sustainability,and Governance(CRS&G)Committee People,Culture,and Compensation(PC&C)Committee Audit CommitteeActs a
68、s a fiduciary to:CRS&G:Oversees our Impact Agenda.Reviews stakeholder engagements,reviews goals and policies,and monitors progress and ESG reporting.PC&C:Oversees compensation,talent management,succession planning,and diversity and inclusion,as well as risk monitoring,compliance,and related activiti
69、es.Audit:Oversees risk assessments,including compliance risks to our business and supply chain,and monitoring and complying with disclosure requirements.Executive Impact CouncilInclusion,Diversity,Equity,and Action(IDEA)Advisory Council CEO and Senior Leadership team,as well as members from supply c
70、hain,product,legal,brand,finance,and people and culture,led by VP Sustainable Business and Impact and VP,IDEA.Oversees,executes,and reports on Impact Agenda and IDEA commitments.Integrates the Impact Agenda into our business strategy.IDEA Function Sets global IDEA goals and supports a culture of inc
71、lusion to expand inclusion,diversity,and equity across the organization.Oversees People Networks and task forces for regions and specific business functions.Sustainable Business and Impact (SBI)Function Drives social,environmental,and governance strategy across the organization.Sets Impact Agenda st
72、rategy,goals and commitments,enterprise integration,and stakeholder management.Works cross-functionally to advance a culture of impact and delivers progress in key areas.Steering Committees and Advisory GroupsIncludes:IDEA External Advisory Council:Provides expertise on programs.Responsible Supply C
73、hain Council:Oversees key programs for a responsible supply chain and current public developments.Centre for Social Impact Advisory Board:Advises and provides input to strategy and key program areas.Climate Activation Council:Drives strategy and collaboration to identify and execute a pathway to sci
74、ence-based targets.Select Strategic Initiative Steering Committees:Oversee initiatives that require global cross-functional engagement,including lululemon Like New and more sustainable packaging.Collaboration invites change and accelerates progress.With this in mind,we developed a governance structu
75、re that brings together diverse people who have accountability as business leaders and are passionate about transforming the current social and environmental status.We have developed a multi-level governance structure to foster collective progress against our Impact Agenda as part of our enterprise
76、strategy.This includes activating meaningful,company-wide practices that deliver on our commitments and evolve our ambitions to stay relevant in a changing world.RESPONSIBLE BUSINESS CONDUCT Ethical conduct Ethical conduct is the foundation of how we do business.To root integrity and respect for eve
77、ryone in our company culture,we maintain a Global Code of Business Conduct and Ethicsa blueprint for responsible business.At the same time,our Vendor Code of Ethics(VCoE)establishes expectations of our suppliers.Data privacy protectionPeople trust us with their personal information.It is our respons
78、ibility to protect that data with strict company security policies.We also follow applicable data protection and privacy laws to ensure employees,guests,and business partners know their information is in safe hands.This is overseen by the Audit Committee,our Chief Information and Security Officer,Da
79、ta Privacy Officer,and Chief Compliance Officer.Performance-related compensationWe believe in rewarding exceptional performance.The PC&C Committee sets competitive levels of compensation to attract,retain,and motivate the most qualified directors and executive officers who contribute to success and
80、align with our culture.As we evolve our Impact Agenda,we continue to monitor the future role ESG metrics could play in our compensation program.10 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementWe maintained gender pay equity across our entire global employee populatio
81、n and full pay equity in the United States for the fifth year in a row.We implemented ZDHC Manufacturing Restricted Substances List(MRSL)at 100%of priority suppliers in 2021,one year ahead of our target date.We procured 100%renewable electricity to power our owned and operated facilities.We launched
82、 the lululemon Centre for Social Impact in 2021,which aims to break barriers that prevent access to wellbeing.We met our Scope 1 and2 science-based target to achieve a 60%absolute reduction of GHG emissions in all owned and operated facilities.A year of progress and learning 2021 represents the firs
83、t full year of implementing our Impact Agenda,building on years of previous impact work.lululemon is committed to continuous learning to evolve and improve how we contribute to wellbeing for people and our planet.We achieved several impact goals,demonstrating our commitment to action.Here is some of
84、 the progress we have made over the past year.11 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementIt is important to celebrate our shared wins and build on these,and to recognize progress is ongoing,with significant industry-wide challenges ahead of us.To achieve our vis
85、ion,we are always innovatingbuilding on our successes,learning from our failures,and taking every new challenge as an opportunity to learn and grow.We appreciate the connectedness of our business to the wider global context and acknowledge our impact on the future and those around us,as well as the
86、effect that changes in important areas can have for others.The global business environment presents challenges that can negatively impact lululemon and our ability to deliver on our Impact Agenda commitments.We approach these dynamic,complex challenges by listening,engaging with a variety of stakeho
87、lders,taking intentional steps to make change,and continuously adjusting as we learn more.In 2021,we identified our most pressing challenges,and have taken steps to address them,ensuring the best path forward.Increasing global inequities in wellbeing.Shifting consumer and employee expectations and p
88、references(e.g.,options for pre-owned products).Evolution in product and value chain traceability expectations.Interconnectedness of global context and events,and our business and industry operations(e.g.,supply chain complexity).Legislation and regulatory changes.Regional and national regulating bo
89、dies continue to evolve legislation on environmental,social,and due diligence topics.A year of progress and learning Global challenges we are addressing:12 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementThe wellbeing of people,communities,and the planet are intricately
90、 intertwined.We developed our Impact Agenda with these connections at the forefront:three distinct pillars designed to work together to achieve a rapid,equitable,and more sustainable transition.Driving our actions are 16 targeted goals that,together,will deliver progress toward shared wellbeing.16 g
91、oals for a healthier future TopicGoalMetricBaseline YearBaseline2021 Results3GoalGoal YearStatusInclusion,Diversity,Equity,&ActionReflect the diversity of communities we serve and operate in%of racial diversity of assistant store managers and directors4 202021%23%30%2023%of racial diversity of all e
92、mployees in global stores4202031%37%40%2023Employee EmpowermentBe the place where people come to develop and grow as inclusive leaders for the world#of hours of paid training and volunteer time for all full-time employees5202113.513.5402025Expand full pay equity%of employees with full pay equity 202
93、0100%6100%100%2022People Who Make Our ProductsMake wellbeing programs available to makers7#of cumulative makers in our supply chain who participate in wellbeing programs202120,00020,000100,0002025Achieve Fair Labor Association(FLA)accreditationQualitative2020Updated Vendor Code of EthicsCompleted on
94、boarding stageAchieve FLA accreditation2024TopicGoalMetricBaseline YearBaseline2021 Results3GoalGoal YearStatusInclusive Access to Wellbeing&AdvocacyProvide access to wellbeing tools and resources#of cumulative people reached 20211.4M 1.4M10M2025Invest to advance equity in wellbeing through the lulu
95、lemon Centre for Social Impact Total amount invested2021$13.7M8$13.7M$75M2025Launch the lululemon Centre for Social Impact QualitativeNANACentre launchedLaunch Centre2021Be WellBe HumanPERFORMANCE DASHBOARDK E YGetting startedMaking progressCompleteOff track,plans in place3 For more information on o
96、ur 2021 results,please refer to the relevant sections of the Impact Report.4 Includes stores in North America,Australia,New Zealand,Europe,and Middle East.5 Beyond onboarding training and mandatory compliance training.6 We maintain 100%gender pay equity within our entire global employee population,m
97、eaning equal pay for equal work across genders.We have achieved pay equity across all areas of diversity in the United States and are seeking,to the extent permitted under local law and regulation,to collect the data necessary to confirm complete pay equity globally.7 In 2021,we updated the language
98、 of this goal from“maker empowerment programs”to“maker wellbeing programs”as we further refined our strategy.Our goal to reach 100,000 makers is included within our goal to provide tools and resources to 10 million people.8 lululemon made a US$13.7 million contribution to the Centre for Social Impac
99、t,$11.9 million of which has been contributed directly to social impact organizations.The remaining$1.8 million includes$1 million toward a Donor-Advised Fund to be advised for future grantmaking as well as operational costs.13 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet Supp
100、lement16 goals for a healthier future TopicGoalMetricBaseline Year Baseline2021 Results3GoalGoal YearStatusClimate ActionMeet our 2030 science-based climate targets%of absolute reduction in GHGs in all owned and operated facilities(Scope 1 and 2)201818,248 tCO2e-82%-60%2030%of intensity reduction in
101、 GHGs in purchased goods and services,and upstream transportation and distribution(Scope 3)201899.2 tCO2e/net revenue from operations+4%-60%2030Source renewable electricity to power our owned and operated facilities9%of renewable electricity 20181%100%100%2021Sustainable Product&Material InnovationM
102、ake our products with sustainable materials and end of-use solutions%of products made with sustainable materials202027%29%100%2030Achieve sustainable materials for our products%of total sustainable materials procured for our products202030%38%75%2025Circularity&New Guest ModelsOffer our guests new b
103、usiness models that extend the life of products%of stores in North America+piloting internationally 2021 22%22%100%2025Water&ChemistryReduce freshwater use intensity with our priority wet process suppliers%of reduction in freshwater use intensity2021126 l/kgBaseline year-20%2025Implement ZDHC MRSL a
104、t priority suppliers%of compliance from priority suppliers with the ZDHC MRSL2021100%100%100%2022Packaging&WasteReduce single-use plastic packaging per unit%of intensity reduction of single-use plastic packaging20210.016kg/unitBaseline year-50%2025Be PlanetPERFORMANCE DASHBOARD9 We procured 100%rene
105、wable electricity to power our owned and operated facilities,with 99%sourced in compliance with the RE100 technical criteria.However,due to unavailability of an Energy Attribute Certificate(EAC)program,lululemon was unable to source renewable electricity in South Korea.Consequently,renewable energy
106、credits were procured from a nearby geography.14 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementK E YGetting startedMaking progressCompleteOff track,plans in placeIN THIS SECTION17 Inclusion,Diversity,Equity,and Action 20 Employee empowerment22 People who make our prod
107、uctsBe Human15 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementWe envision an equitable world.We are taking thoughtful steps toward a more equitable future so our guests,employees,ambassadors,and business partners,including the people who make our products(our makers)fe
108、el represented,welcome,respected,and valued.We actively create an inclusive work environment that reflects the global communities we serve.We support the safety and wellbeing of our makers,collaborating with partners and stakeholders to advance positive impact.Be Human Chapter Illustration“Humans ar
109、e a spectrum of colours.Every human being is different,yet we all have the same point of originour first breath.Through energy we live,grow,and nurture our bodies.We sustain ourselves to continue the cycle of life handed down from our ancestors.”Jacquie Comrie,report illustrator16 LULULEMON 2021 IMP
110、ACT REPORTIntroduction Be Human Be Well Be Planet SupplementWHAT WERE DOINGInclusion,Diversity,Equity,and Action(IDEA)is complex and transformative.To have maximum impact on people,culture,and business performance,we are deliberately integrating IDEA beyond human resources into every part of our org
111、anization.This requires intentional pursuit at our most senior levels,with clear ownership and commitment to creating accountability across the business.In 2021,we refined our approach to focus on five key areas:Listening&Advocacy,Policy&Process,Programming&Initiatives,Learning&Development,and Strat
112、egy&Partnering.By listening to employees and acting on their feedback,we make business decisions that positively impact our IDEA targets.Our CEO,as well as many of our senior leaders,continue to participate in intimate listening forums and discussions with employees,with a focus on underserved group
113、s,and act based on what they learn.In 2021,we held nearly 50 listening and connection sessions throughout our global Store Support Centres(SSCs),retail operations,and distribution centres.We have 10 People Networks(formerly known as Employee Resource Groups)to represent employees who have marginaliz
114、ed and historically underrepresented identities.Our global advisory board is made up of lululemon ambassadors who bring diverse knowledge and skills to inform our actions,hold us accountable,and drive meaningful change.We also integrate IDEA into training including IDEA toolkits to help build action
115、able,inclusive behaviours.Where possible,we partner with other organizations to strengthen our approaches and broaden our influence.Inclusive designWhen we design with inclusion in mind,we design for as many people as possible and honour human diversity.We strive to use inclusive design across our b
116、usiness,including future physical and digital workspaces,creation of employment policies and programs,marketing,and delivery of product and guest interactions.In 2021,we launched the Inclusive Design Certification program with OCAD(Ontario College of Art&Design)Universitys Inclusive Design Research
117、Centre(IDRC).This 12-week program supports employees in applying inclusive design principles in their roles.Following the course,94 percent of participants reported being able to articulate the business and social impact of inclusive design,and 97 percent were able to identify and mitigate common de
118、sign errors that create barriers for usability.Diverse representationCompanies traditionally focus on diverse representation,which is important but doesnt always provide an accurate picture of the nuances of inclusion.We use a comprehensive Demographic Survey+Inclusion Index,an annual,voluntary glob
119、al employee survey.This helps us understand the demographics of our employee base and assess our inclusion performance.Our 2021 survey had a 78 percent participation rate.Results indicate we have made meaningful progress toward our representation goals of racial diversity.As of 2021,our global workf
120、orce is 38 percent racially diverse,a three percent increase from 2020.In 2021,racial diversity of employees at our global stores saw the largest increase of all functions,at six percent.Building diverse leadership is important,and we increased racial diversity of assistant store managers,directors
121、and above,by two percent in 2021.WHY IT MATTERSInclusion,diversity,and equity are foundational for shaping and building our company,industry,and communities,and for creating a shared sense of respect and belonging.This is particularly important when it comes to underrepresented groups.As an organiza
122、tion committed to wellbeing,we work to understand actual and perceived inequities and take action at all levels.We must widen our lens,work collaboratively,and be in a constant state of learning,unlearning,and relearning.Taking action requires us to think differently,listen intently,and understand t
123、hat a“one size fits all”approach doesnt work.By continuously developing toward an inclusive,diverse,and equitable organization,we reflect a variety of perspectives and meet the needs of the global communities we serve.SDG 5.Gender EqualitySDG 10.Reduced InequalitiesOUR GOALSReflect the diversity of
124、communities we serve and operate in by 2025.To reach that ambition,we will increase representation of racially diverse backgrounds to at least:30%of assistant store managers(ASMs),directors,and above by 202310 40%of all employees in our global stores by 202310Inclusion,Diversity,Equity,and Action 10
125、 Includes stores in North America,Australia,New Zealand,Europe,and Middle East.17 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementInclusion,Diversity,Equity,and Action EMPLOYEE RACIAL DIVERSITY DATADirector and ASM or aboveStore employees Store Support Centre(SSC)employ
126、ees 2021:23%Racially diverse2021:37%Racially diverse2021:41%Racially diverseEquitable solutionsCreating a culture of inclusion requires us to address inequitable systems and processes.To this end,we launched ongoing,cyclical reviews of our policies and practices in 2021.This process,in addition to o
127、ur Demographic Survey+Inclusion Index,uncovered key opportunities to address systemic barriers experienced by women of colour,and by individuals who live with mental and physical disabilities.Supplier inclusion and diversityWe are expanding our IDEA initiatives to our suppliers to support diverse an
128、d inclusive business growth that positively impacts our communities.In 2021,we developed a Supplier Inclusion and Diversity Strategy,with a focus on indirect suppliers(i.e.,companies that provide non-product goods and services to our stores and offices).To start,we will concentrate on US suppliers a
129、nd expand globally over time.This program intends to grow engagement with companies that are at least 51 percent owned,operated,and controlled by women,underrepresented racial groups,veterans,persons with disabilities,or those who identify as LGBTQ2IA+.Our goal is to launch the program by the end of
130、 2022.We also learned that our inclusion scores increased slightly.To further this work,in 2021,we worked closely with our senior leaders to discuss inclusion opportunities and held our senior leaders accountable through function-specific objectives and key results.We also continued to roll out our
131、company-wide IDEA education toolkits,conducted regular store and DC visits to meet with and listen to employees,and further evolved our listening channels.We acknowledge diversity and inclusion can take on different meanings depending on the region or country,so we are working on evolving our goals
132、to better serve each community.2020:21%Racially diverse2020:31%Racially diverse2020:38%Racially diverse18 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementThrough inclusive design,we foster innovation that promotes access to all.Inclusive design enables us to develop dig
133、ital and physical products,policies,and services by,with,and for historically marginalized communities.And we build solutions that affirm and support our people globally.When we design for inclusion,we generate resilient solutions so we can adapt with changes to culture,technology,and emerging needs
134、.The impacts of our Inclusive Design Pilot program stretch across functions,portfolios,and global markets.For instance,last year the Futures Innovation team created an inclusive scoring matrix to select research agencies that centre on marginalized communities and use equitable design practices.Our
135、Product and IDEA teams engaged an Inclusive Sizing Advisory Board to ensure the many identities and lived experiences of our diverse collective are represented in our approach to product size assortment and stance on body neutrality.Our Product team applied these learnings to outfit Team Canadas Oly
136、mpic and Paralympic athletes in lululemons first Olympic Games as the official outfitter.Inclusive design also propels our partnership with the Adaptive Training Foundation(ATF),a training facility in Texas for people with disabilities.They are participating in a field-testing program developed and
137、launched by our Product Design team and are providing feedback on how to adapt our gear to people with disabilities.Internally,our People and Culture team co-designed key aspects of our evolved talent development philosophy with employees from underserved communities.By centering their voices throug
138、h the creation of the processes and policies used to manage performance and develop talent,we work to ensure any unique barriers they experience are addressed and lifted.We are committed to being in a community of practice that designs inclusively through participatory approaches and building relati
139、onships to get to community-driven solutions that bring joy and equity to all.In the coming years,we will be deepening our learning and practice of inclusive and equitable design.SpotlightInclusive design for a better world19 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet Supple
140、mentWHAT WERE DOINGWe have an essential role in supporting our employees in their unique journey to realize their full potential.We believe in cultivating leaders within lululemon who also promote betterment in the world.We foster an environment where our employees have equitable access to opportuni
141、ties,are paid equitably,and feel their wellbeing is supported.We are striving to create an inclusive work environment so everyone feels respected and valued.Through our employee leadership programs and support programs,we are creating an organization where each leader has the power to find and fulfi
142、ll their unique purpose and contribute to a healthy future.LeadershipWe invest in people to uncover and appreciate their unique strengths.We offer many types of learning that are accessible to all full-time,part-time,and fixed-term employees.Below are a few of the highlights from 2021:Through the lu
143、lulemon Mentorship program,were supportingour people,building their knowledge,growing their careers,and strengthening inclusive leadership skills.In 2021,429mentees and mentors signed up for the program.55 percentof mentees and 25 percent of mentors self-identified as partof an underrepresented grou
144、p.We offered a new Leader Series to nurture and grow inclusiveleaders for a better world.Cohorts were delivered in sixlanguages.In 2021,over 1,200 employees(representing89percent of our people managers)attended theLeaderSeries.In 2021,over 5,500 employees attended leadership trainingprograms,includi
145、ng a new 1x1 coaching program,anExecOnline Learning Platform,a Business Acumenprogram,and our global lululemon Leadership Summit.We continue to provide ongoing culture offerings,whichinclude monthly skill-builders tied to our Values in Action,Purpose,Vision&Goals,and Practice of Leadership.Its chall
146、enging to measure the exact number of hours of paid training for all our employees.We do know that as of 2021,our Educators in North America(representing approximately 17,000out of our 29,000 global workforce)received a minimum of 13.5hours of training.This included an eight-hour paid VALUES Day(Vol
147、unteer,Awareness,Life,Unity,Empowerment,Support),so they can take time off for activities such as volunteering,observance,and self-reflection.Educators also got a minimum of 5.5 hours per year dedicated to personal and professional development.While many other employees may receive more training,we
148、are using 13.5 hours as our conservative 2021 baseline.In 2022,we launched lululemonU,an online learning portal for allemployees.This will expand training for all employees,helping us meet our 2025 goal of 40 hours.Movingforward,wewill continue to improve our measurement and monitoring of globaldeve
149、lopmentopportunities.WHY IT MATTERSEmpowered employees are central to our culture,values,and business success.They help us achieve sustainable,inclusive business growth and stay resilient to change.They also help us ensure we remain innovative and at the forefront of our industry to best support our
150、 guests and future generations.When we invest in leadership and develop opportunities for ouremployees,we are investing in our business success.SDG 5.Gender EqualitySDG 8.Decent Work and Economic GrowthOUR GOALSBe the place where people come to develop and grow as inclusive leaders for the world.To
151、reach that ambition,we will:Provide at least 40 hours of paid training andvolunteer time to all full-time employees by2025 per year11 Expand gender pay equity to full pay equity for100%of employees in all markets that permitcollection of that data by 202212EMPLOYEE LEADERSHIP GOALEmployee empowermen
152、t11 Paid learning and volunteer time is in addition to onboarding training and mandatory compliance training.12 We follow local laws and regulations and where we are able to collect the data necessary to confirm complete pay equity,we will do so.Full pay equity includes gender and race and our repor
153、ting scope is currently limited to US only.#hours of paid training and volunteer time for all full-time employees 40 hours2021 baseline13.5 hoursTarget year:202520 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementEMPLOYEE WELLBEINGTo foster the wellbeing of our employees
154、,we provide a range of benefits,including health and dental,retirement savings plans,an employee share purchase plan,and yoga and fitness.We also work to support work-life balance and personal goals.We continue to provide an annual paid VALUES Day(Volunteer,Awareness,Life,Unity,Empowerment,Support)g
155、lobally,so employees can take time off for activities such as volunteering,observance,and self-reflection.We also offer competitive paid time off and sick leave,as well as a Sweaty Pursuits benefit,which provides$200+in local currency for full-time employees to participate in wellbeing and fitness a
156、ctivities.We know mental wellbeing is imperativelululemon resources include a mental wellbeing toolkit and Employee Assistance program.Weve also expanded mental health training to reach store managers and people leaders,as well as our employees.In 2021,275 employees participated in the program,bring
157、ing the total number of trained people to just over 400.By the end of 2022,we will offer mental health training to all people leaders globally and by the end of 2023,to all employees.To advance our culture of impact for employees and build our collective capacity for positive social change,we will l
158、aunch an Impact Fellowship program in 2022.These paid,application-based fellowships will provide the opportunity for employees to take time away from their current role to develop valuable career experience working directly with the Centre for Social Impacts non-profit partners.We Stand Together Fun
159、dThe We Stand Together Fund was originally created to provide support to employees experiencing additional financial hardship during COVID-19.In 2021,we expanded the fund to assist employees who face other challenges,such as natural disasters,humanitarian issues,and personal hardship.At the end of 2
160、021,over US$250,000 had been contributed to the fund by lululemon and employees,and 107 applicants were awarded a total of US$107,373.Remaining funds will continue to support beneficiaries in future years.Employee empowermentWe maintain 100 percent gender pay equity within our entire global employee
161、 population,meaning equal pay for equal work across genders.We have achieved full pay equity in the United States,and are seeking,to the extent permitted under local laws and regulations,to collect the data necessary to confirm complete pay equity globally.Compensation and pay equity lululemon is co
162、mmitted to being in the top quartile of global retailers for store compensation.As part of this commitment,in 2021,we raised starting base pay for Educators in North America to US$15$17 per hour,depending on store location.Our starting base pay for Key Leaders in North America is now US$17$19.50 per
163、 hour,depending on store location.As a result,93percent of Educators and 78 percent of Key Leaders received a base pay increase.This increase is on top of our team-based bonus program,which remains unchanged and provides our people with the potential to earn up to an additional US$3perhour on averag
164、e,and up to an additional US$6perhour,depending on store-based goals and results achieved.Increases in compensation improve our ability to attract and retain talent to maintain our high-caliber store experience for our guests.Morning warm-up at our Distribution Centre21 LULULEMON 2021 IMPACT REPORTI
165、ntroduction Be Human Be Well Be Planet SupplementWHAT WERE DOINGTo create a responsible supply chain,and effect lasting,positive change,we are actively leaning into our commitment to safeguard the working and living conditions of people who make our products.In 2021,we worked with 90 finished goods
166、facilities(Tier 1)in 17 countries and approximately 65 raw material suppliers(Tier 2)in 14 countries.13 Our suppliers employ over 240,000 people in the factories that make our products,and approximately 74 percent are women.We expect all suppliers to uphold the strict responsible supply chain and la
167、bour practices outlined in our Vendor Code of Ethics(VCoE).We disclose our facilities twice per year,and report to the Open Apparel Registry.Refer to our public Supplier Declaration List for more information about the suppliers we work with.WHY IT MATTERSPeople have the right to safe,healthy working
168、 conditions.Challenges in working conditions and labour rights have been well documented across the apparel industry.As a global brand,we take our responsibility for supporting the safety and wellbeing of suppliers employees(our makers)seriously.Because we dont own our manufacturing facilities,we ta
169、ke great care in selecting our suppliers through a screening process that helps identify suppliers who share our company values.We believe a strong,resilient supply chain that retains and empowers its workers is critical to the success of our business and industry,and is the foundation for a more eq
170、uitable,sustainable future for all.SDG 5.Gender EqualitySDG 8.Decent Work and Economic GrowthSDG 10.Reduced InequalitiesOUR GOALS Make wellbeing programs available to more than 100,000 makers across our supply chain by 2025.Achieve Fair Labor Association(FLA)accreditation by 2024.13 We disclose the
171、facilities for our Top 10 raw material suppliers,which account for approximately 80%of our fabric mills.See Supplier Declaration List for details.People who make our products Makers at Tan De facility,Vietnam22 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet Supplement14 Includes
172、 all facilities on our Supplier Declaration List.This includes all Tier 1 finished good facilities,the subcontractors of our Top 10 finished goods facilities,and our Top 10 strategic raw material suppliers,which represent about 80%of our total fabric mills.We work with suppliers who share our values
173、 and collaborate with us to uphold robust standards,address systemic challenges,and improve the wellbeing of our makers.We are a participating company of the Fair Labor Association(FLA)and are pursuing FLA accreditation.This provides us with an industry-leading framework for responsible supply chain
174、 practices,and the opportunity to help advance progress within the industry.Beyond labour compliance,we support maker wellbeing,building on years of collaboration with our suppliers on workplace practices and community support initiatives.Our responsible supply chain approach is built on three pilla
175、rs,and supported by a foundation of global standards and best practices,management systems,and data analytics:Monitoring:Conduct supplier monitoring and risk analysis,work with suppliers to remediate issues to meet or exceed VCoE expectations,support their capacity to address root causes,and elevate
176、 suppliers to go beyond compliance for more sustainable development.Internal Practices:Integrate responsible sourcing and maker wellbeing practices throughout our company,including responsible purchasing practices and internal training.Building Better:Collaborate to address industry-wide systems cha
177、llenges,such as fair compensation and maker wellbeing,and offer supplier training.People who make our products Location of disclosed suppliers14North AmericaEl Salvador 1Haiti1Mexico1United States2South AmericaColombia1Peru7Europe,Middle East,and AfricaEgypt1Turkey2Asia-PacificBangladesh3Cambodia10C
178、hina Mainland30Indonesia7Japan2Philippines4South Korea2Sri Lanka16Taiwan22Thailand1Vietnam33Maker at Tan De facility,Vietnam23 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementIn 2021,we enhanced our data collection and performance monitoring processes to ensure detailed
179、 compliance and facility monitoring aligns with our updated VCoE.We are implementing a new responsible supply chain data management system to better identify trends in working conditions and remediation processes.In 2021,we ranked#1 on the KnowTheChain benchmark,which focuses on eliminating forced l
180、abour in global supply chains.For more information,refer to our KnowTheChain disclosure and Supplement.Fair compensation in our supply chainWe believe that every maker in our supply chain should earn a wage that allows them to have a decent standard of living.However,due to the structure of the glob
181、al apparel industry,garment workers wages remain low in many regions.The COVID-19 pandemic has further intensified this issue.Achieving fair compensation in supply chains is a global challenge that must be approached in collaboration with governments,industry,and civil society.As a participating com
182、pany in FLA,our definition of fair compensation is aligned with the FLA Workplace Code of Conduct.Through our VCoE facility assessments,we verify that all makers in our suppliers facilities are consistently paid,at a minimum,in compliance with legal requirements for regular work and overtime.Many of
183、 our suppliers already pay above legal minimum wage.We work with the FLA to collect and analyze worker wage data to benchmark progress and will develop a fair compensation blueprint as part of our accreditation journey.In 2022,we are collecting wage data from key suppliers to carry out a fair compen
184、sation gap analysis and further develop our fair compensation roadmap.Monitoring,Vendor Code of Ethics,and our responsible supply chain Building innovative products requires many hands and considerable expertise.Our Responsible Supply Chain team prioritizes the wellbeing of our makers by helping our
185、 suppliers address systemic challenges to workplace standards,including support with best practices and resources throughout the COVID-19 pandemic.Our Vendor Code of Ethics(VCoE)outlines our unwavering commitment to respect human and labour rights and promote safe and fair working conditions for peo
186、ple in our supply chain.In 2021,we published our evolved VCoE and Compliance Benchmarks,which align with international standards and FLA requirements.We also updated our facility assessment methodology and will be implementing these new tools in 2022 to meet continuously evolving industry standards.
187、We completed the onboarding stage of the FLA accreditation process and the FLA Sustainable Compliance Initiative(SCI)assessments in three of our facilities.Were supporting facilities to complete remediations as required.These assessment results and corrective action plans are publicly available on t
188、he FLA website.In 2021,we monitored our active suppliers through annual assessments and self-assessments,as well as follow-up assessments where required.We also onboarded new suppliers through our new supplier approval process.183 total VCoE assessments were completed in 2021,with 128 conducted by l
189、ululemon,38 by an accredited third party,and 17 as supplier self-assessments.Two percent of our active facilities did not pass their assessments.In all cases,we worked with our suppliers to implement Corrective and Preventative Action Plans(CAPAs).As a last resort,if more sustainable resolutions can
190、not be achieved,we responsibly exit the business relationship.We did not exit any suppliers in 2021 due to VCoE performance.See our Supplement for more details on our findings.People who make our products Maker at RSI facility,Vietnam24 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Pl
191、anet SupplementSupply chain evolution In the apparel industry,the pandemic has resulted in numerous factory closures,unstable production demand,and reduced or lost wages for many makers.Since the beginning of COVID-19,we have been committed to responsible purchasing practices,including not cancellin
192、g orders in production or completion,and providing flexibility in purchasing agreements.We maintain close contact with our suppliers to support safe conditions and adequate wage payment for makers.We have publicly endorsed the International Labour Organizations Call to Action to support robust globa
193、l social safety measures.lululemon has worked in collaboration with our suppliers to support payment to makers throughout the pandemic.For example,in 2021,we worked with our Vietnam suppliers to encourage payment of at least 50 percent of worker wages,despite government-mandated factory closures tha
194、t did not legally require wage payment.Our supply chain continues to grow to support our business,with new countries and facilities added to our portfolio to allow for production risk diversification and added capacity.We use industry tools to assess human rights,and environmental and business conti
195、nuity risk before entering new countries.Maker wellbeingWe collaborate on existing industry partnerships and work directly with our suppliers through training as well as grants to support community wellbeing projects.In 2021,we contributed US$160,000 toward maker wellbeing through our annual Supplie
196、r Grant program,reaching 20,000 makers in service of our 2025 goal to reach 100,000 makers.We supported 16projects with 12 different suppliers across 10 countries.Thisprogram supports projects that offer health,education,yoga,and meditation initiatives for factory workers and their localcommunities.
197、We share costs with the supplier by paying up to 50 percent of each project.We also supported our suppliers in pivoting the use of supplier wellbeing grants for COVID-19 reliefinstead.Some examples of recent initiatives include:Far Eastern Apparel(Suzhou)Co.,Ltd.,Vietnam A Womens Healthcare project
198、to provide training on health and wellness and financial management for female workers.Sintex International Ltd.,PhilippinesA Food Gardens Movement project to provide capacity training on setting up,creating,and maintaining food gardens.Textil del Valle S.A.,BIC,PeruMakes bicycles available to emplo
199、yees to provide access to movement as alternative transportation,and to reduce their carbon footprint.Textil delValle also provided harvested organic vegetables from their farm to their employees.MAS Active Trading Pvt.Ltd.,Sri LankaRenovation support for the Manikhinna Divisional Hospital,focusing
200、on the womens and pediatric wards.MAS also funded a project to provide employees and families with all-inclusive access to healthcare.In 2021,we also engaged Women Win,a non-profit organization focusing on strengthening womens economic resilience through impactful partnerships and holistic approache
201、s.They supported us to conduct industry benchmarking and an expanded multi-year plan for wellbeing programs that will start in 2022.For more information on maker wellbeing,please refer to the Spotlight Story and Be Well section in thisreport.Makers rights Were partnering for real,lasting change in o
202、ur supply chain.Through our Foreign Migrant Worker Standard and program,we are helping to raise standards and build shared approaches that benefit garment workers.Our Foreign Migrant Worker Standard outlines our expectations with respect to foreign migrant workers,including a commitment to ensuring
203、that workers will no longer pay hiring fees,a long-standing practice in theapparelindustry.Through our supply chain traceability work,we are focusing on the rights and treatment of makers in Tiers 3 and 4 in the supply chain,more sustainable fibres and materials,and animal welfare in alignment with
204、current and future certification standards.This work helps us gain visibility and develop strategic programs to improve rights deeper into our extended supply chain.In 2021,we also participated in the Better Buying Partnership Index.This will deepen our understanding of our suppliers perceptions of
205、lululemon and help us learn about ways to continuously improve our program.In 2022,we will participate in the Better Buying Purchasing Practices Index,which will help us go into greater detail and find out how our suppliers are rating us across a range of purchasing practices.People who make our pro
206、ducts 25 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementIn Thai Binh City,Vietnam,near Hanoi,surrounded by acres of green space and on-site gardens sits Tan De 6,one of lululemons newer manufacturing partner facilities.It is here that cut and sew specialists create som
207、e of the lululemon gear we love.lululemon has been partnering with Tan De since 2017,bringing the Tan De 6 facility on board in March 2021.Well-trained hands and keen eyes for detail have kept Tan De as one of our top finished goods vendors.lululemon and the manufacturing facilities we choose to hav
208、e as partners help our industry build a healthier world.In 2022,Tan De was selected as one of lululemons 2022 Vendor Here to Be grant recipients,for a project that aims to provide more than 1,000 female employees with access to information and services for sexual and reproductive health.Throughout t
209、he past year,Tan De 6 worked hard to create a better community for both the employees and the neighbours of the facility.Using the company-owned garden,they grow fresh food for makers and their families.Leftover strips of fabric are ingeniously reused as ties to give support to the growing plants.Th
210、ey also provide summer holiday activities for makers children,offer assistance for the elders in the surrounding communities,and help flood victims in the central areas of Vietnam.We will continue recognizing,celebrating,and nurturing our interconnected wellbeing.SpotlightTightly knitMaker at Tan De
211、 facility,Vietnam26 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementIN THIS SECTION29 Our approach to wellbeing 31 Global wellbeing33 Community wellbeing35 Maker wellbeing37 Frontline wellbeingBe Well27 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet
212、 SupplementWe believe that everyone has the right to be well.In recent years,there has been increasing awareness of the importance and complexity of mental wellbeing,and research shows that wellbeing is strongest among those who focus on all three dimensionsphysical,mental,and social.15 We also reco
213、gnize that planetary health is a fundamental condition for wellbeingfor humanity and for business.As a global company committed to helping people feel their best,we have a unique opportunity to advance physical,mental,and social wellbeing for all.What we can envision,we can create.15 lululemon 2022
214、Global Wellbeing ReportBe Well Chapter Illustration“We begin to find balance,connection within one selfmind,body,and soul.Movement becomes broader,more intentional,grounded.Warmth and vibrancy hold us in yellow(happiness,optimism,joy,energy).Hold for the count of four.”Jacquie Comrie,report illustra
215、tor28 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementWHY IT MATTERSWe are experiencing a global decline in physical,social,and mental wellbeing.This has been worsened by events such as the COVID-19 pandemic,the climate emergency and related natural disasters,geopolitic
216、al instability,and uncertainty about the future.According to Gallup,16 nearly 4 in 10 people report they have been affected by depression and anxiety.Far too many people are unable to access the tools and resources necessary to face and overcome challenges.This is especially true for those experienc
217、ing disproportionate rates of stress and trauma due to systemic inequities.Wellbeing is also directly linked to planetary health;negative impacts on the environment and eco-systems directly and indirectly affect people and communities.As a company dedicated to achieving a healthier and more inclusiv
218、e world for all,we have a responsibility to provide access to the right tools,support,and resources,and to disrupt inequity in wellbeing through movement,mindfulness,and connection.OUR GOALS Launch the lululemon Centre for Social Impact by 2021(complete).Provide access to wellbeing tools and resourc
219、es to more than 10 million people by 2025.Invest at least US$75 million to advance equity in wellbeing through the lululemon Centre for Social Impact by 2025.WHAT DOES IT MEAN TO BE WELL?We understand wellbeing as a lifetime practice of three interconnected elements.Physical wellbeingFeeling healthy
220、 and capable.I can perform the activities I want or need to do.Mental wellbeingFeeling emotionally prepared.I am able to handle what the future holds for me.Social wellbeingFeeling connected to others.I am part of something larger than myself and contribute to a supportive community.This definition,
221、framed by planetary wellbeing,aligns our focus on global wellbeing throughout the business,informs the Centre for Social Impact framework,and allows us to advance wellbeing across our collective.We recognize that our lives are interconnected with the health of the planet.As our business grows and ou
222、r work progresses,we are evolving our definition of wellbeing to explicitly integrate our dependence on a healthy planet and the transformative power of thriving environments.WHAT WERE DOINGWe are breaking down the barriers that prevent access to wellbeing tools and resources.Through the lululemon C
223、entre for Social Impact,which launched in 2021 with a commitment of US$75 million by 2025,we are leveraging our business,expertise,resources,and communities to invest in and advocate for the wellbeing of those most impacted by systemic inequity around the world.The Centre is led and managed by a glo
224、bal internal team of experts in social impact,innovation,and wellbeing.In 2021,lululemon contributed US$11.9 million to social impact organizations,and an additional US$758,000 toward crisis response.Our integrated strategy advances this work within the communities where we operate and across the gl
225、obe,and we are engaged in a set of extensive and inclusive partnerships to collectively realize this ambition.For example,for over five years we have collaborated with the United Nations Foundation to co-create the Peace on Purpose program,which proactively cares for the wellbeing of UN humanitarian
226、 workers around the world and aids in crisis response.Through our work with the Girls Opportunity Alliance,an initiative of the Obama Foundation,we are empowering adolescent girls around the world through education and wellbeing,allowing them to achieve their full potential and transform their famil
227、ies,communities,and countries.In early 2022,we released our second annual Global Wellbeing Index.The findings from this report guide us to define where and how we support further research and advocacy efforts.We also evolved our collaboration with the National Alliance on Mental Illness(NAMI),poweri
228、ng their work to reimagine crisis response in the United States,through the establishment of 9-8-8 as a nationwide mental health crisis and suicide prevention number.16 Wellcome Global Monitor ProjectOur approach to wellbeingSDG 3.Good Health and Well-beingSDG 5.Gender EqualitySDG 10.Reduced Inequal
229、ities29 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementInvest in localcommunity resilience.Pursue impact at scale throughpartnerships,philanthropy,research,andadvocacy.Build internalcapacity.CENTRE FOR SOCIAL IMPACT FRAMEWORKOur purpose is todisrupt inequity in wellbei
230、ngthrough movement,mindfulness,and advocacy.Our goal is to positively impact 10 million people globally by 2025.Community WellbeingGrants and partnerships that increase access to wellbeing opportunities.Global WellbeingLarge grants and partnerships that advance the wellbeing of those experiencing sy
231、stemic inequity trauma.Research&AdvocacyGrants,partnerships,and publications that explore solutions for systemic barriers to wellbeing.Maker WellbeingIndustry grants and programs that care for those who make our products.Frontline Wellbeing&Crisis ResponseGrants and programs that support aid workers
232、 globally.Culture of ImpactSolutions that create a culture of impact for our people,communities,and guests.Be Well visionOur communities thrive because we contribute to conditions that support physical,mental,and social wellbeing.Our approach to wellbeing30 LULULEMON 2021 IMPACT REPORTIntroduction B
233、e Human Be Well Be Planet SupplementCommunity Wellbeing$2,827,000 Research&Advocacy$500,000 Crisis Response17$758,000 Frontline Wellbeing$2,000,000 Maker Wellbeing$2,411,000 2021 CONTRIBUTIONS17 Crisis response is not included in our US$75 million commitment;this is an additional contribution.18 We
234、measure the number of people reached by collecting impact reports from our global and community partners,which include both expected and realized reach numbers.This number includes recipients of grants and donations,participants in free activities run by lululemon such as yoga and meditation classes
235、,our employees,and makers.Global Wellbeing$4,151,000 2021 NUMBER OF PEOPLE REACHED18We are nurturing global wellbeing through collaborations and innovations that advance the wellbeing of people experiencing disproportionate rates of stress and trauma.Global initiatives include support for the Girls
236、Opportunity Alliance,a program of the Obama Foundation that empowers girls through wellbeing and education,and The Trevor Project,the worlds largest suicide prevention and mental health organization for LGBTQ young people.We invested US$1.5 million and$1 million in these partnerships respectively,an
237、d as importantly,are bringing forward access to lululemon resources,platforms,support,and communities.Indigenous wellbeing We continue our commitment to amplifying Indigenous voices,supporting Indigenous communities,and sustaining ongoing partnerships with First Nations,Indigenous-led organizations,
238、and ambassadors.As a full member of The Circle on Philanthropy(The Circle),we work to contribute to Indigenous Peoples in meaningful ways.In the past two years,we worked with The Circle to donate CAD$250,000 each to the Musqueam,Tsleil-Waututh,and Squamish Nations and support the following organizat
239、ions:Matriarch Movement,which is shifting the mainstream narrative around Indigenous women by amplifying their voices through podcasts,social media,and interviews.Rising Hearts,an Indigenous-led grassroots organization working to elevate Indigenous voices and promote intersectional collaborative eff
240、orts.Mtis Nation Columbia River Society,which acts as the advocate,voice,representative,and protectors of the traditional values of the Mtis People(s),and acts as a friendship centre to all Indigenous peoples in the Golden,British Columbia area.Finding Our Power Together,whose primary goal is to end
241、 preventable death by suicide in Indigenous communities and support young people to thrive.Saskatchewan Indigenous Yoga Association,which facilitates the training of First Nations and Mtis people to be yoga teachers,with the goal of embedding the healing benefits of yoga within Indigenous communitie
242、s.Global wellbeingOther business activities 21,000 lululemon employees 29,000 Makers in our supply chain 20,000Centre for Social Impact 1,355,000Total people reached1.4MTotal wellbeing contributions US$11.9MTotal crisis response contributionsUS$758k31 LULULEMON 2021 IMPACT REPORTIntroduction Be Huma
243、n Be Well Be Planet Supplement2021 World Mental Health Day activation with The Trevor ProjectWe believe everyone has the right to be well and recognize the opportunities we must address to bring this belief to life.Last year,lululemon launched the Centre for Social Impact with the mission to disrupt
244、 inequity in wellbeing through movement,mindfulness,and advocacy.We leverage our expertise,resources,and global community networks to advance wellbeing for those most impacted by systemic inequity.At launch,the Centre invested US$5 million with new and long-term local grassroots partners through glo
245、bal and national non-profits,as well as lululemons Here to Be grant program,which supports organizations around the globe that create inclusive access to movement and mindfulness,and/or advocate for civil and human rights.For World Mental Health Day 2021,we highlighted the work of three collaborator
246、s with the Centre through an awareness campaign:Girls Opportunity Alliance,which aims to empower girls through education,the National Alliance on Mental Illness(NAMI),which promotes better mental health and has established a 9-8-8 crisis number with lululemon,and The Trevor Project,which works to en
247、d suicide among LGBTQ youth.This campaign created wide-reaching positive impact by amplifying calls to action and building awareness of much-needed wellbeing tools,resources,and support alongside our co-creators.For more information on social impact organizations we contribute to,refer to Partnering
248、 for change.SpotlightWellbeing is for everyone32 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementThrough our annual application-based Here to Be grant program,we invest in community resilience and support local organizations around the globe that create inclusive access
249、 to movement,mindfulness,and connection.Grant recipients advance equity in wellbeing in many ways,including financial accessibility,culturally sensitive programming,and local community needs.Our goal is that through this partnership with our Here to Be grantees,communities will experience improved m
250、ental,physical,and/or social wellbeing.In 2021,80 organizations across the UnitedStates,Canada,United Kingdom,New Zealand,Australia,China,and Asia comprised the Here to Be cohort,including:the Run Beyond Project,Women in Sport Empowered,and the Prison Yoga Project.Our 2021 Here to Be cohort received
251、 a combined US$2.3 million in grants,with an average grant size of US$28,650 impacting more than 250,000 people around the world.lululemon accelerated the growth of these organizations through capacity building,leadership development,mentorship,skills-building,and storytelling trainings.THE RUN BEYO
252、ND PROJECTCountry:AustraliaThe Run Beyond Project empowersyoung people beyondthe finish line.It uses a program based around running,to develop personal and social capabilities in high school students from marginalized backgrounds.The project prepares students for a challenging but achievable Goal Ra
253、ce and empowers these young people beyond the finish line.Shogufa,an immigrant from Afghanistan,became the first woman in the Run Beyond Project to complete a half marathon.With limited access to sports in Afghanistan,she had never run long distance before.Her mantra,“I learned to never be scared,”h
254、elped drive her dedication and resilience.Shogufa is now training to be a doctor and is applying the skills she learned in running to her studies and beyond.Watch her story here.WOMEN IN SPORT EMPOWERED Country:Hong KongWomen in Sport Empowered uses sports as a way to empower,educate,and connect wom
255、en and girls to realize their aspirations.Their vision is a world where women and girls can thrive without limitations.While completing our S.H.E Mentoring program,Rabia was proud to wear a hijab during all her workouts.She wanted to break stereotypes and be brave enough to be herself while maintain
256、ing her identity.Her efforts set an important example for women who may otherwise feel discouraged from doing sports.Community wellbeingPRISON YOGA PROJECTCountry:United StatesPYP supports incarcerated people with trauma-informed yoga and mindfulness practices to promote rehabilitation,reduce recidi
257、vism,and improve public safety.After participating in the Prison Yoga Project(PYP)Yoga Teacher Training program,Deva said,“This course literally opened new dimensions of awareness and healing on a level that is beyond anything I thought possible.As a social security disability recipient,I am so awar
258、e of the challenges with finances while living on disability checks.Noone should have to juggle food,rent,and then yoga classes if they already live in impoverishment.My desire is to use my certification to reach people in my community.”33 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be
259、 Planet SupplementThe lululemon Playmaker program,first piloted in 2021,complements our Team Canada partnership,19 with a mission to accelerate equitable access to wellbeing through sport.This work ladders into our shared purpose with the Canadian Olympic and Paralympic Committees to realize the ful
260、l potential in every Canadian to inspire,unite,and transform the world through sport.Playmaker is a four-month pilot program that supports leaders from four Canadian non-profit or charitable organizations:Spirit North,Cruisers Sports,Fast and Female,and Swim Ontario.lululemon provided CAD$200,000 to
261、tal in funding for mentorship,coaching,and community building.lululemon also matched the funding of the Canadian Olympic Committees 2021 Olympic Legacy Grant Program,which supports 10 community projects led by Canadian Olympic alumni.In addition to the funding,Playmaker organizations received meanin
262、gful skill-building opportunities,including leadership and development,purpose and values,brand consulting,and community partnership building,enabling them to create impact.Spotlight19 Official Outfitter of Team Canada through 2028Play it forwardFast and Female organization in Calgary,Alberta.Photog
263、rapher:Dave Holland34 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementMaker wellbeingThe people who make our products are one of our most important communities.While global trade brings opportunities for many in global garment supply chains,we are aware that makers in t
264、hese supply chains,who are primarily women,face many challenges,such as earning low wages,working excessive hours,and experiencing workplace harassment.The COVID-19 pandemic and the tangible effects of the climate emergency have increased these struggles.Over the past several years,we have developed
265、 programs that benefit our makers,their families,and communities.In 2021,we funded 16 wellbeing projects in supplier communities,contributing US$160,000 and reaching over 20,000 makers.See Be Human section for more information.In 2021,we contributed US$2.25 million to fund womens initiatives at loca
266、l grassroots organizations and global non-profits.The fund recipients include CAREs Made by Women,to support programs ranging from violence prevention to leadership,as well as Women Win,which aims to economically empower girls and women through impactful partnerships and holistic approaches.We also
267、made contributions to The Resilience Fund for Women in Global Value Chains.The first of its kind,The Resilience Fund for Women is a funding initiative that invests in the long-term health,safety,and economic resilience of women in global value chains.Our funding will help enable them to expand grant
268、making to support locally driven solutions to systemic problems.Makers in Tan De facility,Vietnam35 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementOur culture is grounded in the importance of fostering wellbeing and instilling the ability to pursue choice.This is an im
269、portant time in history for us to use our voice externally to share our perspectives on reproductive rights.In 2022,through our Centre for Social Impact and our Public Affairs team,we made a US$500,000 contribution to the Center for Reproductive Rights,a non-partisan legal and non-profit advocacy gr
270、oup.Additionally,our US benefits plan allows lululemon employees to receive treatment regardless of where they live,including comprehensive reproductive healthcare and family planning.Our actions reflect our commitment to ensuring access to reproductive healthcare.This is not about partisan politics
271、.It is about using our voice to advocate for wellbeing and the importance of having choice.SpotlightAccess to reproductive healthcare36 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementWe are committed to supporting frontline workers to care for their physical and mental
272、 wellbeing,so they can effectively care for others.In 2019,we launched Peace on Purpose in partnership with the United Nations Foundation.Through evidence-based practices,this initiative supports the wellbeing of UN development and humanitarian workers on and off the front lines of global conflicts
273、and challenges.In 2020,with the UN Foundation,we radically accelerated this program for online delivery.Our shared work in 2021 will have an even deeper impact.We awarded the UN Foundation an additional US$1.25 million for Peace on Purpose,to accelerate program reach and increase crisis response ove
274、r the next two years.As the largest funding commitment Peace on Purpose has received to date,this will help build a multidisciplinary approach to support staff during times of crisis.Crisis responseCrisis response is an important part of our direct support of frontline workers,communities,and indivi
275、duals affected by natural or other disasters and events.We prioritize community-led organizations that support collaborative community solutions wherever possible,working with our regions to identify what basic needs have to be met.In 2021,we provided over US$750,000 to crisis response initiatives.T
276、his included US$250,000 for COVID-19 relief in India and Bangladesh,and over US$500,000 toward relief efforts for natural disasters around the world.Frontline wellbeingUnited Nations Foundation Peace on Purpose program37 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementI
277、N THIS SECTION40 Climate action45 Sustainable product and material innovation51 Circularity and new guest models 53 Water and chemistry 55 Packaging and wasteBe Planet38 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementOur lives are interconnected with the health of the
278、planet.Weve set science-based targets that are the foundation for our climate action goals.We seek to lead in innovating more sustainable materials and working toward a circular ecosystem by designing out waste and keeping materials in use for as long as possibleeventually integrating end-of-life pr
279、oducts into new products.We work across our value chain to reduce our carbon,waste,and water footprint,improve chemicals management,develop and sell products that reflect the values of our guests,and contribute to a healthier world.Be Planet Chapter Illustration“We feel the tension dissipating,the l
280、ines begin to loosen,relax.There is transformation here.Rebirth,renewal,connection to Mother Earth in the colour green(safety,love,support).Exhale for the count of four.”Jacquie Comrie,report illustrator39 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementWHAT WERE DOINGA
281、s signatories of the UN Fashion Industry Charter for Climate Action,we committed to achieve net zero carbon by 2050 or earlier.We take a science-based approach.Our climate targets,approved by the Science Based Targets initiative,help us align our goals with the Paris Climate Agreementto limit global
282、 warming to well below 2C above pre-industrial levels and pursue efforts to limit warming to 1.5C.Achieving a net zero future requires ambitious strides for cutting emissions across our value chain and within our industry.We started where we have the most controlin our owned and operated facilities.
283、We are proud to have achieved our goals of 100 percent renewable electricity and a 60 percent absolute reduction of GHGs in our owned and operated facilities.As our business grows,we will also continue our focus on reducing our Scope 1 and 2 emissions.However,our biggest challenge lies in our value
284、chain,which represents 99.7percent of our emissions(Scope 3).In 2021,we launched our Climate Activation Council,a cross-functional team with participation from the Product,Transportation,Fulfillment,Manufacturing,Materials,Quality,and Sustainable Business teams,which are accountable for contributing
285、 to enterprise shifts and enacting change in their respective functions.Moving forward,we are embedding sub-targets into specific business areas in line with our science-based emissions targets to track performance.WHY IT MATTERSThere is an ever-growing awareness of climate change,and a pressing urg
286、ency for solutions.Climate change threatens our living environments,as well as food and water supplies.Itaccelerates biodiversity impacts,and contributes to increased inequities and economic disruptions.Mental health is also affected.More than two-thirds of Americans report feeling anxious about how
287、 climate change is affecting the planet.20 In addition,estimates show that climate change impacts such as rising sea levels,extreme weather events,and failed crop yields could decrease global economic output by 10 percent by 2050.21 Most likely,these impacts will disproportionately impact under-reso
288、urced people and countries.As a contributor to climate change,the apparel industry must be part of the solution.OUR GOALSAchieve 100%renewable electricity to power our owned and operated facilities by 2021(complete).Meet our 2030 science-based targets by achieving:60%absolute reduction of GHG emissi
289、onsin allowned and operated facilities(Scope1and2)(complete)60%intensity reduction of GHG emissions acrossour global supply chain22(Scope 3)20 American Psychiatric Association21 Swiss Re Institute22 Includes purchased goods and services,and upstream transportation and distribution only.Intensity red
290、uction is per net revenue from operations.For more information on our science-based target,refer to the Supplement.23 For a breakdown of our Scope 1 and 2 emissions and science-based target,please refer to our Supplement.24 Our science-based target for Scope 3 emissions is a subset of our total Scop
291、e 3 emissions.For a breakdown of total Scope 3 and science-based target,please refer to our Supplement.Climate action19,852+1,604(+9%)20193,203-15,045(-82%)20202021Total Scope 1 and 2(tCO2e)23 Absolute emissions change from 2018 baseline2018 baseline18,24812,927-5,321(-29%)0123456780.00000064285.714
292、286128571.428571192857.2.857143321428.571429385714.285714Total Scope 3 within science-based target24Net revenue from operations(000s)Emissions intensity(tCO2e per million US dollars of revenue from operations)Scope 3 emissions intensity change from 2018 baseline351,365US$3,979,296-11%2018
293、 baseline326,114 2018 baselineUS$3,288,30192019414,565US$4,401,879-5%643,478US$6,256,617+4%202020202020202020221Scope 3 science-based target(tCO2e)0204060801000.012.525.0 2018 baseline99.294.288.3102.840 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet Supple
294、mentRenewable electricityIn achieving our 100 percent renewable electricity goal,our Scope 1 and 2 emissions decreased by 82 percent from our 2018 baseline.This was due to the purchase of Energy Attributes Certificates(EACs).We purchase EACs from accredited tracking agencies and,where possible,from
295、wind and solar energy sources.In 2021,we signed a 10-year Virtual Power Purchase Agreement(VPPA)with renewable energy company Enel Green Power(see Spotlight Story).Energy efficiencyWe continue to improve energy efficiency in our owned and operated facilities.In 2021,we expanded our pilot of Energy M
296、anagement Systems(EMS)in stores to better control our HVAC systems,reduce energy use,and improve guest and employee comfort.In total,we have installed EMS in 38 stores,with plans to continue expanding across our stores in North America in 2022.Transportation and logisticsTransportation and logistics
297、 currently make up approximately 22 percent of our total carbon footprint.During the COVID-19 pandemic,we experienced longer lead times and delivery challenges due to factory closures and pressure on ocean freight and seaports.This meant we increased our use of air freight,significantly impacting ou
298、r Scope 3 target performance.We see these challenges continuing into 2022 and are working on rebalancing transportation modes as we emerge from the pandemic.In 2021,we focused on three logistics initiatives to reduce emissions:Choosing emissions-friendly transportation modesWe saw a 104 percent incr
299、ease in emissions fromtransportation between 2020 and 2021.We launchedan Air Freight Management Task Force and are shiftingtransportation methods where possible from air freight toocean,truck,or train.Using more sustainable logistics service providers(LSPs)Currently,all inbound LSPs have an approved
300、science-based target or are working toward setting a target.Selecting more sustainable fuelsIn 2021,we exploredusing more sustainable fuels as part of our broader strategy,including more sustainable aviation fuel(SAF),electricvehicles,and biofuels for ocean freight.We are working onsecuring an SAF s
301、upplier to conduct pilot work in 2022.25 We procured 100%renewable electricity to power our owned and operated facilities,with 99%sourced in compliance with the RE100 technical criteria.However,due to unavailability of an Energy Attribute Certificate(EAC)program,lululemon was unable to source renewa
302、ble electricity in South Korea.Consequently,renewable energy credits were procured from a nearby geography.Total renewable electricity purchased25(MWh)Total purchased electricity(MWh)Total renewable electricity(%)2002020202020202120212021Renewable electricity in our owned and operated fac
303、ilities 0.0000005714.28571411428.57142917142.85714322857..42857134285.73000045000600005672018 baseline 2821,56062,5652018 baseline42,68951,11748,49962,5651%2018 baseline50%sustainable materials(units,000s)14,33724,837Products made with 2550%sustainable materials(units,000s)11,6
304、6816,867Products made with 50%sustainable materials 15%17%Products made with 2550%sustainable materials12%12%Products made with sustainable materials 27%29%Disclosure20202021Total materials procured30(kg,000s)27,26037,727Total sustainable materials31 procured(kg,000s)8,27914,265Sustainable materials
305、 procured30%38%Our teams transform practices at every stage of the process,including design,merchandising,raw materials,product development,colour,and printing.By working together with cutting-edge technology organizations such as LanzaTech and Genomatica,we help create and scale solutions that deli
306、ver more sustainable products to our guests.With our Textile Exchange,we participate in expanding our use of more sustainable materials across the industry,for collective benefit.See the Supplement for a full list of partnerships.Sustainable material innovation requires years of investment in resear
307、ch,development,and partnership.While working toward scalable,permanent solutions,we also need to integrate temporary measures that are commercially available.For example,recycled polyester made from post-consumer single-use packaging(e.g.,plastic bottles)isnt an ultimate solution,but is an improveme
308、nt over traditional polyester.In 2022,we are building our strategy to enhance our existing traceability system.This will allow greater visibility into our supply chain,including our more sustainable fibres and materials.This traceability strategy will also help us identify opportunities in lululemon
309、s overall supply chain visibility as we move toward our 2025 and 2030 goals.46 LULULEMON 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementSUSTAINABLE MATERIALS PROCURED BY TYPESustainable product and material innovationMaterialTypeUnit*20202021NylonTotal kg10,64614,066Recycledkg24
310、1819%2%6%Renewable kg00%0%0%PolyesterTotalkg6,0569,362Recycledkg2,3574,655%39%50%CottonTotalkg4,1245,580Sustainably sourced cottonkg1,4982,050%36%37%DownTotalkg91109Responsible Down Standardkg91109%100%100%Animal-derived materialsTotalkg245216Responsible/traceablekg91109%37%50%Forest-based materials
311、Totalkg1,5751,857Forest Stewardship Council(FSC)-certified natural rubber kg65498%4%27%Responsible regenerated cellulosics kg7481,185%48%64%NYLONSource 100 percent renewable or recycled content nylon for our products by 2030.Our nylon goal is ambitious and challenging.Nylon makes up the biggest port
312、ion of our materials and provides lululemon products with the characteristically unique performance,feel,and quality we have become known for.Our goal is to transition from virgin nylon fibre to 100 percent renewable,recycled,or net new fibres that reduce our dependence on fossil fuels while maintai
313、ning uncompromising feel and performance.Our initial approach is to innovate into renewable bio-nylon at scale.We have a multi-year collaboration with Genomatica,aleader in biotech innovation and materials,to bring renewably sourced,biobased materials into our product lines,including lower-impact,pl
314、ant-based nylon.We are collaborating with Genomatica on plant source and traceability to optimize the overall environmental benefits from plant-based nylon.We are developing the technology and working toward commercialization at scale,to help achieve our 2030 product goals.Recycled nylon(generally m
315、ade from post-industrial material waste)is another option.However,recycled alternatives that align with our product performance standards are currently only available in limited quantities.We will scale through existing and emerging solutions,such as textile-to-textile recycling.We are exploring env
316、ironmental impact reductions in other areas of the nylon value chain,including solution dye finishes,manufacturing,and facility improvements.Baseline Year Baseline2021 Results GoalGoal Year20202%6%100%2030%renewable or recycled content nylon*kgs in 000s47 LULULEMON 2021 IMPACT REPORTIntroduction Be
317、Human Be Well Be Planet SupplementWhile we are proud of the work weve done with more sustainable materials,we must continue to elevate our practices to build the sustainable future we envision.We committed to meeting our ambitious sustainable product targets and are making strides.In 2019,we set a g
318、oal of achieving 75 percent sustainable materials for all our products by 2025.In 2021,our mens apparel line hit that goal early.Sustainable materials innovation is a galvanizing focus across our design teams.Recycled polyester was incorporated into one of our most beloved products the Metal Vent Te
319、ch 2.0 shirtssetting the groundwork for scaling to our Swiftly womens products.In 2021,we developed a 100 percent recycled polyester fabric and used it for the pockets of our mens apparel.Warpstremethe fabric for our bestselling ABC and Commission pants and shortsalso uses recycled polyester.The Alw
320、ays In Motion boxers underwent a complete redesign,using a responsibly regenerated cellulosic fabric that doesnt sacrifice performance.We will continue to grow our mens apparel business and play our part to reset sustainability as the industry standard.SpotlightRaising the bar on product48 LULULEMON
321、 2021 IMPACT REPORTIntroduction Be Human Be Well Be Planet SupplementPOLYESTERSource at least 75 percent recycled polyester by 2025.In 2021,50 percent of our total procured polyester was made of recycled content(mostly post-consumer recycled PET from plastic bottles).Over the last year,we continued
322、to drive the transition to recycled polyester across all our assortments.We are also participating in the 2025 Recycled Polyester Challenge,a joint initiative between Textile Exchange and the United Nations Fashion Industry Charter for Climate Action,supporting the industrys ambition to increase the
323、 global recycled polyester uptake from 14 percent to 45 percent by 2025.However,relying on plastic bottles for recycled polyester supply is a stop-gap measure,and not a long-term solution.With our partners LanzaTech,Far Eastern New Century,and India Glycols,we have developed a successful proof of co
324、ncept for a polyester yarn and fabric partially made with recycled carbon emissions.We are currently working on the feasibility of a variety of yarn sizes,while optimizing the supply chain to scale the technology.We are also looking at feedstock sources such as post-consumer textiles.COTTONSource 10
325、0 percent of cotton from more sustainable sources by 2025.We take a portfolio approach to achieving more sustainable cotton that includes organic,recycled,regenerative,and other third-party certified platforms.Most of our Pima cotton is sourced from Peru.We are working to make meaningful and rapid p
326、rogress,as we approach our 2025 goal.Sustainable product and material innovation32 The root system of mushroomsANIMAL-DERIVED MATERIALSTrace or certify as sourced responsibly 100 percent of our animal-derived materials by 2025.Animal-derived fibresdown,wool,cashmere,and silkrepresent a small amount
327、of our overall material portfolio (one percent by weight).In 2021,55 percent of our animal-derived materials were traced or certified as responsibly sourced.All down has been fully traced and certified to meet the Responsible Down Standard for many years.We are at the initial stages of sourcing more
328、 sustainable,third-party certified wool,and will continue with the assessment of responsible sources for our cashmere and silk.FOREST-BASED MATERIALSCertify or assess by a third party 100 percent of our forest-based materials are sourced responsibly by 2023.Of our forest-based materials,64 percent o
329、f our volume consists of regenerated cellulosic fibres,while 27 percent is natural rubber.Almost 100 percent of our regenerated cellulosic fibres have been sourced responsibly since 2018.They are assessed through CanopyStyle Audits to verify producers are at low risk of sourcing from ancient or enda
330、ngered forests,or controversial sources.In 2021,we celebrated transitioning all our core yoga mats to Forest Stewardship Council(FSC)-certified natural rubber,representing 74 percent of the natural rubber we procured this year(FSC N002716).We continue innovating materials in our yoga mats and are ex
331、ploring further use of Mylo,a material made of renewable mycelium.32 We are expanding our current program of better cotton sourcing by enrolling the balance of our short-staple suppliers.We are also expanding our commitment to precision farming programs(e.g.,US Cotton Trust Protocol)and planning reg
332、enerative agriculture sourcing projects in our existing supply chains.These two techniques help capture more environmental impact data from our cotton supply chain.They also support farmers in transitioning to not only minimize but eventually restore the local environment through regenerative farmin
333、g techniques.In addition,they ensure greater visibility into social and animal welfare as a direct or indirect result of cotton farming.Baseline Year Baseline2021 Results GoalGoal Year202039%50%75%2025%recycled polyesterBaseline Year Baseline2021 Results GoalGoal Year202036%37%100%2025%sustainably sourced cottonBaseline Year Baseline2021 Results GoalGoal Year202037%50%100%2025%traceable or certifi