Canadian sports brand Lululemon is facing claims of greenwashing which has triggered a class action lawsuit in France against the retailer's alleged "misleading' Be Planet campaign.

Stand.earth, the environmental non-profit has filed a complaint with France's Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF), accusing the  company of greenwashing. The complaint was timed for maximum impact as Lululemon is the official outfitter for the Canadian team taking part in the Olympic Games in Paris.

Stand says the complaint marks “the first test” of the French regulator’s readiness for a wave of new European legislation. In January, the European Union approved a greenwashing directive, which is meant to help decrease the frequency of unsubstantiated claims made by companies and other entities.

EU countries have until 2026 to update their respective national laws to reflect the rules outlined by the directive.

Stand's greenwashing complaint states that Lululemon makes marketing and advertising claims that relate to minor benefits which are misleading; that it makes vague or ambiguous assertions it intentionally omits essential information and makes false claims.

Todd Paglia, Stand executive director, said :“We are asking French officials to investigate how Lululemon can claim to ‘Be Planet’ while creating more planet-harming emissions every year than half a million cars.”

A spokesperson for Lululemon said that Be Planet is not a marketing campaign, but a pillar of the company's strategy.

The complaint requests that the DGCCRF open an investigation into Lululemon's environmental claims, noting that there is a "glaring" contradiction between its climate-focused messaging and its actions, harming both consumers and the environment.

"Greenwashing delays environmental awareness and sows confusion in the public mind, preventing consumers from making informed choices and genuinely committed companies from differentiating themselves," the complaint reads.

Canadian Olympic athletes have increased the pressure by calling on Lululemon's CEO to commit to clean energy, support suppliers transitioning to clean energy and disclose more information about the company's supply chains.

According to Stand's complaint, Lululemon's Scope 3 emissions doubled between 2020, the year it launched Be Planet, and 2022.

A Lululemon spokesperson said: "We have achieved a 60 percent absolute reduction of greenhouse gas emissions in our owned and operated facilities but recognize most of our climate impact comes from emissions of our broader supply chain."

As this complaint shows the significant risks from litigation, regulation, and activism mean boards of directors should be considering how best to oversee their company’s ESG agenda and its progress.

One of the main concerns for directors will be the risk of regulatory action arising from ESG related issues. Helpfully, some D&O policies already typically cover defence and investigation costs, as well as fines or penalties (where insurable at law), W Denis arrange D&O insurance throughout Europe. For more information  please contact:

Eastern Europe

Vida.Jarasiunaite@wdenis.eu

Southern Europe

Christos.Hadjisotiris@wdenis.com

Western Europe &/or elsewhere worldwide

Mark.Dutton@wdenis.com