Sustainability is an increasingly core consumer concern and the repercussions of misleading green marketing claims can be severe. Recently, Canadian authorities began investigating Lululemon, a leading athletic apparel brand, following complaints about potentially misleading environmental claims.
According to reports from ESG Today, Forbes, and JustStyle, the Competition Bureau Canada initiated the investigation in response to allegations against Lululemon. While the investigation is ongoing and no findings of wrongdoing have been made, the scrutiny itself serves as a reminder to brands worldwide. In an era where consumers demand transparency and authenticity, any perceived discrepancy between green marketing claims and actual practices can have an impact on brand equity.
Protecting Brand Equity through Strategic Sustainability Communication
For Lululemon, known not only for its athletic wear but also for its brand ethos that includes sustainability commitments, the potential fallout is significant. Whether the allegations are substantiated or not, the mere association with greenwashing—a term used when environmental claims are exaggerated or unsubstantiated—can tarnish a brand’s image. This situation highlights the need for companies to carefully vet and substantiate all sustainability claims, ensuring they align with established regulatory guidelines.
To safeguard brand equity in the face of heightened scrutiny, leadership teams must adopt a comprehensive approach to sustainability communications. This includes collaboration across departments—from operations and R&D to marketing and legal—to ensure that all claims are accurate, verifiable, and compliant with FTC Green Guides and other relevant standards. In addition, having a third-party sustainability consultant like Third Partners can help to bulletproof claims while creating opportunities for genuine performance improvement.
Opportunities in Responsible Brand Messaging
The demand for sustainable products continues to grow, presenting opportunities for brands that can authentically demonstrate their commitment to sustainability and ESG. As noted in industry reports, sustainability-marketed products are driving substantial growth in sectors like apparel and consumer packaged goods (CPG). This trend highlights the importance of getting sustainability communications right—from initial claim development to ongoing governance and validation.
While the allegations against Lululemon serve as a cautionary tale, they also show the importance of responsible sustainability communication. By prioritizing transparency, accountability, and collaboration, brands can not only mitigate risks but also leverage sustainability as a catalyst for long-term growth and consumer trust.
For leaders at brands who are considering or currently making green product claims, it’s crucial to understand the guidelines at a tactical level. Start by reviewing resources such as the FTC guidelines on green marketing claims.
What brands should do before making green marketing claims
For deeper guidance and validation, consider reaching out to consultants like Third Partners. Our time-tested approach puts science and data at the forefront ensuring your sustainability efforts not only meet regulatory requirements, but also resonate authentically with consumers. We work collaboratively with multiple departments to not only develop sound claims that meet today’s standards, but also set companies up for success with sound sustainability governance (the “G” in ESG).
For over a decade, Third Partners has been a trusted, independent source of advisory and implementation support for sustainability and ESG initiatives. Our work spans multiple sectors, and because we’re not tied to any single standards framework or auditing regime, we offer objective strategic advice that larger consultancies struggle to deliver. Larger consultancies often focus on repeatedly implementing specific standards, limiting their ability to provide objective strategic advice.
Contact us today for a complimentary consultation and discover how we can support your brand’s journey towards credible, impactful sustainability messaging.
