The Impact of Greenwashing on Corporate Performance in the Apparel Industry Under the Dual Carbon Policy: A Case Study of Lululemon

Within the context of the “dual carbon” policy, the apparel industry faces environmental pressures due to its high carbon emissions. Consequently, corporate “greenwashing” practices, such as exaggerating environmental contributions and selectively disclosing information, have emerged as a strategy t...

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Bibliographic Details
Main Author: Wu Junran
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_04024.pdf
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Summary:Within the context of the “dual carbon” policy, the apparel industry faces environmental pressures due to its high carbon emissions. Consequently, corporate “greenwashing” practices, such as exaggerating environmental contributions and selectively disclosing information, have emerged as a strategy to balance short-term gains with policy compliance. This study examines Lululemon as a case study, employing a qualitative case analysis methodology. By analyzing public reports, environmental allegations, and financial data, we investigate the motivations behind its greenwashing behaviors and their dynamic impact on corporate performance. We find that despite Lululemon’s emission reduction targets, its actual carbon emissions have doubled, and it relies on non-biodegradable materials. While green marketing has boosted short-term profits (net profit increased by 0.9% in 2023), the company faces long-term legal risks (potential fines of $288 million), rising supply chain costs, and damage to its brand reputation. The conclusion underscores the inherent conflict between the short-term benefits and long-term risks associated with greenwashing. Therefore, both governmental bodies and corporations must strengthen regulatory standards and enhance transparent ESG disclosures to facilitate a genuine green transformation within the industry.
ISSN:2261-2424