Canada’s athletic wear titan is investing in the three Rs.
What happened: Lululemon participated in a US$30 million Series A funding round for Syntetica, a French startup that has developed a method to recycle the two most commonly used types of nylon in clothing. Nylon is abundant across the fashion industry, but is difficult to reuse because of high costs, chemical complexities, and material degradation.
Syntetica’s proprietary process breaks down discarded nylon at the molecular level and refashions the material into pellets that can be used to make things like yarn. The process works even if nylon is blended with other materials.
Catch-up: Syntetica isn’t the only startup that’s caught Lulu’s eye. In 2023, the company made its first minority investment in a recycling startup, partnering with Samsara Eco, which uses enzymes to break down materials like nylon and polyester. And earlier this year, it participated in a funding round for Epoch Biodesign, which makes similar tech.
For Lulu, the investments aren’t just a chance to get in early on new tech — they’re a way to regain eco cred. Its reputation as a sustainable company took a hit in 2024 when Canada’s Competition Bureau opened a greenwashing probe into its practices.
Why it matters: Nylon is an emissions-heavy material; the ability to reuse it could play a sizeable part in the fashion industry reaching its goal of reducing carbon emissions by 45% from 2019 levels by 2030. Right now, the industry is not on track, and emissions actually went up in 2023. Missing the target would be bad for both the environment and bottom lines.—QH
