Dive Brief:
- Lululemon participated in a $12 million funding round for bio-recycling tech startup Epoch Biodesign, which aims to commercially scale its nylon recycling technology, according to a Wednesday announcement.
- The new financing is also supported by venture capital firms Kompas VC, Happiness Capital, Extentia and Leitmotif, and brings Epoch’s total capital raised to over $50 million.
- The British startup said the financing will help support the development of a demonstration-scale facility located near Imperial College London. Epoch also has plans to bring a commercial-scale facility online in 2028, which will have the capacity to produce 20,000 metric tons of monomer — small, basic molecules that act as the building blocks for plastic — annually, according to a report from TechCrunch.
Dive Insight:
Epoch uses artificial intelligence, synthetic biology and materials science to develop specialized enzymes that can break down hard-to-recycle plastic and textile waste — especially nylon 6,6 — into monomers. Nylon 6,6 is a strong and durable material that is used extensively in textiles and plastics and can be found in everything from upholstery and carpeting to automotive components like engine covers. The material is also used in some of Lululemon’s most popular products, including its Align and Wunder Train leggings.
This process, according to Epoch, is able to produce virgin-quality recycled polymers that have a much lower carbon footprint.
“Our AI-engineered enzymes take these materials apart at the molecular level, producing virgin-quality chemical building blocks without the price volatility and environmental impact of fossil-derived products,” Epoch CEO and Founder Jacob Nathan said in a March 25 LinkedIn post. “Supply chain resilience and sustainability go hand in hand.”
Lululemon’s investment in the startup aligns with its own apparel sustainability goals, which include a target to scale alternative nylon solutions. A majority of Lululemon’s products are made from nylon and polyester, and the company seeks to invest in techniques and materials that include recycled fibers and renewable bio-based input, according to its latest impact report. For nylon in particular, Lululemon said it is focusing on teaming up with industry partners to develop renewable plant-based nylon and accelerate nylon recycling from complex plastic waste.
Last year, Lululemon expanded its partnership with environmental tech company Samsara Eco through a 10-year offtake agreement for its recycled nylon and polyester, building on an initial agreement it inked with the startup in 2023 to create “infinitely recycled” nylon and polyester. Lululemon debuted its first product made with Samsara Eco’s material the following year: a packable anorak. The latest collaboration allows Samsara Eco to produce 20% of the fibers in Lululemon’s portfolio, supporting the athleticwear giant’s goal of making more products with “preferred materials” by 2030.
Prior to this, Lululemon signed a multi-year deal with ZymoChem, a California-based biotech company, to expand its use of bio-based nylon.
Lululemon reached a 2030 target to reduce scope 1 and 2 emissions on all owned and operated facilities by 60%, compared to a 2018 baseline, nine years early, in 2021, and has maintained those operational emissions reductions since, according to its latest impact report. The athletic apparel retailer also aims to reduce the emissions intensity associated with purchased goods and services and upstream transportation and distribution — which fall into its scope 3 emissions — by 60% by 2030, compared to a 2018 baseline.
