A Force for Good: Athleta’s Impact as a Certified B Corp

Athleta is a key player in the competitive “athleisure” industry, selling comfortable, stylish clothing for any occasion ranging from intense exercise to everyday wear.[1] Athleta is also the only certified B Corp in the athleisure industry, meaning that the company has elected to adopt a legal structure that requires it to implement social and environmental considerations into its business model.[2] Not only has Athleta reduced its carbon footprint and empowered women throughout the United States, but the company’s choice to adopt the B Corp legal structure has differentiated Athleta’s market position as well.[3] Athleta has claimed that it prioritizes social and environmental impact not only because these objectives are inherently important, but also because they have a direct impact on the company’s profitability and success.[4]

Environmental Impact

Athleta publicly holds itself to a higher standard when it comes to sustainability.[5] Its primary initiatives include sourcing 100% of its store electricity in North America from renewable solar energy, using clothing material that is 75% recyclable polyester, and committing to using and creating lower-impact material with no toxic chemicals and manufactured in Fair Trade Certified factories.[6] Athleta also runs a ThredUp Clean Out Kits program, which collects and repurposes used clothing.[7] While these initiatives might help reduce Athleta’s carbon footprint, some commenters do not think that the company is doing enough to practice sustainability. Athleta has received criticism for its sub-par labor standards, which some believe fall short of providing adequate protection and livable wages.[8]

Empowering Women and Community

Athleta is the only major athleisure brand that creates and sells products exclusively for women, and the company’s primary social objective is to empower women.[9] Athleta supports programs meant to impact the lives of its majority-female apparel workers and offers thousands of free fitness and wellness events every year.[10] Through its “Inclusive Community” initiative, Athleta provides inclusive sizing in its product offerings and involves women in product design.[11] Finally, Athleta’s “Power of She” initiative includes grant programs, philanthropy, and partnerships with inspirational professional athletes such as Allyson Felix and Simone Biles.[12] The focus of this initiative is to promote and advocate for women’s well-being.[13]

Market Positioning

In order to maintain its B Corp certification, Athleta must demonstrate a certain quantifiable level of social and environmental performance as measured by B Lab, the nonprofit that grants B Corp certifications.[14] One of the primary incentives for companies such as Athleta to adopt the B Corp legal structure, on top of contributing to positive social and environmental change, is to be viewed favorably by the public and their target market in order to generate and maintain a strong customer base.[15] According to B Lab’s metrics, Athleta has gone above and beyond, far exceeding the minimum required B Corp score of 80 with a 91.9 score.[16] This is especially notable given that the average score of all corporations, including those that are not B Corp certified, is 50.9.[17] While still trailing behind Lululemon in annual revenue ($1.43 billion in 2022 compared to Lululemon’s $6 billion), Athleta remains an industry leader in sales and generates strong customer loyalty.[18] Despite conflicting views on the company’s environmental impact, Athleta has solidified itself in the market as a leading athleisure brand that acts as a “force for good.”[19] We will provide additional B Corp case studies in future posts on the Forum for Entrepreneurship & Law.

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[1] Megan Chaffey et al., Athleta B Corporation Case Study, B-Corp Case Studies by UNL Raikes Seniors (Spring 2023), https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1001&context=raikescases.

[2] Id.  Athleta first became a certified B Corp in 2018.  Id.  See also Alysse Danyi, Public Benefit Corporations and B Corps: Promoting Conscious Capitalism, The Forum on Entrepreneurship & Law at Villanova University Charles Widger School of Law (Nov. 9, 2023), https://www.vlsentrepreneurship.com/post/public-benefit-corporations-and-b-corps-promoting-conscious-capitalism (providing a more detailed background on B Corps).

[3] Athleta, Inc., B Impact Assessment (2022), https://s3.amazonaws.com/blab-impact-published-production/WwfgYJVKXxEQ73OYNqwmMXchqKgHkKHe.

[4] Id.

[5] We are a Certified B Corp, Athleta, LLC, https://athleta.gap.com/browse/info.do?cid=1191658 (Last visited Sep. 1, 2024).

[6] Id.

[7] Id.

[8] See Unveiling Athleta’s Sustainability Journey: A Deep Dive into Ethical Practices, Sustainable Review, https://sustainablereview.com/brand-ratings/athleta/ (Last visited Sep. 1, 2024).  See also Athleta, Good on You Directory, https://directory.goodonyou.eco/brand/athleta, (Last visited Sep. 1, 2024).

[9] Athleta, Inc.: Overall B Impact Score, B Lab, https://www.bcorporation.net/en-us/find-a-b-corp/company/athleta/ (Last visited Sep. 1, 2024).

[10] Id.

[11] Chaffey et al., supra note 1.

[12] Athleta, LLC, supra note 5.

[13] Id.

[14] About B Corp Certification: Measuring a Company’s Entire Social and Environmental Impact, B Lab, https://www.bcorporation.net/en-us/certification/ (Last visited Sep. 1, 2024).

[15] Id.

[16] B Lab, supra note 9.

[17] Id.

[18] Christopher Marquis, Athleta Builds B Corp Awareness While Finding Strength in Community, B the Change (Aug. 12, 2020), https://bthechange.com/athleta-builds-b-corp-awareness-while-finding-strength-in-community-138fb136b483.

[19] Danny Parisi, As Activewear Sales Slow, Athleta Turns Attention to New Categories, Glossy (Jan. 25, 2023), https://www.glossy.co/fashion/as-activewear-sales-slow-athleta-turns-attention-to-new-categories/.