- Sustainability Strategy and Goals
- Progress vs. Target Tracker
- Key Sustainability Innovations and Technologies
- Measurable Impacts
- Challenges and Areas for Improvement
- Future Plans and Long-Term Goals
- Comparisons to Industry Competitors
- Sportswear Sector Sustainability Metrics
- What to Watch: 12 to 18 Month Indicators
Under Armour, Inc. is a US-based performance apparel, footwear, and accessories brand headquartered in Baltimore, Maryland, generating $5.07 billion in revenue in fiscal year 2024 and selling products across more than 100 countries through wholesale, owned retail, and e-commerce channels. The company’s most current sustainability disclosure is the FY2023 Sustainability and Impact Report (published September 2024, covering FY2023 ending December 2023), structured around three pillars: Products (sustainable material and circular design), Home Field (environmental footprint reduction), and Team (workforce and community programs). Under Armour published 23 formal sustainability goals in 2022.
Under Armour’s sustainability profile is defined by one governance event that overshadows its operational progress: on May 9, 2025, Under Armour rescinded its 2021 SBTi-validated climate targets, formally announcing it would not pursue SBTi re-validation of its 2030 GHG reduction goal or SBTi validation of its 2050 net-zero commitment. This decision, characterized internally as a strategy reassessment, triggered a formal Green Century shareholder proposal at the September 2025 Annual General Meeting, calling for a published Climate Transition Plan. It left Under Armour as the only major US sportswear company without SBTi-validated climate targets, behind Nike, adidas, Lululemon, VF Corp., Puma, New Balance, and ASICS, all of which maintain SBTi commitments.
Source
https://about.underarmour.com/en/Purpose/Sustainability.html
https://about.underarmour.com/en/Purpose/Sustainability/reporting-and-governance.html
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
Sustainability Strategy and Goals
Under Armour’s sustainability strategy is governed by the 23 goals announced in 2022, organized across the Products, Home Field, and Team pillars. The Products pillar covers 10 goals spanning material innovation, circularity, packaging, fiber shedding reduction, and spandex elimination. The Home Field pillar covers 7 goals spanning GHG reduction, renewable electricity, biocide and fluorine DWR elimination, and manufacturing waste. The Team pillar covers 6 goals spanning workforce diversity, supplier worker rights, fair compensation, and community investment.
Under Armour joined RE100 in 2021 and committed to Business Ambition for 1.5°C, making its subsequent May 2025 SBTi target withdrawal a particularly visible governance reversal. The company’s retained commitments, including 30% absolute Scope 1, 2, and 3 GHG reduction by 2030, net-zero by 2050, and 100% renewable electricity by 2030, remain in force as self-declared goals without SBTi independent validation. The Green Century shareholder proposal at the September 2025 Annual General Meeting requested a published Climate Transition Plan aligned with stated goals and covering capital allocation, supply chain decarbonization, and measurable interim milestones.
Net Zero and Carbon Emissions
Under Armour’s total GHG footprint in FY2023 (the most recent year with published data) was approximately 1.668 million MTCO₂e across Scope 1, 2, and 3, a 12.46% increase compared to FY2021. Total Scope 1 emissions in FY2023 were 3,614 MTCO₂e, down 37.7% from FY2019 and down 25.3% year over year. Scope 2 market-based emissions in FY2023 were 33,044 MTCO₂e. Scope 3 emissions dominated the footprint at approximately 1.631 million MTCO₂e in FY2023, representing 97.8% of total GHG, driven by upstream manufacturing, raw material production, and product logistics across approximately 150 factory partners.
- Total GHG footprint (FY2023): approximately 1.668 million MTCO₂e (Scope 1, 2, and 3); up 12.46% from FY2021
- Scope 1 emissions (FY2023): 3,614 MTCO₂e; down 37.7% since FY2019; down 25.3% year over year from FY2022
- Scope 2 market-based emissions (FY2023): 33,044 MTCO₂e; location-based: 33,713 MTCO₂e
- Scope 3 emissions (FY2023): approximately 1.631 million MTCO₂e; 97.8% of total GHG footprint
- Total operational emissions, Scope 1 and 2 (FY2023): 36,658 MTCO₂e market-based; among the lowest absolute values per dollar of revenue in the sportswear sector
- 2018 GHG baseline: used for the 30% absolute reduction target by 2030 covering Scope 1, 2, and 3
- 30% absolute Scope 1, 2, and 3 GHG reduction target: by 2030 vs. 2018 baseline; self-declared; SBTi validation rescinded May 2025
- Net-zero GHG target: 2050; self-declared; SBTi validation not pursued as of May 2025
- 100% renewable electricity in owned and operated facilities: by 2030; interim target of 80% by 2025; RE100 member
- Under Armour is now the only major US sportswear company without SBTi-validated climate targets; competitors Nike, adidas, Lululemon, VF Corp., Puma, New Balance, and ASICS maintain SBTi commitments
- Green Century shareholder proposal (September 2025 AGM): requested Climate Transition Plan covering capital allocation alignment, supply chain decarbonization, and interim milestones
- Under Armour board recommended a vote against the Green Century Climate Transition Plan proposal
Water Stewardship
Under Armour’s water sustainability strategy is in active development as of 2025, with the company engaged in a formal landscape analysis and benchmarking program covering water efficiency and biodiversity risks. In 2024, Under Armour engaged Emily Purcell through EDF Climate Corps to assess water efficiency across the value chain, benchmark against 17 peer organizations, and develop water policies aligned with emerging mandatory sustainability reporting standards. Water use in Under Armour’s direct operations is relatively low as the company does not operate wet processing (dyeing, finishing) facilities and sources finished goods from contract manufacturers.
- EDF Climate Corps engagement (2024): Emily Purcell conducted value chain water risk assessment and benchmarking against 17 peer organizations to inform water efficiency policy development
- No published absolute water withdrawal reduction target or net positive water commitment as of FY2023 Sustainability and Impact Report
- Water stewardship at supplier facilities: Under Armour’s Supplier Code of Conduct requires suppliers to comply with local water regulations and manage water use responsibly
- Home Field pillar goals: include advancing low-impact manufacturing and reducing environmental impact of materials; water use embedded in these goals
- No Alliance for Water Stewardship certification or equivalent external water stewardship certification at any Under Armour facility confirmed in FY2023 report
- Under Armour’s direct water footprint is concentrated in corporate offices, distribution centers, and owned retail stores; manufacturing water use occurs entirely at approximately 150 third-party factory partners
Regenerative Agriculture
Under Armour has no agricultural commodity supply chain at the food ingredient level and makes no formal regenerative agriculture commitments. Its supply chain analogue is the use of plant-based and bio-based raw materials in performance apparel, including cotton, natural rubber, and bio-based elastomer alternatives, where sustainable sourcing practices overlap with regenerative agriculture principles. Under Armour’s EDF Climate Corps engagement in 2024 included an assessment of nature and biodiversity risks across the value chain, including upstream fiber production.
- No formal regenerative agriculture commitments or targets
- Bio-based fiber sourcing: NEOLAST fiber (with Celanese) uses recyclable elastoester polymers, eliminating hazardous chemicals in elastane production and providing a bio-based alternative to conventional spandex
- Target: eliminate 75% of spandex in all products by 2030
- Upstream material sustainability: cotton and natural fiber sourcing standards governed by Supplier Code of Conduct and material specifications
- EDF Climate Corps 2024: nature and biodiversity assessment of value chain, including upstream fiber production ecosystems, for integration into formal governance
Deforestation and Biodiversity
Under Armour’s biodiversity governance is in early development, formally acknowledged as a gap in the 2024 EDF Climate Corps engagement brief, which noted that UA is refining nature and water sustainability goals to align with evolving standards and emerging biodiversity regulations. The company has no published deforestation-free supply chain commitment covering plant-based fibers, no TNFD disclosure, and no Taskforce on Nature-related Financial Disclosures-aligned nature risk assessment published as of its FY2023 Sustainability and Impact Report.
- No published deforestation-free supply chain commitment for natural fiber categories
- No TNFD disclosure published as of FY2023 Sustainability and Impact Report
- EDF Climate Corps 2024: nature risk assessment commissioned to inform future biodiversity governance
- NEOLAST fiber program: eliminates potentially hazardous solvents in elastane production through melt-extrusion process, reducing chemical discharge to ecosystems
- Target: eliminate 100% of biocides and fluorine DWR (durable water repellent) in products by 2025; biocides and fluorine DWR persist in ecosystems and bioaccumulate in aquatic organisms
- Supplier environmental compliance: required under Supplier Code of Conduct; includes chemical management and wastewater treatment standards
Packaging and Circular Economy
Under Armour’s circular economy strategy, the most concrete and commercially advanced component of its sustainability program, spans four tracks: recycled material adoption (primarily recycled polyester), spandex elimination and replacement (NEOLAST), single-use plastic packaging reduction, and end-of-life take-back. Target: use only recycled polyester in apparel and accessories by 2030, reaching at least 35% by 2025. Target: reduce single-use plastic brand product packaging by 75% by 2025. In FY2023, more than 300 products used recycled polyester, including the Tech Tee and Armour Fleece, which feature 100% recycled polyester.
- Target: 100% recycled polyester in apparel and accessories by 2030; at least 35% by 2025
- FY2023: more than 300 products used recycled polyester; Tech Tee and Armour Fleece feature 100% recycled polyester
- Target: single-use plastic brand product packaging reduced by 75% by 2025; 50% reduction by 2023
- Target: footwear uppers in highest-volume series to contain at least 50% recycled or bio-based materials by 2030
- Target: sustainability and circular design principles implemented in at least 50% of products by 2027
- Target: circular footwear program launched at scale by 2030
- Target: eliminate 75% of spandex in all products by 2030; replace with NEOLAST recyclable elastoester fiber
- NEOLAST fiber (Celanese partnership, FY2024): recyclable elastoester polymer; enables recycling of stretch fabrics that previously could not be recycled due to spandex content; solvent-free production process
- Target: 75% of fabrics to be made of low-shed materials by 2030; Under Armour developed a new fiber shedding testing methodology in FY2023
- Target: extend life of at least 75% of damaged and defective returned products through repair and recycling by 2025
- Take-back program: pilot launched in one or more regions by 2023; global expansion planned by 2025
- At end of FY2021: approximately 40% of apparel and accessories fabrics were made from materials capable of being recycled
Human Rights and Responsible Sourcing
Under Armour’s supply chain social compliance program is accredited by the Fair Labor Association (FLA), the most rigorous external accreditation standard for apparel supply chain labor rights in the US, requiring independent monitoring, remediation evidence, and worker voice mechanisms. The program covers approximately 150 factory partners across approximately 30 countries, with a focus on the highest-risk geographies for labor rights including Bangladesh, Vietnam, Cambodia, and Indonesia. The Worker Voice Program, launched in 2020 with Ulula and Labor Solutions, provides anonymous grievance channels and survey capability directly to workers at strategic supplier facilities.
- Fair Labor Association (FLA) accreditation: Under Armour’s supply chain social compliance program is FLA-accredited; requires independent monitoring, remediation evidence, and worker voice mechanisms
- Supplier Code of Conduct: aligned with FLA guidelines and core ILO Conventions; covers forced labor, child labor, fair compensation, hours of work, freedom of association, collective bargaining, nondiscrimination, harassment, and retaliation
- Worker Voice Program (2020): partnership with Ulula and Labor Solutions; anonymous grievance hotlines and survey capability at strategic supplier facilities; dashboard monitoring for Under Armour compliance teams
- Migrant Worker Policy and Standards: published and enforced across supply chain; covers entire employment life cycle for migrant workers in supplier facilities
- Global Human Rights Commitment: published and aligned with UN Guiding Principles on Business and Human Rights (UNGP); covers five focus areas: operations, supply chain, digital products, communities, and environment
- Fair Compensation Commitment Statement: published; goal to implement a fair compensation strategy across supply chain by 2025, with pilot initiatives at strategic suppliers by 2023
- Australia Modern Slavery Statement 2025: published; covers supply chain risk assessment and supplier due diligence process
- No major active labor rights litigation equivalent to McDonald’s franchise wage theft cases confirmed in FY2023 Sustainability and Impact Report
Nutrition and Health
Under Armour is a performance apparel and footwear company with no food or beverage product portfolio and no nutrition commitments. Its health-related sustainability contributions center on athlete performance, worker health and safety at corporate and distribution facilities, and the reduction of hazardous chemicals in apparel production that affect both garment workers and consumers.
- No nutrition or food-related sustainability commitments
- Target: eliminate 100% of biocides and fluorine DWR in products by 2025; both substances present documented health risks for garment workers and potential consumer skin contact exposure
- Teammate health and safety: governed by occupational health and safety programs across all UA-owned and operated facilities globally
- NEOLAST fiber manufacturing: eliminates solvent-based production, reducing occupational chemical exposure for textile workers at Celanese manufacturing facilities
- Chemical management in supply chain: suppliers required to comply with UA’s Restricted Substances List (RSL) and Manufacturing Restricted Substances List (MRSL)
Community and Social Impact
Under Armour’s community programs span athlete empowerment, employee development, and community investment through UA Foundation partnerships. The company directly employs approximately 16,600 teammates globally. UA’s social sustainability goals covering workforce diversity, equity, and inclusion are aligned with the Team pillar of the 23 sustainability goals.
- Direct employment: approximately 16,600 teammates globally
- Team pillar goals: invest in teammate health, safety, and well-being; advance diversity, equity, and inclusion; develop underrepresented talent at all levels
- Worker Voice Program: extends social sustainability accountability beyond UA’s direct workforce to approximately 150 strategic supplier facilities globally
- Fair Compensation pilot: initiated at strategic supplier sites by 2023, with full supply chain implementation targeted by 2025
- Community investment: under-armour.com/purpose and UA Foundation activities cover youth sport and community engagement programs
- No formal numerical DEI representation goal rollback announced as of the FY2023 report, unlike McDonald’s and Intel which removed numerical targets in 2025
Governance and Transparency
Under Armour’s sustainability governance is overseen by the Board’s Compensation and Corporate Responsibility Committee, with the Chief Sustainability Officer reporting through the CEO. The FY2023 Sustainability and Impact Report is aligned with GRI and SASB. The most material governance event since FY2023 is the May 2025 SBTi target withdrawal, which under Green Century’s analysis creates four material financial risks: competitive disadvantage versus SBTi-committed peers, reputational harm, supply chain disruption from climate-vulnerable sourcing geographies, and failure to meet rising investor disclosure expectations under CSRD and SEC climate disclosure frameworks.
- FY2023 Sustainability and Impact Report: aligned with GRI and SASB
- Board oversight: Compensation and Corporate Responsibility Committee
- SBTi targets (2021 to May 2025): 30% absolute Scope 1, 2, and 3 GHG reduction by 2030 validated by SBTi; net-zero 2050 commitment to Business Ambition for 1.5°C
- SBTi withdrawal (May 9, 2025): Under Armour announced it would not pursue SBTi re-validation of 2030 goal or validation of 2050 net-zero commitment
- Green Century shareholder proposal (September 2025 AGM): Proposal 4 requested a Climate Transition Plan; board recommended a vote against
- Under Armour is RE100 member: commitment to 100% renewable electricity by 2030 remains in force despite SBTi withdrawal
- No TCFD-aligned standalone climate risk disclosure published as of FY2023 report
- No TNFD nature-related financial disclosure published as of FY2023 report
Technology and Innovation
Under Armour’s sustainability technology innovations concentrate on fiber and material innovation, fiber shedding reduction, DWR chemistry substitution, and circular packaging design.
- NEOLAST fiber (Celanese partnership, launched FY2024): recyclable elastoester polymer replacing conventional elastane (spandex); produced by solvent-free melt-extrusion process; enables recycling of blended stretch fabrics previously unrecyclable; supports 75% spandex elimination target by 2030
- Fiber shedding testing methodology (FY2023): Under Armour developed a new standardized test method to measure a fabric’s propensity to shed microplastics; supports 75% low-shed fabric target by 2030
- Recycled polyester adoption: more than 300 products use recycled polyester in FY2023; Tech Tee and Armour Fleece feature 100% recycled polyester; targets 100% recycled polyester in apparel and accessories by 2030
- DWR chemistry substitution: target to eliminate 100% of fluorine DWR by 2025; transitioning to non-persistent water repellent chemistries
- Biocide elimination: target to eliminate 100% of biocides in products by 2025
- Circular footwear program: chemistry and process development underway for scalable circular footwear by 2030
- Circular design principles: to be implemented in at least 50% of products by 2027
Global Partnerships and Advocacy
Under Armour’s key sustainability partnerships span fiber innovation (Celanese), labor rights (Fair Labor Association, Ulula, Labor Solutions), worker voice (UNGP framework), circular economy development, and renewable electricity (RE100).
- RE100: member since 2021; commitment to 100% renewable electricity in owned and operated facilities by 2030
- Fair Labor Association (FLA): supply chain social compliance program accredited by FLA; one of fewer than 30 apparel companies globally with FLA accreditation
- Celanese NEOLAST partnership: co-developed recyclable elastoester fiber for stretch fabric circularity
- Ulula and Labor Solutions: Worker Voice Program at strategic supplier facilities
- Business Ambition for 1.5°C: signatory as of 2021 net-zero commitment; status following May 2025 SBTi withdrawal unclear
- EDF Climate Corps: Emily Purcell 2024 engagement for water, biodiversity, and Scope 3 strategic recommendations
Source
https://about.underarmour.com/en/Purpose/Sustainability.html
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
https://www.greencentury.com/investors-call-on-under-armour-to-step-up-climate-game-at-annual-meeting/
Progress vs. Target Tracker
Source
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
https://tracenable.com/company/under-armour/ghg-emissions
https://www.stocktitan.net/sec-filings/UAA/px14a6g-under-armour-inc-sec-filing-97fff51dd7be.html
Key Sustainability Innovations and Technologies
Under Armour’s most significant sustainability innovations concentrate in material science, particularly the NEOLAST recyclable elastomer, fiber shedding methodology development, and the recycled polyester transition program.
NEOLAST: Recyclable Elastomer for Performance Stretch Fabrics
The conventional elastane (spandex) challenge in circular textile economy is well documented: stretch fabrics containing elastane cannot be recycled because spandex does not melt or dissolve cleanly enough for polymer recovery, contaminating recycling streams and making blended stretch fabrics effectively end-of-life at first use. Under Armour and Celanese developed NEOLAST fiber, commercially launched in FY2024, as the first recyclable elastoester polymer specifically engineered for performance stretch fabrics. NEOLAST is produced through a solvent-free melt-extrusion process that eliminates the potentially hazardous chemicals used in conventional elastane production, reducing occupational chemical exposure at manufacturing facilities and eliminating chemical discharge risks to surrounding ecosystems. The fiber delivers performance characteristics comparable to spandex while being compatible with future textile recycling infrastructure, positioning it as the enabling technology for Under Armour’s 75% spandex elimination target by 2030 and its circular footwear and apparel program by 2030.
Fiber Shedding Measurement Methodology
Microplastic fiber shedding from synthetic textiles is recognized by the European Chemicals Agency and the US Environmental Protection Agency as a significant source of microplastic pollution in waterways and ocean environments, with polyester and nylon-based sportswear among the highest-shedding fabric categories. Under Armour developed a new standardized fiber shedding testing methodology in FY2023 that provides a simplified process to accurately measure a fabric’s propensity to shed during washing. This methodology enables the design teams and material suppliers to quantitatively compare fabric architectures, finishes, and yarn treatments for shedding performance during the product development stage, before materials are committed to production. The industry applicability of this methodology is significant: Under Armour explicitly committed to working collectively with industry peers to shape leading guidance on fabric shedding standards, positioning UA as a potential governance contributor to sector-wide microplastic reduction standards.
Recycled Polyester Product Integration
Under Armour’s recycled polyester program, covering more than 300 products in FY2023 including its highest-volume Tech Tee and Armour Fleece categories at 100% recycled polyester, represents the most commercially deployed sustainability innovation in the company’s current product portfolio. Recycled polyester (rPET) produced from post-consumer PET bottles reduces the energy intensity of fiber production by approximately 50% versus virgin polyester and reduces GHG per kilogram of fiber by approximately 32%. The 100% recycled polyester implementation in the Tech Tee alone, a high-volume program item sold across all UA markets, translates to a measurable absolute reduction in upstream Scope 3 Category 1 emissions per unit sold. The 2030 target of 100% recycled polyester across all apparel and accessories would extend this impact across the full apparel product line.
Source
https://about.underarmour.com/en/stories/2024/01/celanese-and-under-armour-develop-innovative-new-neolast–fiber-.html
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
https://tracenable.com/company/under-armour/ghg-emissions
Measurable Impacts
Under Armour’s FY2023 Sustainability and Impact Report and third-party ESG data provide the following multi-year performance data.
- Total GHG footprint (FY2023): approximately 1.668 million MTCO₂e (Scope 1, 2, and 3); up 12.46% from FY2021
- Scope 1 emissions (FY2023): 3,614 MTCO₂e; down 37.7% since FY2019; down 25.3% from FY2022
- Scope 2 market-based emissions (FY2023): 33,044 MTCO₂e; location-based: 33,713 MTCO₂e
- Scope 3 emissions (FY2023): approximately 1.631 million MTCO₂e; 97.8% of total GHG footprint
- Total operational GHG (Scope 1 and 2, FY2023): 36,658 MTCO₂e market-based; among lowest absolute values per revenue dollar in sportswear
- Scope 1 GHG intensity: one of the lowest intensities relative to sportswear peers
- Products using recycled polyester (FY2023): more than 300 products
- Tech Tee and Armour Fleece: 100% recycled polyester
- FY2021 apparel and accessories with recyclable-capable materials: approximately 40%
- Worker Voice Program: anonymous grievance hotlines and surveys active at strategic supplier facilities globally; dashboard monitoring in place
- Fair Compensation pilots: initiated at strategic supplier sites
- NEOLAST fiber: commercially launched FY2024; first recyclable elastoester fiber for performance stretch apparel
- Fiber shedding testing methodology: developed FY2023; enables product-level microplastic reduction design
- SBTi-validated targets: rescinded May 2025
Source
https://about.underarmour.com/en/Purpose/Sustainability.html
https://tracenable.com/company/under-armour/ghg-emissions
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
Challenges and Areas for Improvement
Under Armour faces five material sustainability challenges, of which the SBTi withdrawal and Scope 3 trajectory are the most governance-critical.
SBTi Target Withdrawal: Governance Credibility Gap
On May 9, 2025, Under Armour formally rescinded its SBTi-validated 2030 GHG reduction targets and withdrew its commitment to pursue SBTi validation of its 2050 net-zero goal. The company retained the targets as self-declared goals, but without independent validation, these commitments carry no third-party accountability mechanism. The Green Century analysis submitted to the September 2025 AGM quantified four material risks from this decision: competitive disadvantage versus Nike, adidas, Lululemon, VF Corp., Puma, New Balance, and ASICS, all of which maintain SBTi-validated targets; reputational harm from the gap between UA’s public 2021 “tackle climate change” announcement and the 2025 reversal; supply chain disruption risk from cotton, port, and labor market climate vulnerability; and rising investor disclosure expectations under SEC climate disclosure rules and CSRD extraterritorial reach.
Total GHG Increasing, Not Declining
Under Armour’s total GHG footprint increased 12.46% from FY2021 to FY2023, the most recently published data period. The 2018 base year target of a 30% absolute reduction by 2030 requires approximately 500,000 MTCO₂e of absolute reduction from the 2018 baseline, predominantly from Scope 3 manufacturing and raw material emissions. With total GHG growing in the most recently published years and the company having rescinded its SBTi validation, there is no independent confirmed trajectory toward the 30% by 2030 goal. The Scope 3 dominance at 97.8% of total GHG means that operational improvements in Scope 1 and 2, no matter how effective, cannot deliver the required absolute reduction without transforming the upstream supply chain, specifically energy use at approximately 150 factory partners.
No Independent Climate Disclosure Framework
Under Armour does not publish a TCFD-aligned climate risk disclosure, a TNFD nature-related financial disclosure, or a standalone CDP-verified climate questionnaire result in its most recent public reporting. The Green Century filing confirmed that UA lacks a published Climate Transition Plan showing how capital allocation will align with stated GHG reduction goals. In a regulatory environment where the EU CSRD and SEC climate disclosure rules are expanding mandatory TCFD-aligned reporting obligations, the absence of these frameworks represents a governance gap that will generate increasing compliance pressure, particularly for Under Armour’s European wholesale and institutional investor relationships.
Scope 3 Supply Chain Concentration Risk
Under Armour’s Scope 3 emissions, at 97.8% of total GHG and approximately 1.631 million MTCO₂e in FY2023, are concentrated in raw material production and manufacturing at approximately 150 factory partners across Vietnam, Indonesia, China, Bangladesh, and Cambodia. The 2024 EDF Climate Corps engagement confirmed that UA is still in the process of assessing its full Scope 3 value chain emissions, including customer product use emissions, meaning the published FY2023 Scope 3 figure may understate total value chain GHG. The primary mechanism for reducing Scope 3 at this scale is supplier factory renewable energy transition, which requires either direct capital investment, power purchase agreement facilitation, or supplier incentive programs. No published program at this scale exists in Under Armour’s current sustainability framework.
Biodiversity and Water Policy Immaturity
Under Armour formally acknowledged in its 2024 EDF Climate Corps engagement brief that it is refining nature and water sustainability goals and assessing value chain risks in response to emerging mandatory sustainability reporting. This is an honest disclosure, but it means that in 2025 and 2026, Under Armour lacks published biodiversity targets, a TNFD disclosure, a water risk policy covering supplier facilities in water-stressed geographies, and a formal deforestation-free supply chain commitment. Peers including adidas (TNFD early adopter), Nike (water targets in high-risk manufacturing areas), and VF Corp. (nature-based solutions commitments) are materially ahead of Under Armour in nature-related governance.
Source
https://about.underarmour.com/en/Purpose/Sustainability.html
https://www.stocktitan.net/sec-filings/UAA/px14a6g-under-armour-inc-sec-filing-97fff51dd7be.html
https://tracenable.com/company/under-armour/ghg-emissions
Future Plans and Long-Term Goals
Under Armour’s forward roadmap through 2025, 2027, 2030, and 2050 concentrates on circular material integration, DWR and biocide elimination, supplier fair compensation, and retaining self-declared GHG reduction goals without SBTi validation.
- Achieve 35% recycled polyester in apparel and accessories by 2025; 100% by 2030
- Eliminate 100% of biocides and fluorine DWR in products by 2025
- Reduce single-use plastic brand product packaging by 75% by 2025
- Implement sustainability and circular design principles in at least 50% of products by 2027
- Implement fair compensation strategy across full supply chain by 2025
- Achieve 80% renewable electricity in owned and operated facilities by 2025 and 100% by 2030
- Launch circular footwear program at scale by 2030
- Achieve 100% recycled polyester in apparel and accessories by 2030
- Achieve 50% recycled or bio-based materials in highest-volume footwear upper series by 2030
- Eliminate 75% of spandex in all products by 2030 through NEOLAST and other bio-based alternatives
- Achieve 75% low-shed fabrics across product line by 2030
- Achieve 30% absolute Scope 1, 2, and 3 GHG reduction by 2030 (self-declared; SBTi validation rescinded)
- Achieve net-zero GHG emissions by 2050 (self-declared; SBTi validation not pursued)
- Develop and publish a Climate Transition Plan, as formally requested by the Green Century September 2025 shareholder proposal
Against its primary sportswear peers, Under Armour currently lags Nike, adidas, Puma, Lululemon, VF Corp., New Balance, and ASICS on GHG governance, being the only major US sportswear company without SBTi-validated climate targets as of May 2025. On material innovation, the NEOLAST recyclable elastomer and the fiber shedding testing methodology represent genuine technical advances that no competitor has commercially deployed at equivalent specificity for stretch fabric circularity. On supply chain labor governance, FLA accreditation places Under Armour above most mid-sized sportswear brands and comparable to Nike.
Source
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
https://www.greencentury.com/investors-call-on-under-armour-to-step-up-climate-game-at-annual-meeting/
Comparisons to Industry Competitors
Under Armour is benchmarked against Nike (the world’s largest sportswear company by revenue) and adidas (the world’s second-largest), both of which are Under Armour’s primary direct competitors and the primary companies cited in the Green Century shareholder proposal as governance benchmarks.
Sportswear Sector Sustainability Metrics
Under Armour’s structural sustainability disadvantage versus Nike and adidas is concentrated in three areas: GHG governance (SBTi withdrawal), renewable electricity progress confirmation (80% interim 2025 target not confirmed), and nature-related governance maturity (no TNFD, no deforestation commitment). Its structural technical advantage is the NEOLAST fiber innovation for stretch fabric circularity, which neither Nike nor adidas has commercially deployed at equivalent specificity, and its FLA-accredited supply chain labor governance, which places it in the same governance tier as Nike on the most important social compliance dimension.
Source
https://about.underarmour.com/en/Purpose/Sustainability.html
https://www.stocktitan.net/sec-filings/UAA/px14a6g-under-armour-inc-sec-filing-97fff51dd7be.html
https://www.greencentury.com/investors-call-on-under-armour-to-step-up-climate-game-at-annual-meeting/
What to Watch: 12 to 18 Month Indicators
Three signals over the next 12 to 18 months will determine whether Under Armour rebuilds climate governance credibility or becomes a persistent laggard among sportswear ESG benchmarks.
Climate Transition Plan Response to Green Century Shareholder Proposal
The Green Century shareholder proposal filed for the September 2025 AGM requested a published Climate Transition Plan covering capital allocation, supply chain decarbonization, and interim GHG milestones. The Under Armour board recommended a vote against the proposal. Whether the resolution achieved material shareholder support, above 30%, will determine the board’s response engagement obligation. If major institutional holders including BlackRock, Vanguard, State Street, and Norges Bank Investment Management supported the Green Century proposal, Under Armour will face a formal shareholder engagement process on Climate Transition Plan development in 2026. Publishing a Climate Transition Plan in 2026, even without SBTi re-submission, would be the minimum governance response required to retain institutional investor confidence. The absence of a Climate Transition Plan beyond FY2026 would place Under Armour in direct conflict with the SEC’s climate-related disclosure requirements and CSRD extraterritorial provisions, both of which are expected to require transition plan disclosure for qualifying companies.
FY2024 Sustainability and Impact Report GHG Data
Under Armour’s FY2023 Sustainability and Impact Report (published September 2024) showed total GHG increasing 12.46% from FY2021. The FY2024 report (expected September 2025) will provide the first GHG data covering a period after the May 2025 SBTi withdrawal announcement. If total GHG declined in FY2024, driven by Scope 3 reduction through increased recycled material use, renewable energy at supplier facilities, or reduced production volume, it would signal that the retained self-declared 30% reduction target retains credibility despite the loss of SBTi validation. If total GHG continues to increase in FY2024, the gap between Under Armour’s public sustainability commitments and its measured performance will widen further, intensifying the investor and NGO engagement pressure. The FY2024 Scope 2 market-based figure will also confirm whether the 80% renewable electricity interim target for 2025 was achieved.
NEOLAST Commercial Scale-Up and Industry Adoption
NEOLAST fiber was commercially launched in FY2024. The 12 to 18 month window will show whether Under Armour scales NEOLAST adoption across its stretch fabric product lines at a pace consistent with the 75% spandex elimination target by 2030. A confirmed adoption rate showing NEOLAST in a material percentage of new product introductions for FY2025, published in the FY2025 Sustainability and Impact Report, would demonstrate that the company’s circular material strategy is proceeding independently of the climate governance setback. NEOLAST’s broader significance is its potential for industry adoption: if Under Armour and Celanese make the fiber specification and production process available to other brands, it would represent a contribution to sector-wide stretch fabric circular economy infrastructure equivalent in significance to Nike’s Flyknit reduced-waste knitting technology. Absence of publicly confirmed NEOLAST volume adoption in FY2025 would indicate that the innovation remains at pilot scale without commercial momentum.
Sources
https://about.underarmour.com/en/Purpose/Sustainability.html
https://www.stocktitan.net/sec-filings/UAA/px14a6g-under-armour-inc-sec-filing-97fff51dd7be.html
https://about.underarmour.com/en/stories/2024/01/celanese-and-under-armour-develop-innovative-new-neolast–fiber-.html
Under Armour’s sustainability record through FY2023 reflects a company with genuine programmatic foundations, FLA accreditation, a digitally advanced Worker Voice Program, the industry’s first publicly available microfiber shedding test method, and a recycled polyester integration track record in its highest-volume products, alongside three governance failures that individually would be manageable but collectively constitute a credibility crisis: the October 2022 SBTi withdrawal, a two-year sustainability disclosure gap with no confirmed publication date, and a Scope 3 GHG trajectory that is moving upward rather than toward the 30% reduction target.
The restructuring program is a legitimate operational context that explains the disclosure gap but does not justify it. Under Armour’s most urgent sustainability governance action is not a new program or target, but the publication of two years of overdue data, the resumption of annual sustainability reporting as an unconditional corporate disclosure obligation, and a clear statement on SBTi re-engagement timeline. Without these baseline governance actions, every program advance, from the Behind the Break co-leadership to the recycled polyester integration, is evaluated by external stakeholders in an information vacuum that amplifies risk perception beyond the underlying operational reality.
Three strategic takeaways for practitioners benchmarking or replicating this approach:
- Open-source sustainability innovation creates durable competitive differentiation: Under Armour’s decision to make the James Heal microfiber shedding test method publicly available to the entire textile industry, at no cost, is a counterintuitive competitive strategy that produces four simultaneous benefits. It accelerates industry-wide adoption of the measurement standard that Under Armour helped design. It positions Under Armour as a technical authority in microfiber science. It generates goodwill across the mills and suppliers that adopt the method. It creates a measurable performance baseline against which Under Armour’s own reduced-shed products can demonstrate verified improvement. Practitioners designing sustainability innovation programs should evaluate which proprietary sustainability methodologies or test methods would generate greater value if made publicly available than if kept proprietary, particularly in areas where industry-wide progress accelerates the market conditions needed for the company’s own commercial sustainability goals. The James Heal partnership model, in which a co-developed tool is released without licensing restrictions, is the most effective mechanism available to a mid-sized athletic brand for punching above its R&D budget weight on a systemic pollution problem.
- FLA accreditation plus digital Worker Voice is the minimum viable infrastructure for ethical supply chain governance in Asia: The combination of FLA accreditation and the Ulula Worker Voice platform represents the current industry standard for supply chain human rights due diligence in the athletic apparel sector. FLA accreditation ensures that the corporate compliance program meets independently assessed standards for policy rigor, monitoring scope, and remediation processes. The Ulula platform ensures that workers have a direct, anonymous, mobile-accessible channel to report violations that bypasses the factory management hierarchy that most traditional audit processes rely on. This architecture specifically protects migrant workers, the most vulnerable population in Under Armour’s Asian supply chain, who face the highest risk of wage theft, recruitment fee exploitation, and retaliation for speaking to brand compliance teams. Practitioners managing supply chain human rights in the apparel, footwear, or consumer electronics sectors should treat this combination as a baseline, not a best practice, because the Body Fashion Thailand Worker Rights Consortium finding in 2025 demonstrates that even accredited programs with Worker Voice infrastructure cannot eliminate violations across a 37-supplier network spanning six countries with different labor law enforcement regimes. The program reduces the frequency and severity of violations and improves remediation speed. It does not eliminate structural labor risk in geographies where migrant worker legal protections are inadequately enforced.
- Sustainability governance continuity must be maintained through corporate restructuring, not deferred until after it: Under Armour’s two-year disclosure gap coincides precisely with its $255 million restructuring program, a pattern that recurs across industries where sustainability teams and programs are among the first to be deprioritized during financial stress. The governance risk is that sustainability data gaps during restructuring periods occur exactly when suppliers, workers, and investors most need transparency. Supplier relationships change during restructuring: facilities are added or dropped, audit cadences are disrupted, and worker populations most exposed to exploitation during factory transitions are most vulnerable. Practitioners responsible for sustainability governance during corporate restructuring should treat annual sustainability disclosure as a non-negotiable continuity obligation, ring-fence the sustainability reporting budget from operational cost reduction exercises, and produce an interim disclosure covering any year in which a full report cannot be published on schedule. A one-page interim GHG and material target update published on the standard annual schedule is structurally superior to a comprehensive report published two years late. The reputational cost of a disclosure gap is compounded by each additional reporting cycle missed, and recovery requires not just the overdue report but a credible forward-looking commitment to disclosure continuity that external stakeholders can hold the company accountable to. The lesson from Under Armour’s 2022 to 2026 period is that sustainability governance credibility, once eroded through a combination of SBTi withdrawal and disclosure silence, requires a significantly larger investment to rebuild than it would have cost to maintain through the restructuring period.
Sources
https://about.underarmour.com/en/Purpose/Sustainability/environment.html/
https://www.childrights-business.org/public/uploads/files/20231212/Under%20Armour%20FINAL_FY2023_SIR_09.08.23.pdf
https://about.underarmour.com/en/stories/press-releases/release.24831.html
