Patagonia
Climate Impact & Sustainability Data (2017-05-01 to 2018-04-30, 2022)
Reporting Period: 2017-05-01 to 2018-04-30
Environmental Metrics
Total Carbon Emissions:3942 tCO2e/year (Scope 1 & 2)
Total Energy Consumption:7,807,456 kWh/year
ESG Focus Areas
- Environmental Conservation
- Social Responsibility
- Governance
- Climate Change
- Sustainable Supply Chain
Environmental Achievements
- Donated $10 million from Black Friday sales to environmental nonprofits
- Launched Patagonia Action Works platform connecting customers with environmental groups
- Filed lawsuit against President Trump to protect Bears Ears and Grand Staircase-Escalante National Monuments
- Contributed to the creation of Pumalín National Park – Douglas R. Tompkins and Patagonia National Park in Chile
- Reduced CO2 emissions by 94% in US-to-Europe shipping
- Put 13,118,003 kWh of solar energy on the grid through solar fund
- Converted Baggies shorts to 92% recycled nylon, reducing water use by 52% and CO2 emissions by 18%
- Launched ReCircle collection using REFIBRA™ lyocell fibers made from recycled cotton scraps
- Introduced yearling mussels from organically certified Galician coast to Patagonia Provisions product line
Social Achievements
- Funded 1,210 grants totaling $2.8 million to 153 organizations fighting climate change and promoting sustainable energy
- Funded 1,210 grants totaling $2.6 million to support the protection of public lands
- Provided $2.3 million in employee support during California wildfires and mudslides
- 42,000 apparel workers earned Fair Trade premium or improved benefits
- 90% of Tier 1 finished-goods suppliers trained through grievance system program
- 100% of Patagonia moms who took maternity leave returned to work
- 56% of parents in the U.S. who took parental leave were dads
- Hosted 2,345 free community events at North American stores
- Trained 82,088 workers in 44 supplier factories in comprehensive fire safety
- Provided $0 health insurance premiums for full- and part-time employees
Governance Achievements
- Achieved a score of 152 out of 200 on B Lab’s Impact Assessment
- Published 51 posts or position papers on various ESG issues
- Engaged 108 university student teams in annual Patagonia Case Competition on carbon neutrality
- Implemented preferable purchasing principles for vendors
- Conducted waste audits at Ventura headquarters and Reno distribution center
- Participated in Regenerative Organic Fiber Summit
Climate Goals & Targets
Medium-term Goals:
- Carbon neutral throughout supply chain by 2025
Short-term Goals:
- 100% renewable energy in owned and operated footprint by end of 2020
Environmental Challenges
- Growing business leading to increased overall environmental footprint despite per-unit reductions
- Conflicts between product performance and environmental/social responsibility
- Difficulty gathering accurate data on resource use and waste
- Space and ownership constraints limiting on-site renewable energy generation
- High cost of transitioning to organic and regenerative organic agriculture
- Slow adoption rates of independently developed environmental and social standards
- Inability to achieve full transparency due to supplier privacy concerns
- Exposure to criticism due to open transparency about business practices
- Rising housing costs making it challenging for employees to find affordable housing
Mitigation Strategies
- Focus on reducing overall negative impact of product manufacturing even as sales expand
- Continuous improvement approach to managing conflicts between performance and ESG
- Developing methodologies to measure waste footprint
- Investing in off-site renewable energy projects (residential solar fund)
- Commitment to long-term benefits of regenerative organic agriculture despite short-term costs
- Collaborative approach to developing standards (Regenerative Organic Certification)
- Regular supplier audits and sharing of key findings
- Proactive communication and engagement with stakeholders
- Exploring solutions for employee housing (home loan assistance, short-term housing, subsidized housing, partnerships with municipalities)
Supply Chain Management
Responsible Procurement
- Fair Trade USA program
- Chemical and Environmental Impacts Program
- Regenerative Organic Certification
Climate-Related Risks & Opportunities
Physical Risks
- Wildfires
Opportunities
- Regenerative organic agriculture
- Renewable energy investments
Reporting Standards
Frameworks Used: B Corp
Third-party Assurance: B Lab
Sustainable Products & Innovation
- ReCircle collection
- Recycled Baggies shorts
- Patagonia Provisions mussels
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Labor Standards
- Environmental Responsibility
- Human Rights
Climate Goals & Targets
Supply Chain Management
Responsible Procurement
- Patagonia Code of Conduct
- Workplace Compliance Benchmarks for Suppliers (2022)
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Fair Labor Association (FLA)