3. Weaknesses of Patagonia’s Sustainability Initiatives
When I started on the journy of finding weaknesses in the brand this image came to mind. Is the brand adhearing to this criteria, if not how can they? Well, lets discuss...
Demographic
Patagonia’s core customer base includes a diverse range of people, ranging from eco-conscious millennials to seasoned outdoor enthusiasts. This audience shares a passion for nature and meaningful/healthy life habits. However, a big majority of the world may not be outdoor enthusiasts for any number of reasons. Their main demographic often is found within the middle to upper-middle-class bracket (Openr, 2023).
The product prices though maybe unconsciously, limit their demographic and exclude those who don’t make enough to splurge on their products.
Environment
Having a carbon footprint at all. Manufacturing closer to the point of purchase would give less of an environmental footprint. About half of their sales come from outside the United States. Being able to manufacture half of its products closer to the source, makes more sense than not. However, with Patagonia’s standards so high it is hard to find adequate locations that haven't been shut down that meet standards in both the United States and overseas (Patagonia, n.d.).
Market
Despite all of Patagonia’s talk about the environment, it is still a growth-dependent company making a profit by selling consumer goods. Though the company markets its products to a more environmentally educated and outdoorsy-conscious crowd, the clothing items that are most popular are the least technical (Hepburn, 2015).
Financial markets are mainly focused on short-term growth, which makes it difficult to focus on long-term benefits. Patagonia initially made the switch to organic cotton; it costs the company 50 to 100 percent more than conventional cotton (McSpirit, 1998). In the long run, the price eventually went down as more suppliers of organic cotton came into the market, but the company did have to take the risk of increasing its short-term cost for it.
Like many famous brands, you run into the issue of counterfeit products that imitate its design and logos. This can lead to a loss of sales and undermine the company's commitment to sustainability and fair labor practices (SWOT Analysis, 2021).
Governance
Patagonia is working to create a standard environmental accounting method. The Sustainable Apparel Coalition, which includes Patagonia and 48 others in the apparel industry, is working to put an economic value on the environment to reconcile the differences between the environment and the economy (Our Environmental Responsibility Programs, n.d.; Patagonia, n.d.). The coalition is creating a tool called the Higg Index that will allow companies to measure the environmental performance of their products (Patagoina, n.d.). This index will allow all companies in the industry to measure their products on a standard scale, which will better educate corporations on the environmental costs associated with their business decisions.
Consumer and corporate education. To address the barrier of consumer and corporate ignorance, new approaches are being taken to educate these societal groups. The hope is that through consumer education, customers will be able to make better decisions and pressure companies to make the necessary changes that align with the environment. In part of the Higg Index, it will provide information about the environmental impacts of each product sold.
Now I'd like to discuss the limits to potential economic growth in regard to Patagonia's Sustainable Practices. To start, the pursuit of economic growth has long been a cornerstone of global development across all sectors. However, this growth is increasingly constrained by real-world issues/realities of climate change and environmental degradation. As we all try to navigate these challenges, understanding the relationship between consumption and happiness, as well as the dynamics of the Environmental Kuznets Curve (EKC), is crucial. In this blog post of 'weaknesses', through the lenses of this brand. Patagonia, a brand renowned for its commitment to sustainability and discuss the implications of 'scalability' regarding environmental practices, while drawing insights from “Closing the Loop,” Robin Wall Kimmerer’s “The Serviceberry: An Economy of Abundance,” Ashish Kothari’s essay on alternative economies, and Naomi Klein’s “Disaster Capitalism.” I'm trudging through a lot of resources and information this week so bear with me.
Climate Pressures and the Limits to Growth
Climate pressures are redefining the boundaries within which economic growth can occur sustainably. ('Do we shop unless it's a need?' comes to mind...) The traditional model of economic expansion, often characterized by increased consumption and resource extraction, is no longer tenable in the face of climate change. The EKC suggests that as economies grow, environmental degradation initially worsens but eventually can improve after reaching a certain income level. BUT this model overlooks the finite nature of Earth’s resources and the complex, nonlinear impacts of climate change that do not align neatly with economic growth curves.
Patagonia’s approach provides a compelling case study in reconciling economic activity with environmental stewardship. The company’s focus on reducing its carbon footprint, using sustainable materials, and promoting fair labor practices reflects a broader shift towards sustainable capitalism. Patagonia’s initiatives, such as the Worn Wear program (which we discussed last blog), encourage customers to buy less and reuse more, directly challenging the unsustainable consumption patterns that exacerbate climate pressures. This ethos aligns with the insights from “Closing the Loop,” which advocates for a shift from linear to circular economic models, emphasizing resource efficiency and sustainability.
Alternative Economies and Sustainable Practices
Ashish Kothari’s exploration of alternative economies highlights how community-driven models, such as local cooperatives and mutual aid networks, can offer sustainable solutions that conventional economic systems often overlook. These models prioritize ecological balance and social equity, resonating with Patagonia’s commitment to sustainability and fair labor practices. For instance, Patagonia’s focus on regenerative organic agriculture and its support for local, sustainable supply chains reflect principles that align with Kothari’s vision of sustainable, community-oriented economies.
Consumption and Happiness: Rethinking Prosperity
The relationship between consumption and happiness is another critical area of exploration. Traditional economic models often equate growth with increased consumption, assuming that more goods and services lead to greater well-being. However, research suggests that beyond a certain point, additional consumption yields diminishing returns in terms of happiness and life satisfaction. This concept challenges the notion that perpetual economic growth is synonymous with human growth and their happiness.
Robin Wall Kimmerer’s notion of an economy of abundance, as discussed in “The Serviceberry: An Economy of Abundance,” provides a refreshing perspective by emphasizing the natural world’s capacity to provide resources sustainably. The serviceberry example illustrates how ecosystems can be managed to yield abundant benefits without depleting their foundational resources. This approach resonates with the consumption ratio, suggesting that sustainable practices can lead to a more fulfilling and balanced life, even in the face of constrained economic growth. Patagonia’s emphasis on quality over quantity and its advocacy for environmental and social causes align with this idea, promoting well-being over mere material accumulation. (Example: I own a whopping three items from them, yet I feel convicted to research, learn and share the brand.)
Disaster Capitalism and Environmental Sustainability
Naomi Klein’s “Disaster Capitalism” critiques the exploitation of crises to advance neoliberal agendas that often undermine social and environmental well-being. Klein’s insights underscore the risks of prioritizing rapid economic growth and profit over sustainable development. Patagonia’s sustainable practices stand in contrast to these tendencies, promoting long-term ecological health and social equity. By focusing on sustainable materials, ethical labor practices, and environmental activism, Patagonia challenges the exploitative dynamics that Klein critiques, advocating for a model of capitalism that values resilience and sustainability over short-term gains.
An Inquiry on Scalability and Environmentalism:
As we consider the scalability of sustainable practices, it is essential to reflect on what our default to scalability tells us about our thinking around efficiencies, productivities, and profitability within environmentalism. Scalability often implies a focus on expanding operations and achieving greater output, which can conflict with sustainable practices that prioritize ecological balance and resource conservation.
Patagonia’s model challenges the conventional drive for scalability by prioritizing sustainability over sheer growth. For example, the company’s decision to invest in regenerative organic agriculture and promote fair labor standards, rather than simply expanding its product line, underscores a commitment to long-term ecological and social sustainability over short-term profit maximization. This approach is in line with the insights from “Closing the Loop,” which highlights the importance of designing products and systems that are sustainable and adaptable over the long term.
After all of this, it has me wondering...How can brands balance the drive for profitability with the imperative to protect our planet’s finite resources and enhance human happiness? Is it more of a benefit that brands like Patagonia have a higher price tag to ensure the balance of profits vs the planet's resources? Or is this seen too much as a weakness. If customers are buying items at a higher price tag- doesn't that mean they'll in turn, buy less? Consume less? Does this idea of consumers purchasing less because products are all a higher price tag due to it being made ethically and sustainably outweigh the fact that it may exclude some communities in buying certain brands products? Or is this ultimately just too unfair? These questions lead me to learning about 'Triple Bottom Line' (TBL). TBL is a framework that emphasizes people, planet, and profit. According to Forbes, Companies that consider all three dimensions are more likely to thrive in the long term. Also, profitability doesn't have to come at the expense of the environment or social well-being.
Here is how Patagonia is integrating these principles:
People: Patagonia prioritizes social responsibility by treating its employees well and fostering a culture of quality and independence. The company's founder, Yvon Chouinard, believes in building the best products while minimizing harm to people and communities.
Planet: Patagonia is committed to environmental sustainability. In 2022, Chouinard transferred ownership of the entire company (including profits and assets) to a trust and nonprofit. These entities donate to environmental causes, making "Earth the only shareholder" in Patagonia. The company actively works to reduce its environmental footprint, as I keep expressing in each blog post.
Profit: Patagonia's approach to profit is intentional. Rather than chasing endless growth, they focus on longevity. Each year, profits not reinvested in the business are distributed as dividends to fight climate change through the Holdfast Collective. Take a peek to learn more with the links I've provided.
In summary, Miss Patty demonstrates that a successful business can prioritze people, the planet, and profit simultaneously.
When it comes to finding weakness in any brand, there will inevitably be some areas of improvement, right? No brand, or company will ever be the end all be all of sustainably. There is always room to progress and grow. Though I still think Patagonia could be the poster child for what to emulate in a clothing brand. I'd love to know your thoughts.
Ta-ta for now!
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Citations:
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[Closing The Loop]. (2019, April 22). Closing the Loop (Full Film) - English with Multi-Language Subtitles [Video]. YouTube. https://www.youtube.com/watch?v=6g0AYbEoOGk
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