Inside Patagonia’s Push for True Supply Chain Reform

Patagonia does not follow the typical corporate script when it comes to sustainability. Its 2025 Sustainability Progress Report makes it clear that, instead of relying on carbon offsets, it focuses on cleaning up its operations and cutting emissions at the source.

The target is net zero by 2040, not through outsourcing responsibility but by rebuilding the way the business functions across its global supply chain.

Its approach is to tackle emissions where they happen. This means focusing on raw materials, production and logistics – the backbone of any supply chain.

In Patagonia’s case, it operates across 45 countries on six continents with 106 company-owned stores. Most emissions come from manufacturing, so that’s where the company concentrates its efforts.

It states that 98% of the electricity used across its owned and operated global offices and facilities is renewable. It continues to work on replacing the final 2%, without shortcuts. It also makes a clear statement about the limits of its work, explaining: “Nothing we do is sustainable.”

That kind of honesty is rare in business reports, but Patagonia uses it to call attention to the contradiction at the heart of consumer goods; no product takes nothing from the environment. The difference, it says, is transparency and a willingness to be accountable.

Yvon Chouinard, Founder and former owner of Patagonia, explains: “Patagonia is not perfect by any means. We do not have all the answers, but the fear of getting things wrong in the process cannot stop us from trying to get things right in the end.

"We have work ahead of us to reach the full potential of our business structure, prove this experiment works and explain why it matters to our employees and community.”

Shifting supply chains to reduce impact

The brand places a heavy emphasis on material sourcing, with most of its environmental footprint linked to the raw inputs used in its supply chain – this includes everything from synthetic fibres to packaging.

Patagonia’s aim is to move entirely away from virgin petroleum-based synthetics by the end of 2025.

The report highlights that 93% of the polyester and 89% of the nylon used in its products is now recycled. That shift plays a critical role in lowering its supply chain emissions and cutting demand for fossil fuels.

Patagonia notes it is focusing on ensuring these recycled synthetics are just as durable as their virgin counterparts, which means customers are still getting high-performance products without the environmental cost.

The brand also prioritises functionality and repairability. Every product is designed to be used across multiple environments and activities, and most can be repaired to extend their life. These decisions are central to waste reduction and resource conservation.

That focus on quality is backed by CEO Ryan Gellert, who adds: “The last thing we wanted was this progress report to be was page after page of self-congratulation.

"While we do get into specifics about the work done by teams across the company and pay credit to deserving colleagues, this report is a way to stay accountable to our community by showing what we’re committed to and what we’re doing to achieve it.

"By sharing our best practices and overcoming our fear of calling out the worst ones, we can have real, lasting impact.”

Using business to protect public lands

As part of its supply chain rethinking, Patagonia also looks beyond the factory floor. In April 2025, it co-founded the Brands for Public Lands coalition with The Conservation Alliance.

Together, they aim to defend public lands from threats like development and extraction, which often support high-impact industrial supply chains.

The coalition includes 100 brands and represents 62,000 employees and more than US$19.9bn in annual revenue. Its members agree not only to advocate for environmental protection but to hold themselves to the same standards they expect of others. That includes backing legal action, educating consumers and lobbying in favour of climate regulation.

Ryan challenges other businesses to follow suit: “Businesses must move on from declaring they care about the planet, then hiding behind industry organisations that lobby against climate action in the name of profits. It’s going to take real, sometimes uncomfortable, work from all of us, but let’s agree that corporate climate action goes beyond sustainability slogans and examine our own practices and impact.”

Through its report, Patagonia outlines a path of transparency, direct action and supply chain reform. It refuses to hide behind metrics and trends, instead focusing on what companies can actually change.