Introduction

This report will provide analysis and recommendations for Patagonia’s sustainability initiatives. The analysis will examine the current state of the company’s sustainability initiatives. Best practices from the literature will be utilized to them make recommendations for how the company can improve, including what metrics it can utilize, and how it should approach sustainability from a marketing perspective.

Criteria

The current approach to sustainability combines input and output measures. An input measure, for example, is the percentage of organic cotton that the company uses, based on evidence that shows organic cotton is less harmful to the environment than conventional cotton. Programs like Common Threads also reflect an input-based approach, as are the five Rs. These approaches start with program design, but they also operate largely on the assumption that these plans, if executed, will deliver results. There are fewer means by which the effectiveness of these programs are measured. Having specific output measures would help the company to make better decisions with regards to scarce resources – knowing which programs are the most effective is a pathway to making the right choices that have the maximum impact.

One of the solutions to the problem of finding measures is basically what Patagonia already does – “defining a set of pragmatic guidelines whereby a corporate entity can improve its environmental performance” (Atkinson, Hett & Newcombe, 1999). The second approach should also be adopted – it begins with outlining a formal definition of sustainability. Because every corporation is free to set this definition as they please, many focus on the areas that are of strategic or marketing interest. Patagonia should start with a set definition of sustainability, one that includes not only key inputs... By focusing on specific output measures, the company can establish long- and medium-range plans to make steady improvements in these areas.
Many of these initiatives would also be tied to things like lean business practices. There are a number of companies that have realized that waste is one of the things that can be improved upon that will align sustainability with profitability. When you waste less, your business becomes more sustainable, but also your margins increase. Benchmarking against companies that focus on waste reduction is one of the areas where Patagonia can drive improvement for many years to come with respect to sustainability.

Innovation

In general, Patagonia’s approaches are not especially innovative in terms of sustainability. The company’s programs are great, but there is actually quite a bit of room for improvement. The leaders in sustainability focus on a number of different areas, and have built sustainable practices into not just the organizational culture but into everything that they do. Patagonia was certainly innovative during its early years, but the company has maybe fallen back of the pack a bit lately, as other companies have taken the sustainability mantle to all aspects of their organization. Where something like Common Threads is a valuable initiative, it is also a sideline that does not cut straight to the core of Patagonia’s business. The company would survive just fine without it; at the most innovative companies their sustainability initiatives are essential to their success.

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