{"id":13172,"date":"2016-11-04T17:34:54","date_gmt":"2016-11-04T21:34:54","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/is-your-fleece-made-of-recycled-plastic-bottles\/"},"modified":"2016-11-04T17:34:54","modified_gmt":"2016-11-04T21:34:54","slug":"is-your-fleece-made-of-recycled-plastic-bottles","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/is-your-fleece-made-of-recycled-plastic-bottles\/","title":{"rendered":"Is your fleece made of recycled plastic bottles?"},"content":{"rendered":"<p>Will Patagonia be able to maintain its advantage, as the premier producer of environmentally conscious clothing, over its competitors as more apparel companies begin to adopt similar sustainability programs?<\/p>\n<p>Luckily for Patagonia, their founder Yvon Chouinard, gave them a multiple decade head start by creating Patagonia in 1973 [1].\u00a0 Patagonia\u2019s mission statement sets them apart from other apparel companies when it states, \u201cBuild the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis [2].\u201d<\/p>\n<p>Combating climate change at the forefront of ethical business strategy has continually been a core principle to Patagonia, but as their business continues to grow and their products become more popular, maintaining those fundamental principles of a minimalist style will become more difficult.\u00a0 Yvon stated in his book, <em>The Responsible Company<\/em>, \u201cWe have borrowed from nature what we can\u2019t pay back [3].\u201d\u00a0 Patagonia has continued to find ways to reduce their environmental impact, but that pressure has been compounded by the growth of their business over the last three years.\u00a0 Patagonia is a private company that provides minimal insight about their financial performance, but on January 3, 2012, Patagonia became the first company in the state of California to formally register as a benefit corporation [4].<\/p>\n<p>Additionally, since 1985 Patagonia has donated 1% of their net revenues to nonprofit organizations to preserve and restore wild places.\u00a0 In 2002, Yvon established the nonprofit, 1% for the Planet, which has encouraged over 1,200 other companies to share Patagonia\u2019s commitment to the environment by donating at least 1% of their annual sales to environmental causes [4].\u00a0 As a benefit corporation committed to donating 1% of their annual sales, Patagonia provides details about the amount of money they donate to nonprofits which can provide estimates of the company\u2019s annual revenue.\u00a0 In 2013 Patagonia donated $5,602,433 to 773 nonprofit organizations that promote environmental conservation and sustainability [5].\u00a0 Patagonia\u2019s estimated 2013 annual revenue is about $560mm.\u00a0 After two years of growth Patagonia reported a donation amount of $6.2mm at the end of FY 2015, resulting in an estimated annual revenue of $620mm [6].<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13102 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/PatagoniaLogo-300x235.png\" alt=\"patagonialogo\" width=\"300\" height=\"235\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/PatagoniaLogo-300x235.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/PatagoniaLogo.png 367w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>Patagonia finds itself in a dilemma where they try to maximize revenue which in turn leads to donating more money to environmental causes, but as their sales grew 9.7% over two years, one can assume they sold more items which contributes\u00a0to additional harm to the environment.\u00a0 Generally speaking, the textile and apparel industries make up about 10% of global carbon emissions, and it takes about 200 tons of water to make one ton of fabric [7].\u00a0 Patagonia is also in a predicament between functionality and fashion.\u00a0 The company\u2019s founding values and mission statement are in stark contrast with a portion of their current market of customers who buy their products in excess of their basic needs.\u00a0 Yvon described his contempt with this form of customer behavior when he wrote, \u201cAs of this writing, two-thirds of the U.S. economy relies on consumer spending\u2026Much of what we produce to sell to each other to earn our living is crap\u2026We\u2019re wasting our brains and our only world on the design, production, and consumption of things we don\u2019t need and that aren\u2019t good for us [8].\u201d<\/p>\n<p>Patagonia ran a campaign in 2011 titled, \u201cDon\u2019t Buy This Jacket,\u201d because they identified the negative environmental impacts outweighed the benefit of producing the jacket.\u00a0 The company explained that manufacturing and shipping one of the jackets the campaign referred to required 135 liters of water and generated about 20 pounds of carbon dioxide [9].\u00a0 Two years later Patagonia reported one of their two FY 2013 Short Challenges is that, \u201cNot all of our products are made using low impact (environmentally friendly) materials [10].\u201d<\/p>\n<p>Currently Patagonia is at the forefront of Corporate Responsibility by, \u201c\u2026taking responsibility for the impact of their activities on customer, employees, communities and the environment [11].\u201d\u00a0 One of the many aspects that Patagonia has focused on in the past two years is to ensure the humane treatment of birds that supply their down.\u00a0 Starting in the fall of 2014 the company began to only use 100% traceable down [12].\u00a0 Many other production techniques that Patagonia uses to ensure an environmentally responsible consumer product include; the sole use of organic cotton since 1996, in 1993 they adopted fleece in their product line made from post-consumer recycled plastic soda bottles, undyed cashmere which lessens the use of water and chemicals, and they developed a supply chain for new wool to reflect high standards for both animal welfare and land management [13].<\/p>\n<p>As Patagonia has become the industry leader in setting environmental standards in the production of clothing, there are always areas for an organization to improve.\u00a0 Some improvements that Patagonia can focus on include; further education of customers, recruiting more companies to participate in 1% for the Planet, invest in other companies and developing technologies that can positively impact the whole industry [14], identify products that will not be sourced at a sustainable level within three to five years and eliminate them from their product line, and continue to encourage customers to take proper care of and repair their garments to reduce the repurchasing of similar items [15].\u00a0 Patagonia\u2019s fundamental values over the last 40 plus years are a testament that a company can be profitable and environmentally conscious at the same time, and the external pressure they continue to place on the apparel industry is one that can be commended but continually improved.<\/p>\n<p>Word Count: 790 (without citations)<\/p>\n<p><strong><u>References:<\/u><\/strong><\/p>\n<p>[1] Yvon Chounard, <em>Let My People Go Surfing, The Education of a Reluctant Businessman<\/em> (New York, Penguin), 24-25, 38.<\/p>\n<p>[2] \u201cPatagonia\u2019s Mission Statement.\u201d Web. Nov. 2016. &lt;http:\/\/www.patagonia.com\/company-info.html&gt;.<\/p>\n<p>[3] Yvon Chouinard and Vincent Stanley, <em>The Responsible Company<\/em> (Ventura: Patagonia Books, 2012), 19.<\/p>\n<p>[4] Patagonia Works, \u201cAnnual Benefit Corporation Report, Fiscal Year 2015, May 1, 2014 \u2013 April 30, 2015,\u201d p. 4. Web. Nov. 2016. &lt; https:\/\/www.patagonia.ca\/static\/on\/demandware.static\/-\/Library-Sites-PatagoniaShared\/default\/dw388e98a1\/PDF-US\/2015_BCorp-AnnualReport-v6.pdf&gt;.<\/p>\n<p>[5] Patagonia Works, \u201cAnnual Benefit Corportation Report, Fiscal Year 2013, May 1, 2012 \u2013 April 30, 2013,\u201d p. 12. Web. Nov. 2016. http:\/\/www.patagonia.com\/on\/demandware.static\/Sites-patagonia-us-Site\/Library-Sites-PatagoniaShared\/en_US\/PDF-US\/bcorp_annual_report_2014.pdf&gt;.<\/p>\n<p>[6] Patagonia Works, \u201cAnnual Benefit Corporation Report, Fiscal Year 2015, May 1, 2014 \u2013 April 30, 2015,\u201d p. 7. Web. Nov. 2016. &lt; https:\/\/www.patagonia.ca\/static\/on\/demandware.static\/-\/Library-Sites-PatagoniaShared\/default\/dw388e98a1\/PDF-US\/2015_BCorp-AnnualReport-v6.pdf&gt;.<\/p>\n<p>[7] Clayton Aldern, \u201cGreening the clothing industry isn\u2019t just about cotton and water.\u00a0 The message counts, too.\u201d Grist (Mar. 1, 2016). Web. Nov. 2016. &lt; http:\/\/grist.org\/living\/greening-the-clothing-industry-isnt-just-about-cotton-and-water-the-message-counts-too\/&gt;.<\/p>\n<p>[8] Yvon Chouinard and Vincent Stanley, <em>The Responsible Company<\/em> (Ventura: Patagonia Books, 2012), 26-27.<\/p>\n<p>[9] Nick Paumgarten, \u201cPatagonia\u2019s Philosopher-King.\u201d The New Yorker, Sept. 19, 2016. Web. Nov. 2016. &lt;http:\/\/www.newyorker.com\/magazine\/2016\/09\/19\/patagonias-philosopher-king&gt;.<\/p>\n<p>[10] Patagonia Works, \u201cAnnual Benefit Corportation Report, Fiscal Year 2013, May 1, 2012 \u2013 April 30, 2013,\u201d p. 12. Web. Nov. 2016. &lt;http:\/\/www.patagonia.com\/on\/demandware.static\/ Sites-patagonia-us-Site\/Library-SitesPatagoniaShared\/en_US\/PDFUS\/bcorp_annual_report_ 2014.pdf&gt;.<\/p>\n<p>[11] \u201cCorporate Responsibility.\u201d Web. Nov. 2016. &lt; http:\/\/www.patagonia.com\/corporate-responsibility.html&gt;.<\/p>\n<p>[12] Jessica Lyons Hardcastle, \u201cPatagonia\u2019s Commitment to 100% Traceable Down.\u201d Environmental Leader (Oct. 30, 2014). Web. Nov. 2016. &lt; http:\/\/www.environmentalleader .com\/2014\/10\/30\/patagonias-commitment-to-100-traceable-down\/&gt;.<\/p>\n<p>[13] \u201cMaterials and Technologies.\u201d Web. Nov. 2016. &lt;http:\/\/www.patagonia.com\/materials-tech.html&gt;.<\/p>\n<p>[14] Jessica Lyons Hardcastle, \u201cPatagonia Bets $1 Million on Biochemistry.\u201d Environmental Leader (Apr. 30, 2015). Web. Nov. 2016. &lt; http:\/\/www.environmentalleader.com\/2015\/04\/03\/ patagonia-invests-more-than-1m-in-biochemical-firm\/&gt;.<\/p>\n<p>[15] \u201cBetter Than New.\u201d Web. Nov. 2016. &lt; http:\/\/www.patagonia.com\/worn-wear.html&gt;.<\/p>\n<p>Featured Image 1: Digital image. Patagonia P-6 Logo Roger That Hat. Web. Nov. 2016. &lt;http:\/\/www. patagonia.com\/product\/p-6-logorogerthathat\/38132.html?dwvar_38132_color =BLK&amp;cgid =#tile-3=&amp;q=logo&amp;lang=en_US&amp;start=1&amp;sz=24&gt;.<\/p>\n<p>Featured Image 2: Digital image. Patagonia Men\u2019s Classic Retro-X\u00ae Fleece Jacket. Web. Nov. 2016. &lt;http:\/\/ www.patagonia.com\/product\/mens-classic-retro-x-windproof-fleecejacket \/23055.html &gt;.<\/p>\n<p>Image 3: Digital Image. Patagonia\u2019s Official Twitter Page. Web. Nov. 2016. &lt; https:\/\/twitter .com\/Patagonia&gt;.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will Patagonia be able to maintain its advantage, as the premier producer of environmentally conscious clothing, over its competitors as more apparel companies begin to adopt similar sustainability programs? 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