Patagonia publishes first impact report: “We are still a work in progress”

Outdoor brand Patagonia, often cited as an example in sustainability, is publishing its first full impact report after more than half a century of successful business. The title, Work in Progress Report 2025, is well-chosen. The 130-page document shows both the progress and the failures of the brand that claims to be “in business to save our home planet.”

Yvon Chouinard: next 50 years will be tough

In 2022, founder Yvon Chouinard gave the company to the earth. All shares went to two entities: the Patagonia Purpose Trust, which safeguards the values, and the Holdfast Collective, which uses profits for nature conservation. Since then, the organisation has transferred 180 million dollars to the Holdfast Collective. The funds are used to protect ecosystems and support climate action.

In the foreword, founder Yvon Chouinard writes that profit has never been a goal for Patagonia. He also states that efforts to do better have not yet been enough. The report's tone is sobering: the climate crisis is worsening, “a fact that disappears in a sea of lies.” Chouinard predicts a difficult future, partly because he has seen fellow leaders succumb to cynicism and profiteering. Yet, he states, “we can challenge the fatal forms of capitalism that brought us here by taking a first step.” It is also frankly mentioned that he himself has worked hard for this until the age of 87.

Slow but steady progress

The report contains a complete, verified data collection on Patagonia's materials, greenhouse gas emissions and labour practices for the first time. The results are mixed:

Despite a steadily decreasing emission intensity, totalling 20 percent over the past seven years, total CO₂ emissions increased by one percent in the last year (2024). This was caused by a product shift to high-impact materials for items like tote bags. According to Patagonia, the goal of reaching net-zero by 2040 requires a reduction of about ten percent per year, a challenge the report acknowledges. A reduction is expected again in 2026. Emissions at offices and production facilities have already been reduced to almost zero through the transition to renewable energy.

84 percent of fabrics and trims are already so-called “preferred materials”, and the factories where they are processed are mostly certified. For example, 95 percent of products are Fair Trade Certified.

Only six percent of the synthetic materials used by Patagonia are recycled, not the predicted 50 percent. “Yikes,” Patagonia itself writes, a sign of internal frustration. The disappointing score is due to a deliberate switch from easily recyclable plastic bottles to more difficult, but more sustainable, waste sources such as fishing nets from the seabed. This proved more difficult to implement on a large scale.

There is still much work to be done regarding workers, as only 39 percent of the factories where Patagonia produces pay a living wage. Another 29 percent are at 80 percent of that amount, and the rest pay half, which is not enough to live on.

A milestone for Patagonia is the elimination of hazardous PFAS substances. After 20 years of research, all new products are free of these intentionally added ‘forever chemicals’.

Patagonia's corporate donations through organisations like 1% for the Planet have totalled 240 million dollars since its founding, with nearly 15 million dollars spent in the past year.

Broader understanding of sustainability

Patagonia's approach extends beyond production interventions, areas to which a clear figure can be attached. The company also invests in activism; supports grassroots movements; and refuses to advertise via Meta. Its banking relationships were also scrutinised. Patagonia now only works with financial institutions that have policies to limit investments in coal, tar sands and Arctic oil.

“Financing is not a passive tool,” the report states. “It can be a lever for justice or harm.” This principle led to a review of all financial partners, with sustainability criteria now a standard part of tenders. The company's intentions to buy carbon credits have also been tempered by this process.

Culture of reflection

CEO Ryan Gellert wrote in his contribution to the report that progress is not linear: “Sometimes it’s messy and even painful, but ultimately, that too is progress.”

In this spirit, the document also reflects on failures, such as not meeting the goal for better-recycled synthetic fibres and having overly optimistic ideas about scaling up regenerative cotton. The report shows that the corporate culture relies on such honest reflections. Chouinard stated: “The fear of making mistakes along the way should not stop us from ultimately trying to do the right thing.”

This article was translated to English using an AI tool.

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