The US outdoor brand Patagonia is often cited as a role model for sustainability. After more than half a century of successful business activity, it is now publishing a comprehensive impact report for the first time. The title ‘Work in Progress Report 2025’ is apt. The 130-page document details both the progress and failures of the brand, which says it is in business to “save our planet.”

Yvon Chouinard: The next 50 years will be hard

In 2022, founder Yvon Chouinard transferred the company to Earth. All shares went to two organizations: the Patagonia Purpose Trust, which upholds the company’s values, and the Holdfast Collective, which uses the profits for nature conservation. Since then, the organization has transferred $180 million (around €154.90 million) to the Holdfast Collective. These funds are used to protect ecosystems and support climate action.

Founder Yvon Chouinard writes in the foreword that profit was never a goal for Patagonia. But he also notes that efforts to make things better have not yet been enough. The tone of the report is sobering because the climate crisis is worsening. This is “a fact that is lost in a sea of ​​lies.”

Chouinard predicts a difficult future, partly because he has seen other leaders give in to cynicism and greed for profit. Nevertheless, he is convinced: “We can combat fatal forms of capitalism that brought us here by taking a first step.” He also honestly mentions that he himself worked hard for it until he was 87 years old.

Slow but steady progress

The report includes, for the first time, complete, verified data collection on Patagonia’s materials, greenhouse gas emissions and labor practices. The results are mixed:

Although emissions intensity has steadily fallen by a total of 20 percent over the last seven years, total CO₂ emissions rose by one percent in 2024. The reason for this is a product shift towards environmentally harmful materials for products such as carrier bags.

According to Patagonia, achieving the goal of net-zero emissions by 2040 will require a reduction of about 10 percent per year. The report acknowledges that this is a challenge. A reduction is expected again for 2026. Emissions in offices and production facilities have already been reduced to almost zero through the transition to renewable energy.

84 percent of the fabrics and trimmings are already so-called ‘preferred materials’ and the factories in which they are processed are mostly certified. For example, 95 percent of the products are Fair Trade certified.

Not the predicted fifty, but only six percent of the synthetic materials used by Patagonia are recycled. “Yikes,” writes Patagonia itself, a sign of internal frustration. The disappointing result is due to Patagonia’s deliberate move away from easy-to-recycle plastic bottles to harder but more sustainable sources of waste such as fishing nets from the seabed. This proved more difficult to implement on a large scale.

There is still a lot of work to do when it comes to workers, as only 39 percent of the factories where Patagonia produces pay a living wage. Another 29 percent earn 80 percent of this wage and the rest pay half – too little to live on.

A milestone for Patagonia is the end of the use of dangerous PFAS substances. After twenty years of research, all new products are free of these intentionally added ‘forever chemicals’.

Patagonia’s corporate donations through organizations like 1% for the Planet have totaled $240 million since its inception. Of that, almost $15 million was spent last year.

A broader understanding of sustainability

Patagonia’s approach goes beyond interventions in production where clear numbers can be assigned. The company also invests in activism, supports grassroots movements and avoids advertising via meta. Banking relationships have also been reviewed: Patagonia now only works with financial institutions that have policies limiting investments in coal, tar sands and Arctic oil.

“Financing is not a passive tool,” the report says. “It can be a lever for justice or for harm.” This principle led to a review of all financial partners, with sustainability criteria now being a standard part of tenders. This process also weakened the company’s intention to purchase CO₂ certificates.

culture of reflection

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

In this sense, the document also looks back at failures, such as failing to meet the target for better recycled synthetic fibers and overly optimistic ideas about scaling renewable cotton. The report shows that company culture is based on such honest reflections. Chouinard says, “The fear of making mistakes along the way must not stop us from ultimately trying to do the right thing.”

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