Inside Patagonia's Supply Chain Decarbonisation Journey

The apparel industry contributes around 2% of annual global greenhouse gas emissions, according to the World Resources Institute, a fact that places supply chain management at the centre of decarbonisation efforts.

In response, Patagonia is working to reduce its carbon footprint through procurement strategy and energy efficiency across its operations, which span 45 countries.

Patagonia has now released its first sustainability progress report outlining its progress.

Decarbonisation through the supply chain

Patagonia has set a target to reach net-zero emissions by 2040. Its strategy deviates from purchasing carbon offsets, aiming instead to refine its supply chain and “stop polluting in the first place”.

A key element of this involves its global owned and operated facilities where Patagonia has a goal to be powered by 100% renewable electricity.

By the end of fiscal year 2025, it had reached 98% renewable electricity use and is now addressing the remaining 2%.

Patagonia's approach to sustainability reporting is to be accountable for its impact. It claims no organisation gives back as much, or more than it takes from the environment.

Patagonia aims for transparency by acknowledging the environmental impact it causes and outlining the steps it is taking to reduce it.

Yvon Chouinard, Founder and ex-owner of Patagonia, says: “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."

Sourcing recycled and durable materials

In its report, Patagonia highlights its focus on creating quality products through responsible material sourcing. The aim is to ensure its clothing and accessories are made to a high standard of quality and durability, with a focus on being multifunctional and repairable.

This approach could result in reducing waste and making better use of natural resources.

From a materials procurement perspective, the report details progress in using recycled content. In FY2025, more than 93% of its polyester and 89% of its nylon were from recycled sources, reducing its reliance on petroleum and promoting waste recycling streams.

The report states that Patagonia is focusing on sourcing recycled synthetic materials that are as durable as their non-recycled counterparts. This supports its goal to eliminate non-recycled or virgin synthetic fibres made from petroleum completely by the end of 2025.

Ryan Gellert, CEO at Patagonia, says: “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.”

Industry collaboration and accountability

In April 2025, Patagonia co-founded the Brands for Public Lands coalition with The Conservation Alliance.

The collective’s goal is to protect public lands from threats including defunding development and extraction. The coalition now includes 100 brands which represent more than 62,000 employees and more than US$19.9bn in annual revenue.

Members are committed to supporting legal action influencing policymakers and educating customers. This form of industry-wide collaboration could extend accountability beyond individual company supply chains.

“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,” Ryan says.

“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.”