Patagonia: Ethical Outerwear

If ever there was a poster child for ethical business it would have to be Patagonia. A company as famous for taking the planet into consideration with every business decision as it is for its colourful outerwear.

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Patagonia

The conversation continues

Way back in February (yes, it does feel like a million years ago) when we were allowed out of our homes and didn’t have to wash our hands every 5 minutes (AKA the good old days) Harvey moderated a panel at Pause Fest discussing how businesses can take a lead on addressing the global climate crisis.

Chapters:
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Patagonia: Ethical Outerwear
And if 2020 has taught us anything it’s that we need to be talking about this stuff more than ever. It's why we decided to continue the conversation here on the Harvey blog.

Over the next few weeks, we’ll be catching up with our Pause Fest panellists – Patagonia, Jaunt, ATEC and One Small Step and delving a little deeper into how their businesses thrive while looking after the planet at the same time.

We’ll also be asking them for advice on how business owners can lead the way when it comes to environmental change.

First up, Patagonia.

If ever there was a poster child for ethical business it would have to be Patagonia. A company as famous for taking the planet into consideration with every business decision as it is for its colourful outerwear.

Which other global business do you know that ran a wildly successful marketing campaign telling customers not to buy its products? Answer: there is no other. Patagonia is, and always has been, an outlier. And proudly so.

Shannon Bourke is Patagonia’s Environmental and Social Initiatives Manager for Australia and New Zealand, and a speaker on the Pause Fest panel. As you would expect from someone working for Yvon Chouinard’s environmentally-focused business Shannon is personally passionate about the environment and everything her employer is doing to protect the planet.

In fact, it’s the reason she wanted to work for Patagonia in the first place.

Shannon Bourke, Patagonia’s Environmental and Social Initiatives Manager for Australia and New Zealand

“I first became aware of Patagonia well over a decade ago, even before the business launched in Australia,” she says. “For well over a year I was unaware it even sold clothes! I was simply impressed by its activism and advocacy for the environment, and would religiously read its blog The Cleanest Line. Patagonia has always had such a unique voice and approach to storytelling, which was what first drew me to the brand.”

"A big focus for us over the next few years is regenerative organic agriculture because we feel like it could be a possible solution to the
climate crisis."

Patagonia’s environmental agenda is bold, and its mission ’to save our home planet’ is one embraced by all who work there. “There are challenges that come with always considering the environment in our decision-making, of course, but I never feel burdened in my role to do so,” says Shannon. “I’m extremely lucky because there is a culture at Patagonia where our environmental responsibility as a business is mandated as part of everyone’s job. It’s not just the responsibility of our environmental department to drive that agenda.”

Shannon sees the company’s mission statement as a lens that each Patagonia employee places over their approach to work every day. “It’s a bit of a guiding compass, so at each point we’re checking in to make sure we’re aligned with our values,” she explains. “This ensures that every single decision we make as a business is in support of achieving that ultimate goal.”

The company’s planet saving mission is its north star with all smaller goals falling under its watchful gaze. Over the next five years, Patagonia will be focusing heavily on working towards achieving carbon neutrality by 2025. Some of the key projects they are focusing on to reduce their business’ footprint include increasing awareness and access to its Worn Wear program, investing in regenerative organic agriculture, and achieving 100% renewable energy by 2020. Easy, right?

Patagonia's Worn Wear program

The Worn Wear website launched in 2017 but repairing clothing has been part of their business model since the 1970s. After learning that keeping clothes in circulation for an extra 9 months reduces a person’s  carbon, waste and water footprint by 20-30% the company decided to do something about it. “Our Worn Wear program is based on the circular economy approach,” explains Shannon. “We design with longevity in mind and repair free of charge, we recover our clothes when they’re beyond repair and repurpose those materials at the end of their life. There are repair hubs at many stores and we also have pop-up stores selling used gear and an online platform selling used Patagonia goods.”

While the Worn Wear program keeps used products in circulation for as long as possible Patagonia’s regenerative farming project is all about making sure its new offerings are even more environmentally conscious. Enter regenerative organic cotton.

Regenerative, organic cotton

“A big focus for us over the next few years is regenerative organic agriculture because we feel like it could be a possible solution to the climate crisis,” says Shannon. “We’ve built a pilot project, partnered with two suppliers and 550 smallholder farmers in India to grow the first batch of regenerative organic certification pilot cotton which we used in our products starting this year.”

The business’ interest in regenerative organics is down to it being the next step up from organics. It combines best practice for soil health, animal welfare and fair labour for farmers, ranchers and workers, plus healthier soil sequesters more carbon from the atmosphere so it could be of great benefit to the current climate crisis.

Easing the company’s carbon footprint is something Shannon and the team at Patagonia are hugely passionate about and the business aims to be carbon neutral by 2025. “When we measured our carbon emissions a few years ago we found that 97% is within our supply chain and 86% of that is in our materials and textiles,” she says. “For a retail company, that creates really complex problems needing complex solutions. In order to address our overall emissions, we have set a more immediate goal for ourselves to be 100% renewable energy by 2020. We’re currently exploring a partnership with a local community energy retailer that we initially engaged with via our environmental grants program. The project is really promising.”

We need to move forward together rather than moving forward in a fractured way

Setting, and then being able to reach, attainable environmental business goals is the reason Harvey was so keen to start the conversation at Pause Fest. Wanting to be a good global citizen and take care of the planet is something we spend a lot of time thinking about both personally and professionally. But it can sometimes feel overwhelming knowing where to start and we found we were constantly wondering: how much is enough?

The answer is that most businesses would find it hard to compete with a company as environmentally aware as Patagonia. But that doesn’t mean business owners should feel intimidated – everyone has to start somewhere.

Starting small and choosing the low-hanging fruit is often the easiest first step. “I would say have a thorough understanding of your supply chain, switch to renewables and become a member of 1% For The Planet,” is Shannon’s advice on starting small.

There’s no doubt that once you become environmentally aware it can be hard to go back, which is why perspective and balance remain so important. You can do your bit without having to be the perfect environmentalist.

“It’s hard not to feel overwhelmed about what’s happening in the world but I try and break down how I will personally approach it so I don’t get overwhelmed,” says Shannon. “I look at what day-to-day things I can do like reducing plastics, choosing where and how I spend my money and trying to minimise my own footprint. I also donate to and support the work of environmental organisations and think about how I can approach conversations with peers, neighbours and family in a way that isn’t preachy and listens to everyone’s point of view.”

Coming together to create a positive moment towards climate change is the only way we, as global citizens, have a chance of being heard. “We need to move forward together rather than moving forward in a fractured way,” agrees Shannon. “The 2014 Peoples Climate March in New York focused on the idea that ‘if we are to change everything, we need everyone,’ and I couldn’t agree more.”

There is a real sincerity and drive to see positive change occur; to set a new course for our communities and economy that ultimately secures a liveable future for people and our planet.

After spending the last five years working for the brand Shannon’s experience of working for Patagonia has most definitely exceeded her expectations. “Oh, absolutely. I’m so fortunate to be able to come to work each day and focus on projects that I am passionate about but also be able to work with colleagues that feel a similar passion for protecting nature,” she says. “There is a real sincerity and drive to see positive change occur; to set a new course for our communities and economy that ultimately secures a liveable future for people and our planet.”

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  • Maintain B Corp score from 134.1 with workers included
🟢
  • We officially re-certified in November 2023, and are pleased to report we achieved the same score (to the decimal point). Wild! We shared our experience of recertification here.
  • Share templates, documents, insight into business for good
🟠
  • We haven't done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust. Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Advocate for climate change / inspire sustainable living
🟢
  • We hosted a panel event on Zero Emissions Day in September 2023, along with our friends at Portable, where we interviewed industry experts on the opportunity to engage with community and work towards a more sustainable future. Recording here.
  • Donate 5% to the environment
🔴
  • We didn't make the donation this year as we're revisiting our impact giving model - more details here
  • Invest $20k in impact businesses plus $20k of pro bono time
🔴
  • We delivered some pro bono time but dropped the ball and had no official measurements in place.
  • We also did not invest $20k in impact businesses, and are reviewing this goal going forward. In the last 12 months, our three Impact Investments all lost their value (Whole Kids, Pronto Bottle & Kester Black). While it's not great, we accept this is part of ambitious investing, and each had their own challenges that they couldn't quite overcome.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Yes and yes!
  • 9 day fortnights, with option for 4 day weeks
🟢
  • 80% work 9 day fortnights, 40% part-time hours, 10% standard working hours.
  • Improve and increase capability across team
🟢
  • Raising our emotional health levels through a leadership development program with Global Leadership Foundation.
  • Expanding output skills: Market research, Web design, content & copywriting, strategy & development and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • A new process for 360 feedback, plus personal goal setting questionnaires that ask the big questions of where we want to go and how we'll get there. Also lots of accountability check-ins.

Client survey metrics

  • 3 / 5 value for money (1 - 'could charge less' and 5 - 'could charge more')
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 9.2 / 10 likely to recommend

No destructive clients. Revenue breakdown: 17% Good, 59% Great, 24% Amazing

🟠
  • No destructive clients.
  • Revenue breakdown: 17% Good, 59% Great, 24% Amazing (A little over on Good and under on Great, but on target for Amazing - which is most important, so we're happy with that)
  • All staff spend 80%+ of their time on clients
🔴
  • Spent 64% of our time on clients (under). Due to team changes (recruitment, onboarding and offboarding) and extra investment in training, personal development and community engagement (e.g. B Local), we did not hit this target. On reflection, we will think 80% is too ambitious and we'll be revising to 70% going forward.
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.

$994k revenue (Up $211k on FY2223)

🔴
  • $833,588. Revenue was up 6% YoY. Midway through the year, we adjusted down our target to $879k as team growth / services shifted. The main reasons we didn't hit target were scope creep and overruns, both of which we're trying to manage better with process improvements.
  • Maintain B Corp score from 134.1 with workers included
🟢
  • We applied for our B Corp re-certification at the end of this financial year and are pleased to report we achieved the same score (to the decimal point). Wild!
  • Share templates, documents, insight into business for good
🟠
  • We haven't actively done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust and Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Donate 5% to the environment
🔴
  • We fell short here, we didn't make the donation. More details here.
  • Advocate for climate change / inspire sustainable living
🟢
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Have a RAP, engaged stakeholders and implemented more change
🔴
  • Due to competing priorities and limited time (no lack in desire) we de-prioritised our Reconciliation Action Plan as we want to do it meaningfully and have the capacity to follow through. However, we took a few first steps outlined here.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report. We took it one step further this year with a public call to pledge to audit suppliers in this campaign www.supplier-impact.com
  • Invest $20k in impact businesses plus $20k of 100% pro bono time
🟠
  • We delivered some pro bono time but dropped the ball and had no official measurements in place. We also did not invest $20k in impact businesses because of the reduced revenue with Becky on maternity leave.
  • Sarah personally donated her photography equipment valued at around $7,500 to empower a content and brand producer in the Solomon Islands.
  • 9 day fortnights, with option for 4 day weeks
🟠
  • 40% work 9 day fortnights, 40% part-time hours, 20% standard working hours.
  • Improve and increase capability across team
🟢
  • Elevated our tool nerd level. See here.
  • Expanding output skills: Market research, Web design, strategy & development, video editing, and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • Lots of on-the-tools growth, structured learning through weekly Lunch 'n Learns and Intro to Programming at RMIT.

No destructive clients. Revenue breakdown: 15% Good, 60% Great, 25% Amazing (Here's what the classifications mean)

🟢
  • No destructive clients.
  • Revenue breakdown: 10% Good, 66% Great, 25% Amazing
  • All staff spend 70%+ of their time on clients
🟢
  • Spent 71% of our time on clients (over by only 76 hours).

Client survey metrics

  • 3 /5 value for money
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 8.8 / 10 likely to recommend

Maintain current revenue

🟠
  • Revenue down 16% YoY
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.
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22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE
No items found.
22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE

No items found.
No items found.
22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE
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