Sustainability Workshop

BUS1184 - 010 - 30146

Assignment #1
Sustainability Audit

A Research Report of
Patagonia And Allbirds

May 19, 2024

Submitted to:
Prof. James Burke MES, MCEd MCIP

Submitted by:
Luniva Karanjit
A00265681
Introduction:

Sustainability has become an essential bottleneck for businesses worldwide, which has caused
them to implement measures that promote welfare to the natural environment, society, and
economy. Concurrently, businesses need to integrate sustainability into their operations so as
to prevent a worsening of environmental degradation and secure a viable planet for future
generations.

This report compares the sustainability initiatives of two companies, Patagonia and Allbirds,
which are renowned for their eco-friendly practices in the apparel industry. Apart from that, both
companies have developed products designed with sustainability in mind as the core element. This
report will analyze these companies and explore their specific sustainability programs, align these
efforts with the United Nations Sustainable Development Goals (UNSDGs), and identify the best
corporate citizenship based on their environmental stewardship.

Company Profiles

Patagonia:
Patagonia is a leading outdoor clothing and gear retailer that emphasizes sustainable and
environmentally friendly products. The company is famous for its significant importance to
environmental protection, which is manifested in its business philosophy, values, operation, and
processes. Patagonia's mission statement, which contains the words "We are in business to save
our home planet," in a very clear way, proves its immense commitment to sustainability. (Ames,
2022) The company's products offer all sorts of outdoor wear, such as jackets, fleece, pants, and
many others aimed at hiking, climbing, skiing, and other outdoor activities. The company's
environmental responsibility is much emphasized in its corporate principles, evidenced by its
various environmental-related initiatives and programs. (Gemeš, 2024)

Allbirds:

Allbirds is famous for its natural and recycled, eco-friendly choice of footwear and apparel
materials. Their products offer a wide range of shoes, socks, and clothing, all popular for their
comfort and eco-friendliness. Allbirds is a footwear and clothing company that has become well-
known because of its eco-friendly business model. The company is committed to mitigating its
carbon footprint and has implemented several approaches that help it achieve its goal. Allbirds'
sustainability transparency is visible through in-depth reporting and open-source tools. (Ames,
2022)

Sustainability Initiatives

Patagonia:

1. 1% for the planet: For the last 35 years, Patagonia has committed to donate 1% sales of
its revenues to preserve the natural world through its "1% for the planet" initiative. This
practice has contributed over $89 million to grassroots environmental groups globally.
(Patagonia Activism, n.d.)
2. Carbon Neutrality: The company targets to be carbon neutral by 2025 and has
implemented different measures to mitigate its environmental footprint, such as
using recycled or organically grown materials and investing in renewable energy sources.
(Gemeš, 2024)
3. Repair and Reuse Program: Patagonia has initiated a repair program that motivates
customers to increase product life span, reducing demand for new production and
minimizing wastage. They encourage customers to repair and reuse the products through
its "Worn Wear Program." Patagonia makes the product last longer by establishing repair
centers across the globe, contributing to a longer product life cycle and, therefore, reducing
the carbon footprint from creating new products. (Patagonia Activism, n.d.) (Ames, 2022)
4. Patagonia Action Works: This program provides an opportunity for consumers to directly
link to an active environmental grassroots group within their community, empowering
them as community environmental activists. (Patagonia Activism, n.d.)

5. Transparency: Patagonia directly acknowledges the use of fossil fuels in the production
of rainproof shells, revealing the transparency that eventually helps the
organization to display honesty in its environmental journey. (Ames, 2022)

Allbirds:
 1. Carbon Footprint Reduction: Allbirds is a 100% carbon-neutral company using carbon
offset programs that are already committed to reaching an entirely net-zero carbon footprint
by cutting down all the emissions caused by the whole supply chain process. (Willows,
2023) (Ames, 2022)
2. Transparency: The business ensures radical transparency, which includes detailed
information about the carbon footprint of every product, which lets
customers to make smart decisions. Allbirds presents the progress of their sustainability
initiatives and labels their products like the nutrition labels rooted in their ecological
footprints. (Willows, 2023)
3. Carbon Footprint Tool: In April 2021, Allbirds released its open-source carbon footprint
calculation tool to help other companies and consumers understand and reduce their carbon
footprints, demonstrating leadership and dedication to greater industry-wide sustainability.
(Willows, 2023)
4. Sustainable materials: Allbirds has a distinctive supply chain where recyclable and
sustainable materials like 'merino wool', 'eucalyptus tree fiber' and 'recycled plastic bottles'
are used in their products, which are more environment friendly compared to usual and
traditional synthetic materials, which reduces the reliance on non-renewable resources. The
company uses SweetFoam, a carbon-zero EVA material derived from sugar cane,
eliminating the use of petroleum products in production. (Willows, 2023)
5. Certified B Corp: Allbirds is a B-Corporation-certified company, which implies it meets
the defined criteria of social and environmental performance, accountability, and
transparency. (Ames, 2022)

Comparison and Alignment with United Nations Sustainability Development

Goals. (UNSDG’s)

Both Patagonia and Allbirds are well-known for their strong commitments to sustainability, and
their various initiatives align well with several UNSDGs.

Goal 12: Responsible Consumption and Production: Both brands encourage sustainable
consumption and production through recycling and renewable materials, repair and reuse, fair
labor practices, and environmental production processes.
Goal 13: Climate Action: Patagonia and Allbirds are moving towards reducing their carbon
footprints and tackling climate change through renewable energy sources and emissions offsetting
or by implementing carbon neutrality and even carbon negativity.

Goal 15: Life on Land: Patagonia's environmental activism and supporting organizations that
conserve the natural environment align with this goal.

Goal 17: Partnerships for the Goals: Allbirds' open sourcing of their carbon footprint tool and
Patagonia's co-founding of 1% for the Planet prove their dedication to partnerships and
collaboration to address the UNSDGs.

Goal 8: Decent Work and Economic Growth: For both companies, fair labor practices, and ethical
manufacturing are significant as they promote decent work and economic growth. (THE 17
GOALS, n.d.)

Best Corporate Citizen

Both Patagonia and Allbirds are moral companies that are connected to their sustainability goals
and the UN Sustainable Development Goals. However, Patagonia stands out as a superior
corporate citizen because of its long history of environmental activism, Worn Wear program, and
more encompassing approach to sustainability, which involves all aspects of its operations.

Patagonia’s active involvement in environmental responsibility, sourcing sustainable materials,

and commitment to ambitious climate action goals make it stand out. Patagonia’s comprehensive
eco-friendly strategy, transparency, and community guidelines make it an excellent figure for
corporate environmental responsibility. Moreover, Patagonia has pledged to donate 1 percent of
its sales to environmental conservation for 35 years, which is a remarkable and long-standing
promise.

Although Allbirds is a relatively newer company, its transparency and dedication towards carbon
neutrality and its use of natural and recycled materials are equally impressive. Their hard work in
labeling their products with carbon footprints and their open-source tool for carbon footprint
calculation shows their strong involvement in sustainability.
In conclusion, though both companies are successful in their sustainability actions, Patagonia, with
its long-term history of environmental activism and more broad strategy in sustainability, is
slightly stronger as the best corporate citizen in this comparison.

References
Ames, C. (2022, April 26). The 15 Most Environmentally Friendly & Sustainable Companies (2023).
Retrieved from GROW ensemble: https://growensemble.com/environmentally-friendly-
companies/

Burgess-Marshall, H. (2020, September 20). Allbirds Review: The World’s Most Comfortable (And
Sustainable) Shoes. Retrieved from GROW ensemble: https://growensemble.com/allbirds-review/

Gemeš, N. (2024, March 21). 17 Green Companies That Are Good For You and The Environment. Retrieved
from GreenCitizen: https://greencitizen.com/blog/green-
Companies/#The_17_Best_Green_Companiesstarting

Patagonia Activism. (n.d.). Retrieved from Patagonia: https://www.patagonia.ca/activism/

THE 17 GOALS. (n.d.). Retrieved from United Nations: https://sdgs.un.org/goals

Willows, M. (2023, September 15). Allbirds Sustainability: The Real Green Deal Or Marketing Mumbo
Jumbo? Retrieved from Sustabnable Jungle: https://www.sustainablejungle.com/sustainable-
fashion/allbirds-sustainability