Is Patagonia a B Corp?
Founded by Yvon Chouinard in 1973, Patagonia is an outdoor apparel company based in Ventura, California. A Certified B Corporation, Patagonia's mission is to build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.
The B stands for “benefit,” and refers to benefiting workers, the community and the environment. Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries.
To formalize these efforts and legally preserve our values in Patagonia's business framework for the future, we became a B Corp in December 2011 with certification from B Lab.
In December, Brazilian cosmetics company Natura became the first large publicly traded B Corp in the world, as well as the largest B Corp overall.
Patagonia, Inc. is an American retailer of outdoor clothing. It was founded by Yvon Chouinard in 1973 and is based in Ventura, California.
Becoming a B Corp
More than 100,000 businesses have signed up for the B Corp Impact Assessment since its launch in 2006, but only 3,500 companies—brands like Ben & Jerrys, Warby Parker, Patagonia, the Guardian, Kickstarter, and AllBirds, along with Lemonade—are certified B Corps.
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
In January 2012, Patagonia became the first California company to become a benefit corporation—a legal framework that enables mission-driven companies like Patagonia to stay that way as they grow and change. We are also a Certified B Corporation.
As of 2021, there are over 4,000 Certified B Corporations in 77 countries that are spread over 150 industries.
Since 1985, Patagonia has pledged 1% of sales to the preservation and restoration of the natural environment. We've awarded over $140 million in cash and in-kind donations to domestic and international grassroots environmental groups making a difference in their local communities.
What is a for-profit benefit corporation?
While a for-profit corporation's sole purpose is to make a profit for its shareholders, and a nonprofit's purpose is to fulfill its mission or support its beneficiaries (such as promoting environmental sustainability or serving low-income individuals), a benefit corporation engages in both.
Patagonia helps gather the top leaders in the apparel industry, nongovernmental organizations, academia and the US Environmental Protection Agency for an inaugural meeting to determine the feasibility of working together to create an index of social and environmental performance.
To achieve the B Corp Certification, a company must achieve a score of at least 80 points on the assessment. "Best for the World is a special program for the B Corp community, and we're thrilled to resume it after pausing the program in 2020 due to COVID-19," said Juan Pablo Larenas, Executive Director of B Lab Global.
The B Impact Assessment is intentionally rigorous and aspirational. The average score of ordinary businesses in the BIA is 51 points and many companies, in fact, don't receive the required 80 points their first time around.
Well, there's a difference between Nike using recycled materials to create its attire and Nike becoming a Certified B Corporation or Benefit Corporation. Namely, in the second case the company is held to higher standards of accountability and transparency.
Patagonia's clothing is inseparable from its aggressive environmental advocacy. It led the outdoor industry in using recycled nylon and polyester fabrics, and Patagonia's chilled-out vintage vibe is rooted in the idea that its clothes are built to last for years, not just seasons.
Their products come with a lifetime guarantee and Patagonia encourages customers to repair old items rather than replace them. They have the largest clothing repair facility in North America and a truck that travels the United States repairing clothing — whether it was made by Patagonia or anyone else.
Actions most companies would never dream of taking because they are so counter to common business practice, have been wildly successful for Patagonia because at their core they embody the idea of “profitable good,” namely, embracing profit and purpose to drive a better bottom line.
“We are part of a community of certified B Corporations who are walking the walk of stakeholder capitalism,” said the open letter. “We are successful businesses that meet the highest standards of verified positive impact for our workers, customers, suppliers, communities and the environment.”
Being a Certified B Corporation is special. This title sets companies apart by telling the world that they “Meet the highest standards of verified social and environmental performance, public transparency, and legal accountability, and aspire to use the power of markets to solve social and environmental problems.”
Why do companies become B Corporations?
Purpose of a B Corp
B Corps work to reduce inequality, lower poverty levels, create more sustainability for our environment, and build stronger communities. Certified B Corporations are legally required to consider the impacts of their company on those around them like: Employees. Customers.
B Corp certification is available to a variety of legal entities such as corporations, limited liability companies, partnerships, sole proprietorships, etc., whereas benefits corporations, including PBCs, are companies incorporated as corporations (i.e., not limited liability companies or partnerships).
Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
Certified B Corporations® (B Corps™) are for-profit companies that use the power of business to build a more inclusive and sustainable economy. They meet the highest verified standards of social and environmental performance, transparency, and accountability.
Patagonia is privately held, but a company representative told TIME that sales quadrupled over the past decade and recently surpassed $1 billion. Young people are clamoring to work at the company's main campus.
Since first founded by Yvon Chouinard in 1973, Patagonia has grown to become one of the most respected and popular outdoor apparel brands in the world. Still an independent, private company, Patagonia continues to raise awareness around environmental issues and climate change,.
Why. Patagonia is a global company with a global footprint. We own and operate offices in the United States, the Netherlands, Japan, South Korea, Australia, Chile and Argentina.
Starbucks would be the biggest B Corp by far if it chose to go that route. It would need to meet the standards required by the non-profit company B Lab, which officially hands out the B Corp designations. But Starbucks would not be the first publicly traded firm in this growing movement.
Represented: Which industry has the most B Corps? The Food & Drink industry boasts the highest number of certified businesses of any sector, with companies like socially-conscious ice cream giants Ben & Jerry's accounting for 12.4% of all B Corps.
The United States of America comes out on top with 1,418 total certified B Corp businesses trading there, with the most popular American green organisation being Coursera, featuring as the second most searched for in the whole world.
Is Patagonia greenwashing?
Patagonia is an amazing example of a company that does not resort to greenwashing because it doesn't need to. Companies that greenwash do so to “join the cause” because they believe it will result in more sales and more profits. They don't actually care about saving the environment more than the company itself.
- Casual (t-shirt and jeans)47%
- Business casual (e.g. dress slacks)27%
- They didn't have a dress code26%
- Formal (business suit)0%
- Special outfit (e.g. protective gear)0%
More Than 70 Patagonia Stores Worldwide. Minimal 10% YoY Growth from 2015 - 2019. #1 Market Share Holder in the Outdoor Apparel Market (near 10%) Less than $100 Million in Ad Spend - YoY Spending Decrease / YoY Revenue Growth.
These terms are often used interchangeably, without taking their remarkable differences into consideration. While the term "B Corp" refers to a third-party certification, "Benefit Corporation" refers to an actual legal business structure.
B corps have to pay the same amount of taxes as other for-profit businesses. Before you take the first steps to become a B corp, first check to make sure certification is available in your state.
- Wisconsin.
- Texas.
- Ohio.
- North Carolina.
- New Mexico.
- Montana.
- Michigan.
- Kentucky.
Over the years, Patagonia has built a robust social-responsibility program that analyzes and manages the impacts our business has on the workers and communities in our supply chain. Our goal is to not only minimize harm, but also create a positive benefit for the lives that we touch through our business.
Patagonia is widely regarded as a leader in corporate social responsibility, which it seeks to achieve both directly through donations of its profits and internal sustainability initiatives and indirectly by raising awareness for environmental issues.
Patagonia does not and will not knowingly utilize suppliers who use child labor in our supply chain. Patagonia requires all business partners to adhere to Patagonia's Code of Conduct and detailed Benchmarks on Child Labor.
The B Impact Assessment is scored to measure a company's social and environmental performance, both overall and within key impact areas. Scoring within the B Impact Assessment is designed to allow comparability and to identify and track opportunities for improvement over time.
How can I improve my impact score B?
Create policies and procedures
One of the best ways to earn points on the B Impact Assessment is to formalize your policies and procedures in writing.
Overall B Impact Score. Based on the B Impact assessment, A Lush Affair earned an overall score of 102.0. The median score for ordinary businesses who complete the assessment is currently 50.9.
Impact Business Models or IBM's in the B Corporation assessment are considered rare, if you have one in your company then you'll likely score among the top B Corporates from around the world with 150+ or more (you only need 80 points to qualify to become a B Corporation), although just because you do have a IBM doesn't ...
Yes! There are many publicly-traded Certified B Corporations around the world.
The B Impact Assessment measures companies' social and environmental impact through a deep dive into their internal policies, partnerships, environmental outputs, social contributions, metrics used for tracking impact, and methods employed to ensure that impact is positive.
About Patagonia, Inc
Founded by Yvon Chouinard in 1973, Patagonia is an outdoor apparel company based in Ventura, California. A Certified B Corporation, Patagonia's mission is to build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.
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What is a Type B Corporation?
Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
Ben & Jerry's Joins the B Corp Movement! We are a certified B Corporation, which is recognized as the highest standard for social corporate responsibility. B Corps are a new type of corporation that uses the power of business to solve social and environmental problems.
