Analyzing Patagonia's Sustainable Practices Using Waste Hierarchy

This case study examines Patagonia, an American clothing company renowned for its commitment to sustainability. It highlights the company's background, its dedication to environmental responsibility, and the challenges it faces in maintaining sustainable practices. The study delves into Patagonia's use of the Triple Bottom Line approach (people, planet, profit) and its Common Threads Initiative, which embodies the waste hierarchy principles of reduce, repair, reuse, recycle, and reimagine. The analysis covers economic, social, and environmental challenges encountered by Patagonia, such as securing loans, balancing employee welfare with financial constraints, and creating environmentally friendly products. The case concludes that sustainability is vital for every organization and can be achieved through effective waste management strategies.

Case Study
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of case company and they key sustainable challenges faced..................................3
Waste Hierarchy to deliver sustainability in case company........................................................5
CONCLUSION................................................................................................................................5
REFERENCES:...............................................................................................................................6
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INTRODUCTION
In today's environment, it becomes polluted everyday which is necessary to control. This
is the reason that companies are focusing on sustainability. Sustainability is defined as the term
which is used for the purpose of meeting our needs without compromising by future generations
needs (Moore and et.al., 2017). This is necessary for every organisation to understand the
importance of sustainability. In addition to this, waste hierarchy is one of the important tools
which is used for maintaining the sustainability in environment (Guidance on applying the Waste
Hierarchy, 2011). It helps in protecting the environment by managing waste in an effective way.
It gives priority to each waste according to their use. It consists of 5 important stages which is
necessary to understand by organisations. This report will be discussing a case study of
Patagonia that set an example of sustainability in the business environment. It will also covers
key sustainable challenges that faced by organisation and waste hierarchy which they used in
order to deliver sustainability.
MAIN BODY
Background of case company and they key sustainable challenges faced
This is the case study of Patagonia which is the American clothing company based out of
Ventura, California. The company is known because of its exceptional quality, innovative
designs and environmental ingenuity. Due to its commitment and high integrity, Patagonia has
placed in “World’s Most Ethical Companies” list for continuous six years. Their mission states
that they want to build best products which cannot harm our nature and also implement solutions
in order to reduces environmental crisis. They took many initiatives for achieving their vision
which is environment conservation and restoration. Yvon
Chouinard is the founder of Patagonia who took many initiatives towards sustainability and
because of that he was faced many challenges.
Patagonia is relying on Triple bottom line approach which is the business concept that
focuses on measuring social and environmental impact (Rattalino, 2018). A company should not
only focusing on their financial performance but also should be responsible for the environment.
Triple bottom line is consisting of three P's that are people, profits, and the planet. In Patagonia,
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it is found that they are using this approach in which they just not only try to earn profits but also
take initiatives for save their planet and value their people.
 For save the planet, Patagonia began to donate 1 percent of their total sales from 1985 to
the environmental organisations.
 For their people, they provide a healthy environment in which employees get spaces for
yoga and exercises. They are also providing organic food products from their company's
cafe.
 For their profits, they are continuously running their business to earn profits. Patagonia is
selling expensive products and increased their supply costs. This helps them to run their
business profitably. It is found that now company has no debts and still they are running
business.
Patagonia was facing many sustainable challenges in their organisation such as social
economical and environmental. This can be better understand with the help of below points:
 Economic: Like any other organisations, Patagonia also wants to expand their business.
That's why they want to take a loan but it is found that banks are not willing to provide
credit to the company (O’Rourke and Strand, 2017). Due to this, they lay off their one
fifth employees. But Chouinard took a risky move in 1996 for their business as they
switched into more expensive organic cotton that increased their supply costs. It became
very difficult time for the company to clear out their debts.
 Social: In term of social challenge, they has a responsibility of employees and their
families. But they still they lay off because of their financial conditions. In addition to
this, their move was very risky as generally durable products decreases the sales. It was a
difficult time in which company has a risk that their customers will like their replacement
product or not.
 Environmental: It is found that Patagonia faced an environmental challenge as they have
to make products which should be able to less harms the environment. Due to this, they
needs to invest in more sustainable and durable products.
Waste Hierarchy to deliver sustainability in case company
Patagonia took an initiative which is Waste Hierarchy approach that they give names as
Common Threads Initiative. It is the concept of Reduce, Repair, Reuse, Recycle, Reimagine
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(Pires and Martinho, 2019). This initiative did a partnership between company and their
customers. In this partnership, customers buy and use the products sustainably.
 In their first stage of Common Threads Initiative, they running their “Buy Less”
campaign in which firm is encouraging their customers to buy less. Patagonia makes
durable products that run for long time and that's why they are encouraging towards less
purchase.
 In the second process, they offer to repair products for free if it is found that they are
responsible for that.
 In the third process, they are encouraging people to donate their products to a charity and
they also have an option to sell their products with the help of Common Thread website.
 Fourth process is considering to recycle the products by Patagonia, if people is worn out.
 The final stage in which Patagonia urges to their stakeholders for reimagine their world.
In this reimagine world, people can purchase and replace them.
This is the whole process in which company manages their waste in order to protect and
prevent environment. It is very important for the company to use Waste Hierarchy in order to
mange their waste.
CONCLUSION
It can be concluded from the above discussion that sustainability is necessary for every
organisation. It is analysed that sustainability can be achieved if company is focusing on waste
hierarchy. It consists of five stages which assists organisation to manage their wastes. This will
definitely promote sustainability and protect environment.
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REFERENCES:
Books and Journals
Moore, J.E., and et.al., 2017. Developing a comprehensive definition of
sustainability. Implementation Science, 12(1), pp.1-8.
O’Rourke, D. and Strand, R., 2017. Patagonia: Driving sustainable innovation by embracing
tensions. California Management Review, 60(1), pp.102-125.
Pires, A. and Martinho, G., 2019. Waste hierarchy index for circular economy in waste
management. Waste Management, 95, pp.298-305.
Rattalino, F., 2018. Circular advantage anyone? Sustainability‐driven innovation and circularity
at Patagonia, Inc. Thunderbird International Business Review, 60(5), pp.747-755.
Online
Guidance on applying the Waste Hierarchy, 2011. [Online] Available through:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/
file/69403/pb13530-waste-hierarchy-guidance.pdf>
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