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Patagonia Shifts Corporate Sales Strategy

Popular apparel brand Patagonia, known for its outspoken activism and prominent social responsibility practices, confirmed to Counselor it’s directing its corporate sales to companies with like-minded environmental agendas.

Current corporate clients will still be able to purchase Patagonia items, according to the company.

In a statement to Counselor, the company said it “shifted the focus of [its corporate sales] program to increase the number of Certified B Corporations, 1% For The Planet members and other mission-driven companies that prioritize the planet.”

 

“I think it’s a great decision – it’s a super-clear way to ensure their co-branding is always with values-aligned partners,” said Denise Taschereau, CEO and co-founder of Fairware (asi/191452), a Vancouver-based distributor focused on ethical and sustainable practices. (The distributor doesn’t offer Patagonia items because the apparel brand only sells corporate branded products to U.S.-based companies.) “Patagonia is an activist brand, and this is completely in keeping with their values and mission. As a B Corp ourselves, we seek out clients, employees and suppliers that share our values, and we have certainly said no to clients who don’t align with our values. Knowing who you are as a brand, and more importantly what you stand for, will be a key differentiator in the marketplace moving forward.”

The change in policy was brought to light on Monday when a letter from Patagonia was tweeted by the president of communications agency for the financial industry who was attempting to purchase branded vests for a client.

“Patagonia has nothing against your client or the financial industry,” reads the letter, “it’s just not an area they are currently marketing through our co-brand division.”

Further on, the letter reads, “Due to their environmental activism, [Patagonia] is reluctant to co-brand with oil, drilling, mining, dam construction, etc. companies that they view to be ecologically damaging.” The letter mentions potential “brand-aligned areas,” including outdoor sports and regenerative organic farming.

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,” reads the organization’s website. Prominent B Corporations include Patagonia as well as Tom’s of Maine, Casper and Myers-Briggs. Patagonia founder Yvon Chouinard co-founded 1% for the Planet, where member companies donate the equivalent of 1% of sales.

According to Inc. magazine, Patagonia generated $1 billion in revenue last year. The company is extremely visible on a number of fronts, including sustainability, environmental stewardship and fair labor. Among its unique practices is its “Worn Wear” program, which fixes up worn Patagonia garments and resells them to buyers.

While Patagonia has stayed popular, it has gained additional notoriety for its ubiquity in the financial and tech industries, where the Patagonia “Power Vest” has practically become a corporate uniform. The pairing of a button-down shirt and slacks with a Patagonia fleece vest has been lampooned on HBO’s Silicon Valley and the amusing Instagram account midtownuniform.

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This photo was found next to the term “squad goals” in the dictionary. #midtownuniform

A post shared by Midtown Uniform (@midtownuniform) on Nov 27, 2018 at 8:02am PST