"Mother Earth is a shareholder": Patagonia impact boss on how to combine profitability and the planet

Wendy Savage grew up in Lima, Peru, where her Catholic mother spent weekends sending food and clothes to rural communities. It was clear to Savage early on: not everyone gets the same opportunities, but everyone can contribute to making a difference.

Her own career started in sustainability consulting, but everything changed twelve years ago when she walked into Patagonia’s California headquarters. She joined the company and worked her way up to become Senior Director of Social Impact & Transparency.

Championing environmental and social sustainability

On a crisp November morning at Stockholm impact hub Norrsken House, Savage perches on a barstool for a discussion on Patagonia’s complex web of value chains. She tugs at her sweater for emphasis. It’s a simple, single-coloured item, but she suggests up to eight suppliers have probably been involved in its production.

Savage is in Sweden to join a panel on product quality alongside Swedish minimalist fashion brand Asket, outdoor clothing and equipment company Naturkompaniet, and the Swedish School of Textiles. Patagonia opened a large store in the Swedish capital in 2023, and a pop-up selling second-hand items emerged during a weekend in Södermalm, the city’s creative district.

Alongside championing the circular economy in recent years, Patagonia has earned a reputation for being passionate about social sustainability. The company has fought hard for living wages across its supply chain, partnering with Fair Trade and the Fair Labor Association.

But Savage acknowledges that it’s not an easy task. Patagonia remains a relatively small brand in a global context and often accounts for only a minor share of a factory’s total customer base. It’s therefore not a given that pressure from one outdoor clothing brand will make a difference.

“It’s always through collaboration and partnerships that we can achieve success,” argues Savage.

After the on-stage discussion, she agrees to a quick interview with Impact Loop, focusing primarily on lessons that can be applied to European impact companies aiming to scale internationally.

How can you ensure you have sustainable supply chains when you’re a small company with limited resources?

“If I'm a startup, I want to partner with somebody who can share my values and that I can foster a relationship for a long time,” says Savage.

At the same time, it’s clear that different countries and cultures vary in their approach to business. That’s why it’s crucial to do your homework — to learn about the communities you’re working with and what issues matter to them, argues Savage.

If I'm a startup, I want to partner with somebody who can share my values and that I can foster a relationship for a long time

“I think sometimes [in] what we call the western world…we think we know everything. And it's important to realise that we don't and to humble ourselves,” she argues. “To… be willing to learn from those who we partner with.”

Many entrepreneurs bring in investments and are measured on growth potential, scalable markets, and patents. How can they incorporate impact from the very start? Do we need new metrics?

"If you embed your long-term goals or your wishes for impact to your everyday operational financial goals and then acknowledge that long-term, it takes a long time, but make it sort of a journey. At Patagonia, we talk a lot about a journey. Then you can find that balance."

She uses the challenge of incorporating more sustainable materials into products as a concrete example.

"We don't do that from one day to the next. We embed that as part of our financial targets, mission targets and our different goals.

We embed that as part of our financial targets, mission targets and our different goals

But Savage emphasises that it’s not just about good intentions. In the end, a business must be profitable.

“Because if we are not profitable, then our voice does not resonate with other businesses.”

She says Patagonia views “Mother Earth” as a shareholder, meaning that “profits, people and planet” are always given equal importance.

But it takes courage to communicate that balance to investors, to weigh up short-term goals versus long-term goals, right?

"Yes for sure. We are a private company of course but we see that sort of communication with our customers, because our customers are our biggest critics as well. Being transparent about the intentions of your actions and being transparent [about] where you are and how long it is going to take you… that also helps your investors or your customers realise that you [understand] sustainability."

Many circular businesses struggle or fail. What do you think is needed for the circular economy to truly take hold in the market?

"I think it's going to be a long journey still, because it's still voluntary. And because [of]…the sort of stigma that used products have. We tend to think that new is better, especially in the younger generations. They want something new and beautiful. And so I think changing that mindset [is needed]".

Savage also believes tougher regulations may be needed.

“I think there's going to come a point when legislation is going to be needed, not only to recycle and upcycle and report stuff, but make it part of your business model. What if companies were required to, for every new product that they make, they have to resell a percentage?”

Additional research and editing by Maddy Savage