Page 113 - Social Enterprise A New Business Paradigm for Thailand

ANZ, The Body Shop, and Nestlé (Nespresso). However, B Lab has faced criticism for certifying
some companies that do not genuinely uphold environmental values. For example, Aqua, a

bottled water brand certified as a B Corp, has been listed among the top plastic waste producers
in Indonesia. Similarly, Nespresso’s B Corp certification has sparked backlash due to its low
aluminum capsule recycling rate of just 28%. Such examples, including companies with
environmental concerns or employee complaints, have led some to view the certification process
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as a form of greenwashing and to label B Corp as a model of "capitalism through certification."
Patagonia Inc.

Patagonia Inc. is a company that produces apparel and sporting gear, such as clothing and
equipment for hiking and skiing. It was founded in 1973 and has annual sales exceeding US$1
billion. In 2002, Yvon Chouinard, founder of Patagonia, and Craig Mathews, founder of Blue
Ribbon Files, established a fund called “1% for the Planet” with the objective of donating 1%
of the company’s annual revenue from product sales (not profits) to environmental
organizations. These donations are intended to support efforts addressing issues related to
land, water resources, communities, and biodiversity. The underlying rationale is that if a
company profits from the Earth’s resources, it must also bear responsibility for protecting
those same resources. The “1% for the Planet” policy sparked a global movement, leading
many other companies to join the network. As of now, the fund has raised more than US$672
million for environmental causes.

Over the past three decades, Patagonia has made continual efforts to reduce its environmental
footprint throughout its entire supply chain. The company has adopted renewable energy for
its retail stores, offices, and distribution centers worldwide, reduced the steps and time
involved in shipping, including cutting back on air freight, and adopted zero-emission fuels for
maritime shipping. Patagonia uses organic cotton in its apparel production and has steadily
increased the proportion of eco-friendly materials such as recycled polyester. The company also
utilizes reusable packaging to minimize waste. When the State of California passed legislation
recognizing Benefit Corporations in 2011, Patagonia saw an opportunity to formally enshrine
its social and environmental goals into the company’s bylaws. Patagonia became a Certified B
Corp in March 2011 and was the first company in California to register as a Benefit Corporation
on January 3, 2012. Its B Impact Assessment score has consistently outperformed most other
Benefit Corporations. For example, in 2021, Patagonia scored 151, more than three times the
average score of ordinary businesses and nearly double the B Lab’s minimum threshold of 80
out of 200.

72 Elizabeth Bennett, As greenwashing soars, some people are questioning B Corp certification, BBC,Source:
https://www.bbc.com/worklife/article/20240202-has-b-corp-certification-turned-into-corporate-greenwashing, 6
February, 2024.
73 Michael O’ Regan, B Corp: The Certification that won’t save the planet, Stir to Action Magazine, Summer 2023
No. 42, Source: https://www.stirtoaction.com/articles/b-corp-the-certification-that-wont-save-the-planet, 2023.
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