The Urgency of Scope 3: Turning Awareness into Action

In a session that blended hard data with human values, Patagonia’s Chief Supply Chain Officer, Todd Soller, joined Deborah Dull, Founder of the Circular Supply Chain Network, to confront one of sustainability’s most complex challenges: Scope 3 emissions.

Dull opened with a revealing observation — despite growing environmental awareness, few leaders talk openly about Scope 3, the vast category of indirect emissions hidden within supply chains.

“We’re seeing a kind of green hushing,” she said. “But research shows 83% of executives are actually increasing sustainability investment. The problem isn’t effort — it’s sharing.”

This tension between ambition and silence framed a conversation that demonstrated how companies like Patagonia are transforming theory into tangible, measurable progress.

From Philosophy to Practice

When asked how Patagonia’s mission to “save our home planet” translates into daily operations, Soller was clear:

“We focus on longevity over growth — and on doing the least harm, not claiming to be sustainable. Profit is a tool, not an end in itself.”

This philosophy drives Patagonia’s business model, influencing everything from sourcing to design. The brand’s environmental P&L (EPNL) has become a decision-making compass that measures the true impact of its products — not just their cost.

“Eighty to ninety percent of our emissions are in the product,” he said. “So if we don’t address design — materials, durability, repairability — we’re not addressing the problem.”

The company’s EPNL scores products based on water, chemical, and carbon intensity. If a design fails to meet the threshold, it doesn’t move forward. The EPNL isn’t symbolic — it’s a gatekeeper.

Designing for Repair, Not Replacement

Soller explained that Patagonia integrates supply chain expertise early in product design — a crucial step many organizations overlook.

“We talk about quality not just in terms of making it to spec, but in whether the item can be repaired,” he said.

He described how Patagonia’s materials, construction, and sourcing teams collaborate to ensure each product can endure — and be revived.

“There’s a lot of clothing that simply can’t be repaired,” he added. “We design so it can.”

This long-term thinking ties directly to Patagonia’s flagship sustainability initiative — the Worn Wear program. Through a network of stores, partners, and its Reno repair center, the company performs around 100,000 garment repairs each year, making it one of the largest apparel repair operations in the world.

“We see the repair experience as part of our brand,” Soller said. “Our customers love it. It’s one of the things we’re known for.”

He added that beyond repair, the Worn Wear ecosystem includes resale and recycling — a circular framework that gives garments multiple lifetimes.

Managing Scope 3 Through the Supply Chain

Patagonia’s scope 3 strategy starts with measurement, supported by science-based targets and deep collaboration with its mills and factories — the biggest sources of emissions in apparel manufacturing.

“Making fabric is energy-intensive,” Soller explained. “We’re working with our mills to electrify heating systems, move away from fossil fuels, and optimize material flows to reduce waste.”

These efforts are costly, but Soller sees profit as a means to reinvest, not extract.

“Profit should enable better choices in the supply chain. It’s not there to skim off,” he said.

He also emphasized the importance of industry coalitions, naming the American Apparel and Footwear Association (AAFA) as a key body for collaboration on sustainability, social standards, and trade policy.

“No brand can fix this alone,” Soller said. “It has to be an industry effort.”

Regeneration and the Future of Materials

One of Patagonia’s most ambitious projects lies in regenerative organic cotton, which goes beyond minimizing harm to create a net positive carbon impact at the farm level.

“Regenerative organic agriculture can actually draw down carbon from the atmosphere,” Soller said. “It’s not just about using less — it’s about giving back.”

This concept reframes sustainability as an active, restorative process rather than a defensive one. It also highlights Patagonia’s belief that true progress comes from reimagining systems — not just optimizing them.

Building Systems for Circularity

Turning circular concepts into operational reality, however, is complex. Dull pointed out that most after-sales and resale systems still rely on “Excel, sticky notes, and bubblegum.”

Soller agreed.

“We’re still learning,” he said. “We can track at the warehouse level, but not yet at full serialization. The aspiration is a complete product lifecycle record — to trace an item through multiple owners, repairs, and returns.”

He acknowledged the open question of business value versus traceability ambition. “We’re testing how much visibility truly matters — but the potential is exciting,” he added.

Repair, Resale, and a New Kind of Customer

Interestingly, Patagonia’s resale customers often differ from its new-product buyers.

“Thrift is booming,” Soller said. “There’s a treasure-hunt mentality. It’s bringing in younger customers who can’t yet afford new Patagonia gear.”

The Worn Wear program has, in effect, become a gateway into the brand — proving that circularity can drive both environmental and commercial growth.

While some feared that resale would cannibalize new sales, Soller dismissed the idea:

“The person buying a used R1 fleece isn’t the same person buying a new one,” he said. “It’s incremental, not competitive.”

Closing the Loop: Design Informed by Data

Every returned or repaired garment feeds insight back into Patagonia’s design cycle. Detailed repair codes and return data help engineers refine construction methods, improve durability, and make future products easier to service.

“Repair data has become a design tool,” Soller said. “It helps us make better decisions about materials, cost, and lifetime value.”

This creates a continuous improvement loop where product, process, and purpose reinforce each other — a practical example of circular design in motion.

Lessons from DELIVER America

The conversation closed on a powerful note:

“Scope 3 isn’t mission impossible,” Soller said. “It’s too important to miss.”

Dull echoed the sentiment, reminding the audience of the power supply chain professionals hold.

“The decisions you make every day — what you source, where you ship, who you partner with — change communities around the world,” she said. “That’s real impact.”

At DELIVER America 2025, that message resonated deeply: that the path to sustainability isn’t just corporate — it’s human. Every design decision, every repair, every conversation about emissions counts.