Leading with Fair Trade: How Patagonia Became a Leader in Ethical Sourcing

Children of workers learning at Agalwatta Childcare Center in Sri Lanka, funded by Fair Trade Community Development Funds

Patagonia and Fair Trade USA™ have partnered for over a decade to drive lasting impact for the people and our planet. By sourcing from Fair Trade Certified™ factories, Patagonia not only ensures safer working conditions and additional income for workers, they also set a clear example of how to turn brand values into tangible, generational impact. Their commitment offers a blueprint for other conscious brands to follow. 

A Commitment Rooted in Values  

When Patagonia first explored Fair Trade Certification, it was driven by a simple but powerful goal: find a way to raise wages in their supply chain. Operating across a range of factories in different countries made it difficult to find a scalable approach that would directly impact worker livelihoods, but Fair Trade offered a pragmatic solution. It was something Patagonia could implement independently, allowing them to put their money where their mission was. 

Since 2014, Patagonia has contributed over $40 million in Fair Trade Community Development Funds, directly benefiting more than 80,000 workers and their families. These funds are controlled by workers and go towards things that matter most to them – like healthcare, groceries, their children’s education, and savings for their families.  It’s all about supporting workers in ways that meet their personal needs. 

Real Impact for Workers  

Worker engagement is a key focus of Fair Trade Certified standards.  All workers on certified farms, factories, and fisheries vote democratically on how to best utilize Community Development Funds, and have the opportunity to become committee members that lead those decisions. Workers know best what their communities need and have the lived expertise to implement solutions. Fair Trade amplifies their voices by putting funding directly in the hands of those best equipped to make change.   

Across the Fair Trade Certified factories that Patagonia sources from, workers have used premiums for school supplies, household appliances, bicycles, and more. In one Sri Lankan facility, funds were used to build an on-site childcare center and to continue staffing it over time.   

“The Fair Trade program uniquely empowers workers to speak up for their needs and drive solutions to address those needs. They get to make choices that are best for their communities and families through collective decision making and implementation.”

 

—Thuy Nguyen, Director of Supply Chain Social Impact at Patagonia

Across the Fair Trade Certified factories that Patagonia sources from, workers have used Community Development Funds for school supplies, household appliances, bicycles, and more. In one Sri Lankan facility, funds were used to build an on-site childcare center and to continue staffing it over time. 

Brand Leadership 

Patagonia has long been a leader in strong brand values. Through campaigns like “Don’t Buy This Jacket” and the ethos behind Let My People Go Surfing, they’ve consistently pushed the outdoor industry, and its consumers, to put people and the planet at the forefront of their business and purchasing decisions.   

Fair Trade helps signify brand leadership, verifying impact and communicating the values behind products. The label also creates a foundation of transparency and initiates conversations around wages, working conditions, and ethics in supply chains. 

“At Patagonia, it was important for us to recognize the workers that make our products and who enable us to be in business. The Fair Trade Certified label does just that and reminds us all that our purchases have the power to impact workers’ lives. Fair Trade has also been a springboard for us to talk about other critical issues facing workers, from workplace well-being to safety. It gives us a tangible way to make an impact and challenge others to do the same.”

 

—Thuy Nguyen, Director of Supply Chain Social Impact at Patagonia

Looking Ahead: Shared Responsibility, Collective Impact  

As Fair Trade USA and our partners look to the future, the focus remains on worker well-being, advancing sustainability, and building strong, resilient supply chains that can thrive in a changing world. We continue to welcome new brands into the movement, expanding our impact and driving more innovative solutions. Brands like Patagonia help inspire brand leadership and model how living your values isn’t just the right thing to do, it’s essential in building thriving futures.