Finanza Aziendale Sostenibile: Il caso Patagonia

This dissertation examines the potential impact of rewiring corporate finance on the fight against climate change. It argues that individual firms can play a crucial role in addressing major environmental issues and influencing industry-wide change. By analyzing the case of Patagonia's shift towards organic cotton, which resulted in increased demand, the study demonstrates how individual firm actions can have measurable effects. Furthermore, the demonstration of financially and commercially viable investments can persuade other industry players to adopt similar practices. Purpose-driven firms that successfully integrate sustainability into their business models also have the power to shape consumer behavior, influence cultural conversations, and drive technological advancements. Corporate finance possesses the capacity to support the transition towards more sustainable business models, but requires the necessary tools and frameworks. The dissertation highlights existing investments with positive net present value and profitable business opportunities that contribute to sustainability. Additionally, it reviews literature supporting a positive correlation, and potentially causal relationship, between sustainable and social investments and long-term financial performance. Patagonia serves as an exemplary leader and pioneer in this domain, driven by its unequivocal mission to protect the planet. However, the potential for individual firms to drive significant change is limited, as the pursuit of profit remains a key motivation for large-scale resource investments. Certain industries facing imminent environmental degradation and threats to supply chains present the greatest opportunities for transformation. Nonetheless, there are numerous challenges that individual firms alone cannot overcome. Climate change, in particular, poses a global problem that cannot be addressed solely through isolated business cases. The dissertation acknowledges the presence of free-rider problems and public goods issues, emphasizing the need for cooperative action and government policies. By adopting a sustainable corporate finance approach, the business sector can serve as a guiding force, paving the way for innovative solutions that the rest of the world must follow.