PUMA, Patagonia, H&M: How Gen Z is Greening Supply Chains

Consumers have rarely possessed so much power as they do right now, wielding the ability to change a company's practices or products either through protest or by voting with their money.

In 2025, an increasing number of consumers are focused on corporate sustainability, pressing brands to adopt more ethical practices.

This shift is influencing companies worldwide to re-evaluate aspects from carbon emissions and ethical sourcing to overall transparency, aiming to align with both regulatory requirements and consumer expectations.

A recent study by Vlerick Business School has found a significant generational shift in consumer behaviours, particularly highlighting that Gen Z consumers are more inclined to invest in brands characterised by inclusivity and sustainability rather than just luxury or exclusivity.

This research, which surveyed 24,798 participants across 20 different countries, aimed to demystify consumer priorities.

The findings reveal that Gen Z not only exhibits a higher willingness to pay a premium for sustainable and inclusive brands, but that their preferences could very well shape the future landscape of brand positioning.

How consumers shape brand strategies

“Traditionally, many companies have invested in creating brands that are perceived as 'exclusive' or trendy, luxurious, high-status," explains Frank Goedertier, Professor of Marketing at Vlerick Business School.

"A core motivation for this is that there is the conviction that such brands trigger a high willingness to pay a premium.

“We wanted to find out whether positioning a brand around 'inclusivity' and a commitment to be sustainable and contribute positively to society, could nowadays also trigger such a consumer willingness to pay a premium, especially when targeting new generation Gen Z consumers.”

These trends are prompting companies to overhaul their supply chain to better reflect ethical sourcing and sustainable production.

This approach not only appeals to the environmentally and socially conscious Gen Z, but it also meets the growing regulatory demands and market needs for greater transparency and sustainability in business practices.

Patagonia and the strategic advantage of sustainability

Look at Patagonia’s business model, for instance. The company has deeply integrated sustainability into its operations, focusing on using recycled materials and ensuring transparency throughout its supply chain.

“The best we can do is minimise the harm we do to the planet," says Yvon Chouinard, the company's Founder. 

"We’ll do what we can to clean up our own house and convince other businesses and suppliers to use cleaner energy and more responsible materials, but it’s a never-ending summit. The work is never done.”

Yvon is a huge advocate of the strategic advantage sustainability can provide in business.

“One of the best tools we have is to show that doing the right thing for the planet can be profitable," he explains.

"We’ve proven it for decades now. Customers are putting pressure on companies to take action, and that’s a good thing. Young people are voting with their purchases, and companies should recognise that customers are changing.”

H&M and the importance of sustainable sourcing

Sustainable sourcing is another critical area within the retail sector. This concept involves obtaining materials and products in a way that is respectful to both the environment and human rights.

Companies are making significant strides in this area, incorporating measures to ensure transparency and reduce risks associated with unethical labour practices.

For instance, H&M has pledged to transform its supply chain to incorporate 100% recycled or sustainably sourced materials by 2030, addressing both environmental concerns and consumer expectations.

“We continue our work with improving conditions for people working in fashion supply chains," says Leyla Ertur, H&M’s Director of Sustainability.

"As a global fashion retailer of our size and scale, we can have a positive impact on communities that are connected or impacted by our industry.”

This refocused approach on sustainable and ethical practices is not only reshaping how companies operate but is also becoming a cornerstone of how they strategically position themselves in the market.

Marketing sustainability to reach Gen Z

In recent months, companies like PUMA and eBay have garnered attention and acclaim for the penetration of their sustainability-themed marketing campaigns.

PUMA launched its Green Flags visual podcast series, which bridges comedy, ecology and sport, whilst also running its #KnowYourStuff video series which showcases the thought leadership of fashion experts on subjects such as vegan leather.

eBay, too, has been praised for its continued sponsorship of Love Island, one of the UK's most viewed TV shows - especially amongst Gen Z.

eBay's sponsorship is an active one: it provides the wardrobe for all the show's contestants, with the aim of promoting circularity in the fashion industry.

How might Gen Z shape the future?

It's safe to say that these campaigns have got people talking, from bedrooms to boardrooms.

Integrating sustainable and ethical practices is crucial not only in production but also in logistics and distribution to cater to the rising demand for transparency and ethical consumption.

Jamie Iannone, President and CEO of eBay, explains: “Creating a more sustainable future has been a cornerstone of eBay for more than 25 years. 

“As long time champions of re-commerce and the circular economy, we are leading the way toward a healthier planet and a more inclusive economy."

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