From Patagonia to Samsung Electronics: The Great Adventure Called Carbon Neutrality

The Climber Who Let Go of Everything

The story begins in September 2022 with a letter from an old climber. Yvon Chouinard, the founder of the outdoor brand Patagonia, which he built into a company worth about 4 trillion won by dedicating his life, chose not to sell or list the company on the stock market. Instead, he transferred 100% of his and his family’s shares entirely to the Earth. His declaration was quiet but powerful enough to shake every boardroom in the world.

“From now on, the Earth is our only shareholder.”

This was not just a heartwarming story of donating a lot of money. It was a signal of a massive revolution that overturned the very reason a company exists and the formula called ‘success’ in capitalist society.

What was the force that made him give everything for the nature he loved all his life? The answer lies in the most important yet most misunderstood word today, ESG. This story will show that ESG and its core, ‘carbon neutrality,’ are no longer boring terms in reports but the most dramatic adventure on which the survival and prosperity of companies in our era depend. Chouinard’s decision is just the first scene of that grand narrative.

Chapter 1: The Ultimatum Sent by a 10 Trillion Won Letter

ESG (Environmental, Social, Governance) was once a nice phrase but distant from making money, mostly a slogan for a few good investors. The event that brought this peripheral concept to the center of the world started with a letter in January 2020.

Larry Fink, CEO of BlackRock, the world’s largest asset management firm, managing an astronomical 10 trillion won, sent a letter to CEOs worldwide declaring: “Climate change is investment risk.” It was a de facto ‘ultimatum’ that from now on, investments would only be made in companies contributing to the environment and society.

Why was his letter so powerful? Because three huge waves of the era were converging at that point.

🌊 First, the wave of regulation: The invisible tax, Carbon Border Adjustment Mechanism (CBAM)

The European Union (EU) is erecting a massive barrier called the Carbon Border Adjustment Mechanism (CBAM). Simply put, it means imposing a ‘carbon tax’ on goods made in countries that do not strive to reduce carbon emissions. Starting in 2026, this will make carbon reduction not just an ethical issue but a survival matter determining export companies’ price tags.

🛒 Second, the revolution in consumption: People expressing beliefs through their wallets

Today’s consumers don’t just buy products; they express their values and beliefs through consumption, a new standard called ‘Meaning Out’. Instead of buying products from companies that harm the environment or disrespect workers, they willingly pay more for products from companies that care for the Earth.

🏛️ Third, the shift in responsibility: From philanthropy to survival strategy

Corporate Social Responsibility (CSR) used to be a ‘choice’ to do good after making money. But ESG is different. It integrates Environment (E), Social (S), and Governance (G) into every process of corporate activity, making it an ’essential’ strategy to judge whether a company can continue to make money. That’s why investors scrutinize ESG performance as closely as financial statements.

In the end, ESG is not a campaign to become a ‘good company.’ It is the smartest and most evolved new rule of capitalism to more accurately predict upcoming risks and survive long-term to generate profits.

Chapter 2: Shadow Inventory, Counting Carbon Footprints

“Our company will achieve carbon neutrality!” It’s easy to say, but to understand the real weight of that statement, we must first learn the ’language of carbon.’ The global common standard for recording carbon emissions like an accounting ledger is ‘Scope 1, 2, and 3.’

• Scope 1 (Direct emissions): Smoke from our factory chimneys. Carbon directly emitted from facilities owned and controlled by the company by burning fuel.
• Scope 2 (Indirect emissions): Smoke from power plants supplying electricity to our factory. Carbon indirectly emitted during the production of the electricity we use.
• Scope 3 (Other indirect emissions): The most complex and vast category. It includes all carbon emitted throughout the entire value chain—from raw material extraction, parts manufacturing, transportation, product use by customers, to disposal. Like a ‘shadow inventory’ not recorded in ledgers but determining a company’s fate.

When a company declares ‘carbon neutrality,’ whether that promise covers only Scopes 1 and 2 or also embraces the toughest challenge, Scope 3, reveals the company’s sincerity and capability.

Chapter 3: Four Souls, Four Strategies

Heading toward the same goal of carbon neutrality, companies have different souls and take different paths—like four protagonists trying to save the world in their own ways.

1) The Activist: Patagonia’s Radical Experiment 👨‍🌾

Patagonia’s soul is ‘mission-driven.’ They exist for one sentence: “We do business to save the Earth.”

• “Don’t buy this jacket”: On Black Friday, the biggest shopping day of the year, they ran an ad denying their own sales, saying “Buying less is the best environmental action.” Paradoxically, their sincerity moved fans to become even more enthusiastic supporters.
• Beer that saves the Earth: Instead of wheat that harms the soil, they brewed beer using a special grain called ‘Konzha’ that enriches the soil. This shows their persistence not just in doing good but in changing the root cause—the agricultural system itself.
• Earth Tax: They donate 1% of sales (not profits) unconditionally to environmental organizations. Whether business is good or bad, it’s a tax paid for doing business on this Earth.

2) The Technologist: Microsoft’s Bold Bet 🤖

If Patagonia moves by conviction, Microsoft’s soul is ’technological optimism.’ They strongly believe technology can solve problems humanity created.

By 2030, they aim to be carbon negative—absorbing more carbon than they emit—and by 2050, to erase all carbon emitted since the company’s founding from the Earth!

But behind this great promise lies a huge dilemma: the ‘AI energy paradox.’ The AI revolution led by Microsoft consumes enormous electricity, leading to massive carbon emissions. The most important growth engine directly conflicts with the greatest climate goal.

To solve this, Microsoft has become a ‘venture capitalist for the Earth.’ They are pouring huge funds into cutting-edge carbon removal technologies like Direct Air Capture (DAC), which still seem like science fiction, betting on the future.

3) The Giants: South Korean Conglomerates’ Green Transformation 🚢

Moving the stage to South Korea, the challenge is on a different scale. For manufacturing-centered giants, changing direction is as difficult and demanding as turning a tanker running at full speed.

• Samsung Electronics’ responsibility: Samsung uses 1.76 times more electricity than all households in Seoul combined and has taken on the heavy responsibility of ‘carbon neutrality by 2050.’ However, it faces practical walls like managing countless suppliers (Scope 3) and the domestic shortage of renewable energy. This shows the weight of a ‘responsibility-based transition.’
• SK’s strategic bet: SK Group chose a ‘strategic bet’ turning crisis into opportunity. They are investing 18 trillion won in hydrogen, the key future energy, dreaming boldly of building a massive ecosystem covering hydrogen production, transport, and use.

Chapter 4: Innovators in Garages Changing the Game

The huge puzzle of the climate crisis cannot be solved by giants alone. The final piece lies in unexpected places—in the hands of startups burning the midnight oil in garages and labs with world-changing technologies.

In the past, large corporations researched and developed everything internally, but now ‘open innovation’—actively acquiring external bright ideas—is the norm. Especially in the carbon-neutral era, a symbiotic relationship is formed where large companies and startups must join hands for mutual survival.

Large corporations need startups’ innovative technologies to solve the huge Scope 3 challenge, and startups need large corporations’ capital and market to bring their technologies to the world.

Large companies have the ‘pulling power’ of the market, and startups have the ‘pushing power’ of technology, evolving the entire industry together.

Conclusion: What Is Your Story?

The story returns to Yvon Chouinard. His miraculous action is no longer the cry of a lone eccentric. Patagonia’s ‘conviction,’ Microsoft’s and SK’s ‘bets,’ Samsung’s ‘responsibility’—all companies are writing survival methods for the new era in their own languages and ways.

An era has dawned where ‘good companies ultimately become strong companies.’ Numerous studies prove that companies with good ESG performance are more resilient in crises and recognized for higher value over the long term.

Now, the corporate success story is being rewritten. Success is no longer just about how much money is made but about the impact on the Earth and society where we stand.

The question is no longer whether companies will join this great adventure. The real question is:

“In this new narrative, what kind of protagonist will your company be, and what story will it write?”