With a punk-rock do-it-yourself spirit and a zeal for changing the world, Nau is a clothing upstart that's rewriting all the rules. (Its name is Maori for "Welcome! Come in.") Within months of its March launch, it was already shaking up the industry, opening tiny "webfronts" stocked with clothes and computers at four U.S. retail locations. About half the size of traditional clothing stores, they're built with reclaimed hardwood and recycled aluminum and are much more energy-efficient to heat and power. To further encourage eco-sensitive behavior, Nau offers a 10% discount and free shipping to customers who shop in the retail stores and have their purchase shipped to them from a warehouse a few days later, which helps keep stores small.

From farm to distribution, Nau's clothes are green, too, created from materials such as corn, wool, organic cotton—even recycled polyester. The company is so dedicated to eco-friendliness that it developed 27 of its 30 fabrics with suppliers, with an eye toward sustainability. And after shoppers decide what they want, Nau donates 5% of their purchase to one of ten nonprofit organizatons.

Nau's love for the environment flows all the way from the boardroom—not surprising when you consider that founder Eric Reynolds describes himself as primarily "a mountaineer." Corporate policy always weighs financial opportunities against their impact on the earth—and that's no empty promise: Nau offsets carbon dioxide emissions and electricity use connected with product shipping and staff air travel by funding carbon-reduction projects and purchasing wind and solar power. "Do well by doing good," the company credo states. Nau does.