Billionaire Patagonia founder, Yvon Chouinard has announced that he is giving his entire company away to fight against climate change.
Chouinard, his spouse and two adult children are giving away their ownership in the apparel maker, dedicating all profits from the company to projects and organisations that will protect wild land and biodiversity and fight the climate crisis.
Patagonia was founded in 1973 and is known for its dedication to environmentalism and community care. The company is worth about US$3 billion, according to the New York Times.
In an open letter published on the Patagonia website, Chouinard wrote of “reimagining capitalism”:
“Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits. So instead of extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates to protect the source.”
The privately held company’s stock will now be owned by a climate-focused trust and group of non-profit organisations - the Patagonia Trust and the Holdfast Collective. Every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.
The trust will get all the voting stock, which is 2 percent of the total, using it to create a “more permanent legal structure to enshrine Patagonia’s purpose and values.” The trust will be overseen by members of the family and close advisors.
The Holdfast Collective owns all the non-voting stock of Patagonia, amounting to 98 percent.
Patagonia expects to donate around US$100 million annually, depending on the health of the company.
Patagonia now sells new and used outdoor apparel, gear for outdoor activities like camping, fishing and climbing, and food and beverages made from sustainable sources.
The business is a certified B-Corp and California Benefit Corporation. In 1986, Chouinard announced that Patagonia would be committing ten percent of profits to environmental activism. In 2002, Chouinard founded ‘1 Percent for the Planet’. Patagonia became the first enterprise to dedicate one percent of annual sales to the environment and intends to keep doing so.
Ryan Gellert will continue to serve as Patagonia’s CEO, and the Chouinard family will remain on Patagonia’s board following the apparel maker’s expanded philanthropic strategy. The company updated its website to state that “Earth is now our only shareholder.”
