Yvon Chouinard, the founder of Patagonia, along with his wife and two adult children, are giving up their ownership in the clothing company they founded more than 50 years ago in exchange for a pledge to donate all company profits to initiatives and groups that promote biodiversity preservation, wild land protection, and the fight against climate change.
Details about The Founder of Patagonia Recently Donated the Whole $3 Billion Business to Combat Climate Change:
The New York Times estimates the company’s worth at $3 billion.
The Patagonia Purpose Trust and the Holdfast Collective, two nonprofit organisations focused on addressing climate change, will now own the privately held company’s stock, the company said in a statement, adding that “every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.”
All of the voting stock, or 2% of the total, will go to the trust, which will use it to establish a “more permanent legal structure to codify Patagonia’s purpose and ideals.” Family members and trusted advisors will supervise it.
98% of Patagonia’s non-voting stock is owned by The Holdfast Collective.
Depending on the success of the company, Patagonia anticipates producing and donating around $100 million annually. The business now offers new and used outdoor clothing, equipment for outdoor pursuits including camping, fishing, and climbing, as well as food and drinks derived from sustainable sources.
Patagonia already gave one percent of its annual sales to grassroots organisers as a recognised B-Corp and California Benefit Corporation, and it plans to continue doing so. Less than 6,000 enterprises worldwide have received the B-Corp certification. To be certified, they must adhere to rigid environmental, social, and governance requirements and benchmarks established by B Labs.
After the clothing company’s increased charitable strategy, Ryan Gellert will continue to lead Patagonia as CEO, and the Chouinard family will stay on the board. The business informed its staff about this decision on Wednesday, and on Thursday it changed its website to reflect that “Earth is now our lone shareholder.”
