The founder of clothing company Patagonia has announced that he is giving the company away to divert the profits towards fighting the climate crisis.
Patagonia has been one of the world’s most loved brands for decades.
Founded in 1973, the outdoor clothing brand has made its name for its commitment to high-quality clothes that will last for years.
The founder of the company, Yvon Chouinard, is well-known for his environmentalist stance.
Back in the 1980s, the billionaire committed to giving 1 percent of the company’s sales to environmental groups.
But now, Chouinard has taken an even bigger step towards fighting climate change.
He has big news for the future of the Californian company.
The company’s founder said: “I never wanted to be a businessman. I started as a craftsman, making climbing gear for my friends and myself, then got into apparel.”
Now, the eighty-three-year-old has released a statement that has changed the course of his company for good.
The statement says that rather than “going public,” the company is “going purpose.”
It continues: “Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth.”
Rather than selling the company, Chouinard has chosen to ensure it can maintain its eco values without staying under family control.
The new structure also means that Patagonia won’t have to go public. The statement reads: “Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility.”
Furthermore, this means that all of the company’s voting stock will go to the Patagonia Purpose Trust. Then, the nonvoting stock goes to a new environmental nonprofit, called Holdfast Collective.
This means that all of the profit Patagonia makes will be distributed as dividends to go towards saving the planet.
Chounaird hopes this will bring change to how society works.
Speaking to The New York Times, Chouinard said: “Hopefully this will influence a new form of capitalism that doesn’t end up with a few rich people and a bunch of poor people.”
His statement ends: “If we have any hope of a thriving planet – much less a thriving business – fifty years from now, it is going to take all of us doing what we can with the resources we have.”
“Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits. But it’s also resilient. We can save our planet if we commit to it.”
The New York Times reports that the company plans to donate over $100 million to Holdfast Collective this year alone.
This means that Patagonia could become a huge deal in the world of climate philanthropy.
What do you think of Chouinard’s generous move?