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The Founder of Patagonia Is Giving the Company Away So All the Profits Go Towards Fighting Climate Change

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The founder of clothing company Patagonia has announced that he is giving the company away to divert the profits towards fighting the climate crisis.

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Patagonia has been one of the world’s most loved brands for decades.

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Founded in 1973, the outdoor clothing brand has made its name for its commitment to high-quality clothes that will last for years.

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The founder of the company, Yvon Chouinard, is well-known for his environmentalist stance.

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Back in the 1980s, the billionaire committed to giving 1 percent of the company’s sales to environmental groups.

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But now, Chouinard has taken an even bigger step towards fighting climate change.

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He has big news for the future of the Californian company.

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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.”

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Now, the eighty-three-year-old has released a statement that has changed the course of his company for good.

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The statement says that rather than “going public,” the company is “going purpose.”

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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.”

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Rather than selling the company, Chouinard has chosen to ensure it can maintain its eco values without staying under family control.

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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.”

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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.

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This means that all of the profit Patagonia makes will be distributed as dividends to go towards saving the planet.

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Chounaird hopes this will bring change to how society works.

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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.”

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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.”

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“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.”

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The New York Times reports that the company plans to donate over $100 million to Holdfast Collective this year alone.

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This means that Patagonia could become a huge deal in the world of climate philanthropy.

What do you think of Chouinard’s generous move?

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