"Earth is now our only shareholder"
Founder of Patagonia donates the entire company to help fight climate change.
Patagonia founder Yvon Chouinard transferred ownership of the entire company to a specially designed trust and nonprofit organization.
The trust was crafted to ensure that all the company’s profits, around $100 million per year, is used to combat climate change and protect undeveloped land.
The Patagonia twitter account posted an announcement yesterday:
Patagonia was founded in 1973 in Ventura, California. Since then, the company has expanded to stores in more than 10 countries, spanning across five continents.
The New York Times article describes Chouinard as a “reluctant billionaire,” saying that he has resented his growing net worth as the company prospers. The article says that Chouinard is a rock climber who started out making gear for himself and his friends. He is described as “eccentric,” and that this decision fits his personality.
The replies under their announcement reflected a variety of reactions.
In addition to a heated comment section, some climate advocates are calling on Patagonia to go further and switch to vegan wool.
Patagonia also released a statement from Chouinard himself in the replies, stating his intentions with the company and the sentiments of giving it away.
His statement explains that there were many options for himself and what to do with the company, but this was a way to ensure the company will preserve his values after he is gone.
Chouinard explains that the funds from apparel sales will directly benefit the voting stock that has been transferred into the Patagonia Purpose Trust. All nonvoting stock has been donated to the Holdfast Collective, a nonprofit organization dedicated to “fighting the environmental crisis and defending nature.”
Patagonia will continue to sell apparel and gear, and will dedicate itself to helping fund the fight against climate change and inspire other businesses to do the same.