Patagonia’s founder leaves Planet Earth as his company.
In a letter, Yvonne Chouinard said that he was inspired by relentless climate crisis To reroute almost all profits of the company to environmental protection organizations.
“Instead of going public, you can say we’re going ‘purpose,'” Chouinard wrote The statement captioned, “Earth is now our sole shareholder.”
“Instead of extracting value from nature and turning it into money for investors, we will all use the money Patagonia has created to protect the source of the wealth.”
The $3 billion company will continue to make activewear and gear, as well as operate as a for-profit business. Patagonia will use profits as needed to reinvest in the company and compensate employees, but all other funds will be given to its new owners Holdfast Collective and Patagonia Purpose Trust.
Holdfast Collective, a non-profit dedicated to protecting biodiversity and nature, owns 98% of Patagonia and will use all of the company’s non-voting stock to invest in environmental protection projects.
The newly formed Patagonia Purpose Trust will own the remaining 2% of the company. It will oversee the company’s voting stock, which means it has the authority to approve major company decisions and board member appointments. The Trust was created to protect the company’s mission of saving the planet.
Dennis Hayes, who previously coordinated Earth Day and later became CEO of the environmental-focused Bullitt Foundation in Seattle, hailed the unprecedented decision.
“The concept of putting it all together in a new structure and being experimental and bold is exactly the kind of innovation we need to try,” Hayes told NBC.
In his letter, Chouinard said he never intended to become a businessman, even telling The New York Times that he hated money.
“I was in Forbes magazine listed as billionairethat really, really pissed me off,, He told the paper. “I don’t have $1 billion in the bank. I don’t drive a Lexus.”
Chouinard gained notoriety as a rock climber in the ’60s, but also ventured into various outdoor sports such as ice climbing, kayaking, surfing and more.
He started Patagonia in 1973 and devoted the company to environmentalism from the beginning. In 2002, Chouinard founded 1% for the Planet, making Patagonia the first business to make 1% of annual sales from natural causes. Chouinard said Patagonia will continue the practice of donating percentages to the grassroots, even if ownership changes hands.
“Despite its vastness, Earth’s resources are not infinite, and it is clear that we have exceeded its limits. But it is also resilient. We can save our planet if we commit to it,” Chouinard he said.