Patagonia founder gives away company to help fight climate change
Nearly 50 years since founder, Yvon Chouinard, began Patagonia outdoor clothing and gear, the company has announced new ownership. The Chouinard family have given away the entire company in an effort to fight climate change.
In a letter written by Yvon Chouinard about the change, he says that he never wanted to be a businessman. He’s even been called a ‘reluctant billionaire’ in the past.
His letter goes on to say “As we began to witness the extent of global warming and ecological destruction, and our own contribution to it, Patagonia committed to using our company to change the way business was done. If we could do the right thing while making enough to pay the bills, we could influence customers and other businesses, and maybe change the system along the way.”
The education of a reluctant businessman
I can remember reading Yvon Chouinard’s book ‘Let my people go surfing’ back in 2006. I was struck by his different attitude towards running a business which allowed for freedom and creativity amongst his staff. When the surf was good, his employees could go surfing, then then finish their work later. I wanted that kind of life and even referred to it when writing about being a responsible business owner in my own business.
It wasn’t just the way he treated his employees which caught my attention. The product quality was superb and the company a strong advocate for the protection of our natural environment.
In 2002, Yvon Chouinard co-founded 1% for the planet meaning that 1% of sales were given back to the environment, whether or not the company was profitable. And in 2018, Patagonia’s purpose was changed to “We’re in business to save our home planet”.
But the company wanted to do more.
“Earth is now our only shareholder”
After considering various options, they decided that instead of selling the company and donating the profits, or going public, they would instead ‘go purpose’ using the wealth Patagonia creates to protect our environment.
100% of the company’s voting stock has transferred to the Patagonia Purpose Trust which will protect Patagonia’s values. 100% of the non-voting stock has been given to the Holdfast Collective, a non-profit dedicated to fighting the environmental crisis and defending nature.
“The funding will come from Patagonia: Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis.”
On top of this, Patagonia will still remain a B Corp and continue to give 1% of sales each year to grassroots activists. The company will continue to produce outdoor clothing and gear, but now all profits will go to organisations to help fight the climate crisis.
Even more reason for me to love Patagonia 💛
