Patagonia’s founder gives company away ‘to planet Earth’

As explained by Chouinard in an open letter he penned for the announcement, from the get-go, his sole purpose was to use Patagonia to do the right thing.

Witnessing the extent of global warming and ecological destruction as his company grew, he sought to change the system.

Yet no matter how many eco-friendly materials were used in the manufacture of Patagonia’s products; how many sales were donated; or how many certifications affirming the brand’s commitment he received over the years, nothing was enough.

Instead of “going public,” you could say we’re “going purpose.” 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.

Read Yvon's letter at https://t.co/TolGLfHEGG

— Patagonia (@patagonia) September 14, 2022

‘We needed to find a way to put more money into fighting the crisis while keeping the company’s values intact,’ writes Chouinard, outlining the two choices he could have made (either selling Patagonia and donating all the money or taking it public) but chose not to because one wouldn’t guarantee the perpetuation of his ethics and the other would threaten long-term responsibility.

‘Truth be told, there were no good options available,’ he continues. ‘So, we created our own.’

How? By permanently transferring all of Patagonia’s voting stock into a recently established entity known as the Patagonia Purpose Trust.

The remaining 98% of Patagonia, its common shares, have been donated to a recently established non-profit organisation called the Holdfast Collective, which from this point onwards will receive all the company’s profits and use those funds to combat the climate crisis.

‘If we have any hope of a thriving planet 50 years from now, it demands all of us doing all we can with the resources we have,’ finishes Chouinard.

‘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.’