The founder of the clothing company Patagonia announced that he is giving away the company to use profits to fight the climate crisis.
Patagonia has been one of the most loved brands in the world for decades.
Founded in 1973, the outerwear brand has made a name for itself with its commitment to high quality clothing that will last for years to come.
Company founder Yvon Chouinard is known for his environmental stance.
Back in the 1980s, the billionaire pledged to give 1 percent of the company’s sales to environmental groups.
But now, Chouinard taken even greater steps in the fight against climate change.
He has important news for the future of the Californian company.
The founder of the company said: “I never wanted to be a businessman. I started out as an artisan, making climbing gear for myself and my friends, and then moved on to clothing.”
Now the octogenarian has released a statement that will change the course of his company forever.
The statement said that instead of “going public,” the company “will be purposeful.”
It goes on to say: “Instead of extracting value from nature and turning it into wealth for investors, we will use the wealth that Patagonia creates to protect the source of all wealth.”
Instead of selling the company, Chouinard chose to maintain his environmental values without remaining under family control.
The new structure also means that Patagonia will not have to go public. The statement said: “Even well-intentioned public companies are under too much pressure to make short-term gains at the expense of long-term viability and accountability.”
It also means that all of the company’s voting shares will go to the Patagonia Purpose Trust. The non-voting shares then go to a new environmental non-profit, Holdfast Collective.
This means that all of Patagonia’s profits will be distributed as a dividend to save the planet.
Chonard hopes this will change the way society works.
Speaking with New York TimesChouinard said, “Hopefully this will influence a new form of capitalism that doesn’t end with a few rich people and a bunch of poor people.”
His statement ends with the words: “If we have any hope of a prosperous planet – and even more so for a prosperous business – in fifty years, we will all have to do our best with the resources that we have” .
“Despite the immensity, the resources of the Earth are not unlimited, and it is clear that we have exhausted their limits. But he is also stable. We can save our planet if we get down to it.”
New York Times reports that the company plans to donate more than $100 million to Holdfast Collective this year alone.
This means that Patagonia could become an important event in the world of climate philanthropy.
What do you think of Chouinard’s generous act?