Patagonia owner donates $3 billion to company to fight climate change

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The billionaire founder of outdoor clothing brand Patagonia, Yvon Chouinard, is selling his entire company to a trust that will use its profits to fight the climate crisis.

His business is worth around $3 billion, The New York Times reported.

In an open letter on the company’s website, Chouinard said that instead of selling or going public, he and his family donated Patagonia to a nonprofit specifically developed to help fight change. climatic.

In his open letter titled “Earth is now our sole shareholder,” Chouinard, 83, said: “Truth be told, there were no good options available. So, we created our own.”

Chouinard wrote that the put option was available, but he could not be sure that the new owner would maintain the company’s values ​​or keep its employees who work around the world.

He added that Patagonia could also have been made public, but he felt that this decision could be an inevitable “disaster”. Thus, the Chouinard family created its own goal. He explained, “Instead of ‘going public’, you could say we’re moving forward. Instead of extracting value from nature and turning it into wealth for investors, we will use the wealth created by Patagonia to protect the source of all wealth. “

In August, the voting shares of Patagonia (2% of the shares), which previously belonged to his family, were transferred to the new Patagonia Purpose Trust. The trust aims to secure the company’s vision and morals to run sustainable businesses.

The remaining 98% of Patagonia common stock is now being transferred to a new non-profit organization called Holdfast Collective. The association will now receive all profits from the company and use the funds to fight climate change.

“The funding will come from Patagonia: each year, the money we earn after reinvesting in the company will be distributed as a dividend to help fight the crisis,” Chouinard mentioned in his letter.

Meanwhile, Patagonia will continue to operate as a private, for-profit company, but the Chouinard family will no longer own the company.

Chouinard is known to be a climber, an environmentalist and a philanthropist. He is also a surfer, kayaker and falconer and is particularly fond of tenkara fly fishing.

First post: STI

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