The creator of the outdoor clothing company Patagonia has given up ownership of the company and has allocated its earnings to the battle against climate change.
Yvon Chouinard has transferred his family’s ownership of Patagonia to two new entities, one of which is a nonprofit organization that will use the companies’ annual profits to fight climate change. Chouinard first gained fame for alpine climbs in Yosemite National Park and later as a manufacturer of outdoor gear.
“We are utilizing the riches Patagonia generates to conserve the source rather than taking value from nature and turning it into profit. Our only stakeholder will now be Earth “In the announcement, Chouinard, 83, remarked.
In a letter to consumers, Chouinard explained that Patagonia is now controlled by a trust that will decide the company’s course as well as a new nonprofit organization called the Holdfast Collective that is committed to environmental concerns and nature preservation.
“Despite our greatest efforts,” Chouinard remarked, “the environmental catastrophe still has to be addressed. To assist in combat the problem, each year we will give a dividend from the money we produce after reinvesting in the company.”
Depending on the performance of the businesses, the corporation anticipates paying a dividend of about $100 million annually to the Holdfast Collective. The company’s senior executives have not changed through this relinquish.