Updated: Thu, 15 Sep 2022 12:20 PM IST
THE FOUNDER of Patagonia, Yvon Chouinard donated his retail company of outdoor clothing to a specially design trust and a nonprofit organization to combat climate change.
As per a report in the New York Times, the company is valued at nearly $3 billion.
Along with Chouinard, his wife and two adult children are also donating their share in the company.
A letter penned by Chouinard, posted on the Patagonia website on Wednesday, further explains his decision.
"If we have any hope of a thriving planet—much less a business—it is going to take all of us doing what we can with the resources we have. This is what we can do," the American billionaire wrote.
He added, "While we're doing our best to address the environmental crisis, it's not enough. We needed to find a way to put more money into fighting the crisis while keeping the company's values intact. One option was to sell Patagonia and donate all the money. But we couldn't be sure a new owner would maintain our values or keep our team of people around the world employed. Another path was to take the company public. What a disaster that would have been. Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility,”.
"Truth be told, there were no good options available. So, we created our own."
The company's voting stocks have been transferred to the Patagonia Purpose Trust, the company explained. "100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature."
As per the letter, the funding will come from Patagonia. Each year the money the company will make after reinvesting in the business will be distributed as a dividend to help fight the crisis.
He concluded the letter by stating that we can save our planet if we commit to it.
"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," he said.