The founder of outdoor clothing brand Patagonia, Yvon Chouinard, has decided that instead of selling his company he will 'donate' it to an environmental non-profit, all while continuing to pursue their activities in combating climate change.
In agreement with his family, Chouinard has decided to transfer 100% of the company's shares to Holdfast Collective, a non-profit seeking to preserve nature in the face of climate change, and the Patagonia Purpose Trust, created to protect the company's pro-environment values.
Chouinard, who has transformed Patagonia into a beacon of environmentally-friendly business by donating 1% of their sales to NGOs that combat climate change, could have chosen to sell the company to a new owner or even to have gone public.
However, the eco-conscious owner stated that going public would have been "a disaster." In his view, "even listed companies with good intentions are under too much pressure to create short-term gains at the expense of long-term vitality and responsibility."
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As a result, he has decided to entrust his company to the hands of his family and donate all profits to environmental causes.
"The money we make after reinvesting in the business will be distributed as a dividend to help fight the environmental crisis," he explained in a letter posted on Patagonia's website.
