The Founder of American retailer of outdoor clothing Patagonia; Yvon Chouinard along with his spouse and two children, will be giving the ownership in the company away and dedicating all the profits from it to organizations and projects that are geared towards protecting biodiversity, wild land and combat the climate crisis.
Patagonia which was founded fifty (50) years ago is now reportedly worth an impressive 3 billion United States Dollars (USD) which is around 361.5 billion Kenyan Shillings.
The Founder; Yvon Chouinard in a letter regarding the decision which was released via Patagonia’s official website on Wednesday the 14th of September 2022 addressed “reimagining capitalism” stating that, “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.”
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Yvon Chouinard added that, “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.”
Patagonia whose stock is privately held made it known via a statement that it will now be under the ownership of a climate oriented trust alongside a group of nonprofit organizations known collectively as the Patagonia Purpose Trust and the Holdfast Collective respectively.
It added that, “every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.”
The entire process will be overseen by members of the family as well as close advisors.
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All of the non-voting stock for Patagonia which translates to around ninety eight (98) percent, is owned by the Holdfast Collective.
The outdoor clothing retailer; Patagonia, is looking to generate and donate around 100 million United States Dollars (USD) which is around 12.05 billion Kenyan Shillings every year. The exact figure will however be dependent on how well the business does.
Patagonia currently sells both used and new outdoor apparels, along with gear for outdoor activities like fishing, climbing and camping.
It also sells beverages and foods created from sustainable sources.
Patagonia which is a certified B-Corp and California Benefit Corporation has already been donating one (1) percent of its sales every year to grassroots activists and it plans on continuing that tradition.
Less than 6,000 companies around the world are certified as B-Corp businesses. This is because for companies or businesses to achieve that status, they will have to adhere to very strict governance, social and environmental criteria and standards put in place by global nonprofit network; B Labs, before they can get the certification.
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After the company’s planned philanthropic approach, Ryan Gellert will maintain his position as the Chief Executive Officer (CEO) of Patagonia. The Chouinard family will also continue to be a part of the board of Patagonia.
The company after revealing the news to its employees, updated its official website to include the statement: “Earth is now our only shareholder.”
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