Yvon Chouinard (lead image), founder of outdoor apparel brand Patagonia, has made the shock decision to hand off the company to a non-profit organisation in a bid to spur on climate action.
The business, which started almost 50 years ago, is currently worth around US$4.4 billion (AU$6.56 billion) and will be transferred to a trust and a non-profit organisation. Members of Chouinard’s family, including his wife and two sons, will oversee both groups.
The newly formed Patagonia Purpose trust will retain existing finances for the company while the non-profit arm (Holdfast Collective) will convert profits generated by the company into climate action.
The outdoor brand itself will continue to run as a for-profit organisation, however 1 per cent of profits made through sales will be donated to non-profit groups working towards environmental change.
In an interview with The New York Times, Chouinard said the goal was to use the money made by Patagonia to “protect the source of all wealth”, rather than profiting investors.
“It’s been nearly 50 years since we began our experiment in responsible business, and we are just getting started,” Chouinard added.
“If we have any hope of a thriving planet, much less a thriving business, in 50 years from now, it is going to take all of us doing what we can with the resources we have. This is another way we’ve found to do our part.”
