Patagonia founder donates $3B company to fight climate change
Privately held stock in Patagonia will not be owned by a climate focused trust
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The founder of outdoor gear company Patagonia, long known for environmental activism, says the company is transferring all of its voting shares into a trust "dedicated to fighting the environmental crisis and defending nature."
In a letter posted on the privately-held company's website on Wednesday night, founder Yvon Chouinard said the 50-year-old company would transfer 100% of its voting stock to the Patagonia Purpose Trust and 100% of its nonvoting stock had been given to the Holdfast Collective.
Each year after reinvesting profits back into the company, Chouinard said remaining funds will be distributed as a dividend to the trusts in their ongoing efforts to fight the climate crisis.
Patagonia Founder and billionaire Yvon Chouinard donated his $3 billion company to fight climate change. (Ben Gabbe/Getty Images for Tribeca X / Getty Images)
Chouinard said the other options for the Ventura, California company to dedicate itself to protecting the planet — selling the company and donating the proceeds; or taking the company public — were not viable for Patagonia's ultimate goals.
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"Instead of extracting value from nature and transforming it into wealth for investors, we'll use the wealth Patagonia creates to protect the source of all wealth," Chouinard wrote.
A Patagonia sticker is seen on a door at a store on Greene Street on September 14, 2022 in New York City. (Michael M. Santiago/Getty Images / Getty Images)
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Patagonia makes outdoor clothing, gear and accessories for everything from skiing to climbing and camping.
Chouinard said he "never wanted to be a businessman," and started Patagonia as a craftsman, making climbing gear for himself and his friends.