As Chouinard explained in an open letter he penned for the announcement, from the start, his sole purpose was to use Patagonia to do the right thing.
Witnessing the scale of global warming and ecological destruction as his business grew, he sought to change the system.
Yet, no matter how many eco-friendly materials are used in the manufacture of Patagonia products; how many sales were given; or how many certifications confirming the commitment to the brand he has received over the years, nothing was enough.
Instead of “going public,” you could say we’re “going to do something.” Instead of extracting value from nature and turning it into wealth for investors, we will use the wealth created by Patagonia to protect the source of all wealth.
Read Yvon’s letter at https://t.co/TolGLfHEGG
— Patagonia (@patagonia) September 14, 2022
“We had to find a way to invest more money in fighting the crisis while preserving the values of the company,” Chouinard writes, describing the two choices he could have made (either selling Patagonia and giving everything the money or make it public) but chose not because one would not ensure the sustainability of his ethics and the other would threaten his long-term liability.
“Truth be told, there were no good options available,” he continues. “So, we created our own.”
How? By permanently transferring all voting shares of Patagonia into a newly created entity known as the Patagonia Purpose Trust.
The remaining 98% of Patagonia, its common stock, has been donated to a recently created non-profit organization called Holdfast Collective, which from then on will receive all company profits and use these funds to fight the crisis. climatic.
“If we have any hope of a prosperous planet 50 years from now, it requires that we all do everything we can with the resources we have,” Chouinard concludes.
“Despite its vastness, the Earth’s resources are not infinite, and it is clear that we have exceeded its limits. But he is also resilient. We can save our planet if we commit to it.