Patagonia founder Yvon Chouinard, his wife and two adult children are giving away their ownership in the apparel maker, dedicating all the company’s profits to support biodiversity protection and fight climate change.
“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,” Choiunard wrote in a letter about the family’s decision.
The privately held company’s stock will now be owned by a climate-focused trust and group of nonprofit organizations, called the Patagonia Purpose Trust and the Holdfast Collective respectively.
According to the company “every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.”
Patagonia expects to generate and donate about $100 million annually. The company sells new and used outdoor apparel, outdoor activities gear and food and beverages made from sustainable sources.
According to the New York Times the company founded 50 years ago is worth about $3 billion.
Ryan Gellert will continue to serve as Patagonia’s CEO, and the Chouinard family will remain on Patagonia’s board.
After informing its employees, the company changed its motto to “Earth is now our only shareholder.”