Patagonia Founder Donates Entire Company to Charity

You’re likely aware of the outdoor clothing and equipment brand Patagonia Inc. Maybe you’re wearing one of their stylish fleeces now. Known for ethical, high-quality goods, with over 30 stores in the US alone, Patagonia Inc are one of America's most popular homegrown brands.

Now billionaire founder Yvon Chouinard’s altruism has reached an unexpected level. On 14th September 2022, he announced he has donated the entire operation, valued at over $3 billion, to two non-profit organisations, heralding an exciting new phase for the company.    

The Patagonia Purpose Trust received all voting stock (around 2% of total stock) and exists to create legal structure for the companies charitable donations, continuing Patagonia’s legacy and aiming to prove a for-profit company can also be good for the planet.

The Holdfast Collective now owns the non-voting stock. It was formed to invest Patagonia’s profits in biodiversity, environmental crisis, and climate change, and will continue to donate 1% of profits to grass roots activism while improving sustainable business practises.

Chouinard is already an accomplished philanthropist. Throughout its almost 50 year history, Patagonia Inc has contributed generously to environmental charities. In 2016, the company donated all sales from their Black Friday event which totalled over $10 million.   

Chouinard describes Patagonia Inc as an experiment in responsible business. Eager to do his part, the double charity structure will ensure any wealth it creates is invested into protecting the source of its products, Earth. “I’m dead serious about protecting this planet" he says.

Patagonia Inc are breaking new ground in the outdoor apparel in other imaginative ways. Creating a circular economy, they promote ‘worn wear’, reselling used garments and equipment. The company is driven by the ambitious aim of becoming carbon neutral by 2025.

Embracing recycled raw materials, low impact manufacturing and responsible stewardship of the world it occupies, Patagonia Inc shows real environmental leadership. When news of the restructure broke, their website was updated with the words 'Earth is now our only shareholder'.

Genuine benevolence is rare in big business, especially without the unscrupulous element of greenwashing that modern companies often strive to catch custom with. Chouinard and Patagonia Inc have challenged the norm and upended the very idea of corporate altruism.   

More corporations could make moves to share the wealth they have amassed.

With this latest move, Patagonia Inc, long the benchmark brand for low-impact, authentic outdoor apparel, is now the benchmark for a truly altruistic and eco-friendly venture too.