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Patagonia founder and owner Yvon Chouinard announced he has given away the company to a charitable trust tackling the climate emergency.
The shareholding of Patagonia, an outdoor clothing and sportswear brand founded by Chouinard in 1973, will be split between two new entities.
Patagonia Purpose Trust will oversee the company’s strategy, holding two percent of its voting stock. The Holdfast Collective, which is responsible for the brand’s economic interest, will hold the remaining 98 percent and distribute an annual dividend.
This means that any profit not reinvested in running the business would now fund efforts to combat climate change.
About $100 million is expected to be utilized by the company to battle the environmental catastrophe, safeguard the environment, and encourage biodiversity.
This year, Patagonia is expected to earn $1.5 billion in revenue. According to Forbes, Chouinard has a net worth of US$1.2 billion.
Every year, the California-based Patagonia distributes 1 percent of its net earnings in cash and in-kind donations, mostly to local environmental non-profits. The majority of Patagonia's products also incorporate recycled components.
