- Tram Ho
Specifically, Mr. Chouinard will donate all profits of the company, worth about 3 billion USD, to projects and organizations that protect forest land, biodiversity and combat climate change.
According to The New York Times , in a letter published on the Patagonia website on September 14, Choiunard said: “While we are doing our best to combat the environmental crisis, it is not enough. We need to find a way to invest more money in this fight while keeping the values of the company intact.”
The owner of Patagonia mentioned the option to sell Patagonia and donate the full amount, but he was concerned the new owner would not be able to uphold the company’s values and secure jobs for the staff.
, founder of Patagonia, in Wilson, Wyoming – USA Photo: THE NEW YORK TIMES
Ultimately, Mr. Choiunard decided the company’s private equity would now be owned by the Patagonia Purpose Trust (a climate-focused trust) and Holdfast Collective (a group of nonprofit organisations).
In it, the trust receives all voting shares, representing 2% of the total shares, and uses it to create a more permanent legal basis that honors Patagonia’s purpose and values. Holdfast Collective owns all non-voting shares of Patagonia, representing 98%.
According to CNBC , after announcing the move, Patagonia announced that “the earth is currently the sole shareholder of the company”.
Patagonia plans to generate and donate about $100 million annually depending on the situation of the business. The Chouinard family will remain on the board in line with the expansive philanthropic strategy.
Certified as a “B Corporation” (a business that achieves the highest standards of balancing social cause with profit), Patagonia donates 1% of its annual sales to grassroots activists and projects. intend to continue to do so.
Source : Genk