The gesture is very strong.
The founder of outdoor clothing brand Patagonia, known for its pro-environment stance, wants to do even more for the planet.
At age 83, he decided to simply… donate his business.
Yvon Chouinard could have sold the brand, valued at three billion dollars according to the New York Times, or taken it public.
But, in agreement with his wife and two children, he decided instead to transfer 100% of their shares in the company to a trust responsible for ensuring that its values are respected, and to an association to fight against the crisis. environment and the protection of nature, to whom the profits will be donated.
Hey, friends, we just gave our company to planet Earth.
OK, it's more nuanced than that, but we're closed today to celebrate this new plan to save our one and only home.
We'll be back online tomorrow.https://t.co/fvRFDgOzVZ
— Patagonia (@patagonia) September 14, 2022
"Earth is now our sole shareholder," he wrote in a letter posted on Patagonia's website.
“I never wanted to be a businessman.
I started out as a craftsman, making climbing gear for my friends and myself before moving on to clothing,” he recalled.
Maintain values and retain employees
Founded almost fifty years ago, Patagonia quickly made a commitment to the protection of nature, scrupulously choosing its raw materials or donating 1% of its sales each year to environmental NGOs.
But it was not enough, judged its founder.
“One option was to sell Patagonia and give away all the money.
But we couldn't be sure that a new owner would maintain our values or keep all of our employees,” he said in his letter.
Read alsoPatagonia, high-end ethics
And taking Patagonia public would have been “a disaster,” he predicted: “Even listed companies with good intentions are under too much pressure to create short-term gains at the expense of long-term vitality and accountability. term ".
"I hope (this gesture) will spur a new form of capitalism that doesn't end with a few rich people and a lot of poor people," he said in an interview with The New York Times.
Patagonia will remain a company, which cares about its financial health, and will operate with a board of directors and a general manager.
Yvon Chouinard's family will continue to “guide” the work of the trust and the association.