Patagonia’s Fight to Save the Earth
Courtesy of Green Queen
Written By: Sidney Howell
On September 14, 2022, Yvon Chouinard released a letter that would change the trajectory for his company, Patagonia, and hopefully urge other businesses to do the same. In this letter, Chouinard said “Earth is now our only shareholder.” While Patagonia has always strived to minimize its environmental footprint, it will now soley focus on giving back to the earth. According to Chouinard, there is no other alternative.
Taking a quick look at the Patagonia website, viewers can easily see their commitment to helping the earth. Individuals can explore their activism, learn about their history, and explore their 1% program, where 1% of sales is donated to preserve and restore the environment. Patagonia is also B-corp certified, meaning it passed a rigorous test to ensure its commitment to the environment and society. Their company charter was even rewritten in 2018 to include their commitment to save our home planet.
This was not enough for Chouinard, so as he was preparing to retire, he wanted to ensure Patagonia’s future and make sure it stayed committed to its values. He released a letter that explained the plan- now, 100% of voting stock is held in the Patagonia Purpose Trust and 100% of nonvoting stock is in the Holdfast collective (a nonprofit dedicated to restoring the earth.) Future profits will first be reinvested into the company, but the remaining money will fight the ongoing environmental crisis.
While Patagonia is valued at over $3 billion dollars, this donation is significant, but not enough to curb emissions, according to experts. What makes this donation different, though, is its structure. The Holdfast Collective is registered as a 501(c)(4), meaning the Chouinards will receive no income-tax benefits from their donation, but they will be able to make unlimited donations to political campaigns. Therefore, Patagonia will be able to influence politics and aid campaigns that vow to help the environment. While $3 billion may not be enough to stop global warming, the government could leverage even more money to help the environment.
Courtesy of USA Today
Chouinard wrote himself: “If we have any hope of a thriving planet—much less a business—it is going to take all of us doing what we can with the resources we have.” It is imperative that businesses adopt similar initiatives in order to save our planet. Companies need to not only try to limit their environmental impact, but need to actively help the earth, before it is too late.