The founder of Patagonia recently donated the whole $3 billion business to combat climate change.
The founder of Patagonia, Yvon Chouinard, is donating his ownership in the clothing business he started more than 50 years ago along with his wife and two grown children.
He also promises to donate all company profits to programs and organizations that will protect wild land and biodiversity and work to address the climate crisis.
The New York Times gauged the company’s worth at $3 billion.
Due to its commitment to sustainability, the brand has developed a cult following. Examples include offering affordable repairs and a lifetime guarantee on all of its clothing.
On the company’s website, it is currently stated that Earth is the lone stakeholder.
In his own words, Mr. Chouinard “never aspired to be a businessman.”
He was an avid rock climber who first made metal climbing spikes for himself and his pals to wedge into rocks before transitioning into apparel and finally developing a tremendously popular sportswear brand.
Patagonia, which was founded in 1973, reported revenues of almost $1.5 billion this year, and Mr. Chouinard’s net worth is estimated to be $1.2 billion.
He has, however, always been reluctant to acknowledge his money, telling the New York Times that he was “horrified to be seen as a millionaire.”
Depending on the company’s performance, he asserted that revenues would be contributed to environmental organizations at a rate of about $100 million (£87 million) annually.
Sales have not been affected by the company’s marketing strategies, which center on urging customers to buy only what they need. However, detractors contend that by making the company more well-known, it has actually pushed consumers to spend more money.
The Californian company was already devoted to sustainable business practices and donated 1% of its annual sales to grassroots organizers. The cautious businessman, though, asserted that he intended to move things along in an open letter to clients.
