Patagonia : making earth their only shareholder by Lisa Guthrie Deabill
For nearly 50 years , Patagonia has been a leader in outdoor apparel and equipment . The company has also invested millions of dollars in the preservation of our planet . Founder Yvon Chouinard is taking his pledge to protect the environment a step further .
In September , Chouinard announced that the ownership of Patagonia is now in the hands of the
Patagonia Purpose Trust and the Holdfast Collective . That essentially means that all assets not reinvested back into the company will go to environmental causes .
“ Instead of extracting value from nature and transforming it into wealth , we are using the wealth Patagonia creates to protect the source . We ’ re making Earth our only shareholder . I am dead serious about saving this planet ,” Chouinard said .
Patagonia has already pledged more than $ 140 million dollars in cash and donations to the restoration and preservation of the environment . Since 1985 , the company has donated one percent of its sales to the cause .
Chouinard and Craig Mathews , the owner of Blue Ribbon Flies , decided to get other businesses on board . In 2002 , they created a non-profit corporation called
1 % for the Planet . The group encourages other companies to designate one percent of annual sales to grassroots environmental groups . “ If you could get businesses , any business , to understand that they have more responsibility than to maximize profits for the shareholders or for themselves ; that they have a responsibility to the planet . We all do . And the best way to do it is to just dig into your pockets and give the money away to people who are willing to do the good work ,” said Chouinard .
More than 5,000 businesses big and small have joined the movement including brands such as Honest Tea , BIC , OXO and Nature ’ s Path organic foods . This year alone , more than 1,500 businesses became members of 1 % for the Planet .
Dr . Ayana Elizabeth Johnson , a member of Patagonia ’ s Board of Directors , hopes more businesses follow in Chouinard ’ s footsteps . “ Every time you read a new scientific report , it ’ s clear the climate crisis is happening faster than we thought and it ’ s worse than we thought . The stakes could not be higher . If we want to protect nature and support communities , businesses can ’ t continue to adhere to the prevailing economic model ,” Johnson said .
Following Patagonia ’ s announcement on the transfer of ownership , Chouinard wrote
a letter to the community . His closing line is something we can all consider to be more ecologically responsible , “ Despite its immensity , the Earth ’ s resources are not infinite , and it ’ s clear we ’ ve exceeded its limits . But it ’ s also resilient . We can save our planet if we commit to it .”
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