Patagonia to keep environmental focus

AFTER nearly 50 years of ownership by its founder, outdoor clothing and gear giant Patagonia will be run by two new entities that will continue the business strategy of protecting the planet.

Earlier this month, Yvon Chouinard and his family announced they would transfer all ownership into two new entities: the Patagonia Purpose Trust and the Holdfast Collective.

Every dollar not reinvested back into Patagonia will be distributed as dividends into the two new entities as voting and non-voting stock.

“It’s been a half-century since we began our experiment in responsible business,” Mr Chouinard said.

“If we have any hope of a thriving planet 50 years from now, it demands all of us doing all we can with the resources we have.

“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.”

The Patagonia Purpose Trust now owns all the voting stock (2 per cent) of the company and will exist to create a more permanent legal structure to enshrine Patagonia’s purpose and values towards protecting the planet.

The Holdfast Collective will own all the nonvoting stock (98 per cent) and will use every dollar received from Patagonia to protect nature and biodiversity, support thriving communities and fight off environmental crisis.

The company projects that it will pay out an annual dividend of roughly $100 million, depending on the health of the business.

Patagonia’s Australian and New Zealand director, Torquay-based Dane O’Shannassy said the new announcements were a huge step towards using Patagonia as a tool for environmental protection.

“Today earth is our only shareholder.

“You don’t have to look too hard to see the impact of unbridled capitalism and the pursuit of perpetual growth have had on the health of our planet.

“However, one of the great joys and responsibilities of working at Patagonia is showing up each day in service of our mission – we’re in business to save our home planet.

“Now, the new ownership structure of Patagonia will accelerate our impact right around the world, into our next 50 years, and demonstrate an alternative way of doing business.”

Founded by Mr Chouinard in 1973, Patagonia Works (‘Patagonia’) is a certified B Corporation based in Ventura, California and also has a head office in Torquay.

A founding member of 1% for the Planet, Patagonia is recognised internationally for its product quality and environmental activism.

Patagonia will remain a B Corp and continue to give 1 per cent of sales each year to grassroots activists.

The leadership of the company will not change – Ryan Gellert will continue to serve as chief executive officer and the Chouinard family will continue to sit on Patagonia’s board,.