Yvon Chouinard founded Patagonia in 1973 and has since grown it into a $3 billion brand.
Earlier this week, he announced, along with his wife and two adult children, the donation of Patagonia to a charitable trust. Any future profits not used to run the business will be dedicated to fighting climate change.
Their website now states: “Earth is now our only shareholder.”
What makes Chouinard’s decision stand out is he’s donating the company. Which is meaningfully different from an individual, like Bill Gates or Warren Buffett, donating their personal wealth.
I don’t anticipate this kind of thing happening often, because it requires a phenomenal, privately-held business with a great brand, margins, and shareholder agreement (i.e., 100% ownership) to make such a decision.
Nonetheless, it’s an inspiring move, and one that I’m sure will spur others to take action in their own way.