Yvon Chouinard is a billionaire and the founder of Patagonia, a company that produces outdoor clothing and gear. He is also a passionate environmentalist who has dedicated his life and fortune to fighting climate change and protecting nature.
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| Photo: Patagonia founder Yvon Chouinard speaking on stage during Inaugural Tribeca X: A Day of Conversations Celebrating the Intersection of Entertainment and Advertising (Getty Images for Tribeca X/Ben Gabbe) |
In September 2022, he made a shocking announcement: He donated his entire company, worth $3 billion, to a trust and a nonprofit organization that will use all the profits to combat climate change and preserve wild lands around the world.
This is his story of how he built Patagonia, why he decided to give it away, and what he hopes to achieve with his unprecedented act of generosity.
The Origins of Patagonia
Yvon Chouinard was born on November 9, 1938, in Lewiston, Maine. He grew up in Burbank, California, where he developed a love for rock climbing, surfing, and fishing.
In the late 1950s, he started making his own climbing equipment out of steel and selling it to his friends. He called his business Chouinard Equipment and soon became known for his innovative and durable products.
In 1970, he partnered with Tom Frost, another climber and engineer, to expand his business. They also started making clothing for climbers, using organic cotton and recycled materials. They named their clothing line Patagonia, after the wild region in South America that inspired them.
Patagonia grew rapidly in the 1980s and 1990s, becoming one of the most popular and respected brands in the outdoor industry. It also became known for its environmental and social responsibility, donating 1% of its sales to grassroots environmental groups, becoming a certified B Corporation, and supporting various causes such as fair trade, animal welfare, and indigenous rights.
The Decision to Donate Patagonia
Despite Patagonia's success and reputation, Yvon Chouinard was not satisfied. He saw the worsening effects of climate change and ecological destruction on the planet and felt that he had to do more to address the crisis.
He considered selling Patagonia or taking it public, but he feared that a new owner or shareholders would compromise the company's values or fire its employees. He also did not want to keep the money for himself or his family, as he believed that wealth was a burden and a responsibility.
He decided to create a new way to preserve Patagonia's independence and mission while giving away its profits. He transferred all the company's voting stock, worth 2% of the shares, to a newly established entity called the Patagonia Purpose Trust. The trust will be overseen by members of his family and their closest advisers, who will ensure that Patagonia continues to operate as a socially responsible business.
He also gave away all the nonvoting stock, worth 98% of the shares, to a nonprofit organization called the Holdfast Collective. The collective will use all the dividends from Patagonia's profits, about $100 million a year, to fund projects and organizations that are working to fight climate change and protect nature.
The donation was irrevocable and tax-free. The Chouinards will not receive any income or benefits from Patagonia or the trust. They will only retain a small amount of money for their personal needs.
The Vision for Patagonia's Future
Yvon Chouinard hopes that his donation will inspire other business owners and individuals to follow his example and use their resources for the common good. He also hopes that Patagonia will continue to be a leader and an innovator in the outdoor industry and beyond.
He said: "Hopefully this will influence a new form of capitalism that doesn't end up with a few rich people and a bunch of poor people. We are going to give away the maximum amount of money to people who are actively working on saving this planet."
Patagonia will continue to operate as a private, for-profit corporation based in Ventura, California. It will keep selling its products and services, which include clothing, gear, books, films, food, travel packages, and educational programs.
It will also keep pursuing its purpose statement: "We're in business to save our home planet."
The Impact of Patagonia's Donation
Yvon Chouinard's donation of Patagonia is one of the largest and most radical acts of philanthropy in history. It is also a powerful statement of his commitment to environmental and social justice.
By giving away his company, Chouinard is not only sacrificing his personal wealth, but also ensuring that Patagonia will remain true to its purpose and values for generations to come. He is also creating a new model of business that puts the planet before profits.
The donation will also have a significant impact on the environmental movement and the fight against climate change. Patagonia's profits will provide a steady and substantial source of funding for various projects and organizations that are working to protect nature and biodiversity, reduce greenhouse gas emissions, promote renewable energy, support indigenous rights, and more.
Some of the beneficiaries of Patagonia's donation include:
- 1% for the Planet: A global network of businesses that donate 1% of their sales to environmental causes. Patagonia was one of the founding members of this initiative in 2002 and has donated over $100 million to more than 3,000 grassroots groups since then.
- The Conservation Alliance: A coalition of outdoor businesses that fund and advocate for the protection of wild lands and waters. Patagonia was one of the founding members of this alliance in 1989 and has contributed over $20 million to more than 600 conservation campaigns since then.
- The Solutions Project: A nonprofit organization that aims to accelerate the transition to 100% clean energy for all. Patagonia has supported this project since 2014 and has helped fund its campaigns in various states and countries.
- The Sunrise Movement: A youth-led movement that advocates for a Green New Deal and climate justice. Patagonia has backed this movement since 2018 and has provided grants, training, and mentorship to its leaders and activists.
- The Land Trust Alliance: A national network of land trusts that conserve land for public benefit. Patagonia has partnered with this alliance since 2017 and has helped protect over 1 million acres of land across the US.
These are just some examples of the many organizations and causes that will benefit from Patagonia's donation. The full list and details will be disclosed by the Holdfast Collective in the future.
The Message of Patagonia's Donation
Yvon Chouinard's donation of Patagonia is not only a generous gift, but also a challenge and an invitation. It is a challenge to other business owners and individuals to follow his example and use their resources for the common good. It is also an invitation to everyone to join him and Patagonia in their mission to save our home planet.
Chouinard said: "We are at a tipping point in human history, where we have to decide whether we want to live or die as a species. We have the power and the responsibility to make a difference. We can't wait for governments or corporations to do it for us. We have to do it ourselves."
Patagonia's donation is a bold and inspiring act of leadership that shows us what is possible when we put our values into action. It is also a reminder that we are not alone in this fight, but part of a global community that cares about our planet and our future.
As Patagonia's slogan says: "We're in this together."
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