We’re sure you’ve all heard about the American outdoor clothing and gear company Patagonia. The company was founded back in 1973 by Yvon Chouinard and has since then faced steady and significant growth, expanding to more than ten countries across the world. However, what not a lot of people are aware of yet, is that Patagonia is undergoing what some might call a ‘radical’ change to its ownership structure. Chouinard has announced that he and his family are transferring over 98% of the company to a not-for-profit organization.
Chouinard’s Commitment to Saving the Planet
Many questioned Chouinard’s decision to give away almost the entirety of his company. After all, Patagonia had earned significant value in the time it has been a functioning company. Chouinard transferred the company’s stock to the not-for-profit Holdfast Collective. The remaining 2% of the company’s stock will go to the Patagonia Purpose Trust.
What is the reason for Patagonia undergoing such radical and drastic structural change? According to Chouinard, this announcement of structural change comes as a conclusion to the company’s 50-year commitment to saving the planet.
All of the company shares that are being given to the Holdfast Collective will be used to combat climate change and essentially turn capitalism on its head. The Holdfast Collective is a not-for-profit organization that is exempt from tax under the US Internal Revenue code.
This means that the Collective is allowed to partake in political activity. While the Chouinard family will remain on the company’s board and take part in the Patagonia Purpose Trust, its role in the work of the Holdfast Collective will only be advisory.
Chouinard’s commitment to saving the planet goes further than any other commitment made by other business owners and billionaires. This is because Chouinard has not just made a vague pledge to bring about change but has actively transferred 98% of his assets to an organization that can take active action in combating climate change.
Is It Up to Billionaires to Save the Planet?
While it is commendable to see how dedicated Chouinard and the rest of the Patagonia family have been toward combating climate change, it brings about an important question that we should be considering. Is it up to a select number of billionaires to rally together to save the planet? Or should there be more involvement from the governments of different countries?
Climate change is a highly pressing concern, and it seems as though most people – and governments – have taken a backseat in combating climate change in the hope that the elite will continuously dedicate their wealth to the effort. The fate of the Earth should not ultimately be dependent on the whims and charity of the global elite.
