Patagonia, In Business To Save Our Home Planet
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As our world transition into the renewable and sustainable age, new ideas and ways of doing things or running businesses are needed. This post is highlighting a planet-conscious or eco-conscious company, Patagonia Inc., in business to save our home planet. Let’s see what we can learn from Patagonia, an anti-consumerism corporation with focus on functionality over fashion and Worn Wear. Founded by Yvon Chouinard in 1973, Patagonia Works (“Patagonia”) is a certified B Corporation based in Ventura, California. A founding member of 1% for the Planet, the company is recognized internationally for its product quality and environmental activism. Its unique ownership structure reflects that Earth is its only shareholder: Profits not reinvested back into the business are paid as dividends to protect the planet.
Patagonia operates its apparel and equipment, food, and related businesses through the following subsidiaries: Patagonia, Inc. (apparel and equipment), Patagonia Provisions (food), Patagonia Media (books, films and multimedia projects), Fletcher Chouinard Designs, Inc. (surfboards), Tin Shed Ventures, LLC (investments), and Worn Wear, Inc. (used and upcycled apparel), and Great Pacific Child Development Center (onsite childcare and development).
Yvon Chouinard, the founder of Patagonia, his wife, and two adult children, transferred their ownership valued at $3 billion to fight climate change. Patagonia is an American outdoor clothing retailer that has hundreds of stores in more than ten countries. The company has an annual revenue of $1.5 billion. Watch! In the video published on Sep 19, 2022, by The Economic Times, as “Meeet Yvon Chouinard: The billionaire who donated his entire company“, below:
For our 50th year, we’re looking forward, not back, to life on Earth. Together, we can prioritize purpose over profit, collaboration over competition and protect this wondrous planet, our only home. What’s next is unstoppable, in the video published on March 10, 2023, by Patagonia, as “What’s Next?| Patagonia“, below:
The Patagonia Better Sweater Fleece Vest is by far one of the brand’s most popular products. It’s also one of its most divisive. Over the last five years, the vest became a must-have accessory for Wall Street workers in Manhattan’s financial district to tech bros in Silicon Valley. The company says at its height, it was fielding 60 requests for co branded vests, a day. But Patagonia, a private company that values environmental and political activism, never sought out to become the go-to status symbol for some of the biggest and richest corporations in the world. The combination of hefty price tags and a professional-class of super fans earned it the nickname “Patagucci” prompting it to reevaluate which companies it allowed to put a moniker on the vest as a way to ensure their partners align with their progressive culture. Patagonia even discouraged consumers from partaking in Black Friday sales and snuck political messages into the tags of its clothing. Here’s how Patagonia’s anti consumption philosophy helped it build a billion dollar outdoor brand, in the video published on Nov 23, 2020, by CNBC Make It, as “How A Vest Turned Patagonia Into A Billion-Dollar Brand“, below:
Patagonia, Inc. is a family-owned American corporation that responsibly produces and promotes sustainable outdoor apparel of the highest quality. As a designated Benefit Corporation, it formally commits itself to the alleviation of public concerns alongside the creation of shareholder value. Patagonia’s revenues shall hit the billion-dollar mark in the year 2018. Founded by the legendary climber and environmentalist Yvon Chouinard at Ventura, California in 1973, Patagonia is one of the most environmentally responsible enterprises on the planet. The company’s stated mission is to: a) build the best product, b) cause no unnecessary harm, and c) use business to inspire and implement solutions to the environmental crisis. Patagonia champions eco-friendliness in the production as well as the use of its clothing. Its garments are made from responsibly sourced materials, and are guaranteed for life. Further, the company nudges its customers to think twice before they purchase any of its products, in the video published on Aug 31, 2016, by Samatvam Academy, as : “Patagonia: The Sustainability Champions“, below:
In the video published on Dec 5, 2013, “[Patagonia Korea] Worn Wear: a Film About the Stories We Wear (KOR)“, below:
With Patagonia as a guide, I look at the paradox of embracing an eco-conscious and sustainable message as a for-profit company, in the video published on Feb 24, 2017, by Our Changing Climate, as “Patagonia: The Paradox of an Eco-Conscious Company“, below:
“The hardest thing in the world is to simplify your life. It’s so easy to make it complex. What’s important is leading an examined life.” — Yvon Chouinard. The following is a short visual documentary by Savanteum that covers these insights, strategies, and turning points on Yvon Chouinard’s journey to #LiveSimply and create one of the leading sustainable brands of the 21st century. 🌎 Hi, my name is Stuie and I made Savanteum to inspire the next generation of creators and innovators., in the video published on March 14, 2019, by Savanteum, as “How I Saved Patagonia From Bankruptcy, Yvon Chouinard“, below:
Patagonia announced new ownership in September of 2022, nearly 50 years since founder Yvon Chouinard began his experiment in responsible business. The Chouinard family has transferred all ownership to two new entities: Patagonia Purpose Trust and the Holdfast Collective. Most significantly, every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.
The Patagonia Purpose Trust now owns all the voting stock of the company (two percent of the total stock) and exists to create a more permanent legal structure to enshrine Patagonia’s purpose and values. It will help ensure that there is never deviation from the intent of the founder and to facilitate what the company continues to do best: demonstrate as a for-profit business that capitalism can work for the planet.
The Holdfast Collective owns all the nonvoting stock (98 percent of the total stock), and it will use every dollar received from Patagonia to protect nature and biodiversity, support thriving communities and fight the environmental crisis. Each year, profits that are not reinvested back into the business will be distributed by Patagonia as a dividend to the Holdfast Collective to help fight the climate crisis. The company projects that it will pay out an annual dividend of roughly $100 million, depending on the health of the business.
Yvon Chouinard, Patagonia founder, former owner, and current board member said:
“It’s been a half-century since we began our experiment in responsible business. 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. As the business leader I never wanted to be, I am doing my part. 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.”
Patagonia will remain a B Corp and continue to give one percent of sales each year to grassroots activists. The leadership of the company does not change. Ryan Gellert will continue to serve as CEO and the Chouinard family will continue to sit on Patagonia’s board, along with Kris Tompkins, Dan Emmett, Dr. Ayana Elizabeth Johnson, Charles Conn (chair of the board), and Ryan Gellert. The Chouinard family will also guide the company’s controlling shareholder, the Patagonia Purpose Trust, electing and overseeing Patagonia’s board of directors. They will also guide the philanthropic work performed by the Holdfast Collective. Acting together, Patagonia’s board and the Patagonia Purpose Trust will work for the company’s continued success over the long term while ensuring it stays true to its purpose and values.
Ryan Gellert, CEO of Patagonia and Patagonia board member said:
“Two years ago, the Chouinard family challenged a few of us to develop a new structure with two central goals. They wanted us to both protect the purpose of the business and immediately and perpetually release more funding to fight the environmental crisis. We believe this new structure delivers on both and we hope it will inspire a new way of doing business that puts people and planet first.”
The company shared the news first with its employees in a global town hall event on September 14, 2022. Soon after, the website Patagonia.com was updated to state that Earth is now our only shareholder and to include a letter from founder Yvon Chouinard.
Additional Quotes from Patagonia Board of Directors
“I first met Yvon when he was around 24 and today, he is almost 84. In all those years, his vision has never wavered. He wanted to do things his own way and on his own terms. And while he is in good health now, he wanted to have a plan in place for the future of the company and the future of the planet. I believe this plan that he and his family helped create is tectonic. It will make the company more competitive and its employees around the world will forever be empowered by purpose.” —Kristine McDivitt Tompkins
“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. Patagonia has been breaking the mold for decades, and now they have shattered it. Now I want to know, which companies will be next to step up?” —Dr. Ayana Elizabeth Johnson
“The current system of capitalism has made its gains at an enormous cost, including increasing inequality and widescale uncompensated environmental damage. The world is literally on fire. Companies that create the next model of capitalism through deep commitment to purpose will attract more investment, better employees, and deeper customer loyalty. They are the future of business if we want to build a better world, and that future starts with what Yvon is doing now.” —Charles Conn, chair of the board“
“As founder of a company that has been in business for nearly 50 years, I’ve seen the positive and negative impact a business can have on its communities and employees. But while we and others do take meaningful steps to mitigate the impact we have on the planet, Patagonia’s new ownership structure introduces a new model that goes far beyond anything that exists today. And it’s true to form for my life-long friend and fellow environmentalist, Yvon Chouinard.” —Dan Emmett
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker More about the community at www.WindermereSun.com
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