The Strategist

Patagonia brand founder donates his company to fight climate change

09/16/2022 - 11:16

The 83-year-old creator of the outdoor clothing firm Patagonia, Yvon Chouinard, has handed ownership of his business to a trust and nonprofit group that was especially set up to utilize the proceeds to fight climate change.

Spencer Beebe for Ecotrust
Spencer Beebe for Ecotrust
Yvon Chouinard, 83, the creator of the Patagonia outdoor clothing firm, along with his wife and two daughters, have given ownership over the business to a nonprofit organization and a specifically crafted trust, reports The New York Times.

The Chouinard family reportedly transferred ownership over Patagonia, which is estimated to be worth $3 billion, to a foundation and trust that was established to maintain the company's independence and make sure that all of its profits, or about $100 million annually, go toward battling climate change and preserving undeveloped lands around the world. The Patagonia Purpose Trust, which defends the company's ideals, received 2% of Chouinard and his wife's shares, with the rest 98% going to the environmental NGO Holdfast Collective.

The Chouinard family will pay around $17.5 million in taxes without receiving any tax breaks since they donated some shares to a trust. According to the terms of the agreement, the Chouinard family would not be able to regain control of the business.



< >

Thursday, May 16th 2024 - 03:10 HSBC starts looking for new CEO