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The millionaire creator of the outdoor clothing company Patagonia has donated his business to a trust for humanitarian purposes. According to Yvon Chouinard, any earnings left over after operating expenses were covered would be used to combat climate change.
Due to sustainability initiatives like offering affordable repairs and a lifetime guarantee on its clothing, the brand has developed a cult following. It is well-known for the advertisement “Don’t buy this jacket,” which cautions consumers about the environmental implications of their purchases. Earth is now our sole shareholder, according to the brand’s website.
Mr. Chouinard has consistently maintained that he has no interest in running a business.
Being an avid rock climber, he first made metal climbing spikes for himself and his pals to wedge into rocks before transitioning into apparel and finally developing a tremendously popular sportswear brand.
Patagonia was founded in 1973, and its revenues this year were estimated to be $1.5 billion, while Mr. Chouinard’s net worth is estimated to be $1.2 billion. He told the New York Times that he was mortified to be viewed as a billionaire, but he has always avoided acknowledging his money.
According to him, profits to be donated to environmental organizations would total about $100 million (£87 million) annually, depending on the company’s state of health.
The company’s sales have not been affected by its marketing initiatives, which implore customers to only purchase what they need. However, some detractors contend that by making the company more well-known, the firm has actually encouraged consumers to spend more money.
The company claims the price reflects the fact that its clothes are supposed to last a lifetime. Jumpers, for instance, cost over £200, and T-shirts cost about £40.
The Californian company already supported grassroots activists with 1% of its yearly sales and was dedicated to sustainable business practices. However, the hesitant businessman claimed he wanted to do more in an open letter to clients.
He claimed that initially, he had debated either selling Patagonia and giving the proceeds to a good cause or going public.
However, he claimed that both possibilities involved ceding control of the company. There is too much pressure on public corporations, even those with the best of intentions, to prioritize short-term gain over long-term vitality and accountability.
People who have given their money to charity like Yvon Chouinard
Bill Gates, the creator of Microsoft, pledged to “drop off” the list of the world’s richest people this year as he gave $20 billion to his philanthropic organization. The computer executive, whose estimated net worth is $118 billion, had promised in 2010 to donate his fortune to charity, but since then, his wealth has more than doubled.
The Hut Group’s CEO, who owns a number of online nutrition and beauty firms, gave £100 million to a charitable foundation last year after becoming a billionaire when his company was listed. Matthew Moulding was attempting to make a difference despite the fact that he “couldn’t even fathom the numbers” regarding his unexpected money.
Founder of the hi-fi chain Richer Sounds, Julian Richer, gave employees a 60% ownership stake in the company in 2019.
Instead, the Chouinard family has given control of the entire business to two fresh organizations. According to Mr. Chouinard, the family-run Patagonia Purpose Trust will continue to oversee the firm but will possess just 2% of its overall stock.
It will direct the charitable endeavors of the Holdfast Collective, a US organization combating the environmental disaster that currently controls all of the non-voting stock or roughly 98% of the business.
Patagonia mixes its reputation for social engagement and high-end outdoor fashion. A devoted, if primarily wealthy, following is undoubtedly drawn to this intoxicating combination.
The fact that it has long taken an environmentally sensitive position is one of its appeals. Before sustainable fashion became in vogue, it was preaching environmental consciousness. But, however many recycled or renewable materials you use, it’s still difficult to help the earth if your firm relies on selling goods.
Patagonia’s creator, Yvon Chouinard, has attempted to square that circle by designating a portion of future income for environmental causes. But he is also unmistakably working to protect the Patagonia brand in the future and prevent it from ever falling into the hands of the kinds of businesses he has previously accused of greenwashing.
And nothing will if it doesn’t pique the interest of affluent outdoor enthusiasts with a social conscience.
Reference:
Yvon Chouinard gives fashion firm away to charity
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