The privately held company's stock will now be owned by a climate-focused trust and group of nonprofit organizations, called the Patagonia Purpose Trust and the Holdfast Collective respectively, the company said in a statement, noting"every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet."
The trust will get all the voting stock, which is 2% of the total, and will use it to create a"more permanent legal structure to enshrine Patagonia's purpose and values." It will be overseen by members of the family and close advisors.Patagonia expects to generate and donate about $100 million annually depending on the health of the business.
As a certified B-Corp and California Benefit Corporation, Patagonia was already donating one percent of its sales each year to grassroots activists, and it intends to keep doing so. Fewer than 6,000 companies around the world are certified as. They have to meet strict environmental, social and governance standards and benchmarks set by B Labs to gain certification.
Ryan Gellert will continue to serve as Patagonia's CEO, and the Chouinard family will remain on Patagonia's board following the apparel maker's expanded philanthropic strategy. After informing its employees on Wednesday about this move, the company updated its website to state that"Earth is now our only shareholder."
And the founder is able to avoid 700m in taxes
I looked at thier website. They start with this statement 'The climate crisis is an existential threat' They are simply interested in sound bites and tax deductions. Not the environment.
Money lookin for a problem. Patagonia would be better off doing a naked rain dance to change the weather. Whatever they’re doing is a waste of shareholder money. THUS the problem with ESG. Its political, bordering on religious, people arrogant enough to think they affect climate
'man made climate change.' Bull$hit
Look at me, now it’s somebody else’s problem and I have a giant tax offset. And people will love me.
Noble gesture but would have impacted many more people by donating to the poor
Sure thing. Upload the trust documents and family salaries
Actually, to avoid a MASSIVE tax bill.
To avoid taxes?
Soooooo fighting windmills.
Yeah, that oughta do it! Climate Hoax!
'Every billionaire is a policy failure.'
Please buy more Patagonia 'Stuff'!
I think climate change fought him 😅😂
Could have fed so many people