Yvon Chouinard is the founder of the iconic brand Patagonia. Recently he transferred ownership of the $3 billion company to a nonprofit organization. All of the profits, approximately $100 million per year, will be used to combat climate change and protect undeveloped land. Chouinard’s progressive approach to how big companies should manage their profits might serve as a guide for how more business owners could pursue sustainability.
At 83, Chouinard lives a simplistic life. He does not own a cellphone and lives between modest homes in Wyoming. Moreover, his choice to prioritize sustainability over his personal monetary benefits are driven not only by this lifelong love for the environment, but a desire to mark a necessary perspective towards capitalism and politics. The education and opportunities that come with being Lawrentians give us choices regarding how we can impact our community. Chouinard’s choice to be charitable is a trait many of us can embrace on a larger scale.
Patagonia’s largesse will be used to combat climate change and protect wildlife. Holdfast Collective, a nonprofit organization dedicated to fighting our environmental crisis and preserving biodiversity owns 98 percent of Patagonia shares. The remaining 2 percent was transferred to an entity called the Patagonia Purpose Trust. The Patagonia Purpose Trust ensures that Patagonia will follow its mission to execute a socially conscious business into the future.
The new initiative of giving away considerable capital is significant because the climate crisis is expensive. The Chouinard family is one of the most philanthropic families in the nation. In addition, Chouinard is not hypocritically benefiting from this; he receives no tax benefits. Instead, the family will pay about 17.5 million in taxes because they are giving shares to the Patagonia Purpose trust. In comparison, donor Barre Seid received $1.6 billion in tax benefits from gifting 100% of his company to a nonprofit. In an interview, Chouinard hopes that “this will influence a new form of capitalism that doesn’t end up with a few rich people and a bunch of poor people.” He is targeting other wealthy members of society that should be giving more. A question arises whether company owners whose businesses are not involved in the outdoors will be similarly motivated to provide sustainability causes.
Chouinard is a pioneer in advancing a golden climate age by being one of the first CEO’s to give his company away for the betterment of our planet. He is setting high standards for other companies to grant more towards our climate crisis. Patagonia is continuing to expand its profitable corporation and using its resources to combat climate change. A clear message is sent to other notable wealth owners: those with a platform should use it.
Lawrenceville is an institution dedicated to initiating sustainable programs like the Big Red Farm and a variety of programs like Leopold Scholars. As a community, we have many opportunities to give back in the same spirit. I hope that Chouinard’s charitable energy motivates us to be more generous with what we have. Our home needs people like him, and here we have the resources to build a business like his.
Sources:
Gelles, D. (2022, September 14). Billionaire no more: Patagonia founder gives away the company. The New York Times. https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html
Patagonia founder transfers ownership to boost climate advocacy. (n.d.). The NonProfit Times. Retrieved February 24, 2023, from https://www.thenonprofittimes.com/people/patagonia-founder-transfers-ownership-to-boost-climate-advocacy/
