All you Patagonia-heads can rock your puffer vests with pride all winter long after the apparel company announced an unprecedented move in corporate social responsibility.
What happened: Founder Yvon Chouinard, along with his family, gave away control of the ~US$3 billion company, split between a trust and a nonprofit tackling environmental issues.
- This will ensure that the company’s annual profits (roughly US$100 million) will be donated to initiatives fighting climate change and protecting underdeveloped lands.
Catchup: Chouinard, a former rock climber who never wanted to be a billionaire, has a long history of using Patagonia as a force for good, including donating 1% of its annual sales.
- Patagonia was an early adopter of now-common practices like on-site childcare, donating 100% of its sales on certain days, and offering credits for used merch.
- In recent years, the company has increased its activism and green practices, moving to sue the Trump administration and investing in regeneratively grown cotton.
Yes, but: Patagonia has had its fair share of criticism for using toxic chemicals in some of its products and over suspicions of Chinese forced labour playing a role in its supply chain.
As companies increasingly tout their ESG commitments (and consumers paying increasingly close attention), Chouinard hopes the move will influence a new form of capitalism.