Patagonia’s Founder has gave the Entire Firm, Valued at $3 billion, to Combat Climate Change.

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Patagonia founder Yvon Chouinard, his wife, and their two adult children are selling their stake in the clothing company he founded 50 years ago.

The company’s non-voting stock, valued at about $3 billion, will be owned by a collective that will utilise all revenues not reinvested in the business to combat climate change.

Depending on the state of the business, the corporation intends to donate around $100 million every year.

Patagonia founder Yvon Chouinard, his wife, and their two adult children are giving up their ownership in the clothing company he founded 50 years ago, donating all proceeds to initiatives and organisations that will safeguard wild land and biodiversity and fight the climate problem.

According to the New York Times, the corporation is worth around $3 billion.

The stock of the privately held company will now be owned by a climate-focused trust and a group of nonprofit organisations called the Patagonia Purpose Trust and the Holdfast Collective, respectively, according to a statement from the company, noting that “every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.” According to the New York Times, the corporation is worth around $3 billion.

The trust will receive 100% of the voting shares, or 2% of the total, and will use it to establish a “more permanent legal framework to codify Patagonia’s purpose and values.” It will be monitored by family members and close advisors.

The Holdfast Collective controls all of Patagonia’s non-voting stock, which amounts to 98%.

Depending on the strength of the business, Patagonia plans to generate and give approximately $100 million per year. The company now sells new and secondhand outdoor wear, camping and fishing equipment, plus food and beverages manufactured from sustainable sources.

Patagonia, a recognised B-Corp and California Benefit Corporation, has already donated one percent of its annual sales to grassroots organisers and expects to continue doing so. Only about 6,000 enterprises worldwide have been accredited as B-Corps. To obtain certification, they must adhere to strict environmental, social, and governance requirements and benchmarks established by B Labs.

Following the garment maker’s increased charitable strategy, Ryan Gellert will remain as CEO, and the Chouinard family will remain on the board. After telling its staff about the change on Wednesday, the company modified its website to indicate that “Earth is now our sole shareholder.

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