Since its founding in 1973, Patagonia has been run privately, and the company has said it plans to give any extra money to environmental groups. The American outdoor gear manufacturer
Patagonia is forming the Patagonia Purpose Trust and the Holdfast Collective today (September 14) to hold its stock. To ensure that the trust's interests are protected, the trust will
own 100% of the company's voting shares. Those in charge of the trust will cast votes to guarantee the corporation actually follows through on its environmental and social responsibility promises.
Meanwhile, the collective will have sole ownership of all shares with no voting rights. It is being established to channel Patagonia's surplus funds into charitable and environmental
causes rather than reinvestment in the company or its supply chain. Patagonia has made protecting natural resources and bringing back species that have been lost two of its top goals.
The Collective's supported initiatives are expected to get annual funding of around $100 million. Yvon Chouinard, while still the owner of Patagonia, started the business's participation
in the 1% for the Planet project. In the intervening two decades, the method has been adopted by more than 5,000 businesses. Chouinard has said that Earth is portrayed as the sole shareholder in the
corporation because of the decision to go further and establish the Trust and Collective today. He also noted that this event marked the company's "going public" as opposed to its "becoming public."
He remarked, "If we want a thriving planet in 50 years from now, it requires all of us doing all that we can with the resources we have. I'm doing my part as the company head I never aspired to have.