US billionaire donates his whole business to fight climate changetext_fields
In an effort to combat climate change, Yvon Chouinard, the creator of Patagonia, an American outdoor clothing shop, is donating the entirety of the firm he founded more than 50 years ago.
All company profits will be given to programmes and organisations fighting for biodiversity preservation, wild lands preservation, and climate change mitigation. Along with Mr Chouinard, his wife and two grown children are all contributing to the admirable cause by giving up their shares in the clothing business, NDTV reported.
The New York Times estimates the company's worth at $3 billion.
He wrote about the severity of climate change saying, "If we have any hope of a thriving planet—much less a business—it is going to take all of us doing what we can with the resources we have. This is what we can do."
He said, "While we're doing our best to address the environmental crisis, it's not enough. We needed to find a way to put more money into fighting the crisis while keeping the company's values intact. One option was to sell Patagonia and donate all the money. But we couldn't be sure a new owner would maintain our values or keep our team of people around the world employed. Another path was to take the company public. What a disaster that would have been. Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility,".
"Truth be told, there were no good options available. So, we created our own," he added.
The privately held company revealed in a statement that the Patagonia Purpose Trust and the Holdfast Collective, a group of nonprofit organisations, will now own its stock. The trust is dedicated to combating climate change.
The company added, "Funding for the Collective will come from Patagonia: Each year, excess profits—money we make after reinvesting in the business (including the money we want to save for unforeseen events, like a pandemic)—will be distributed as a dividend to the Collective to be used for its work."
According to an NYT report, the company currently generates $100 million in revenue, and it intends to contribute the entire sum each year.
The company now sells food and beverages made from sustainable sources, as well as new and used outdoor clothes, and equipment for outdoor activities including camping, fishing, and climbing.