“As we began to witness the extent of global warming and ecological destruction, and our own contribution to it, Patagonia committed to using our company to change the way business was done. Instead of “going public,” you could say we’re “going purpose.” Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth” wrote Yvon Chouinard.

Patagonia is now divided, with a hybrid ownership model, between the Holdfast Collective and the Patagonia Purpose Trust. 98% of the company and 100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values. Although the money will be distributed via the Holdfast Collective, the Trust will act as a guiding voice for the continued process. With complete control of the voting stock, the Trust will approve new company directors, key company decisions and any changes to Patagonia’s legal charter.

2% of the company and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature. Holdfast Collective will have economic value but no decision-making power. It will use Patagonia’s financial resources, once expenses and necessary reinvestments have been removed, and distribute the funds to worthy initiatives, advocating for environmental causes and green-minded political candidates. 

The funding will come from Patagonia: Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis.

"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", Yvon Chouinard wrote.

The outcomes of the collaboration between Holdfast Collective and the Patagonia Purpose Trust are yet to be determined.

Photo taken by Malik Skydsgaard on Unsplash