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Less than a day ago, Yvon Chouinard, announced that 100% of the company's stocks would go to two entities: Patagonia Purpose Trust and Holdfast Collective. In order to contribute the company's profits into actions that fight the environmental crisis and defend nature. Likewise, the owner assured that there will be an annual funding that will be divided and distributed to save the planet.
The reason for this change stems from Patagonia's interest in developing a proposal on transitioning to a green economy by committing to a climate resilient business. Therefore, Yvon Chouinard, through this act, promotes the reduction of harmful effects in the environment through large corporations as they can generate greater impact.
This phrase, spoken by Yvon, is an important idea for the fashion industry to understand. Clearly his message exposes the reality that people should stop prioritizing businesses over the planet, because if it gets detroyed, then there is no way for such businesses to exist or thrive. Logically, in order for big garment brands to progress, it is necessary to maintain a sustainable natural environment.
Undoubtedly, this action demonstrates that it is possible to have economic gains even when investing part of the corporate wealth to environmental movements and initiatives. It is all about building a balance between the actions of humans and care of the planet, especially within an industry as important and far-reaching as the fashion industry.
“I first met Yvon when he was around 24 and today, he is almost 84. In all those years, his vision has never wavered. He wanted to do things his own way and on his own terms. And while he is in good health now, he wanted to have a plan in place for the future of the company and the future of the planet. I believe this plan that he and his family helped create is tectonic. It will make the company more competitive and its employees around the world will forever be empowered by purpose.” —Kristine McDivitt Tompkins
“Every time you read a new scientific report, it's clear the climate crisis is happening faster than we thought and it's worse than we thought. The stakes could not be higher. If we want to protect nature and support communities, businesses can’t continue to adhere to the prevailing economic model. Patagonia has been breaking the mold for decades, and now they have shattered it. Now I want to know, which companies will be next to step up?” —Dr. Ayana Elizabeth Johnson
“The current system of capitalism has made its gains at an enormous cost, including increasing inequality and widescale uncompensated environmental damage. The world is literally on fire. Companies that create the next model of capitalism through deep commitment to purpose will attract more investment, better employees, and deeper customer loyalty. They are the future of business if we want to build a better world, and that future starts with what Yvon is doing now.” —Charles Conn, chair of the board“
“As founder of a company that has been in business for nearly 50 years, I’ve seen the positive and negative impact a business can have on its communities and employees. But while we and others do take meaningful steps to mitigate the impact we have on the planet, Patagonia’s new ownership structure introduces a new model that goes far beyond anything that exists today. And it’s true to form for my life-long friend and fellow environmentalist, Yvon Chouinard.” —Dan Emmett.