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Company given away to save the planet - 31st October 2022
Recently, Yvon Chouinard, the owner of the company Patagonia, caught the business world by surprise. The 83-year-old gave his outdoor and sports clothing business away. It now belongs to the planet, in a way, as all the money will be spent on environmental projects.
Organising this change was challenging but Chouinard's team created a way to make it work. They set up an organisation called the "Holdfast Collective", which ensures that Patagonia's profits go towards fighting the climate crisis. Just two percent of the company's earnings are kept back, to look after workers and production.
The sports company has a history of protecting the environment. Over the last four decades, one percent of Patagonia's profits have been given to environmental groups. In 2011, their advert "Don't buy this jacket" invited their customers to mend their old clothes before rebuying.
Chouinard never intended to become a wealthy businessman and his first passion was mountain-climbing. As a young man he lived in a van, and made tools to help him and his friends climb more easily. This developed into a company for specialised equipment, which quickly increased in size.
Years later, when Forbes magazine named him a billionaire, Chouinard was annoyed. He and his family have always enjoyed simple pleasures. In a similar way, the Patagonia brand is known for its values, as well as its quality.
Chouinard's latest step is a powerful example to other big businesses and billionaires. It's one practical way to build a safe and sustainable future for the Earth.
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