After almost 50 years, the creator of Patagonia is transferring ownership of the business onto two businesses that will aid in the fight against climate change.

Patagonia is a privately held business with headquarters in Ventura, California, that sells outdoor gear and clothing. In 1973, Yvon Chouinard established the business.

According to a statement made by Patagonia on Wednesday, Chouinard and his family will immediately transfer their entire ownership interest into two brand-new businesses. These organisations will make sure that the business's principles are followed and that Patagonia's earnings are invested in the fight against climate change.

In a statement released on Wednesday, Chouinard stated, "If we have any hope of a thriving world 50 years from now, it necessitates that all of us doing what we can with the resources we have." "We are leveraging the wealth Patagonia makes to conserve the source, rather than extracting value from nature and turning it into wealth," the company claims.

98% of Patagonia's shares, the largest portion of the business, will now be managed by the Holdfast Collective. The company's annual profits, which are estimated to be worth $100 million, will be utilised by this organisation to "defend nature and biodiversity, support thriving communities, and battle the environmental disaster."

The newly established Patagonia Purpose Trust will be financed with the remaining company capital.

Patagonia CEO Ryan Gellert said in a news release that the Chouinard family asked a few of us to establish a new structure with two main aims two years ago. "Two years ago, the Chouinard family challenged a few of us to develop a new organisation with two fundamental purposes. "They demanded that we safeguard the company's mission and simultaneously release more money to address the environmental crisis on an ongoing basis. We think the new structure accomplishes both, and we hope it will serve as a model for a new business model that prioritises the well-being of people and the environment."

Patagonia has a long history of being a conservationist business and has over the years spoken out on contentious subjects outside of its stores. Corporate activism plays a significant role in the brand identification of Patagonia.

The business filed a lawsuit against then-President Donald Trump in 2017 over his administration's decision to drastically reduce the size of two national monuments in Utah.

At the time, the website for Patagonia stated, "The president stole your land." The amount of protected land eliminated is the biggest in American history.

The business became one of the most outspoken corporate critics of Trump's environmental regulations.

Patagonia CEO Ryan Gellert urged businesses to join the company in forcing Facebook to improve its platforms last year, and the company gave $1 million to Georgian voting rights organisations.

Patagonia's founder gives up company to fight climate change

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