Patagonia’s inspiring move

Founder gives brand away to fight climate change

Maria Simpson / Opinion Editor / The USD Vista

Correction:
In last week’s issue of the  USD Vista (9/22/22), the two articles in the opinion section, Queen Elizabeth II controversy and Contagious misconceptions were mistakenly labeled as Op-Eds. These articles should have been labeled as Opinion, not Op-Eds. We regret this error.

Last week, an incredibly uplifting announcement was all over the media: the billionaire founder of the popular sportswear brand Patagonia gave the company away in a philanthropic effort to fight climate change. Not only is this a welcomed ray of light in an often grim newsfeed, it is a bold and inspiring effort by a corporation and entrepreneur to give back to the world in a tremendous way.

I believe that not only will this move provide help to the environment itself, but it has the power to set a precedent for other companies and wealthy entrepreneurs to follow in the future.  
Now that the founder of Patagonia, Yvon Chouinard, has given away the previously privately-owned brand, it is currently owned by only two groups: the Patagonia Purpose Trust and the Holdfast Collective. The former is a trust led by the Chouinard family and it has received 2% ownership of the company. The latter is a U.S. charity whose efforts go to helping the environment; they now possess 98% of the Patagonia brand. By passing the stock and profits of the company on to these two, newly-created nonprofits, Chouinard can ensure that he and his family still retain control of the company and that its values will continue to be upheld.

Like many other people, I was very surprised when I heard that Chouinard had given his brand away for such a great cause. It is all too rare to see the incredibly wealthy extend charity in such a grand manner. However, I soon learned that this choice was actually not surprising at all, if you know anything about the history of the brand and of Chouinard.

Chouinard comes from humble beginnings and continues to lead his life with that same attitude, even after his brand launched into popularity. Chouinard is described first and foremost as an American rock climber, as shown by a quick Google search on the man. His entrepreneurial roots began with him making climbing gear and clothes for his friends, according to an article by Entrepreneur.

Patagonia was founded in 1973 and became a booming business for sportswear fans and outdoorsy people. Patagonia made an estimated $1.5 billion dollars in sales this year, and Chouinard is estimated to have a networth of a whopping $1.2 billion dollars himself, according to an article from BBC. However, he shared that he detests being referred to or thought of as a billionaire.

Chouinard’s attitude toward his billionaire status is not just empty words. The company’s values indicate that Patagonia has always put Earth first. According to the New York Times, the company has donated 1% of sales profits toward the environment for decades.

The brand also has spoken out about the well-made clothing intended to “last a lifetime” in an effort to be more sustainable.

In an interview with BBC, Charles Conn, the chairman of Patagonia stated, “We invest in making sure we use the least water, the least dangerous chemistries and dyes, and use the least carbon in the production of our products, which often means they cost a little bit more.” That extra price supposedly guarantees a more environmentally-friendly purchase.

Giving away the company to environmental initiatives fits perfectly in line with values clearly set forward by Patagonia for many decades now. And with the large profits that the brand makes, I believe it will have the financial power to make a positive difference in the battle against climate change.

Despite all of this, Patagonia has a number of naysayers, who claim that giving away the company is a marketing ploy or a tactic to evade taxes. Plenty of other companies advertise themselves as “green” and “sustainable,” so that consumers are more inclined to purchase their products, but there is no huge push from the people behind the brand to truly make a difference. When large companies make donations, their philanthropic checks are tax-deductible, but normally this comes at a price; those companies are barred from involvement in political campaigns.

Chouinard and his family have proven that they care greatly about the environment, and they would not want to give up the power to have a voice in democracy. While these concerns are possible explanations, I think that based on Chouinard’s history and the brand’s consistent values, this recent move is a true effort to help the earth.

The world is in a scary and dangerous position right now, as far as climate change and threats to the well-being of the environment go. That much is clear. Some might question if  the millions (or even billions) of dollars that Patagonia will end up contributing will be enough to make a substantial difference, and to that I am not so sure. I don’t know how much money one would need to reverse climate change or make a big impact. However, I do believe that this can be an inspiring first step by Patagonia to encourage more corporations to take similar actions.

In an interview with ABC News, Hans Cole, the head of environmental grants, campaigns and impact for Patagonia, stated, “We need, frankly, the entire business community and governments and civil society to work together to get this done. We can’t do it alone. Patagonia can’t do it alone.”

While many millionaires and billionaires donate to charities, this is a huge step that more brands could follow, creating a more secure, honest and lasting philanthropy than donating a check every now and then or acting as a mere spokesperson could do. This chain reaction of followers is not guaranteed by any means, but I certainly hope that at least a few humans will have the heart to make a similar change.

In the meantime, Patagonia and Chouinard have made a bold move that can make a difference.