Introduction

Patagonia didn’t sell, go public, or chase profits. Its founder gave away the $3B company to save the planet.

What's the problem it solves?

Most companies focus on making more money for shareholders. Patagonia wanted to make more impact for the Earth. Its founder, Yvon Chouinard, faced a choice: sell, go public, or protect the planet forever. He created a new kind of exit plan that made environmental protection the company’s legal duty, not just a promise.

Quick Summary

When Yvon Chouinard realized that selling Patagonia or going public would betray the company’s mission, he invented a new kind of ownership model. In 2022, he transferred 100% of Patagonia’s $3 billion ownership into two parts. A small 2% voting stake went to the Patagonia Purpose Trust, which safeguards the company’s mission and values. The other 98% went to the Holdfast Collective, a nonprofit that receives all profits to fight the climate crisis.

This means Patagonia still runs as a for-profit business, but every dollar not reinvested goes to protecting nature. The trust can never be sold, and no one can profit personally from it. Patagonia’s mission is locked in permanently, making “Earth the only shareholder.”

Unlike other companies that depend on leaders’ goodwill, Patagonia’s structure makes doing good the default. It has turned purpose into a system, not a slogan. The company’s honesty and consistency have made it one of the world’s most trusted brands. Customers buy not just gear, but a philosophy that money should protect the planet, not destroy it.

Key Takeaways from the article

• Patagonia gave away 100% of ownership to ensure profits always fund environmental protection.
• The Patagonia Purpose Trust holds control and guards the mission, while the Holdfast Collective receives profits for climate action.
• The structure legally removes any chance of future leaders or owners betraying the mission.
• Patagonia’s model gives it unique credibility and brand power compared to other outdoor brands.
• It sets a new example for founders who want long-term impact instead of personal wealth.

What to do

• Build company values into structure, not just statements.
• Make profit and purpose work together instead of in conflict.
• Study Patagonia’s dual-entity model for mission protection.
• Use transparency and real action to build lasting trust.
• For founders: think beyond exits - design for legacy and impact.

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