The Earth is now our only shareholder.

If we have any hope of a prosperous planet—or at least a prosperous business—it will require all of us to do what we can with the resources available to us. Here's what we can do.

By Yvon Chouinard

I never wanted to be an entrepreneur. I started as a craftsman, making climbing gear for myself and my friends, then I moved into the locker room. As we began to witness the extent of climate change and ecological destruction—as well as our contribution to it—Patagonia committed to using our company to change the way business was done. If we could do the right thing by generating enough revenue to pay the bills, we could influence customers, other businesses, and maybe even change the system along the way.

We started with our products, using materials that caused less harm to the environment. We donate 1% of sales every year. We became a Certified B Corporation and also a California Benefit Corporation, putting our values ​​in writing in our corporate charter as a way to preserve them. Most recently, in 2018, we changed the company's purpose to: “We are in this business to save our home, planet Earth.”

While we are doing our best to address the environmental crisis, it is not enough. We need to find a way to invest more in combating the crisis while maintaining the company's values.

“To be honest, there weren’t any good options available. So we created our own.”

One option was to sell Patagonia and donate all the money. But we couldn't be sure that a new owner would uphold our values ​​or keep our team of people around the world employed.

Another option was to take the company public. What a disaster that would have been. Even well-intentioned public companies find themselves under too much pressure to generate short-term profits at the expense of long-term viability and responsibility.

To be honest, there weren't any good options available. So we created our own.

Instead of “going public,” we could say we are “fulfilling our purpose.” Instead of extracting value from nature and transforming it into wealth for investors, we will use the wealth Patagonia creates to protect the source of all wealth.

Here’s how it works: 100% of the company’s voting shares have been transferred to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the non-voting shares have been given to Holdfast Collective, a nonprofit organization dedicated to fighting the environmental crisis and defending nature. Funding will come from Patagonia: each year, the money we generate after reinvesting in the business will be distributed as a dividend to help combat the crisis.

It's been almost 50 years since we began our experiment in responsible business, and we're just getting started. If we have any hope of a thriving planet—or at least a thriving business—in 50 years' time, it will require all of us to do what we can with the resources we have. This is another way we've discovered to do our part.

Despite its vastness, Earth's resources are not infinite, and it's clear we've exceeded its limits. But it's also resilient. We can save our planet if we commit to doing so.