Yvon Chouinard, born in rural Maine in 1938, is an American rock climber, environmentalist, philanthropist, and businessman in the outdoor industry. Patagonia, his company, is well-known for its commitment to sustainability.
Chouinard became fascinated with climbing and began boarding freight trains and rappelling San Fernando Valley cliffs. He opened his shop in his family garage and learned to forge pitons after witnessing his father's blacksmithing talents. Demand for climbing gear was high, and Chouinard and Tom Frost founded Chouinard Equipment in 1965. They developed and upgraded climbing tools for nine years, attending Stanford Business School and receiving an MBA. By 1970, Chouinard Equipment became the top provider of climbing hardware in the US.
In 1994, Chouinard faced a difficult decision to switch to organic cotton, citing the toxic chemicals used in industrial farming. He threatened to leave Patagonia and gave the company 18 months to transition. Despite challenges like finding organic farmers, banks, and new mills, Patagonia survived a year without profit. The switch was profitable and the right thing to do.
Chouinard has relinquished control of Patagonia, which is now held by a trust and nonprofit organization. The $100 million annual proceeds will be used to combat climate change and conserve undeveloped land. This unconventional approach aligns with Chouinard's unwavering commitment to environmental causes and disregard for traditional corporate rules.
Chouinard, now 83, expressed his hope that this act of generosity would inspire a new form of capitalism, one that doesn't perpetuate wealth inequality. He envisions a system where the few aren't extraordinarily rich while the majority struggle. Chouinard's personal values reject the label of a billionaire, as material wealth has never been his driving force. Instead, he identifies as an "existential dirtbag," emphasizing his philosophy and connection to nature.
While Patagonia will continue to operate as a private, for-profit corporation, the Chouinard family no longer holds ownership. They established the Patagonia Purpose Trust, which received 2 percent of the company's voting stock. The trust, overseen by the family and trusted advisers, will ensure that Patagonia remains socially responsible and directs its profits towards environmental initiatives.
Additionally, the Chouinards donated the remaining 98 percent of Patagonia's common shares to a newly formed nonprofit organization called the Holdfast Collective enabling them to actively combat climate change.
Yvon Chouinard's decision to relinquish his family's ownership of Patagonia demonstrates his lifelong commitment to his values and his desire to create a positive impact on the world. The company's success and reputation as a sustainable and socially responsible brand are a testament to his vision.
Reference link:
https://www.theguardian.com/global/2022/sep/15/yvon-chouinard-the-existential-dirtbag-who-founded-and-gifted-patagonia
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