American billionaire Yvon Chouinard, the founder of fashion retailer Patagonia, has set an example by giving his away his $3 billion-company to help fight climate change.
"The earth is now our only shareholder," Yvon Chouinard said in a letter announcing this decision on September 14.
Chouinard wrote in the letter that all of Patagonia's voting stock will be transferred to the Patagonia Purpose Trust, created to protect the company’s values. Its nonvoting stock has gone to Holdfast Collective, a nonprofit working to combat the environmental crisis.
The businessman and former rock climber, whose net worth is estimated to be $1.2 billion, has long championed environmental causes.
Chouinard has said he never wanted to become a businessman. Passionate about rock climbing, he started off making climbing gear for himself and his friends. He then forayed into apparel, founding Patagonia in 1973.
Patagonia founder gives away company to help fight climate crisis
As it saw global warming and ecological destruction unfold, the company decided it would altogether change the way business was done.
"If we could do the right thing while making enough to pay the bills, we could influence customers and other businesses, and maybe change the system along the way," Chouinard said.
Seven years after it was set up, the Patagonia started donating one percent of its annual sales for the environment. In 2001, it made the donations a formal program called “1% for the Planet Scheme”.
"We've awarded over $140 million in cash and in-kind donations to domestic and international grassroots environmental groups making a difference in their local communities," Patagonia said.
Apart from this, the company also aided employees who worked on local environmental projects.
Patagonia was among the first companies to become b-Corp -- a private certification of companies' "social and environmental performance."
In 2018, Patagonia changed its purpose to "we are in business to save our home planet", in line with its values.
The latest contribution made by the company's founder sets him apart from other wealthy businessman.
“This (Chouinard) family is a way outlier when you consider that most billionaires give only a tiny fraction of their net worth away every year,” David Callahan, founder of the Inside Philanthropy website, told the New York Times.
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