Founder of Patagonia Donates Entire Company to Fight Climate Change

Simran Rath
Oct 18, 2022
3 min read

Updated: Nov 20, 2022

By Simran Rath '26

Patagonia®, one of America’s most prominent apparel and outerwear companies, has continued to sustain and grow its popularity since founder Yvon Chouinard created the brand in 1973. This past September, Chouinard announced that he is giving his company, valued at over three billion U.S. dollars, “to the Earth”, meaning that all profits going forward will be directed towards combatting climate change. An avid appreciator of nature and the beauty of the outside world, Chouinard has always prioritized the planet since the humble beginnings of his enterprise. Chouinard’s vision for “making the Earth [Patagonia’s] only shareholder” spawns from his value of giving back to planet Earth. He hopes to use the wealth that Patagonia generates into resources that will protect nature as opposed to exploiting its products for profit.

I view Chouinard’s action as a commercial game-changer in this industry as well as a bold move. The very prospect of donating an entire company (especially one worth so much) has indubitably captured the attention of other business owners, consumers, and the media alike, motivating others to take action and advocate for the longevity of ourselves and the surrounding world. This confirms Chouinard’s intention to be effective in communicating the company’s mission and goals for the future while simultaneously serving as a marketing technique. However, some may debate the dependability of this idea, especially due to the multifaceted nature of the climate change issue. Saving the environment is a hefty task, and requires virtually every citizen of this world to do their part to make a difference. While three billion dollars is certainly a great deal of money, monetary resources cannot force people to take action. However, Chouinard’s passion and love for saving the planet further emphasize the impact of his decision. His commitment to creating a more sustainable planet as opposed to keeping his company’s profits speaks volumes about Chouinard’s and Patagonia’s devotion to building a better life for future generations.

Business exists as a central element of climate change, causing both positive and negative impacts on the Earth. The industry of production inevitably releases immense amounts of greenhouse gas CO2 into the atmosphere. CO2 forms a barrier that traps heat within our atmosphere, in turn warming up our planet little by little. There are plenty of ways for businesses to grow more conscious of their carbon footprint and implement more sustainable practices without sacrificing time, effort, or materials. For example, companies can recycle and reuse materials, invest in renewable sources of energy, evaluate the selection of sustainable suppliers, limit business travel, and familiarize employees with the outcomes of their work on the planet. Patagonia has already taken these steps and more to make sustainability a core principle of its operation (learn more about Patagonia's initiatives to reduce its carbon footprint here). Additionally, Patagonia has created a program called Patagonia Action Works that works with local activists and non-profit groups that specialize in acquiring all kinds of justice, from environmental to racial (find ways to take action near you here).

Chouinard’s move begs the question: can any business truly help prevent climate change even when they are still producing products, and therefore putting out carbon emissions (as well as additional pollutants) into the world? Simply, business industries cannot flourish in a world that is declining. Refusing to acknowledge the environmental and social issues that climate change produces will ultimately lead to the demise of our economy, natural resources, and even population. For these reasons, businesses must work to enforce sustainable practices for the sake of the world and human lives to make up for the carbon dioxide that has already been emitted into the atmosphere. Scientists acknowledge that some effects on the climate are irreversible, however, this does not mean that all hope is lost.

Following in the footsteps of innovative business leaders like Yvon Chouinard will truly save us from the negative impacts of climate change. The future of business is not to sell our planet away little by little, stealing its potential from the future. The true mission of all sustainable businesses is to pass down our world to the next generation, cultivating and continuing life far beyond the grasp of our imagination.