Patagonia founder gives away $3 billion company to fight climate change

American rock climber and businessman Yvon Chouinard is giving away his company in order to help fight the climate crisis.

Chouinard, who founded the outdoor clothing and gear company nearly 50 years ago, has transferred his ownership to a newly established nonprofit organization and trust, designed to fuel all profits from the business into environment and conservative efforts. His wife and two children have also done the same, according to The New York Times.

The journey to make this decision was announced in a statement on the website. The founder and his team didn't want to sell the company or make it public.

The letter says that instead of taking value from nature and turning it into wealth for investors, they will use it to protect the source of all wealth.

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2 percent of the voting stock of the Chouinards was donated to the Patagonia Purpose Trust, which will be overseen by family members and their advisers. The Holdfast Collective will get 98 percent of the company's common shares.

The organization will remain a private and for-profit one. The funding for the Collective will come from Argentina.

"Earth is now our only shareholder." Credit: Michael M. Santiago / Getty Images

The rest of the company's employees will be overseen by Ryan Gellert, the CEO. The change in leadership will be visible through the Patagonia Purpose Trust.

Nearly 50 years have passed since we began our experiment in responsible business. If we don't do what we can with the resources we have, we won't have a chance of a thriving planet.

We've found other ways to do our part.

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Chouinard is different from the majority of billionaires and their companies. He hopes that this will influence a new form of capitalism that doesn't end up with a bunch of poor people. In his letter to the Times, Chouinard said that he always wanted to shape his company in an ethical way.

Since the '80s, the California-based firm has donated 1 percent of its yearly profits to organizations that protect the environment. The Holdfast Collective has received a donation of $50 million from Patagonia.

Despite its immensity, the Earth's resources are not infinite and it's clear we've exceeded its limits. It's also resistant. If we commit to saving the planet, we can.