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Patagonia Founder Gives Away The Company To Fight Climate Change
Patagonia Founder Gives Away The Company To Fight Climate Change
Patagonia Founder Gives Away The Company To Fight Climate Change
By David Gelles
Gelles writes about the intersection of climate and the corporate world and has
covered Patagonia for nearly a decade.
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The Chouinard family irrevocably transferred all the company’s voting stock into a newly established entity
known as the Patagonia Purpose Trust in August. Laure Joliet for The New York Times
“There was a meaningful cost to them doing it, but it was a cost
they were willing to bear to ensure that this company stays true to
their principles,” said Dan Mosley, a partner at BDT & Co., a
merchant bank that works with ultrawealthy individuals including
Warren Buffett, and who helped Patagonia design the new
structure. “And they didn’t get a charitable deduction for it. There
is no tax benefit here whatsoever.”
High stakes. A new scientific assessment suggests that failure to limit global
warming to the targets set by international accords will most likely set off
several climate “tipping points,” thresholds passed which effects of climate
change, from the thawing of Arctic permafrost to the loss of coral reefs, would
probably become irreversible.
By giving away the bulk of their assets during their lifetime, the
Chouinards — Yvon, his wife Malinda, and their two children,
Fletcher and Claire, who are both in their 40s — have established
themselves as among the most charitable families in the country.
“Even those who have signed the Giving Pledge don’t give away
that much, and tend to get richer every year,” Mr. Callahan added,
referring to the commitment by hundreds of billionaires to give
away the bulk of their fortunes.
Mr. Mosley said the story was unlike any other he had seen in his
career. “In my 30 plus years of estate planning, what the Chouinard
family has done is really remarkable,” he said. “It’s irrevocably
committed. They can’t take it back out again, and they don’t want
to ever take it back out again.”
“Hopefully this will influence a new form of capitalism that doesn’t end up with a few rich people and a
bunch of poor people,” said Mr. Chouinard. Meridith Kohut for The New York Times
The company has given away 1 percent of its sales for decades,
mostly to grass roots environmental activists. And in recent years,
the company has become more politically active, going so far as to
sue the Trump administration in a bid to protect the Bears Ears
National Monument.
The Forbes ranking, and then the Covid-19 pandemic, helped set in
motion a process that would unfold over the past two years, and
ultimately lead to the Chouinards giving away the company.
“One day he said to me, ‘Ryan, I swear to God, if you guys don’t
start moving on this, I’m going to go get the Fortune magazine list
of billionaires and start cold calling people,’” Mr. Gellert said. “At
that point we realized he was serious.”
Patagonia has become more politically active, going so far as to sue the Trump administration in a bid to
protect the Bears Ears National Monument. Laure Joliet for The New York Times
“We kind of turned over every stone, but there just weren’t really
any good options that could accomplish their goals,” said Hilary
Dessouky, Patagonia’s general counsel.
“It was important to them that they were not seen as the financial
beneficiaries,” Mr. Gellert said. “They felt very strongly about it. I
know it can sound flippant, but they really embody this notion that
every billionaire is a policy failure.”
“We still had a million and one things to figure out, but it started to
feel like this might actually work,” Mr. Gellert said.
Mr. Chouinard filmed an announcement for his employees at home in Wyoming. By giving away the bulk of
their assets during their lifetime, the Chouinards have established themselves as among the most
charitable families in the country. Natalie Behring for The New York Times
“I feel a big relief that I’ve put my life in order,” Mr. Chouinard said.
“For us, this was the ideal solution.”
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