Patagonia founder Yvon Chouinard made big news on Sept. 14 when he took to Twitter to announce that he had donated his $3 billion company to a specially designed trust and nonprofit organization.
"Hey, friends, we just gave our company to planet Earth. OK, it’s more nuanced than that, but we’re closed today to celebrate this new plan to save our one and only home. We’ll be back online tomorrow," Chouinard wrote via the official Patagonia Twitter account.
"Instead of “going public,” you could say we’re 'going purpose.' Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth."
Patagonia has been known for for its focus on activism ever since Chouinard founded the outdoor apparel company back in the '70s. Since 1985, its donated 1% of its total sales to environmental groups via the One Percent for the Planet organization, which Chouinard founded.
In 2013 it launched venture capital fund $20 Million and Change to support companies with plans to foster environmental change and make their products more eco-friendly.
Perhaps one of the boldest choices Patagonia is known for (well, before now, that is) was in 2019, when it started barring companies from buying its custom fleece vests unless those who wished to purchase them were "mission-driven companies that prioritize the planet."
Despite all that, this new move definitely sets a precedent that turns the public eye towards what other billionaires choose to do with their fortunes.
Chouinard's move drew a lot of praise on social media, with some awestruck by the founder's "generosity, environmental stewardship, and integrity." Some even suggested that such choices could "bring about the end of capitalism".
Naturally, however, as is the way ever since the internet was breathed into existence, there were plenty at the ready to criticize Chouinard's decisions.
The Skeptics Are Afoot
Some weren't so sure that Patagonia's future sounded as good as Chouinard made it look in his letter about the decision to relinquish his ownership of the company. Twitter user Emily Atkin questioned some of the fine print, wondering how exactly the newly established fund would be used.
Others believe that the move was a tax avoidance scheme on Patagonia's part, with the New York Times in on the scheming somehow.
And finally, one person found a way to somehow focus on the negatives they believe Patagonia is committing, which involve wool, greenhouse gas emissions, and having the gall to not use only vegan wool in its products.
Where There Is Change, Memes Will Follow
But perhaps the best response to the news, both admiration and criticism aside, was from folks who imagined how both the family heirs and private equity shareholders might be feeling about what Chouinard's decision means for them. While there is much to be taken away from a move this bold, there are also some laughs to be had as well.
