Patagonia: La revolucionaria decisión en los negocios de la empresa pionera en sostenibilidad.

Patagonia: The revolutionary business decision of the pioneering company in sustainability.

For those of us who are faithful followers of the Patagonia brand, the decision made by Yvon Chouinard took us by surprise; the founder of the brand; deliver the trademark to a trust. But… why weren't we surprised?

Before we start, we need to understand what does it mean that you have delivered the trademark to a trust?

Fundador de Patagonia

This means that 100% of the company's voting shares are transferred to a trust, called Patagonia Purpose Trust, and another 100% of the non-voting shares they are delivered to Holdfast Collective, a non-profit entity that fights the environmental crisis and also defends nature. However, this does not mean that the Chouinard family no longer has anything to do with the company, as the trust will be supervised by various members of the family.

Today, Patagonia is one of the most recognized sustainable clothing brands on the planet, with a turnover of around US$800 million per year, but it also donates 1% of its profits to environmental organizations (which will continue to do so after the product is delivered). the brand to escrow). Between 2002 and 2019 they raised more than $200 million dollars that they used in causes that mitigate climate change.

Undoubtedly, this brand is a reference for Mother Earth and sustainable fashion because over time they have adopted various actions such as collecting damaged garments from the brand to reform them and sell them through an initiative called WornWear ( see more here).

La marca Worn Wear de Patagonia

Also through videos on Youtube they explain how you can repair your own clothes to extend their useful life and also use textiles made with recycled plastic bottles and recovered cotton (Fun fact : our yarn provider is the same provider as Patagonia)

On the other hand, the brand is recognized for starting the B Lab, a movement that encourages companies to be companies with a purpose to generate a positive impact on people and the planet. (Another Fun fact: At Madre Tierra we are taking the relevant actions to certify ourselves as B Corp)

But well, back to the main topic, let's talk a bit about who Yvon Chouinard is and why we weren't surprised by his decision.

anuncio de la marca Patagonia

Yvon, the founder, fell in love with Patagonia after climbing Mount Fitz Roy and decided to name his mountaineering equipment venture in his honor. Over time, he brought out a Rugby-type shirt for climbers that turned out to be a success and was here when the outdoor clothing brand started.

ads de Patagonia

After this, the brand began to be recognized for its publications such as the one in the image above where it talks about the environmental impact of corporations or also for images with phrases such as: "Despite Despite its vastness, the Earth's resources are not infinite and it is clear that we have exceeded its limits. But it is also resilient. We can save our planet if we commit to it". Chouinard also published a book where he talks about his philosophy and way of working, this book has inspired us as well as thousands of people and you can find it here or in any store in Patagonia.

libro let my people go surfing

Some time ago, Chounard had considered selling the company and donating all the proceeds to environmental organizations. However, he noted that: " We could not be sure that a new owner would maintain our values ​​or our employees around the world ."

His second option was to take the company public through what we know as a takeover bid, this is an operation in the stock market to sell part or all of the company's shares "It would have been disastrous. Even the Well-intentioned public companies are under great pressure to generate short-term profits," said Chouinard, who instead opted for a newer solution.

Therefore, he made the decision to transfer 100% of the voting shares to a trust to protect the company's values. "We needed to find a way to invest more money in the fight against the environmental crisis while keeping the company's values ​​intact," said the businessman. This is how the land now becomes its sole shareholder.

«Money is not a sign of success. Success is measured by the good we do. I am pessimistic about the fate of the planet but I feel part of the solution, so I sleep well at night.»