In an open letter titled “Earth is now our only shareholder”, Yvon Chouinard announced that Patagonia’s profits would from now on be managed and invested in the fight against climate change.
It emerged that Chouinard, his wife and their children had given away their shares, leaving the company in the hands of two organisations:
- Patagonia Purpose Trust, a trust set up to hold the course the family charted;
- Holdfast Collective, a non-governmental organisation.
To understand how singular and how inspiring this brand is, you have to know something about its founder and about the company itself. It has become a reference point, both for its organisational culture and for a concern with sustainability that is genuinely its own.
It all started with a passion
In the 1950s Yvon Chouinard took up climbing, and it became his passion. He learned to make his own climbing gear, and the hobby quickly turned into a small local business. What is curious is that starting a career as an entrepreneur and businessman was never the plan. It was a practical answer to his appetite for adventure and his curiosity about the world.
Patagonia, the name
The name comes from the film “Mountains of Storms”, about the journey of five friends from California to climb Mount Fitz Roy. Chouinard was taken with it and named his clothing brand after the place where that mountain stands: the mythical land of Patagonia. The first shop opened in Ventura, California.
Innovation was a constant, in the design of the tools and in developing sustainable options with leading-edge technology for the clothes. The company became the first American supplier of outdoor equipment of its kind, and the market leader.
A commitment to the environment
Patagonia has been innovative not only in the materials and the design of its clothes but in decisions with consequences for the environment. Over the years it became increasingly clear that the company would go on setting itself apart through progressive initiatives, and would be explicit about its concern for the planet and for its own people.
A few dates worth knowing:
1985
An important year in the brand’s development: Patagonia made its first sustainability commitment, agreeing that 1% of total sales, or 10% of total annual profit, would go to non-profits and environmental advocacy groups.
1988
The first campaign built around a specific environmental question, to press for change and to raise awareness. That 1988 initiative was aimed at stopping development in the Yosemite valley in California. Those campaigns have run every year since.
1996
The company was a pioneer in switching production to organic cotton, and in using recycled plastic bottles as the raw material for recycled polyester.
2021
With the evidence on the environmental harm of polyester production in hand, and the debate over its excessive use open (particularly in fast fashion), the brand committed to making its clothes with 84% recycled polyester.
Nearly 40 years on, the company still honours those commitments, having given millions to environmental organisations. It has also used its influence, and goes on using it, to inspire change and to defend the environment.
The triumph of the marketing campaigns
Clarity, consistency, frankness, honesty and will are some of the qualities that stand for this brand, and that have been applied so well in each of its marketing strategies.
Given the founder’s story, the brand puts real resources behind its campaigns, and always values approaches that are creative and original.
Some examples:
2012
It ran a Black Friday advertisement asking customers not to buy one of its jackets. The response was so large that it turned into a sales success.
2016
Using Black Friday again, it turned the day’s takings into donations to communities and environmental activists.
2017
It built a platform for reselling used Patagonia clothes, accessories and gear, called Worn Wear.
2020
It joined the “Stop Hate for Profit” campaign, pulling all its advertising from Facebook and Instagram in criticism of how Mark Zuckerberg’s companies behave, and of how little they were doing about hate speech.
A commitment to the people who work there
In keeping with its principles, Patagonia has always respected and looked after the wellbeing of its staff. Beyond their satisfaction and comfort, there is attention to healthcare and to paid maternity and paternity leave.
There is also the “Let My People Go Surfing” policy, giving employees the freedom to get outdoors, along with every other Friday off.
It is an organisational culture that works and that the staff value, and the company has a low turnover rate.
Closing thoughts
“Earth is now our only shareholder,” Chouinard says.
He has always been clear-eyed about the planet’s resources being finite, and about our being able to save it if we commit. He says he hopes to influence a new form of capitalism, one that does not “end up with a handful of rich people and everybody else poor”.
For someone who never wanted to be a businessman, he has been, in my modest opinion, the best of the lot. Everything he does lines up with his values, and he has valued his first home all along: the planet.
In a world where Elon Musk and Jeff Bezos get so much of the airtime, my hero is Chouinard.
When I grow up I want to be like him. 🙂
