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(The Gear Loop) - Patagonia boss, Yvon Chouinard, has said that any profit not reinvested in the business will be transferred to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature

According to the BBC, this will amount to around $100m (£87m) a year, depending on the health of the company.

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Chouinard, who founded the business in 1973, said in a statement on the company’s website that he "never wanted to be a businessman" and that he has always used Patagonia to "change the way business was done". Despite this, Patagonia's estimated revenue was $1.5bn this year, while Mr Chouinard's net worth is thought to be $1.2bn. 

The company was an early adopter of investigating and implementing materials that cause less harm to the environment into its products, pioneering things like Yulex instead of neoprene rubber in its wetsuits, while it gave away 1 per cent of its sales each year to charity partners.

"More recently, in 2018, we changed the company’s purpose to: We’re in business to save our home planet," Chouinard says in his open letter to customers.

"While we’re doing our best to address the environmental crisis, it’s not enough. We needed to find a way to put more money into fighting the crisis while keeping the company’s values intact."

Claiming there was no other way to tackle the environmental crisis, Chouinard states that the company is "going purpose" rather than "going public".

As a result, he is transferring 100 per cent of the company’s voting stock to the Patagonia Purpose Trust, created to protect the company’s values; and 100 per cent of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature.

"Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis," the letter reads.

"Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits. But it’s also resilient. We can save our planet if we commit to it," he adds.

Despite theoretically giving away the company, the Chouinard family will continue to guide the Patagonia Purpose Trust, electing and overseeing its leadership. Family members will continue to sit on Patagonia’s board.

Writing by Leon Poultney.