Patagonia was founded by Yvon Chouinard in 1973 and is based in Ventura, California. The iconic outdoor company has been committed to high quality products as well as environmental activism since its foundation. The billion-dollar global brand has time and again demonstrated that business can both be radically responsible and profitable.

The American outdoor apparel and gear company Patagonia offers a wide range of upscale products – ranging from hiking and climbing gear to surfing and skiing equipment. Known for its innovative designs and sustainable materials, their products illustrate core values that the company has subscribed to: quality, integrity, environmentalism, justice and not being bound by convention.

At the heart of Patagonia’s mission is its deep commitment to the planet and its people. Their mission statement, “We’re in business to save our home planet,” reflects Patagonia’s dedication to environmental conservation and activism. Initiatives such as “1% for the Planet” donating 1% of sales to environmental organizations as well as their Worn Wear program, actively promoting and being committed to the repair and reuse of their clothing, Patagonia is a lighthouse company in sustainable business practices.

In 2022, Yvon Chouinard and his family transferred their ownership of the company, valued at around $3 billion, to a specially designed trust and a non-profit organization – effectively setting up a steward-ownership structure. The Patagonia Perpetual Purpose Trust and the non-profit Holdfast Collective were established to safeguard the company’s independence and direct profits toward its mission. In setting up this two-entity structure, Patagonia separates voting and economic rights in a legally binding way in the long run, stating that “each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis”.

For Patagonia, the implementation of steward-ownership was mostly taken as a succession model — they were looking for alternatives other than passing the shares directly to his children or selling the company. With steward-ownership, Patagonia’s owners fundamentally rethought the company’s corporate ownership structure, shifting focus to serving the company’s purpose and independence in the long run and manifesting Patagonia’s role as a global lighthouse company.

To find out more read our blog post about Patagonia in the Context of Steward-Ownership.