Patagonia Holdfast Collective: A Company Gives Itself to the Planet

The Patagonia Holdfast Collective is the nonprofit at the center of one of the most talked about ownership decisions in business. On September 14, 2022, founder Yvon Chouinard and his family announced they had transferred their entire ownership of Patagonia into two new entities, with the goal of fighting the climate crisis.

What the Patagonia Holdfast Collective owns

The Holdfast Collective is a nonprofit that holds 98 percent of Patagonia stock. The other entity is the Patagonia Purpose Trust, which receives the remaining stock and creates a permanent legal structure meant to keep the company true to the founder vision.

Where the profit goes

Instead of being paid out to owners, annual profits, reported at about 100 million dollars, are directed toward protecting nature and biodiversity, supporting thriving communities and fighting the environmental crisis. The company keeps operating as a for profit business that sells outdoor clothing and gear.

Why the Patagonia Holdfast Collective matters to business

Most companies must answer to shareholders who want returns. This structure flips that. Profit is a tool for a mission, and the company is protected from being sold or taken over by owners with other goals. It is a real test of whether a successful brand can put purpose at the center without losing its edge.

What other companies can learn

Few founders can or will do what Chouinard did. But the lesson reaches further than ownership. Customers pay attention when a company backs its words with its own structure, and employees do too. Smaller steps, such as fixed shares of profit for climate work or clear public reporting, are open to almost any business.

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Sources: ABC7 News, September 2022.