"Use Company Profits for Climate Change" Patagonia Spent 95 Billion Won on Environmental Protection

Yvon Chouinard, Founder, Transfers 98% of Company Shares to Environmental Protection Nonprofit Foundation

Global outdoor brand Patagonia, which transferred 98% of its company shares to a nonprofit foundation by the founder's decision, has reportedly used 95 billion KRW of its company profits for environmental issues such as wildlife protection.

On the 30th (local time), The New York Times (NYT) reported that after investigating Patagonia's tax filings and other records, Patagonia spent 95 billion KRW over the past year and a half on animal protection, dam removal, land conservation, political donations, and more.

The founder, Yvon Chouinard, and his family transferred 98% of Patagonia's total shares to Holdfast Collective, an environmental nonprofit foundation, in September 2022. They gave up ownership of the company and announced that all profits generated would be used for environmental protection and climate change response, drawing significant attention.

Specifically, $3 million was allocated to block mining development in Alaska, and another $3 million was provided for land conservation in Chile and Argentina. Additionally, $200,000 was donated this month to a Democratic super PAC to support the election of Democratic lawmakers across the United States, totaling $1 million spent for this purpose.

It is known that more than 70 organizations, including Earthjustice and the Center for Progressive Action in the U.S., received support from Holdfast in its first year of operation.

Patagonia paid its first dividend of $50 million to Holdfast in 2022, and also paid an undisclosed amount of dividends last year. Patagonia plans to continue sending all profits not reinvested in the company to Holdfast annually.

As a result, the value of the shares currently held by Holdfast amounts to $1.7 billion (2.3 trillion KRW).

However, regarding Patagonia's donations to the Democratic Party, voices of dissatisfaction have emerged from the conservative camp in the U.S.

Greg Curtis, the only full-time employee and manager of Holdfast and former legal counsel for Patagonia, stated that there was no intention to take a partisan stance.

He explained, "The sole purpose of engaging in politics is to promote stronger environmental policies," adding, "We are genuinely interested in supporting all climate leaders, whether Republican, Democrat, or independent, and it just so happens that many of them are Democrats."