The text discusses Patagonia’s commitment to using their business to address the environmental crisis and protect the planet. The company started by using materials that caused less harm to the environment and giving away a portion of their sales each year. They became a certified B Corp and changed their company’s purpose to saving the Earth. The text also explores the options Patagonia considered, including selling the company or going public, but ultimately decided to create their own path. They transferred voting stock to the Patagonia Purpose Trust and nonvoting stock to the Holdfast Collective, ensuring the company’s values and using profits to fight the crisis. Patagonia aims to continue operating profitably in line with their values for the next 50 years and beyond.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Earth is now our only shareholder | Change in ownership structure | Increased commitment to environmental sustainability | Desire to save the planet and change the way business is done |
| Company’s purpose changed to “We’re in business to save our home planet” | Change in company’s purpose | Increased focus on environmental preservation | Desire to address the environmental crisis |
| Company’s voting stock transfers to Patagonia Purpose Trust, nonvoting stock given to Holdfast Collective | Change in ownership structure | Increased protection of company’s values and focus on fighting the environmental crisis | Desire to use wealth to protect the source of all wealth |
| Excess profits distributed as dividend to Holdfast Collective | Change in profit distribution | Increased funding for fighting the environmental crisis | Desire to put more money into addressing the crisis while preserving company’s values |
| Continued commitment to operating profitably in line with values for the next 50 years and beyond | Commitment to long-term sustainability | Continued focus on environmental preservation | Desire to serve as a beacon for the entire business community and prove that purpose and profits are linked |