Patagonia clothing brand have just made a huge and inspiring move. Once all the operating costs of the business are paid for. They will actually be sending a dividend to Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature.
Here is thier reasoning
Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth.
How does it work?
100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature.
However;
I cannot find much more information on how much is being sent directly to the fund and what this fund is doing with the money.
The company voting “stock” 2% of it’s value is now owned by The Patagonia Purpose Trust. The non-voting stock (98% of the company) is owned by The Holdfast Collective.
Deep down, I believe this is a good move. However, the lack of definition of amounts and environmental causes does raise my eyebrows.
I will be revisiting this in the future…