Company given away to save the planet - 31st October 2022

In mid-September, the founder and owner of clothing company Patagonia, Yvon Chouinard, donated his business to the fight against climate change. In an open letter, the 83-year-old said "The earth is now our only shareholder."

For a company with hundreds of investors to transform into such an organisation wasn't an easy step. Chouinard said, "There were no good options, so we created our own."

Instead of giving profits to investors, the hiking sports brand will direct money to the environment through an organisation called the "Holdfast Collective". Patagonia will only take out what's necessary – two percent of profits – to ensure it runs smoothly and to take care of its staff. Meanwhile, the Holdfast Collective will focus on protecting biodiversity, supporting communities under threat and managing the effects of climate change.

It's not the first time the sports fashion brand has done something extraordinary for the environment. In 2011, they ran a publicity campaign which read "Don't buy this jacket", encouraging customers to repair clothes first, and to consider the negative effect of purchasing for the planet.

Since the 1980s, Patagonia's been donating one percent of profits to various environmental groups. With its latest announcement, Patagonia has broken new ground, establishing itself as an organisation fully committed to the protection of the environment.

In his letter, Yvon Chouinard explained that becoming an entrepreneur was never his goal. As a young man, the eccentric adventurer lived out of his van so that he could go mountain climbing on a daily basis. Patagonia developed when Chouinard started creating climbing equipment for his fellow mountaineers. Years down the line, Forbes magazine listed him as a billionaire, which "pissed him off," he said.

Climate experts say that although there's a long way to go, this is a remarkable example of how lucrative businesses and wealthy individuals can construct a more sustainable future.