Billionaire founder and owner of clothing brand Patagonia, Yvon Chouinard, has given the company away to a charity fighting climate change.
He has stated that all profits that aren’t reinvested in the operational costs of running the business would be spent purely on fighting climate change.
Depending on the financial status of the company, Chouinard estimates this to be around the $100 million (£86.9m) mark each year.
Patagonia is a renowned outdoor clothing brand, producing mountaineering and hiking apparel.
Chouinard founded the company in 1973, which is thought to have seen a revenue stream of $1.5 billion (£1.3bn) in the last year.
Upon the owner’s decision to give away profits to fight climate change, he said: “Despite its immensity, the Earth’s resources are not infinite and it’s clear we’ve exceeded its limits.
“Instead of extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates to protect the source.”
He explained to customers that his original plan was to sell the business and donate the profits made from the sale to charity – however, he was worried that if he gave up the business entirely, financial targets would mean desires to fight climate change would dwindle.
“Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility,” he explained.
The Holdfast Collective, an American climate charity will now own 98% of the company’s stock – bur remain under guidance of its founder.
Chouinard is reportedly worth $1.2 billion.