Bold move for a sustainable prosperity
Patagonia step for a better Earth.
The media sphere has been shaken this September, 15th by an astonishing news from patagonia.
Yvon Chouinard, the emblematic founder of patagonia, wrote an open letter whose the impacts will probably last for a long time. He dusted off the traditional way with which the capitalism is dogmatically operating to build a new model more sustainable and sensitive to the needs of our planet.
How the shift matters?
Companies living in our capitalism world today, have as a primary objective to maximize profit… by all means. And they consider that their responsibility is to reward whenever possible shareholders for their capital injected in those companies. This small circle born at company level and aggregated to other small circles, create an ecosystem of money generation exploiting the resources of Earth.
Chouinard’s approach is a game changer.
His long track record with Patagonia at delivering innovative climate-friendly products led him to think about the capitalism model and its consequences which are clearly devastating for our planet.
First, he redefined its main and only shareholder as Earth. This allowed him, to acknowledge that the working capital used by his company, was directly coming from Earth and then the rewards would naturally going back to her.
Secondly, he tested different ways to establish an innovative model where Patagonia’s activities will remain sustainable by producing eco-friendly products, paying all the charges associated and sharing the exceeds to save the planet.
The mechanic was intended to work like this:
“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. The funding will come from Patagonia: Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis”.
According to Fortune, the “annual dividend from any cash that is not reinvested in Patagonia to fight the environmental crisis, protect undeveloped land around the world, and advocate for causes and candidates in politics.”
And tomorrow?
Chouinard threw a stone in the pond and he needs to be followed by its peers and any leading company willing to shake the status quo.
In one of my previous article (see below), I have developed the concept of the money equation where I found crucial to move money from the result of the climate change equation to one of its component.
I think this momentum is happening thanks to Yvon Chouinard bold move.
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