The billionaire founder of outdoor clothing brand Patagonia says he has given away his company to a charitable trust to help fight climate change.
Yvon Chouinard said the arrangement meant any profit not reinvested in running the business would go to environmental measures and campaigning.
He estimated this would amount to around $100m (£87m) a year, if the company remains in good health.
Patagonia is one of the world’s most successful outdoor clothing brands and had an estimated revenue of $1.5bn (£1.3bn) this year.
Mr Chouinard, 83, has an estimated net worth of $1.2bn (£1bn).
In a letter on the company’s website, he said: “As we began to witness the extent of global warming and ecological destruction, and our own contribution to it, Patagonia committed to using our company to change the way business was done.
“If we could do the right thing while making enough to pay the bills, we could influence customers and other businesses, and maybe change the system along the way.”
He said that although the company had already taken a range of measures, this was not enough, leading him to decide to transfer the business into a charitable trust.
The Patagonia founder said he had initially considered selling Patagonia and donating the money to charity, or taking the company public, but that either option would have meant giving up control.
“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 said.
Under the arrangement, The Patagonia Purpose Trust, led by the family, will be the company's controlling shareholder but will only own 2% of its total stock.
Holdfast Collective, a US charity, now owns all the non-voting stock of the company, with Patagonia giving over any of its profits once the business has been reinvested in.
“If we have any hope of a thriving planet—much less a thriving business—50 years from now, it is going to take all of us doing what we can with the resources we have. This is another way we’ve found to do our part,” said Mr Chouinard.
“Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits. But it’s also resilient. We can save our planet if we commit to it.”
