Patagonia founder, Yvon Chouinard, is giving away his ownership in the company he founded along with his spouse and adult children. The proceeds will be dedicated to projects and organizations that will protect wild land, biodiversity, and combat the climate crisis.

Patagonia is a retailer of outdoor clothing and is based in Ventura, California. The company was founded 50 years ago by Chouinard and now has stores in over 100 countries and factories in 16 countries. The company is estimated to earn $1.5 billion in revenue this year and has a valuation of $3 billion.

Patagonia had humble beginnings as Chouinard was an accomplished rock climber, and the company initially sold equipment to other rock climbers that he designed. The company slowly expanded into other categories like apparel, other outdoor sports like surfing, and outdoor equipment.

In a statement, Chouinard explained his decision. He said, "While we're doing our best to address the environmental crisis, it's not enough. We needed to find a way to put more money into fighting the crisis while keeping the company's values intact."

He decided that this was the best option. The drawback to selling the company would be that a new owner wouldn't necessarily uphold the same values or retain its current team. He also dismissed taking the company public as this would put too much emphasis on short-term, quarterly results over its longer-term health and goals.

Instead, Chouinard came up with his own solution. The company's stock will be owned by a climate-focused trust and a group of nonprofit organizations. Essentially, every dollar generated by Patagonia will go back into the company or into the trust to be distributed. The company expects to donate about $100 million annually, and the trust will get all the voting stock.

Some observers also noted that this solution provides Chouinard with about $700 million in tax savings.

Ryan Gellert will remain as the company's CEO, and members of the Chouinard family will remain on the company's Board of Directors. After making this decision, the company updated its website to note that the company's only shareholder is now Earth.