Patagonia Doubles Down on Purpose, Transfers Ownership to Trust
Patagonia, the renowned outdoor clothing and gear brand, has underscored its commitment to purpose by transferring ownership to a meta trust and non-profit in 2022. CEO Ryan Gellert has noted a 'fear across the business sector' in leaders hesitating to speak out on environmental and social issues, a contrast to Patagonia's vocal stance.
Patagonia's activism is not a new strategy but a long-standing approach that pairs high-performance gear with a strong voice. The company has consistently advocated for its values, even in a competitive market filled with legacy players and fashion-forward challengers. Gellert's comments reinforce Patagonia's view that speaking out is core to its identity, not a distraction from selling products.
Consumers increasingly seek companies that align with their values, and Patagonia is doubling down on this trust. Its commitment to purpose is evident in its operational decisions, such as eliminating PFAS, expanding Worn Wear, and investing in regenerative farming. The company's stance is not about taking sides for political gain, but rather demonstrating that purpose can be a competitive advantage.
Patagonia's transfer of ownership to the Patagonia Purpose Trust and the Holdfast Collective, a non-profit organization, in 2022 further solidifies its commitment to purpose. Despite market competition, Patagonia differentiates itself by emphasizing its voice and values alongside its product offerings, such as GORE-TEX. The company continues to prove that standing for something can be a powerful business strategy.
