Patagonia’s Passive Giving: How They’re Changing Corporate Philanthropy

Patagonia has always been a leader in environmental activism, but in recent years, they've taken corporate responsibility to a new level through passive giving—a strategy where the company automatically directs its profits toward environmental causes without needing customers to act.

100% of Profits for the Planet

In 2022, Patagonia's founder, Yvon Chouinard, made a game-changing decision: he gave away ownership of the company to two entities—the Patagonia Purpose Trust and the Holdfast Collective. This move ensures that Patagonia’s profits (roughly $100 million annually) will now fund environmental protection efforts indefinitely. Essentially, 100% of Patagonia's earnings go to fighting climate change, turning the company into a powerhouse for environmental funding.

This isn't Patagonia’s first venture into passive giving. Since 1985, they’ve pledged 1% of their sales (not profits) to environmental causes, donating millions each year to grassroots organizations. Customers don’t have to do anything extra—just buying their gear automatically supports these efforts.

Advocacy Through Business

Patagonia also weaves environmental advocacy into its branding. Campaigns like “Don’t Buy This Jacket” encourage consumers to think about their impact and promote sustainability without directly asking for donations. By making giving an integral part of its business model, Patagonia sets a powerful example of how companies can drive change without asking their customers to do all the heavy lifting.

Patagonia’s model is revolutionary because it shifts the responsibility of giving from consumers to the business itself, proving that companies can thrive while making a significant positive impact on the world.