Patagonia Names Marcario to Head New Socially Minded Holding Company

Patagonia Works succeeds Lost Arrow Corporation as the holding company for Patagonia, Inc. (apparel), Patagonia Provisions (food), Patagonia Media (books, films and multimedia projects), and future investments and joint ventures. Patagonia Works will also serve as an umbrella for new businesses the company would develop or invest in, in the future.

 

 

Like Lost Arrow Corporation, Patagonia Works will offer its member companies value through collective services such as accounting, legal, human resources, etc. But Patagonia Works has been organized primarily to incubate new companies or investments that will, through an infusion of common values, … use business to inspire and implement solutions to the environmental crisis.

 

Unlike a traditional holding company, whose primary purpose is to reduce risk through diversification of assets, Patagonia Works aims to invest in companies working to bring about positive change in five critical areas: clothing, food, water, energy and waste.

The new holding company will be headed Rose Marcario, who was credited by Patagonia Founder Ivon Chouinard with helping triple the companys profits in the last five years as COO and CFO of Patagonias apparel company. She will now take on a new role as president and CEO of Patagonia Works.

 

Chouinard laid out the plans and rationale for the new company and the fund in a letter to stakeholders, which follows below:

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I dont like to think of myself as a businessman. Ive made no secret that I hold a fairly skeptical view of the business world. That said, Patagonia, the company my wife and I founded four decades ago, has grown up to be – by global standards – a medium-size business. And that bestows on our family a serious responsibility. The last line of Patagonias mission statement is … use business to inspire and implement solutions to the environmental crisis. Weve always taken that seriously.

 

Three examples: Every year for 30 years, Patagonia has donated one percent of its sales to grassroots environmental organizations. We helped initiate the Sustainable Apparel Coalition, an organization of companies that produces more than a third of the clothing and footwear on the planet. In a very short time, the Coalition has launched an index of social and environmental performance that designers (and eventually consumers) can use to make better decisions when developing products or choosing materials. And last year we became one of Californias first B Corps (benefit corporations), which means that the values that helped make our company successful are now etched into our legal charter.

 

Now is the time for Patagonia to take the next logical step: to reach out beyond the framework of the apparel and outdoor industries. Today, my family and I are happy to launch $20 Million & Change, an internal fund to help like-minded, responsible start-up companies bring about positive benefit to the environment.

 

With the launch of this fund, we have reorganized Patagonia and our other businesses within a new holding company called Patagonia Works. While most holding companies are about diversification, Patagonia Works is dedicated to a single cause: using business to help solve the environmental crisis. Rose Marcario, who has been COO and CFO of Patagonias apparel company, will now take on a new role as President and CEO of Patagonia Works. Rose has been instrumental in tripling profits for our company. We now want to apply her business acumen and keen sense of social and environmental responsibility to new companies in five critical areas: clothing, yes, but also food, water, energy and waste. Rose has been responsible for the launch of Patagonia Provisions, which will soon expand beyond our Wild Salmon Jerky (wild-caught in natal waters by First Nations tribes) to other foods that, like our jerky, are more thoughtfully sourced. The food business is, as much as the apparel or energy industries, environmentally broken. It takes more from the planet than it gives back. We aim to find ways to get what we want to eat by working with nature rather than against it.

 

Casey Sheahan will continue to serve as President and CEO of Patagonia, Inc., the clothing company at the heart of Patagonia Works.
Others might see Patagonia Works and $20 Million & Change as revolutionary business ventures; we think both are just next logical steps to doing business more responsibly. Economic growth for the past two centuries has been tied to an ever-spiraling carbon bonfire. Business-and human-success in the next 100 years will have to come from working with nature rather than using it up. That is a necessity, not a luxury as its seen now in most business quarters. We invite and encourage all companies to start to work with us in that direction.