Patagonia, a specialist in outdoor clothing through retail and distributors, has been turned into a trust that will give all its profits away to fight climate change.

Owners Yvon Chouinard and his family have transferred all ownership to two new entities, Patagonia Purpose Trust and the Holdfast Collective, which will give all proceeds to initiatives to “save the planet”.

Yvon founded the business in 1973, developing it into a global outerwear brand which is sold through retail and for customisation in the promotional and decoration sector in the UK.

Patagonia will continue to operate as a for-profit enterprise but, in a statement, it said: “As of now, Earth is our only shareholder. All profits, in perpetuity, will go to our mission to ‘save our home planet’.”

Yvon, his wife Malinda and children Fletcher and Claire donated 2% of all stock and all decision-making authority to the Patagonia Purpose Trust which will oversee the company’s mission and values.

The other 98% of the stock has gone to the Holdfast Collective which “will use every dollar received to fight the environmental crisis, protect nature and biodiversity, and support thriving communities, as quickly as possible”.

In a statement, Yvon said: “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.

“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.”

Patagonia has a long-time commitment to protecting the environment and, in the garment decoration sector, it allows dual-branding of its garments only with companies that are also committed to saving the planet.

Patagonia styles popular for branding in the UK include the Better Sweater Fleece Jacket and the Torrentshell Jacket.