Patagonia is the outdoor clothing company whose culture includes giving 1% of sales to environmental causes. Unlike a promise based on profit, the commitment is tied to sales, so the company contributes even in a difficult year.
Patagonia made the pledge in 1985 as part of its growing environmental activism. The company later helped create 1% for the Planet in 2002 with Craig Mathews, owner of Blue Ribbon Flies, encouraging other businesses to contribute a comparable share of sales to environmental organizations.
The money is directed toward environmental work, especially grassroots and community-led groups working on issues such as land, water, climate, biodiversity, and environmental justice. Patagonia calls the commitment an “earth tax,” reflecting the idea that a company should account for the ecological impact of doing business.
A common mix-up is confusing this pledge with Patagonia’s later ownership change. In 2022, the company transferred its ownership into structures intended to protect its purpose and fund climate work, but the 1%-of-sales commitment remains a distinct program.