What is Patagonia Works?
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 invests in or develops 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, make good on our commitment to “save our home planet.”
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.
Who is the CEO and President of Patagonia Works?
As CEO and President of Patagonia Works, Rose Marcario is responsible for the health and performance of
all its companies, with special emphasis on nurturing and mentoring the fledgling businesses under the
Patagonia Works umbrella. Over the next year, Rose will concentrate on launching Patagonia Provisions
and establishing Patagonia Works as new kind of holding company; one that focuses on finding solutions
through business to the environmental crisis. Rose has served as Patagonia’s COO and CFO for the past
five years. She has served on numerous private enterprise and nonprofit boards and currently is a member
of the Board of Trustees of Naropa University in Boulder, Colorado.
Prior to coming to Patagonia, Rose held leadership positions as the Director of Corporate Finance for L.A.
Gear, Vice President Global Finance and Treasury for NYSE-listed International Rectifier Corporation,
Senior Vice President and Chief Financial Officer of NASDAQ-listed General Magic, Inc.; and Executive Vice
President in charge of Mergers, Acquisitions and Private Placements for Capital Advisors, LLP; where she
was responsible for over $2 billion in transactions in consumer products, services and technology. Rose is
an avid kayaker and hiker. She holds a Master of Business Administration degree from California State
University, Los Angeles; and a Bachelor of Science degree in Business and Finance from University at
Albany, State University of New York.
Will Patagonia Works continue to donate one percent of sales to grassroots environmental groups?
Absolutely. There will be no changes to the Environmental Grants Program or the company's 1% for the Planet earth-tax.
What is a B Corp (benefit corporation)? Why will each company under Patagonia Works be
organized as a B Corp?
B Corps (benefit corporations) are a new kind of corporation legally required to: 1) have a corporate purpose
to create a material positive impact on society and the environment; 2) redefine fiduciary duty to require
consideration of the interests of workers, community and the environment; and 3) publicly report annually
on overall social and environmental performance using a comprehensive, credible, independent, and
transparent third party standard. In contrast, current law requires corporations to prioritize the financial
interests of shareholders over the interests of workers, communities and the environment.
In January 2012, Patagonia Inc. was one of the first companies in California to register as a B Corp. Each
company under the Patagonia Works will have a common, ethos-led mission and will register as a B Corp to
ensure that its values live in perpetuity.
How does Patagonia, the clothing brand, fit into Patagonia Works?
Patagonia will live under the Patagonia Works umbrella. Patagonia’s mission statement inspired the creation
of Patagonia Works, and that mission statement will be infused into each company and brand extension
within Patagonia Works.
What is $20 Million & Change?
$20 Million & Change is the internal fund set up by Patagonia Works to help like-minded start-up companies.
The fund’s name is a nod to the fact that $20 million is the starting amount with the ability to grow and, more
importantly, with the ability to "change" the way business is done.
What are the responsibilities of Patagonia Works as the holding company?
The Responsibilities of Patagonia Works:
Nurture entrepreneurial ventures
Incubate environmentally responsible companies
Diversify corporate holdings
Extend the reach and the influence of the brand to new markets
Influence the global business paradigm
Offer a new way to measure return on invested capital
Provide long-term economic health with consideration of environmental and social risk
Promote The Responsible Economy, Patagonia's ongoing environmental campaign
Provide best-quality shared services and allow each business to focus on product,
quality, sales and customer experience
What are the current key channel companies under the Patagonia Works umbrella?
Patagonia, Inc. (apparel)
Patagonia Provisions, Inc. (food)
Lost Arrow, Inc. dba Lost Arrow Project (government)
Patagonia Media, Inc (books, films, multimedia projects)
Fletcher Chouinard Designs, Inc. (surfboards)
Tin Shed Ventures, LLC (investments)
Worn Wear, Inc. (used and upcycled apparel)
What are the shared attributes of each company under Patagonia Works?
Each company within Patagonia Works will share the core values of Patagonia Inc.: quality,
environmentalism, corporate transparency and not being bound by convention. Additionally, all companies
will have direct sales as a component. Each will be organized as a B Corp (benefit corporation), be a
member of 1% for the Planet® and utilize the Higg Index or other appropriate footprint-based measurement
of social and environmental performance. Each company may leverage the following shared corporate
services: environmental, legal, finance, technology, distribution, and human resources. Start-up or “angel” investments may be made in companies outside Patagonia Works that are not B Corps, members of 1% for the Planet or subscribers to a social and environmental performance index. But these companies must share our core values and their work must help provide solutions to the environmental crisis.
Could Patagonia Works be considered an incubator for environmentally and socially responsible
Absolutely. Some Patagonia Works investments could be smaller seed investments to fledgling, responsible
companies in need of capital. Investments of any size will be limited to like-minded, responsible businesses.
Will Patagonia Works wholly own any of the companies it invests in?
Not necessarily. Patagonia Works could be an investor, or joint-venture partner.