B Corps and Patagonia’s new ownership model

MESSAGE FROM XXXXX XXXXXXX ON 09/15/2022

Hi Claude,

Dropping in for some input. I was thinking of sending a bulk message to my Men’s team, but I’ll start with you instead since you’re as badass as their combined total anyway.

The Biden administration recently allocated $350 billion dollars In federal loans and loan guarantees for energy and automotive projects and businesses. That money will be dispersed by the energy department. (Side note: Critics say this looks suspiciously like what happened to Solyndra, the energy company that borrowed $500 million from the Obama administration and then went bankrupt…)

Of course, the notion is to help fight climate change.

If I put my big boy pants on, this seems like an opportunity for me, right?

My question for our professor is: How do I position myself to capitalize on this opportunity?

Finally, here’s another bit of news that I think is _extremely relevant_:

https://www.cnn.com/2022/09/14/business/patagonia-ownership/index.html?fbclid=IwAR0BMeZTgbGy3VEXZdThbWQd_2go6juV64lxI75_oZf7YSsh0yqmWB-aazQ

I want to work with exactly these types of companies:

Thank you so much for any input! And as always, happier than a Lark to partner with you on anything.

REPLY FROM ME ON 09/15/2022

XXXXX, 

If I read your words right, I think that the B Corp represents a niche opportunity in alignment with what you’re attention is nibbling on. There may well be an opportunity to focus on those companies registered as B corps that are also focusing on the energy sector and are likely candidates for the federal funding you mention.

Chouinard’s effort to solidify the values of his company (an alternative business form called The Patagonia Purpose Trust and Holdfast Collective) is focused on creating a legal form to live on in the future. This is a big step beyond the role filled by the B Corp legal form.

It might be worth studying what he’s trying to do so that intelligent discussion of that option can be a part of your portfolio if future clients seem like good candidates to take the step to a B Corp or beyond, to the “holdfast collective.”

You may want to do a little Google research to educate yourself about B Corps, if you’re not already conversant in that form.

I’m curious what you’re take on the opportunities there might be.

Claude