How Perpetual Purpose Trusts Can Further Business and Sustainability Goals

The document examines various employee ownership models—Employee Stock Ownership Plans (ESOPs), worker cooperatives, and Perpetual Purpose Trusts (PPTs)—evaluating their capacity to support environmental sustainability and worker equity. It argues that PPTs are particularly effective for mission-driven companies because they allow trustees to prioritize non-financial goals and protect a company's purpose in perpetuity, unlike ESOPs which are constrained by fiduciary duties to maximize financial benefits. The paper highlights the potential for PPTs to facilitate sustainable succession for aging US farmers and cites examples like Patagonia and the Organically Grown Company to illustrate the model's application.

• Employee Stock Ownership Plans (ESOPs) are the most common employee ownership form in the U.S., benefiting nearly 14 million employees, but they face limitations regarding long-term sustainability because trustees are legally required to prioritize financial benefits over non-financial goals.
• Worker cooperatives are the most prevalent employee ownership model globally, representing approximately 10% of the world's employed population, and generally offer more equitable pay than traditional companies, though they still experience wage disparities based on gender and race.
• Perpetual Purpose Trusts (PPTs) offer a more flexible alternative to ESOPs for sustainability-focused businesses because they are not regulated by ERISA, are less costly to maintain, and allow trustees to prioritize non-financial benefits like job security and environmental goals.
• In the United Kingdom, EOTs (the international term for PPTs) are the most common employee ownership structure, with growth significantly accelerated by 2014 legislation that provided tax benefits for sellers, including the removal of capital gains and inheritance tax liabilities.
• PPTs may provide a strategic solution for the aging U.S. farming population, where approximately 60% of small farm owners plan to transfer ownership, by allowing for succession plans that include conservation easements and long-term environmental service contracts.
• Companies utilizing PPT structures demonstrate higher economic resilience and employee retention, with a survival rate in challenging economic climates six times higher than that of non-employee-owned firms.

APA

WWF International (n.d.). How Perpetual Purpose Trusts Can Further Business and Sustainability Goals. https://www.worldwildlife.org/documents/532/4ifqkeafn4_DEVINE_EOTs_03_24_v5.pdf

Chicago

WWF International. How Perpetual Purpose Trusts Can Further Business and Sustainability Goals. n.d. https://www.worldwildlife.org/documents/532/4ifqkeafn4_DEVINE_EOTs_03_24_v5.pdf.

Wikipedia

{{cite report |author=WWF International |title=How Perpetual Purpose Trusts Can Further Business and Sustainability Goals |url=https://www.worldwildlife.org/documents/532/4ifqkeafn4_DEVINE_EOTs_03_24_v5.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wwfinternationalndhow, author = {{WWF International}}, title = {{How Perpetual Purpose Trusts Can Further Business and Sustainability Goals}}, institution = {WWF International}, url = {https://www.worldwildlife.org/documents/532/4ifqkeafn4_DEVINE_EOTs_03_24_v5.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }