Cotopaxi: Why Business Is the Best Way to Improve the World

Cotopaxi is an outdoor gear and apparel brand that pledges to give at least 1% of its annual revenue to charitable causes through its Cotopaxi Foundation. Cotopaxi is also a certified B corp and 94% of its products contain recyclable or reusable materials. On its mission to help people and the planet, Cotopaxi is also making money. In 2022, the company surpassed $100 million in revenue. Its work has caught the eye of investors. In 2021, Bain Capital's Double Impact Fund invested $45 million in Cotopaxi. In today's episode of Leadership Next, hosts Alan Murray and Ellen McGirt talk to Cotopaxi founder and CEO Davis Smith about why he built Cotopaxi as a for-profit company rather than a non-profit, and how Cotopaxi differs from other outdoor brands. Smith also explains why he's stepping away from leading the company he believes in so deeply. Later in the episode, we hear from Cecilia Chao, Managing Director of the Bain Double Impact Fund. Chao talks about why Bain invested in Cotopaxi and the importance of prioritizing both impact and profit. Chao also gives her take on trends in impact investing and the difference between impact and ESG investing. Explore more of Fortune! Use the promo code LN25 to get 25% off our annual subscription at fortune.com/subscribe