The Gates Foundation Trust’s latest filing for 2024 has revealed a substantial investment of $254 million (£188.5 million) in companies engaged in fossil fuel extraction, including major players such as Chevron, Shell, and BP. This marks a significant 21% increase in fossil fuel investments since 2016, reaching levels not seen since 2019. This development raises questions about the foundation’s commitment to divestment in fossil fuels, a topic that has garnered considerable attention in recent years.
In 2013, the trust’s fossil fuel holdings peaked at nearly $1.4 billion (£1 billion). Following a global campaign launched in 2015 by climate activists and charities, there was growing pressure for the trust to divest from fossil fuel investments. This campaign escalated after the Guardian initiated a call to action against such investments, urging prominent foundations, including the Gates Foundation, to reconsider their financial ties to fossil fuel companies.
In his 2021 book, How to Avoid a Climate Disaster, Bill Gates acknowledged the campaign’s impact, stating, “I understood why the Guardian had singled out our foundation and me. I also admired the activists’ passion.” Despite this recognition, he expressed skepticism about the efficacy of divesting alone, arguing that simply withdrawing funds would not effectively combat climate change or assist impoverished communities.
Over the years, the trust has made moves to reduce its fossil fuel investments. By 2015, it had decreased its holdings in fossil fuel extractors to $260 million (£192.9 million), down from the previous $1.4 billion. Key divestments included offloading most of its $187 million (£138.7 million) stake in BP and a significant $824 million (£611.6 million) worth of ExxonMobil shares.
Gates has consistently advocated for increased government investment in carbon-free energy sources, criticizing market tendencies to prioritize short-term gains over long-term sustainability. He noted in a 2015 paper that relying solely on market forces for investment decisions was not a sound strategy.
Despite previous divestment claims, the trust’s investments in several fossil fuel companies have surged in recent years. For instance, its holdings in Glencore rose from $5.7 million (£4.2 million) in 2015 to $14.1 million (£10.4 million) in 2024. Similarly, its stake in BP increased to $24.2 million (£17.9 million) from $8.7 million (£6.4 million) during the same period. Notably, the trust’s stake in Occidental Petroleum expanded to $7.9 million (£5.8 million) from just $23,529 (£17,464).
It is essential to acknowledge that some of this growth can be attributed to rising stock prices rather than new investments. Gates has expressed personal concerns regarding fossil fuel profits, stating, “I don’t want to profit if their stock prices go up because we don’t develop zero-carbon alternatives.” He confirmed that in 2019, he divested all his direct holdings in oil and gas companies, alongside the trust’s management.
By the end of 2020, the trust’s investments in fossil fuel firms had decreased to $133 million (£98.7 million). However, this downward trend reversed, with new investments in companies like Inpex, which saw its holdings rise to $139 million (£103.1 million) in 2024, a substantial increase from $20 million (£14.8 million) in 2020. The trust also significantly invested in BP and Equinor, both of which faced shareholder criticisms over claims of greenwashing in the previous year.
The trust’s increased stake in Occidental Petroleum, a company known for its carbon capture initiatives, raises further concerns. Alarmingly, the companies in which the Gates Trust invested in 2023 were collectively responsible for more emissions than Russia, Japan, and Germany combined. This stark fact calls into question the true impact of the trust’s investments and the authenticity of its public commitment to divestment.
The Gates Foundation Trust’s evolving approach to fossil fuel investments continues to spark debate about the balance between financial returns and environmental responsibility. As climate change remains a pressing global issue, the implications of these investments could have far-reaching effects.
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