Bill Gates Foundation Trust Boosts Fossil Fuel Investments Despite Climate Pledges
The Gates Foundation Trust holds hundreds of millions of dollars in fossil fuel extractors according to a recent Guardian report. The trust invested $254 million in companies that extract fossil fuels such as Chevron, BP and Shell based on end-of-year filings. This investment marked a nine year high and showed a 21% increase compared to 2016 levels.
Investment Trends and Historical Context
After adjusting for inflation, the amount represents the highest investment since 2019. These investments come despite Bill Gates' public claims of divestment made in 2019. The Microsoft co-founder was ranked by Forbes as the world's richest person between 1995 and 2017.
In 2000, Gates and his then wife Melinda established the Gates Foundation, which now ranks as the world's third-largest charitable foundation. Questions around divestment first emerged for Gates in 2015 when a global campaign urged large foundations to pull their money out of fossil fuel companies.
The Divestment Debate
That same year, calls were made for major trusts including the Gates Foundation Trust to move away from investments in coal, oil and gas companies. According to the report, the trust was heavily invested in fossil fuels with $1.4 billion in holdings back in 2013.
In his 2021 book titled 'How to Avoid a Climate Disaster,' Gates acknowledged why activists had singled out his foundation. He expressed admiration for their passion but remained skeptical about divestment. Gates questioned how divesting alone would stop climate change or help people in poor countries.
Changing Investment Patterns
Despite this skepticism, the trust shifted its position and sold much of its fossil fuel stocks and bonds. This included most of its $187 million stock holding in BP and an $824 million holding in ExxonMobil. The trust's fossil fuel holdings dropped dramatically from $1.4 billion in 2013 to $260 million in 2015 according to Guardian analysis.
Recent Investment Increases
As per the report, Gates called for more government investment in carbon-free energy sources in a 2015 paper. However, the Gates Foundation Trust's investment in several fossil fuel companies has increased since then.
The report details several significant increases:
- Glencore holdings increased from $5.7 million in 2015 to $14.1 million in 2024
- BP holdings increased from $8.7 million to $24.2 million
- Occidental Petroleum holdings rose from $23,529 to $7.9 million
These investment increases occur alongside ongoing climate discussions and previous divestment commitments. The foundation continues to navigate the complex relationship between investment strategies and climate responsibility.
