The most influential investors in the fossil fuel business

I have read a summary of an article published by Truzaar Dordi (researcher at the University of Waterloo) entitled Ten financial actors can accelerate a transition away from fossil fuels in which he analyzes who are the main actors in the fossil fuel business.

The information is interesting because it indicates who are the ones who pull the strings of the financial investments that maintain the fossil fuel business,

There are 200 companies that move 98% of oil, gas and coal. But the investors are spread out, and a few are the most important because of the investments they have spread across many companies.

And the funny thing is that these investors are bigger than some national companies like Gazprom (Russian) or CNPC (Chinese). Its economic capacity is enormous and unknown to almost everyone.

The top 10 investors are: BlackRock, Vanguard, Government of India, Kingdom of Saudi Arabia, State Street, Life Insurance Corporation, Dimensional Fund Advisors, Norges Bank, Fidelity Investments and Capital Group

These 10 financial groups somehow control (therefore are somehow responsible for) almost 50% of the pollution generated by fossil fuel companies.

The information itself is neither good nor bad. These people invest in the businesses that generate the most profits, and fossil fuels is one of them, especially in recent times. And many people look at the short term.

I think it’s up to all of us to change. As consumers consuming less derivatives of fossil fuels, and as citizens demanding urgent changes in strategy from our authorities, if we do not want to fall fully into the climatic emergency that is upon us.

We are the ones who are going to lose the most, and especially the poorest, whether or not they generate pollution. This is so unfair.

Three-fifths of fossil fuels are extracted by national companies, and these companies generate significant income for their countries, so those countries will continue to extract oil as long as there is someone to buy it from them. As long as there are consumers, there will be providers.

People and investors (large, medium and small) must be aware of where they place their investments so as not to promote this business that today provides good dividends, but that kills us in the medium term.

For example, I think it makes no sense for large pension fund assets to participate in these businesses that mortgage our future, and they should look for more sustainable alternatives, which exist.

As citizens, we must be as informed as possible to demand that our leaders don’t mortgage our future. Without forgetting that we can also contribute our grain of sand.

We should leave our environment the same or better than we received it. Will we do it? Allow me to doubt it.