Just 10 financial institutions own almost half the world’s unburned fossil fuels, a new study shows.
Researchers at Canada’s University of Waterloo analysed the ‘Carbon Underground 200’, a database of the world’s largest coal, oil and gas companies, to find the most powerful investors.
Combined, these energy companies own 98 per cent of known fossil fuel reserves, which would emit 674 gigatons of carbon if burned. That’s nearly three times the global CO2 emissions limits needed if we are to hold global warming to within 1.5C, in order to avert the most devastating impacts of climate change.
Looking at the CU200 list – compiled by sustainable investment firm FFI Solutions – the researchers found that only 10 shareholders own 49.5 per cent of the potential emissions from the likes of Saudi Aramco, ExxonMobil and BP.
“Individually, reducing the demand for fossil fuels by driving and flying less and turning off the air conditioner are great. We should keep doing that. But we also need to reduce our production of fossil fuels, which these 10 actors can lead,” says head researcher Truzaar Dordi.
“Without them, we simply won’t have what it takes to meet our emissions targets and avoid catastrophe.”
Which 10 financial institutions own the fossil fuel reserves?
- Blackrock
- Capital Group
- Dimensional Fund Advisors
- Fidelity Investments
- The Government of India
- The Kingdom of Saudi Arabia
- Life Insurance Corporation
- Norges Bank
- State Street
- Vanguard.
These shareholders wield a huge influence over the fossil fuel industry.
According to the CU200, based on reserves emissions data for companies at the end of 2020, Saudi Aramco has by far the biggest oil and gas reserves, capable of emitting 107 gigatons of carbon. It was followed by Russia’s Gazprom at 38 gigatons CO2, then Rosneft.
Coal India is the top coal company, with reserves capable of releasing almost 100 gigatons of CO2.
(Source: Euronews, August 10-2022)