The Gates Foundation Trust’s latest annual filing has revealed a significant rise in its investments in fossil fuel companies, totaling $254 million (£188.5 million) as of 2024. This marks a 21% increase in fossil fuel holdings since 2016, the highest level recorded since 2019. The portfolio continues to include major players in the fossil fuel industry such as Chevron, Shell, and BP.
In 2013, the trust held nearly $1.4 billion (£1 billion) in fossil fuel investments. Following a global campaign initiated by climate activists, students, and charities in 2015, calls for the trust to divest from fossil fuels intensified. This movement aimed to challenge the legitimacy of business models reliant on fossil fuels. In response to these pressures, Bill Gates reflected in his 2021 book, How to Avoid a Climate Disaster, acknowledging the activists’ fervor while expressing skepticism about the efficacy of divestment alone in combating climate change.
Despite public commitments to reduce fossil fuel investments, the trust’s recent filings indicate a troubling trend. By 2015, the trust had offloaded significant portions of its holdings, including most of its $187 million (£138.7 million) in BP stock and $824 million (£611.6 million) in ExxonMobil shares, bringing its fossil fuel holdings down to $260 million (£192.9 million). Gates previously argued for increased investment in carbon-free energy sources, asserting that a market-driven approach often falls short of long-term sustainability.
In recent years, however, the value of the trust’s fossil fuel investments has rebounded despite earlier claims of divestment. For instance, holdings in Glencore surged to $14.1 million (£10.4 million) in 2024 from $5.7 million (£4.2 million) in 2015. Similarly, BP investments increased to $24.2 million (£17.9 million) from $8.7 million (£6.4 million) during the same period. The trust’s stake in Occidental Petroleum also rose to $7.9 million (£5.8 million) from a mere $23,529 (£17,464).
Gates acknowledged in his 2021 book that in 2019, he divested all personal holdings in oil and gas companies, aligning with the trust’s purported shift away from fossil fuel investments. By the end of 2020, the trust’s fossil fuel investments had fallen to $133 million (£98.7 million). However, this downward trend reversed in subsequent years, as new investments were made in companies like Inpex, leading to a remarkable sevenfold increase to $139 million (£103.1 million) in 2024 from $20 million (£14.8 million) in 2020.
The trust has also invested millions in both BP and Equinor, two companies that faced shareholder pushback last year over accusations of greenwashing. Furthermore, the trust increased its investment in Occidental Petroleum, which has promoted its use of captured carbon dioxide in oil production.
Critically, the companies in which the Gates Foundation Trust invested in 2023 accounted for more emissions than Russia, Japan, and Germany combined. This stark reality raises significant questions regarding the actual impact of the trust’s investments and the authenticity of its divestment claims.
As the debate over fossil fuel investments continues, the Gates Foundation Trust’s actions will remain in the spotlight, scrutinized by activists and the public alike.
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