fossil fuel capitalism

By Brett Wilkins - Common Dreams, June 21, 2022

"This defeat is just a temporary setback," said one campaigner. "We will organize to come back stronger to make our demand for fossil fuel divestment heard because fossil fuel companies are driving us toward unimaginable disaster."

Climate, environmental, and social justice advocates on Tuesday condemned the decision by a Democratic California lawmaker to kill proposed legislation that would require two of the state's leading pension funds to divest from the fossil fuel industry. 

"Today amidst a historic mega-drought, wildfires, and fossil-fueled public health crises, Assemblymember Jim Cooper, Chair of the Assembly Committee on Public Employment and Retirement, refused to allow Senate Bill 1173, California's Fossil Fuel Divestment Act, to be heard in his committee," Fossil Free California said in a statement. "This one-man veto allows the state's pensions to continue to invest billions from public funds into the fossil fuel industry, for now."

S.B. 1173 would have prohibited the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS)—the two largest public pension funds in the United States—from making or renewing investments in fossil fuel companies. The measure would also have required the pensions to liquidate their fossil fuel holdings by 2030. The two funds currently hold an estimated $9 billion in fossil fuel investments.

"This decision is a moral failure that disproportionately impacts young people, Indigenous communities, communities of color, and low-income communities," the coalition asserted. "Climate chaos has already cost California billions in damages and health costs from fossil fuel pollution and climate disasters. Jim Cooper, who has just been elected Sacramento County Sheriff, has reported $36,350 in Big Oil campaign contributions from this election season alone."

State Sen. Lena Gonzalez (D-33) said in a statement that "while I am deeply disappointed that my Senate Bill 1173 was not set for a hearing in the Assembly Committee on Public Employment and Retirement this week, I remain committed to the necessary and ongoing fight against the impacts of climate change on our state, and especially those communities in my district that are disproportionately impacted by the negative effects of the climate crisis."

"Teachers and state employees whose retirement futures are invested by our state's pension funds have long demanded that CalPERS and CalSTRS cease investing their money in fossil fuel companies, and this demand will only grow stronger and louder," she continued.

By Sharon Kelly - DeSmog, June 16, 2022

CalPERS says it needs to hold onto billions in fossil fuel shares in order to push polluters in the right direction – but a new report details a pattern of voting against climate proposals.

Does engaging with oil and gas giants by remaining invested in them – keeping a “seat at the table” – help in the fight against climate change? 

A new report suggests not very much – at least judging by the record of the California Public Employees’ Retirement System (CalPERS).

The report by environmental group Fossil Free California takes the public pension fund to task for its results to date, highlighting its history of pushing “the importance of corporate engagement on climate change” in public statements, while simultaneously voting against climate measures in shareholder meetings.

The report details dozens of votes against climate measures by CalPERS this year — including votes against greenhouse gas reduction targets at Royal Dutch Shell, against reporting and reducing greenhouse gas emissions at BP, and against pushing big banks to get in line with international “net zero by 2050” strategies.

In fact, CalPERS has voted against every climate resolution at major American and Canadian banks so far this year, the report claims.

The report also casts doubt on one of the biggest accomplishments of CalPERS’ engagement strategy – the election of several new members to ExxonMobil’s board of directors last year, nominated by the activist investment firm Engine No. 1. The report faults Engine No. 1’s directors for voting against two recent proposals to set greenhouse gas targets that would account for the pollution caused by the fossil fuels ExxonMobil sells, and to produce a report on low-carbon business plans.

“Despite their best efforts, CalPERS and [California’s other major pension fund] CalSTRS have failed to persuade fossil fuel companies to reduce their greenhouse gas emissions, increase their renewable energy production, or transition from fossil fuels to renewable energy,” the report concludes. “By opposing climate proposals at the very companies they claim to influence, the funds’ shareholder activism is not only ineffective – it’s undermining climate action.” 

California lawmakers are currently considering a bill that would spur these pension funds, which invest retirement funds for state employees – including many, like the state’s firefighters, who are today on the front lines of the climate crisis – to drop their investments in fossil fuel producers.

The fund has an estimated $7.4 billion worth of fossil fuel investments that the bill would require them to shed. In April, its board voted to oppose that law, arguing that it would lose its “seat at the table,” only to be replaced by investors that “may not have the same interest in long-term sustainability as CalPERS”..

CalPERS declined comment on Fossil Free California’s new report.

By staff - Fossil Free California, June 2022

As the impacts of climate change begin to wreak havoc on our bisophere, the fossil fuel divestment movement has gained remarkable momentum. Globally, 1,500 institutions representing over $40 trillion in assets have already committed to some level of divestment from the fossil fuel industry.

Despite over a decade of pressure from their members, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS) continue to invest billions in the fossil fuel industry on behalf of their beneficiaries. Studies have shown that if CalPERS and CalSTRS had divested from fossil fuels in 2010, they would have generated an estimated additional $17.4 billion in returns by 2019.23 So why do California’s public pension funds remain invested in the fossil fuel industry?

CalPERS and CalSTRS claim they are engaging with the fossil fuel industry as stakeholders to mitigate climate change by affecting the conduct of oil, gas, and coal companies. However, a review of their 2022 proxy votes reveals that their shareholder engagement efforts are not only ineffective—they’re undermining climate action.

Download a copy of this publication here (PDF).

By Peter Mencini, et. al. - Amazon Watch, May 31, 2023

By Emily Satterwhite - DeSmog, May 31, 2022

A fossil fuel executive recently told Fortune, “Appalachia is the elephant in the room,” referring to the claim that demand for natural gas is rising, while supply in Appalachia and the United States is falling. Such corporate executives would like to see expansion of production in order to bail out their dying industry.

And Fortune’s interviewee is right. Appalachia is the elephant in the room. We need to talk more about the role of Appalachia in the country’s energy system. But what he gets wrong is that the future does not entail further dependence on fossil fuels. The future that Appalachia can and will lead is in renewable energy.

For over a century, this region has powered the country’s growth with our natural resources, including coal, gas, and oil. However, our communities have not seen the prosperity and health the fossil fuel industry continues to promise. Instead, we are suffering the impacts of pollution, greenhouse gas emissions, and a boom-and-bust industry. It’s time to stop waiting for these corporations to fulfill their promises because, frankly, fossil fuels will never help the people of Appalachia. The only thing we can count on the industry to do is pollute, profit, and extract. 

Fossil fuel executives and their allies are using the devastating war in Ukraine to promote their industry in order to stuff their pockets with our hard-earned money, and the federal government has chosen to take their side. The liquified natural gas (LNG) industry is “unleashing” buildout to rake in global profits, leaving everyday Americans to pick up the increasing tab. I find myself asking: Is the federal government the people’s government, as they say they are? Or are they working for fossil fuel executives?

The people know that we must shift course to a renewable future that will bring our communities the jobs, health, prosperity, and safety we deserve. There are four reasons to do so: economic stability, cost savings, reliable jobs, and community health. 

The oil and gas industry is notoriously volatile. Prices rise abruptly, hurting consumers while executives continue to make a hefty profit. Renewable energy on the other hand, has proven to be much more stable in terms of price. At the end of April, renewables met nearly 100 percent of California’s demand for the first time, followed by 103 percent the following week.

By Simon Pirani - Open Democracy, May 20, 2022

We must cut Russian fossil fuel imports and change our energy use, to combat both the cost of living crisis and the global climate crisis.

Three months into the Kremlin’s war against Ukraine, European politicians and officials are working out plans to reduce fossil fuel imports from Russia to zero.

This week, the European Commission published a plan to end Russian gas imports by 2027. Climate campaign groups say it can be done much sooner.

This is a historic turning point. Gas imports from Russia started in the 1960s and came to symbolise not only a flourishing trading relationship with Europe, but also a geopolitical partnership that survived the break-up of the Soviet Union in 1991.

How strong is the case for Europe’s labour movement and civil society to support sanctions against the Russian economy, and specifically against Russian fossil fuels? Which sanctions could be effective? And could an embargo on Russian oil and gas imports give a push to decarbonisation and the fight to prevent dangerous global warming?

By collective - Resistance Committee, May 20, 2022

What does Putin’s regime and imperialism bring with them? We saw it in the grim example of Donbass and Crimea. We saw it in the bloody suppression of the peoples of Belarus and Kazakhstan, the destruction of protest movements in Russia, bombardment of Syrian cities. It appeared to be not enough for Putin. On February 24, 2022 he started full-scale war against Ukraine. Today the epicenter of the resistance against enslavement is here. The struggle of Ukrainians gives hope for liberation to everyone oppressed by Putinism.

For centuries the territory of modern Ukraine has lain on the frontier of the interests of imperial ambition and aggression. People of free spirit have flocked here away from the despotism. Among those people were cossacks and opryshki insurgents. Heroic makhnovists fought here for the freedom of the people against all rulers.

Today’s war in Ukraine is the continuation of the struggle for peoples’ freedom from all authoritarianism. Residents of Ukraine as well as people from many other countries fight together for the liberties and rights which were gained by the ages of popular struggle and the effort of revolutionaries. And even though today the Ukrainian state is on stage, the resistance against the invasion is being waged by the mass popular movement.

By Simon Pirani - People and Nature, May 16, 2022

Two clouds darken the sky. A close-up one: gas and electricity bills have shot up since the Russian invasion of Ukraine, and millions of families are struggling to pay. And a bigger, darker, higher one: the climate disaster, and politicians’ refusal to tackle it.

Ultimately, both these threats have a single cause: fossil fuels and the systems of wealth and power that depend on them. We need social movements to link the fight to protect families from unaffordable bills with the fight to move beyond fossil fuels, and in that way turn back global warming.

Here I suggest ways to develop such a movement in the UK, starting by demanding action on home heating.

By Sharon Kelly - DeSmog, May 13, 2022

CalPERS and CalSTRS, which oppose fossil fuel divestment legislation, have “wildly exaggerated” divestment costs, according to Fossil Free California’s latest report.

A newly published report by Fossil Free California finds California’s pension fund managers are circulating divestment “misinformation” by exaggerating the costs involved in shedding their fossil fuel investments in documents prepared for state lawmakers.

California lawmakers are currently considering Senate Bill 1173 (SB-1173), California’s Fossil Fuel Divestment Act, which would require the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), to stop investing in fossil fuels before the decade is out. The move would impact billions of dollars currently invested in oil, gas, or coal on behalf of California’s teachers, firefighters, and other public employees.

The report titled “Hyperbole in the Hearings” found that the pension “funds have wildly exaggerated losses from past divestments” like those involving tobacco, firearms, and some forms of coal. It concludes that CalPERS and CalSTRS estimates for costs associated with fossil fuel divestment are also exaggerated.

Extraordinary sums of money, invested on behalf of California’s public employees and teachers, are on the line. The two pension funds have estimated holdings of $7.4 billion and $4.1 billion respectively in fossil fuel investments that would need to be divested if the law went into effect. 

It's time to stop using state employees' retirement savings to finance Big Oil.#SB1173 would divest @CalPERS & @CalSTRS from fossil fuels once & for all—but we need your help!

Click here to call, write, or schedule a meeting with your representative: https://t.co/UM5Nr2RCk5 pic.twitter.com/3ogICu0oad

— Climate Safe Pensions Network (@ClimatePensions) May 13, 2022