Billionaire Bill Gates Trust's Fossil Fuel Holdings Rise Despite Divestment Claims

The Gates Foundation Trust's annual 2024 filing revealed that it invested $254 million (£188.5 million) in companies involved in extracting fossil fuels, including Chevron, Shell, and BP. These fossil fuel investments have increased by 21% since 2016, reaching their highest level since 2019.

In 2013, the trust was heavily invested in fossil fuels, with holdings of nearly $1.4 billion (£1 billion). A global campaign by climate activists, students, and charities in 2015 called for foundations to divest from fossil fuels, posing a significant challenge for Gates.

In March 2015, the Guardian launched a campaign urging the Wellcome Trust and the Gates Foundation Trust to 'delegitimise the business models of companies that are using investors' money to search for yet more coal, oil, and gas that can't safely be burned.'

Gates reflected on this in his 2021 book, How to Avoid a Climate Disaster, stating, 'I understood why the Guardian had singled out our foundation and me. I also admired the activists' passion.' However, he remained sceptical about moving away from fossil fuels, arguing that 'divesting alone would stop climate change or help people in poor countries.'

Despite these reservations, the trust significantly reduced its fossil fuel holdings over time. It offloaded most of its $187 million (£138.7 million) worth of BP stock and $824 million (£611.6 million) worth of ExxonMobil shares. By 2015, the trust's holdings in fossil fuel extractors had fallen to $260 million (£192.9 million) from $1.4 billion in 2013.

Additionally, Gates stated in a 2015 paper that the government should increase investment in carbon-free energy sources. He argued that it was not right to 'simply let the market guide [investment]' because it tends to pursue shorter-term, guaranteed gains rather than long-term solutions.

Fossil Fuel Holdings Rise Despite Divestment Claims

Interestingly, the value of the trust's investments in several fossil fuel companies has increased in recent years despite Gates's public claims of divestment in 2019. For example, the Gates Trust's holdings in Glencore rose to $14.1 million (£10.4 million) in 2024 from $5.7 million (£4.2 million) in 2015. Its BP holdings increased to $24.2 million (£17.9 million) from $8.7 million (£6.4 million) over the same period. The trust's stake in Occidental Petroleum also increased to $7.9 million (£5.8 million) from just $23,529 (£17,464). It should be noted that some of this growth is due to rising stock prices rather than new investments.

In his 2021 book, Gates admitted that in 2019 he personally felt a strong desire not to own fossil fuel stocks. 'I don't want to profit if their stock prices go up because we don't develop zero-carbon alternatives. I'd feel bad if I benefited from a delay in getting to zero. So in 2019, I divested all my direct holdings in oil and gas companies, as did the trust that manages the Gates Foundation's endowment.'

By the end of 2020, the trust's investments in fossil fuel firms had further decreased to $133 million (£98.7 million). However, this downward trend reversed in subsequent years, with new investments in producers like Inpex, which benefited from a $139 million (£103.1 million) holding in 2024—a sevenfold increase from $20 million (£14.8 million) in 2020.

The trust also invested millions of dollars in BP and Equinor, both of which faced shareholder rebellions last year over claims of greenwashing. Gates' trust further increased its stake in Occidental Petroleum, a company that has highlighted its use of captured carbon dioxide, only to pump it into oilfields to boost output.

Alarmingly, the companies in which the Gates trust invested in 2023 were directly responsible for more emissions than Russia, Japan, and Germany combined that year. This stark fact raises questions about the real impact of the trust's investments and the sincerity of its divestment claims.

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