Only 10 Financial Institutions Own Half Of World's Fossil Fuels

Just 10 financial institutions own almost half the world’s unburned fossil fuels, a new study shows, Lottie Lamb reported for EuronewsGreen.

Photo Insert: Researchers found that only 10 shareholders own 49.5 percent of the potential emissions from the likes of Saudi Aramco, ExxonMobil, and BP.

Researchers at Canada’s University of Waterloo analyzed 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 percent 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 percent 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." Fossil fuel firms are set to spend more than €800bn on new oil and gas fields by 2030.

The new study, published in the Environmental Innovation and Societal Transitions (EIST) journal, reveals that governments and prominent American investment managers are among the biggest shareholders in fossil fuel firms.

The researchers point out that the Indian government and the kingdom of Saudi Arabia both signed the Paris Agreement in 2015, which aims to stop us from passing the critical 1.5C threshold.

In full, the 10 financial institutions are: Blackrock, Capital Group, Dimensional Fund Advisors, Fidelity Investments, the Government of India, the Kingdom of Saudi Arabia, Life Insurance Corp., Norges Bank, State Street, and Vanguard.

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