Private equity is buying up excessive amounts of fossil fuel assets – oil wells, pipelines, power plants, operating them out of the public eye and exploiting gaps and loopholes in regulation.
The billions of dollars private equity firms are spending to drill, frack, and burn fossil fuels stand in stark contrast to what scientists say is necessary to avoid catastrophic climate change. The health and well-being of communities of color are particularly affected by the environmental harms of their polluting fossil fuel assets right now.
To make matters worse, private equity is investing in climate chaos using the retirement money of millions of workers – including teachers, nurses, and firefighters in public service jobs – putting the retirement savings of ordinary people at risk as society seeks to move beyond fossil fuels to a clean energy economy.
As other financial actors like banks, insurance companies or utilities attempt to shed polluting assets, private equity asset managers have bought them and operated these fossil fuel assets out of the public eye and beyond the oversight of financial regulators.
Demands for Private Equity:
Society cannot afford to let private equity continue to pollute under the shroud of darkness and put people’s retirement at risk. The policymakers and regulators who govern financial markets, as well as private equity’s investors, must require comprehensive disclosures and plans to transition out of fossil fuels.
- Align with Science-Based Climate Targets To Limit Global Warming To 1.5⁰C
- Disclose Fossil Fuel Exposure, Emissions, and Impacts
- Report Portfolio-Wide Energy Transition Plan
- Integrate Climate And Environmental Justice
- Provide Transparency On Political Spending And Climate Lobbying