Goldman Sachs Is First U.S. Big Bank to Divest From Arctic Oil and Gas
Citing the importance of the Arctic's fragile ecosystem and its importance to indigenous populations, the investing giant said it will decline investing in any oil exploration in the Arctic, including the Arctic National Wildlife Refuge.
"Oil development in the Arctic Circle is prone to harsh operating conditions, sea ice, permafrost coverage, and potential impacts to critical natural habitats for endangered species," Goldman Sachs said in its Environmental Policy Framework. "The unique and fragile ecosystems of the Arctic region also support the subsistence livelihoods of indigenous peoples groups that have populated certain areas in the region for centuries."
Goldman Sachs also said in its policy framework that it would not finance any new thermal coal mines or any mountaintop removal projects. It added that where it has already invested, it would work with companies to diversify their strategies and reduce their carbon emissions.
"Companies' diversification strategy and carbon emissions reduction initiatives will be a key consideration in our evaluation of future financings with the goal of helping their transition strategy," the Environmental Policy Framework says. "We will phase out our financing of thermal coal mining companies that do not have a diversification strategy within a reasonable timeframe."
Goldman Sachs follows a dozen global banks, based largely in Europe and Australia, that pledged not to finance Arctic oil and gas development in the arctic. Several of the policies mention Arctic National Wildlife Refuge specifically, as NPR reported. Goldman is the first U.S. headquartered bank to make the same promise, as CNN reported.
"Goldman Sachs's updated policy shows that US banks can draw red lines on oil and gas, and now other major US banks, especially JPMorgan Chase – the world's worst banker of fossil fuels by a wide margin – must improve on what Goldman has done," said Jason Opeña Disterhoft, a climate and energy campaigner at Rainforest Action Network, which helped to lobby for the change, as The Guardian reported.
The move did win praise from environmental activists, including the Sierra Club, though it did not extend to fracking, which environmentalists had campaigned for. Nevertheless, the Sierra Club, which had lobbied Goldman Sachs to stop funding Arctic exploration, praised the bank's pledge.
"The Trump administration may not care about ignoring the will of the American people or trampling Indigenous rights, but a growing number of major financial institutions are making it clear that they do," said Ben Cushing, a Sierra Club campaign representative, as The Guardian reported. "We hope other American banks will follow their lead."
BREAKING: @GoldmanSachs just became the first major American bank to prohibit financing for new Arctic oil, thermal coal mining, and coal power projects worldwide! 👏👏 #DefundClimateChange https://t.co/y023bKh2Gr— Ben Cushing (@bmcushing) December 15, 2019
The divestment movement scored another large victory last week when insurance giant Liberty Mutual announced new policies that will see the company move away from protecting the coal industry. Liberty Mutual became the 18th global insurance company to put tighter restrictions on underwriting coal, according to the trade publication Property Casualty 360.
Liberty Mutual said it will no longer underwrite risk for companies where more than a quarter of their risk comes from coal, nor will it invest in the stock of companies that have more than 25 percent of their portfolio in coal, and it will phase out its coverage and its investments in any country that does not meet that threshold, according to a company statement.
"We are committed to being a responsible global corporate citizen with a focus on environmental sustainability, supporting the transition to a low-carbon economy and investing in companies that show proven progress in this evolution," said Francis Hyatt, the company's newly appointed Chief Sustainability Officer, in the statement. "We understand the shift from coal to clean energy is a journey and we recognize the role the insurance industry plays in supporting that evolution for our customers.
Activists welcomed the commitment from Liberty Mutual, but worried about the loopholes it created for itself.
"While Liberty Mutual's new policy sets out strong restrictions on insuring coal companies, it apparently does not rule out covering new coal-fired power plants or coal mines from companies with less than a 25 per cent stake in coal," said Elana Sulkshana, Rainforest Action Network's energy finance campaigner, in a statement, as Business Green reported. "This is a major loophole because, to keep warming below 1.5C, the science is clear that the climate cannot withstand any new coal projects."
"Liberty Mutual must strengthen its policy to clearly rule out insuring any new coal mines or power plants, fully phase out coal across all insurance and investment activities in line with 1.5 C, and stop insuring the destructive tar sands sector," she added.
At first glance, you wouldn't think avocados and almonds could harm bees; but a closer look at how these popular crops are produced reveals their potentially detrimental effect on pollinators.
Migratory beekeeping involves trucking millions of bees across the U.S. to pollinate different crops, including avocados and almonds. Timothy Paule II / Pexels / CC0<p>According to <a href="https://www.fromthegrapevine.com/israeli-kitchen/beekeeping-how-to-keep-bees" target="_blank">From the Grapevine</a>, American avocados also fully depend on bees' pollination to produce fruit, so farmers have turned to migratory beekeeping as well to fill the void left by wild populations.</p><p>U.S. farmers have become reliant upon the practice, but migratory beekeeping has been called exploitative and harmful to bees. <a href="https://www.cnn.com/2019/05/10/health/avocado-almond-vegan-partner/index.html" target="_blank">CNN</a> reported that commercial beekeeping may injure or kill bees and that transporting them to pollinate crops appears to negatively affect their health and lifespan. Because the honeybees are forced to gather pollen and nectar from a single, monoculture crop — the one they've been brought in to pollinate — they are deprived of their normal diet, which is more diverse and nourishing as it's comprised of a variety of pollens and nectars, Scientific American reported.</p><p>Scientific American added how getting shuttled from crop to crop and field to field across the country boomerangs the bees between feast and famine, especially once the blooms they were brought in to fertilize end.</p><p>Plus, the artificial mass influx of bees guarantees spreading viruses, mites and fungi between the insects as they collide in midair and crawl over each other in their hives, Scientific American reported. According to CNN, some researchers argue that this explains why so many bees die each winter, and even why entire hives suddenly die off in a phenomenon called colony collapse disorder.</p>
Avocado and almond crops depend on bees for proper pollination. FRANK MERIÑO / Pexels / CC0<p>Salazar and other Columbian beekeepers described "scooping up piles of dead bees" year after year since the avocado and citrus booms began, according to Phys.org. Many have opted to salvage what partial colonies survive and move away from agricultural areas.</p><p>The future of pollinators and the crops they help create is uncertain. According to the United Nations, nearly half of insect pollinators, particularly bees and butterflies, risk global extinction, Phys.org reported. Their decline already has cascading consequences for the economy and beyond. Roughly 1.4 billion jobs and three-quarters of all crops around the world depend on bees and other pollinators for free fertilization services worth billions of dollars, Phys.org noted. Losing wild and native bees could <a href="https://www.ecowatch.com/wild-bees-crop-shortage-2646849232.html" target="_self">trigger food security issues</a>.</p><p>Salazar, the beekeeper, warned Phys.org, "The bee is a bioindicator. If bees are dying, what other insects beneficial to the environment... are dying?"</p>
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