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Wellcome Trust defies campaigners to increase investment in fossil fuels Wellcome Trust defies campaigners to increase fossil fuel investment
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The major health research funding charity the Wellcome Trust has defied fossil fuel divestment campaigners and increased its investments in coal, oil and gas over the last year. The Wellcome Trust has defied fossil fuel divestment campaigners and increased its investments in coal, oil and gas over the last year.
Campaigners said the move was “hugely disappointing” and put the trust “on the wrong side of history” after the global climate change deal agreed by world leaders at UN talks earlier this month in Paris. The trust did sell off its entire £142m stake in oil giant Shell but increased other investments including in mining companies BHP Billiton and Rio Tinto. Campaigners said the news was “hugely disappointing” and put the health research funding charity “on the wrong side of history” after the global climate change deal reached at UN talks in Paris earlier in December. The trust did sell its £142m stake in Shell, but increased other investments including those in the mining companies BHP Billiton and Rio Tinto.
The Wellcome Trust says it “considers climate change to be one of the greatest contemporary challenges to global health” but the health charity has resisted calls to sell its holdings in fossil fuel companies. The trust says it “considers climate change to be one of the greatest contemporary challenges to global health” but has resisted calls to sell its holdings in fossil fuel companies.
Related: Everything you wanted to ask about the Guardian's climate change campaignRelated: Everything you wanted to ask about the Guardian's climate change campaign
Scientists agree that most fossil fuel reserves must remain in the ground if climate change is to be limited to 2C and institutions including the World Bank have warned about the financial risk of posed by fossil fuel assets. In June, 1,000 medical professionals, including the editors of the Lancet and BMJ, praised the trust’s work, but asked it to consider the core medical value of “first, do no harm” and divest from fossil fuels. Over 236,000 people have backed the Guardian’s Keep it in the Ground campaign which asks the trust to divest. Scientists agree that most fossil fuel reserves must remain in the ground if climate change is to be limited to 2C, and institutions including the World Bank have warned about the financial risk posed by fossil fuel assets. In June, 1,000 medical professionals, including the editors of the Lancet and the British Medical Journal, praised the trust’s work, but asked it to consider the core medical value of “first, do no harm” and divest from fossil fuels. More than 236,000 people have backed the Guardian’s Keep it in the Ground campaign, which which also calls on the trust to divest.
The Guardian’s analysis of the Wellcome Trust’s annual reports and financial data from Reuters reveals the trust: The Guardian’s analysis of the trust’s annual reports and financial data from Reuters reveals that it:
In August, a Guardian analysis estimated the Wellcome Trust had lost an estimated £175m in the year to August 2015 on its investments in fossil fuel companies and the share prices in these companies tumbled further since. In November, a Corporate Knights analysis indicated the Trust would have been £238m better off if it had divested in 2012. A Guardian analysis estimated the trust had lost an estimated £175m on its investments in fossil fuel companies in the year to August 2015, and the companies’ share prices have fallen further since. In November, a Corporate Knights analysis suggested it would have been £238m better off had it divested in 2012.
Coal investments have suffered most, with investment bank Goldman Sachs declaring in January that the fuel had reached “retirement age” and the International Energy Agency head, Fatih Birol, stating recently that the industry “is facing huge pressures”. But the Wellcome Trust ramped up its stake in BHP Billiton, whose coal reserves are equivalent to the annual emissions of the US, EU, India and Russia combined. Coal investments have suffered most. The investment bank Goldman Sachs said in January that the fuel had reached “retirement age” and the International Energy Agency head, Fatih Birol, said recently that the industry was facing “huge pressures”. The Wellcome Trust, however, ramped up its stake in BHP Billiton, whose coal reserves are equivalent to the annual emissions of the US, EU, India and Russia combined.
“It’s hugely disappointing that a mission-driven organisation like the Wellcome Trust should be choosing, after everything that’s just happened in Paris, to plant themselves on the wrong side of history by continuing to back fossil fuels,” said Danielle Paffard, UK divestment campaigner at 350.org. Danielle Paffard, a UK divestment campaigner at 350.org, said: “It’s hugely disappointing that a mission-driven organisation like the Wellcome Trust should be choosing, after everything that’s just happened in Paris, to plant themselves on the wrong side of history by continuing to back fossil fuels.
“I hope those at the trust reflect on the implications of their actions, and the type of world they play a role in shaping.”“I hope those at the trust reflect on the implications of their actions, and the type of world they play a role in shaping.”
Bill McKibben, a prominent divestment campaigner said: “The links between climate change and human health have never been clearer. It’s almost as if the Wellcome Trust is investing in tropical disease and natural disaster. It’s kind of hard to believe they’re doubling down, just when even people like the governor of the Bank of England are pointing out the problem.”Bill McKibben, a prominent divestment campaigner said: “The links between climate change and human health have never been clearer. It’s almost as if the Wellcome Trust is investing in tropical disease and natural disaster. It’s kind of hard to believe they’re doubling down, just when even people like the governor of the Bank of England are pointing out the problem.”
A Wellcome Trust spokeswoman said: “The Wellcome Trust believes that engagement with the small number of energy and resource companies in which we invest will make the strongest contribution to reducing carbon emissions, but we understand and respect the views of those who disagree.” A spokeswoman for the trust said: “The Wellcome Trust believes that engagement with the small number of energy and resource companies in which we invest will make the strongest contribution to reducing carbon emissions, but we understand and respect the views of those who disagree.
She added: “Wellcome’s long-term investment strategy has led to a total return of over £10bn since September 2008 ... . The portfolio returned £1.1bn or 6.1% in the year to 30 September 2015, despite a difficult market backdrop. We aim as a result to be able to spend up to £5bn on our mission of improving health over the next five years.” “Wellcome’s long-term investment strategy has led to a total return of over £10bn since September 2008 ... The portfolio returned £1.1bn or 6.1% in the year to 30 September 2015, despite a difficult market backdrop. We aim as a result to be able to spend up to £5bn on our mission of improving health over the next five years.”
Dr David McCoy, director of medical campaign group Medact, said: “It is now established that climate change is the greatest health threat of the 21st century. To hear that the Wellcome Trust is investing heavily in the industries that are driving the problem is deeply disturbing. It sends a message that the foundation does not believe this conflicts with their aim to improve health for everyone, or their duty as a charity to act in the public interest.” Dr David McCoy, the director of the medical campaign group Medact, said: “It is now established that climate change is the greatest health threat of the 21st century. To hear that the Wellcome Trust is investing heavily in the industries that are driving the problem is deeply disturbing. It sends a message that the foundation does not believe this conflicts with their aim to improve health for everyone, or their duty as a charity to act in the public interest.”