An analysis of financial filings has revealed that the investment trust managing the endowment for the Bill & Melinda Gates Foundation significantly increased its holdings in fossil fuel companies in 2024, reaching a nine-year high. This surge comes despite public statements from the Microsoft co-founder advocating for climate action and past claims of divestment.
A Record High Amidst Climate Pledges
According to a Guardian analysis of publicly available 990-PF forms, the Gates Foundation Trust held $254 million in direct investments in fossil fuel extraction companies by the end of 2024. This figure represents a 21% increase from 2016 and is the highest value recorded since 2015. When adjusted for inflation, it stands as the largest sum since 2019.
The trust's portfolio includes major oil and gas giants such as Chevron, BP, and Shell. This upward trend marks a reversal from a period of reduction following a high-profile divestment campaign. In 2013, the trust's holdings in the sector were valued at a substantial $1.4 billion.
From Divestment Pledge to Re-investment
The issue of fossil fuel divestment first gained prominence for the foundation in 2015. That year, the Guardian launched its "Keep It in the Ground" campaign, specifically urging the Gates and Wellcome trusts to pull their investments from fossil fuel companies. In response, the trust sold off a significant portion of its stocks, including most of its $187m holding in BP and an $824m stake in ExxonMobil. By 2015, its fossil fuel extractor investments had fallen to $260m.
In his 2021 book, How to Avoid a Climate Disaster, Gates reflected on this period. While he admired the activists' passion, he expressed scepticism, writing that he did not see how "divesting alone would stop climate change". However, he later described a personal, non-financial motive for divestment in 2019, stating he did not want to profit from a delay in developing zero-carbon alternatives.
Following this, the trust's direct holdings in oil and gas fell to $133m by the end of 2020. Yet, the analysis shows a clear shift in direction in subsequent years. Notable increases include:
- Investments in BP rising from $8.7m in 2015 to $24.2m in 2024.
- Holdings in Glencore growing from $5.7m to $14.1m over the same period.
- A massive increase in stake in Japanese firm Inpex, from $20m in 2020 to $139m in 2024.
Climate Impact and Strategic Shifts
The environmental footprint of these investments is considerable. In 2023, the companies within the trust's portfolio were collectively responsible for more greenhouse gas emissions than the total emissions of Russia, Japan, and Germany combined.
This reinvestment coincides with a recent strategic pivot highlighted in Gates's public statements, moving focus from solely cutting emissions towards preventing climate-related poverty and suffering. The analysis also notes that several companies the trust invests in, including BP and Equinor, faced shareholder rebellions over greenwashing allegations in 2025.
The Gates Foundation was approached for comment on this analysis. It is important to note that the Guardian's strict definition of "upstream" fossil fuel producers excludes companies that provide services or own infrastructure like pipelines, as well as large conglomerates where extraction is not the primary business.
