Call to Dutch investors: get out of TotalEnergies

and Abigail Kyomuhendo*
This week the annual shareholder meeting (AGM) of TotalEnergies took place. Whilst the shareholders celebrated their profits, Ugandan people were being evicted from their lands, thousands of kilometers away, for Total's East African Crude Oil Pipeline (EACOP).

TotalEnergies and the Chinese National Offshore Oil Cooperation (CNOOC) are currently developing an oil extraction and transportation project in Uganda: East African Crude Oil Pipeline (EACOP). The project – the construction of a heated pipeline (EACOP) of no less than 1445 kilometers through Uganda and Tanzania to export crude oil, is increasingly causing human rights violations and environmental damage. This is a matter of great concern to civil society organisations in Uganda and beyond. This week, Both ENDS, together with partner organisations in Uganda, sent an urgent letter to twelve pension funds and asset managers with investments in TotalEnergies and CNOOC.

The value of ABP's pension fund investments in fossil fuel companies has fallen by  44% from end of last year to its lowest point on March 16 this year, while the value of the rest of the portfolio decreased by 26%. This impact can be seen in simulations based on the publicly available equity portfolios of Dutch pension funds ABP and Zorg en Welzijn (PFZW), carried out by research agency Profundo on behalf of Both ENDS. The simulations show that the risks of investing in the fossil fuel sector are increasing.

Press release 24 October 2019

Starting today, investors can use five criteria to test whether companies in the fossil sector are actively working on phasing out their fossil activities. Too many investors still seem hesitant to switch to a profitable future of sustainable energy and these criteria should help them do this. The organisations DivestInvest Network, Sustainable Energy (Denmark) and Both ENDS (the Netherlands) publish the report "Managed Decline of Fossil Fuel Businesses" today, which describes these five criteria. The criteria aim to help investors choose investments that are in line with the Paris goal "stay below 1.5 degrees Celsius warming." The recommendations are presented at the World Pension Summit deliberately, because pension fund investors in particular can take more responsibility in this.

The world has to stop using fossil fuels, but investment in the sector continues unabated. Investors of all kinds, including banks, insurance companies and pension funds, are hesitant about making the change to sustainable energy and are not sure where to start. In the autumn of 2019, together with the DivestInvest Network and Sustainable Energy (Denmark), Both ENDS published a report entitled ‘Managed Decline of Fossil Fuel Businesses’. The report describes five criteria to test whether companies in the fossil sector are actively taking steps to wind down their fossil activities. The criteria are helping investors to choose investments that are in line with the Paris goal of restricting global warming to a maximum of 1.5 degrees Celsius. We spoke to Lars Jensen, Senior Analyst at Sustainable Energy and lead author of the report.

Last week the Agricultural Investment Summit took place in London, seeking to promote land as an emerging and expanding investment opportunity. Civil society organisations are concerned that this could lead to further land grabbing, threatening the livelihoods and food security of countless local communities in the global South. In a joint civil society statement Both ENDS urges pension funds and other financial institutions to stop such damaging investment practices.

Last September, together with our Brazilian partner FASE, Marius Troost of Both ENDS visited Guanabara Bay (near Rio de Janeiro) to map the impacts of the fossil fuel sector there. During the trip, he was struck by the braveness and fearlessness of the local fisherfolk who protest the injustices faced by the people who live around Guanabara Bay and about the damage done to the environment.

At the end of last week, oil and gas company Total announced that, through its export credit insurer Atradius DSB, the Dutch government is participating in a funding package for a controversial gas extraction project in Mozambique. The project, in which various Dutch and foreign companies are involved, is having a deep impact on the local population and the natural environment in the area. Which Dutch companies the government will be insuring is not yet clear.

The Hague, 12 November 2024 - The court has ruled in Shell's appeal in the Climate Case that Milieudefensie won against Shell in 2021. The Court of Appeal has ruled that the oil and gas giant has a responsibility to reduce its emissions, but has not imposed a reduction obligation.

A recent visit to Uganda highlighted the country as the latest example of ethical, environmental and human rights dilemmas brought forth by natural resource exploration.

Under the guise of economic prosperity and energy security, the future of Uganda’s forests, lakes, national parks, and by extension that of the people that depend on these resources, is increasingly endangered. Both ENDS partners in Uganda work with local communities to preserve these natural environments and the livelihoods that come from it.

Both ENDS works with partners worldwide to amplify the voices of communities that are experiencing first-hand the devastating social and environmental impacts of unsustainable financial policies and practices – from climate change to pollution to forced displacement. For more than two decades, we have worked to draw attention to an obscure, yet hugely influential type of financial institution: export credit agencies (ECAs).

In the weeks following the elections, Both ENDS is looking at how Dutch foreign policy can be influenced in the coming years to reduce our footprint abroad and to work in the interests of people and planet. We will be doing that in four double interviews, each with an in-house expert and someone from outside the organisation.