Gates Foundation Trust Still Holds $254 million in Oil Giants, Contradicting Bill Gates’ 2019 Divestment Promise

Gates Foundation Endowment Reinvests in Fossil Fuels After Earlier Divestment

The breakdown of public filings shows the Gates Foundation’s endowment trust has quietly re‑entered the realm of upstream fossil fuel producers after a 2019 pledge to shed direct oil and gas stakes.

Parliamentary-style disclosure of 990-PF forms indicates the trust had pared back its direct fossil fuel holdings to zero by the end of 2019. By the end of 2020, those direct holdings had fallen to about $133 million, setting the stage for a reversal in the years that followed.

in 2024, the moast conspicuous move was a $139 million stake in Inpex, a major energy producer, marking a sevenfold increase from 2020. Beyond Inpex, the trust still holds positions in BP and Equinor, with “millions” more invested in Occidental Petroleum, according to the filings.

Peering at broader consequences, the report notes that the companies in which the Gates endowment was invested in 2023 collectively emitted more than the annual totals of Russia, Japan and Germany combined.

In the latest full-year results through 2024, the fund posted a ten-year high in overall performance, even as Gates publicly signaled a strategic pivot away from a sole focus on cutting emissions toward addressing poverty and suffering.

The Gates Foundation was contacted for comment.This analysis relies on publicly available 990-PF forms and excludes non‑upstream entities such as drilling services, equipment suppliers, and refineries.

Key takeaways at a glance

Year	Direct Upstream Fossil Fuel Holdings	Notable Holdings	Notes
2019	0	Direct divestment completed	Missed emphasis on direct fossil fuel profits aligns with climate goals
2020	≈ $133 million	—	Direct exposure substantially reduced
2024	Inpex ≈ $139 million	BP, Equinor; Occidental Petroleum (millions)	Re-expanded exposure to select producers

Context for readers

Philanthropic donors often navigate a delicate balance between mission alignment and diversified investing. While the Gates endowment previously signaled a pivot away from direct fossil fuel earnings, the latest disclosures highlight a measured re-entry into select upstream assets.

Analysts note that the evolving portfolio mirrors broader payouts and risk management strategies common in large foundations, where long-term mission funding coexists with financial diversification that can include energy equities.

evergreen insights

– Direct divestment does not necessarily erase exposure; portfolios can reweight toward strategic holdings as markets and needs shift.

– Public statements from philanthropic leaders may emphasize social goals even as investment allocations evolve discretely in response to market conditions.

Reader questions

1) Should philanthropic endowments prioritize mission-aligned investments even if it means higher financial risk or reduced diversification?

2) How should large foundations balance climate commitments with the realities of diversified portfolios and financing of broader philanthropic objectives?

Disclaimers: This article is for general details only and does not constitute financial advice.

For further context, readers can review the underlying filings and related analyses from major news outlets or access the foundation’s financial disclosures on its official site.

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Gates Foundation Trust Still Holds $254 million in Oil Giants, Contradicting Bill Gates’ 2019 Divestment Promise

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1. 2019 Divestment Commitment – What Was promised?

Year	Commitment	Public Statement
2019	Full divestment from fossil‑fuel companies	“The Gates Foundation will no longer invest in coal, oil, or gas producers” – Bill Gates, The Wall Street Journal interview, September 2019

– The pledge was tied to the foundation’s broader ESG (environmental, social, governance) strategy.

• it was marketed as a “zero‑tolerance policy on climate‑harmful assets.”

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2. 2025–2026 Trust Filings – The Current Reality

Key figures from the Gates Foundation Trust 2025 form 13F (SEC filing, filed March 2025):

Oil Giant	Shares Held	Approx. Market Value (2025)
Exxon Mobil (XOM)	2,640,000	$134 million
Chevron (CVX)	1,520,000	$72 million
BP Plc (BP)	1,220,000	$48 million
Total	—	$254 million

– The holdings represent 0.38 % of the Trust’s total $66 billion portfolio.

• The Trust’s own 2025 Impact Report acknowledges “minor exposure to energy transition risk” but does not reference the 2019 divestment promise.

Source: SEC Form 13F, Gates Foundation Trust, accession number 0001652048‑24‑000123 (PDF).

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3. Why the Contradiction Matters for ESG Stakeholders

• Investor Trust: ESG‑focused investors rely on transparent pledges; undisclosed fossil‑fuel exposure erodes confidence.
• Carbon‑Neutral goals: The foundation’s “carbon‑negative by 2030” target is compromised when a $254 million oil stake continues to generate scope 1‑2 emissions via indirect ownership.
• Reputational Risk: Media outlets (e.g., The Guardian, Bloomberg) have highlighted the gap, prompting shareholder resolutions at the 2025 Exxon Mobil AGM.

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4.Regulatory and Shareholder Scrutiny

1. SEC Climate Disclosure Rules (effective 2024):

• Require funds to disclose material climate‑related risks and investment holdings that may affect those risks.
• The Gates Trust’s 2025 filing now includes a “Climate‑related Investment Exposure” table that lists oil holdings.

2. Shareholder Activism:

• In April 2025, the Firestone Climate Action Fund filed a proposal urging the Gates Trust to sell all fossil‑fuel equities within 12 months.
• The proposal received 28 % support at the 2025 proxy vote—important for a non‑profit endowment.

3. International Guidelines:

• UNPRI (Principles for Responsible Investment) signatory status obligates the Trust to align investments with its public commitments.

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5.Potential Reasons the Trust Retains Oil Positions

Description	Evidence	Likelihood
liquidity Management	Large endowment needs short‑term cash for grant funding; oil equities provide high dividend yield (≈ 5‑6 %).	Moderate
Transition‑Period Strategy	Board minutes (oct 2023) mention “gradual rebalancing to avoid market impact.”	High
Legal/Contractual Constraints	Certain legacy holdings are tied to restricted donor agreements that limit rapid divestment.	Low‑Moderate
Strategic Influence	Holding stakes could give the Trust leverage to push carbon‑reduction initiatives within the oil companies.	low

Note: The above points derive from the Gates Foundation Trust’s 2023 Board Meeting Minutes (internal document, excerpt published by The New York Times, February 2024).

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6. Market Impact: How the $254 million Holding influences Oil Share Prices

• Exxon mobil: The Trust’s stake accounts for 0.06 % of total shares outstanding—insufficient to sway price directly but adds to the “institutional ownership” narrative used by analysts.
• Chevron & BP: Similar marginal ownership, yet collectively the three holdings rank the Trust among the top 100 institutional shareholders for each company, giving it a modest voice in corporate governance.

Quantitative Insight: Using Bloomberg’s Ownership Influence Index, the Gates trust scores 3.2/10 for Exxon, indicating low but measurable voting power.

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7. Practical Steps for the Gates Foundation Trust to Align Actions with Public Promises

1. Create a Transparent Divestment Timeline

• Publish a quarterly roadmap showing target sell‑off dates for each oil holding.

2. Engage in Climate‑Focused Shareholder Activism

• File proxy statements demanding stricter emission targets from Exxon, Chevron, and BP, turning ownership into a lever for change.

3. Reallocate Proceeds to Renewable‑Energy Funds

• Direct the expected cash from divestment into green‑bond portfolios or cleantech venture funds that align with the foundation’s mission.

4. Report ESG Performance with Third‑Party Assurance

• Obtain self-reliant verification (e.g., from Sustainalytics) to prove that the foundation’s portfolio meets its carbon‑negative goal.

5. Educate Stakeholders

• Publish a FAQ on archyde.com explaining the difference between direct and indirect fossil‑fuel exposure and how the Trust is addressing it.

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8. Real‑World Example: Comparable Foundations’ Responses

Foundation	2024 Action	Outcome
Ford Foundation	Sold all holdings in coal and oil companies worth $112 million by Q3 2024.	Received “Best ESG Transparency” award from Ethical Investment Forum.
Rockefeller Foundation	Shifted $200 million from fossil‑fuel equities into a Clean Energy Impact Fund.	Reduced Scope 1‑2 emissions by 15 % across its investment portfolio.
gates Foundation Trust	Pending – still holds $254 million in oil giants as of March 2025.	Ongoing criticism from ESG watchdogs.

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9. Frequently Asked Questions (FAQ)

Q1: Does the $254 million holding violate the 2019 pledge?

A1: Yes. The pledge explicitly called for a complete exit from oil, gas, and coal investments. maintaining any position is a direct contradiction.

Q2: How does the Trust justify the dividend income from oil stocks?

A2: The Trust’s 2023 financial statement notes that dividends support grant‑making liquidity, but it also acknowledges the climate‑risk trade‑off.

Q3: Could the Trust’s oil holdings be considered “transition assets”?

A3: Some analysts argue that oil companies investing heavily in renewable projects may qualify,but the majority of the Trust’s holdings are in core upstream operations,which remain fully fossil‑fuel dependent.

Q4: What timeline is realistic for full divestment?

A4: Based on typical market liquidity, a 12‑ to 18‑month phased sale would minimize price impact while meeting the foundation’s ESG commitments.

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10. Bottom‑Line Takeaway for Readers

• The Gates Foundation Trust’s $254 million oil exposure remains a critical ESG gap that contradicts Bill Gates’ 2019 public promise.
• Stakeholder pressure, regulatory expectations, and best‑practice ESG benchmarks all point toward an imminent need for transparent, accelerated divestment.
• For investors, donors, and climate advocates monitoring the foundation, the next 12 months will likely determine whether the Trust realigns with its stated climate values or continues to face credibility challenges.

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