Following news that Saudi Aramco is to target its listing - the biggest IPO in history - at predominantly domestic investors, campaign group 350.org has released a statement on the implications for investors in fossil fuels.
The lack of ability to get foreign investors only shows that the Saudi Aramco's IPO was doomed to failure before it even started. Investing markets are shifting globally. Asset managers are mindful of the financial and reputational risks associated with these shares. With the devastating climate impacts we are witnessing on a daily basis across the globe, investors are beginning to wake up to the role they choose to play in accelerating or mitigating it. It is nothing but immoral to continue expanding fossil fuel production in the face of this crisis, and they know it.
People and markets all over the globe are increasingly demanding a just transition to 100% renewable energy systems that can lead us to a more equitable and sustainable future, and investments should be directed towards that. Over 1110 institutions with more than $11 trillion in assets, including some of the world's largest pension and endowment funds, have already committed to divest from fossil fuels — and they are staying far away from this IPO. There is already a huge gap between countries' planned production of coal, oil and gas, and the Paris Agreement's goals to limit warming to 1.5°C or 2°C. We need to get on track, and we need it immediately. But buying Aramco's assets is a step backwards, not forward.
Yossi Cadan is global finance campaign manager for 350.org
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