EXTRACTED: Daily News Clips 9/17/21
PIPELINE NEWS
Reuters: Enbridge fined $3.32 mln for failings in Line 3 replacement project
Reuters: Keystone XL pipeline still possible, says Alberta in AGs' lawsuit
National Observer: Enbridge told to get out
Native News Online: Treaty People Organize Walk Across Northern Minnesota to Oppose Line 3
The Detroit News: Climate scientists argue Line 5 tunnel would emit harmful emissions
WV Gazette Mail: EPA, New River Gorge, others express concerns to FERC about potential Mountain Valley Pipeline impacts
KFYR: Morton County continues to work through DAPL cases five years after protests began
Law360: ETP Tells FERC $20M Fine Fight Isn't A Globetrotters Game
The Intercept: OIL COMPANY OFFICIAL OVERSEEING CRACKDOWN ON PIPELINE RESISTANCE CUT TEETH AT AMAZON AND EXXON
WASHINGTON UPDATES
Press release: EPA settles with Union Pacific Railroad for Clean Water Act Violations in Oregon
New York Times: House Panel Expands Inquiry Into Climate Disinformation by Oil Giants
STATE UPDATES
The Northern Light: Investigators cite vandalism as likely in Custer train derailment
EXTRACTION
Ft. McMurray Today: Nally defends energy 'war room,' hypes Alberta's economic future in trade show speech
S&P Global: LNG Project Tracker: Momentum builds 'at least for a couple' of export projects
Globe and Mail: $40-million Suncor-Indigenous partnership ‘a sign of things to come’ for oil sector
CLIMATE FINANCE
Guardian: The climate advocates who say Harvard’s oil divestment is a mistake
Property Casualty 360: Liberty Mutual, Chubb make major ESG commitments
OPINION
Project Syndicate: The Case for a Fossil Fuel Non-Proliferation Treaty
Globe and Mail: Divest vs. the rest: Harvard’s noble quest with potential environmental consequences
PIPELINE NEWS
Reuters: Enbridge fined $3.32 mln for failings in Line 3 replacement project
9/16/21
“The Minnesota Department of Natural Resources (DNR) said on Thursday it fined Enbridge Inc $3.32 million, citing the Canadian company's failure to follow environmental laws during the construction of its Line 3 oil pipeline replacement,” Reuters reports. "Enbridge breached the confining layer of an artesian aquifer, resulting in an unauthorized groundwater appropriation during the construction of the Line 3 replacement project near Enbridge's Clearbrook Terminal," DNR said in a statement. DNR's order also requires Enbridge to implement a restoration plan to stop the unauthorized groundwater flow within 30 days and conduct additional groundwater and site monitoring. The regulator ordered Enbridge to place $2.75 million in escrow for restoration and mitigation of any damage to the calcareous fen wetlands. DNR referred the matter to the Clearwater County attorney for criminal prosecution. If the company violates the restoration order, it would be subject to additional misdemeanor charges under state law, DNR added… “Earlier this month, Enbridge sent a notice to shippers saying it expects to offer 620,000 barrels per day of capacity on the pipeline in October, and it is expected to reach full capacity of 760,000 bpd by the end of this year.”
Reuters: Keystone XL pipeline still possible, says Alberta in AGs' lawsuit
By Sebastien Malo, 9/16/21
“The Canadian province of Alberta on Thursday urged a Galveston, Texas, federal judge to rule that the Biden administration illegally revoked a key permit for the now-canceled Keystone XL pipeline, saying that a ruling on the case's merits could still allow the project to proceed,” Reuters reports. “The province, an investor in the $9 billion Alberta-to-Nebraska line terminated in June by its owner TC Energy Corp, threw its weight behind Texas, Montana and several other states that sued the Biden administration before the line's suspension, even as the administration is now seeking to end the case on grounds it has become moot. Alberta's filing says that a ruling favoring the states "would likely impact future decisions to undertake or fund the (pipeline's) construction and operation." Sonya Savage, Alberta’s energy minister, told Reuters: "The Canadian and U.S. energy systems are highly integrated, and continued cooperation – as Alberta is demonstrating by filing this amicus brief – is needed to ensure North American energy security.” “...In Thursday's filing, the province, from which Keystone XL (KXLP) was expected to carry 830,000 barrels per day of oil sands crude to U.S. refiners, says that, "if authorized to proceed, the KXLP would be a pivotal part of Alberta's postpandemic recovery efforts" by creating thousands of jobs for Alberta's citizens. The province had agreed to contribute up to 1.5 billion Canadian dollars toward the project. It says in the filing that the permit's revocation has caused it damages of 1 billion Canadian dollars.”
National Observer: Enbridge told to get out
John Woodside, 9/16/21
“Lheidli T’enneh First Nation (LTFN) elder Phyllis Seymour remembers hearing a loud explosion, watching a fireball across the field from her shaking house, and rushing door to door to evacuate her community as ash fell like “black petals,” the National Observer reports. “The scene was caused by a natural gas pipeline explosion less than a kilometre away from the nation’s reserve, and within its unceded territory, about 13 kilometres north of Prince George, B.C., on Oct. 9, 2018. The pipeline is owned by Calgary-headquartered fossil fuel giant Enbridge, which refers to the explosion as the Shelley incident because of its proximity to that community… “On Tuesday, the LTFN sent letters to both B.C. Minister of Natural Resources Katrine Conroy and federal Minister of Crown-Indigenous Relations Carolyn Bennett calling on the two Crown governments to support its request to have Enbridge’s T-South pipeline routed off its reserve territory… “As the three-year anniversary of the blast marches closer, LTFN Chief Dolleen Logan says she is tired of “being put on the back burner” by Enbridge. “They have patience, but I've finally lost mine... We want this ended,” she said. “I strongly believe that it's time Enbridge got with the reconciliation program and started treating our nation with respect.” “...LTFN’s lawyer Malcolm Macpherson told the Observer the nation is pursuing a strategy of trying to compel the B.C. government to revoke Enbridge’s permits, citing public safety. It’s a strategy inspired by Michigan Gov. Gretchen Whitmer, who pulled Enbridge’s permit that allowed the Line 5 pipeline to cross under the Straits of Mackinac, which connects Lake Michigan to Lake Huron.”
Native News Online: Treaty People Organize Walk Across Northern Minnesota to Oppose Line 3
BY DARREN THOMPSON, 9/15/21
“On Sunday, more than three dozen people left Backus, Minn. on a 160-mile walk to raise awareness about the controversial Line 3 tar sands oil pipeline that’s currently being constructed in the northern part of the state,” Native News Online reports. “Organizers plan to make the trek over the next two weeks to Wisconsin Point, a 229-acre freshwater sand bar that sits on Lake Superior in northern Wisconsin near the Minnesota border. “We’re walking because Governor Tim Walz made a poor decision to permit Line 3 to violate treaties,” Carrie Chesnik, an enrolled member of the Oneida Nation of Wisconsin, told Native News Online. “We’re walking for the next seven generations." This isn’t the first organized walk to oppose construction of the Enbridge, Inc. Line 3 replacement project. Last month, dozens of people walked approximately 235 miles from Backus to the Minnesota State Capitol grounds in Saint Paul. They were joined on Aug. 26 by hundreds of other walkers to participate in a rally at the Capitol that included more than 1,000 people. Their collective voice was to demand that President Biden and Governor Walz honor treaties that both the federal and state governments have with tribes. “Treaty is the mechanism that is going to allow all of us to protect the water, the land, and the next seven generations,” Chesnik said. “There is so much destruction going on in our world, and our government can play a role in putting an end to it.”
The Detroit News: Climate scientists argue Line 5 tunnel would emit harmful emissions
Leonard N. Fleming, 9/15/21
“Climate scientists on behalf of environmental groups and Native American tribes opposed to a controversial tunnel for Line 5 in the Straits of Mackinac are contending the construction would emit "excessive greenhouse gas emissions" harmful to the climate, according to documents filed with the state,” The Detroit News reports. “The Environmental Law & Policy Center and the Michigan Climate Action Network filed written testimony from these experts with the Michigan Public Service Commission, which is reviewing whether to approve a permit for the $500 million project proposed by Enbridge Energy. Both groups say they were allowed last spring to present expert witnesses to show how the climate is impacted by Line 5 as part of a meaningful environmental review of the permit request before the commission. Climate scientists on behalf of environmental groups and Native American tribes opposed to a controversial tunnel for Line 5 in the Straits of Mackinac are contending the construction would emit "excessive greenhouse gas emissions" harmful to the climate, according to documents filed with the state. Peter Erickson, a greenhouse gas emissions expert and senior scientist at the Stockholm Environment Institute affiliated with Tufts University, said in his testimony that "when compared to a scenario in which the existing Line 5 pipeline no longer operates, construction and operation of the proposed project would lead to an increase of about 27 million metric tons CO2e annually in global greenhouse gas emissions from the production and combustion of oil." Another expert, Peter Howard, the economics director at the Institute for Policy Integrity at New York University School of Law, said from 2027 to 2070 the average annual climate costs would approximate $1 billion each year over this period, "plus significant unmonetized climate effects and other unquantified pollution costs to human health and the environment."
WV Gazette Mail: EPA, New River Gorge, others express concerns to FERC about potential Mountain Valley Pipeline impacts
By Mike Tony, 9/15/21
“The end of federal energy regulators’ comment period on Mountain Valley Pipeline developers’ proposal to change their construction method across waterbodies and wetlands along the pipeline route has triggered a fresh round of scrutiny of both the pipeline project and the new construction proposal,” according to the WV Gazette Mail. “Federal Energy Regulatory Commission staff last month released an environmental assessment finding that changing from an open-cut dry crossing method as previously approved by the commission to a trenchless method of construction would reduce environmental impacts. Public comments on the Federal Energy Regulatory Commission staff’s environmental assessment were due Monday, and comments submitted at the deadline revealed concern about the proposed construction method from the U.S. Environmental Protection Agency and those adversely impacted by the project in West Virginia. In its comments filed Monday, the Environmental Protection Agency’s regional branch expressed concern with Mountain Valley Pipeline LLC’s proposal to cross the Blackwater River in Franklin County, Virginia by an open-cut method, highlighting Mountain Valley’s conclusion that a slope on one side of the stream may not be conducive to a trenchless crossing… “Carmen Chapin, New River Gorge National Park and Preserve acting superintendent, filed a comment registering concern that sediment or other contaminants produced by the project released into the Greenbrier River may have downstream effects on the New River… “The West Virginia Rivers Coalition objected to the Federal Energy Regulatory Commission staff’s environmental assessment in a comment filed Monday, arguing that the assessment failed to sufficiently analyze the impacts of dewatering activities on groundwater and surface water or address the EPA’s recommendations made in a May 27 letter to the U.S. Army Corps of Engineers in which the agency questioned whether pipeline developers had done enough to avoid adverse water-crossing effects.”
KFYR: Morton County continues to work through DAPL cases five years after protests began
By Erika Craven, 9/16/21
“...By August 10, 2016, the first of hundreds of protesters were arrested. This kicked off a lengthy string of court cases,” KFYR reports. “We were an office of three attorneys when this started and our office was budgeted for five or six, at that time. We were already understaffed. And then you add in hundreds of arrests at that time. It’s not something that you plan for,” Morton County State’s Attorney Gabrielle Goter told KFYR. “They usually involved explosives or fire. There’s a significant amount of property damage. Following up even with individuals who were contracted up here, there’s millions of dollars of loss in property.” Goter adds that more than 700 cases were filed in Morton County, but not all cases proceeded. “It’s like a cost-benefit analysis. What’s the cost of bringing back law enforcement officers from around the state, out of state. What are we actually going to get in these cases. We had already sent out offers in every one of our cases. Have these people made an appearance? Are they likely to make an appearance? Do we want them back in the state of North Dakota?” said Goter. Law enforcement cleared camps in February of 2017, but litigation continues today. Just over 30 DAPL protest cases remain open and are being reviewed by Morton County state’s attorneys. Most of them are in warrant status and could remain inactive until those charged during DAPL protests are brought into custody.”
Law360: ETP Tells FERC $20M Fine Fight Isn't A Globetrotters Game
Morgan Conley, 9/16/21
“Energy Transfer Partners on Wednesday told the Federal Energy Regulatory Commission that the agency’s enforcement staff is acting as if their battle over a $20 million fine is a game between the Harlem Globetrotters and the Washington Generals or else its staff wouldn’t be ignoring “substantial, irrefutable evidence,” Law360 reports. “Enforcement staff ‘must think they are playing the Washington Generals basketball team and that the outcome is preordained,’ ETP said in its response to the Office of Enforcement Staff’s most recent filing recommendign the company incur a $20 million fine for allegedly misleading the Commission about its purchase and subsequent demolition of a historic property in Ohio that stood to slow the regulatory review of the Rover Pipeline.”
The Intercept: OIL COMPANY OFFICIAL OVERSEEING CRACKDOWN ON PIPELINE RESISTANCE CUT TEETH AT AMAZON AND EXXON
Alleen Brown, 9/17/21
“THE HEAD OF security for the oil transport company Enbridge built his résumé managing Exxon Mobil’s response to community protests in Nigeria and helping oversee Amazon’s Global Security Operations Center, a division that has monitored environmental groups and union organizers,” The Intercept reports. “Now, at Enbridge, Troy Kirby oversees efforts to combat a protest movement aimed at stopping construction of the company’s Line 3 pipeline in Minnesota. Enbridge’s security operation has drawn criticism for its efforts to influence the police response to the Indigenous-led movement, whose members are known as water protectors. Enbridge’s response to the water protectors is part of a pattern of megacorporations working to quell resistance to their environmentally harmful activities. Enbridge’s close cooperation with police, including payments and intelligence sharing, has been deemed by academics and water protector critics as emblematic of corporate counterinsurgency — a suite of tactics, ranging from public relations campaigns to surveillance and support for armed force, designed to win over communities to controversial profit-making projects. “You have companies that have entire departments dedicated to making sure you stay in your place, that you don’t resist, that you don’t talk about it, and you most certainly don’t act on it,” Alexander Dunlap, a postdoctoral research fellow at the University of Oslo, who has written extensively about how corporations utilize counterinsurgency tactics to quell movements against environmental degradation, told the Intercept. “These are the people that specialize in the dark arts. Maybe it’s a bit more banal than we might imagine, but these are the spooks.”
WASHINGTON UPDATES
Press release: EPA settles with Union Pacific Railroad for Clean Water Act Violations in Oregon
9/15/21
“The U.S. Environmental Protection Agency has settled an enforcement action with the Union Pacific Railroad for Clean Water Act violations near the Columbia River in Oregon. The violations allegedly occurred when a UPRR train derailed and released approximately 47,000 gallons of Bakken crude oil in Mosier, Oregon. Most of the released oil discharged to the Mosier wastewater treatment plant, which was forced to shut down for approximately 2 weeks. An estimated 10 gallons of the Bakken Crude oil passed through the treatment plant and caused a sheen on the Columbia River. On June 3, 2016, a UPRR train with 96 tank cars carrying Bakken oil from New Town, North Dakota to U.S. Oil and Refining in Tacoma, Washington derailed in the Columbia River Gorge near Mosier, Oregon. As a result of that incident, 16 of the 96 cars derailed, four cars were breached and released Bakken crude oil to the environment and several cars caught fire. Final estimates of environmental impact included: 47,000 gallons of oil released, with 16,000 gallons burned or vaporized. Federal, state and UPRR cleanup actions included installing several wells to monitor and treat contaminated shallow groundwater. A total of 2960 tons of oil-contaminated soil was excavated and transported off-site for disposal. A comprehensive cleanup of the city’s wastewater treatment plant – also contaminated with crude - was conducted, allowing the local community to begin the recovery process. This action was settled by a Consent Agreement and Final Order between EPA and UPRR. As part of the agreement, UPRR will pay a civil penalty of $52,500 to the U.S. Treasury. UPRR will also pay a $30,000 civil penalty to the State of Oregon for discharging oil to the Columbia River according to a settlement agreement with Oregon DEQ. In addition to paying theses penalties, UPRR has also reimbursed cleanup costs for Oregon DEQ, the Washington Department of Ecology and EPA. As mentioned above, on-site cleanup projects also completed by UPRR included: Removal and disposal of large volumes of contaminated soil and water; completing major repairs and upgrades to the City of Mosier’s wastewater treatment plant; conducting both short and long term (2 years) air and groundwater monitoring in the community and reclaiming, re-grading, and re-planting the spill site.”
New York Times: House Panel Expands Inquiry Into Climate Disinformation by Oil Giants
By Hiroko Tabuchi, 9/16/21
“The House Oversight Committee has widened its inquiry into the oil and gas industry’s role in spreading disinformation about the role of fossil fuels in causing global warming, calling on top executives from Exxon Mobil, Chevron, BP and Royal Dutch Shell, as well as the lobby groups American Petroleum Institute and the United States Chamber of Commerce, to testify before Congress next month,” the New York Times reports. “...Thursday’s demands from the powerful Oversight Committee put senior executives from some of the world’s largest oil companies at the center of an investigation into the role their industry has played in undermining the scientific consensus that the burning of fossil fuels is a root cause of global warming. “We are deeply concerned that the fossil fuel industry has reaped massive profits for decades while contributing to climate change that is devastating American communities, costing taxpayers billions of dollars, and ravaging the natural world,” read the letter to Darren Woods, the Exxon chief executive. “We are also concerned that to protect those profits, the industry has reportedly led a coordinated effort to spread disinformation to mislead the public and prevent crucial action to address climate change,” the letter said. The letters were sent to the companies and groups Thursday morning, and also requested information including internal documents and emails on climate policy going back to 2015 related to the companies’ and groups’ efforts to undermine climate policy.”
STATE UPDATES
The Northern Light: Investigators cite vandalism as likely in Custer train derailment
By Grace McCarthy, 9/15/21
“Investigators are considering vandalism as a likely factor in the Custer train derailment December 22, 2020, according to a Federal Railroad Administration (FRA) report released September 9,” The Northern Light reports. “The report did not determine a cause for the derailment. The FBI is still investigating. The 108-car train was carrying highly flammable Bakken crude oil from North Dakota to the Phillips 66 oil refinery in Ferndale when 10 rail cars left the track around 11:40 a.m. Fire burned into the night, forcing the evacuation of 120 people and shutting down I-5 for four hours. No injuries were reported. The derailment occurred less than a month after two Bellingham women were arrested for tampering with BNSF tracks in north Bellingham. FRA released its report September 9; the same day one of the Bellingham women was convicted in federal court for one count of violence against a railroad carrier… “In both instances, vandals had opportunities to tamper with the couplers and brake pipe angle cocks,” the report reads. “FRA’s investigation determined that two crews failure to comply with train check requirements established the foundation for this derailment.” The report ruled out weather, crew fatigue and drug and alcohol use as factors in the derailment… “Washington State Department of Ecology (DOE) reported responders recovered most of the 29,000 gallons of oil that spilled, leaving 5,400 to 8,000 gallons in the ground. A DOE spokesperson previously told The Northern Light oil contamination didn’t leave the derailment site and didn’t harm wildlife.”
EXTRACTION
Ft. McMurray Today: Nally defends energy 'war room,' hypes Alberta's economic future in trade show speech
Vincent McDermott, 9/16/21
“Associate Minister of Natural Gas and Electricity Dale Nally defended the province’s Canadian Energy Centre as critical for Alberta’s recovery during a Wednesday speech at the Oil Sands Trade Show in Fort McMurray,” Ft. McMurray Today reports. “In his speech, which was originally to be delivered by Premier Jason Kenney, Nally described the criticisms of the so-called “war room” and its $30 million budget as the “opposition’s talking points.” “For the first time in the province’s history, we had a government that said not only will we stand up and fight for energy, we will back it up with a $30-million fund,” he said. “I’m not apologizing for the war room because the war room is getting out the message and standing up for our number one industry in this country.” The Canadian Energy Centre was founded as a provincial government corporation in late 2019 as part of a “fight back” government strategy. “Even the most conservative estimates project the world will depend on oil and gas for decades to come. We need to defend that,” said Nally. “Alberta’s oilsands have a path to a bright future.” The effectiveness of the Calgary-based centre has been questioned by critics, especially after the cancellation of the Keystone XL pipeline. NDP energy critic Marlin Schmidt argued the new campaigns were the wrong approach to diversifying Alberta’s economy. “We need a strong plan to diversify Alberta’s economy so people can go back to work,” he told Canadian Press earlier this month. “Putting more ads out as a way of getting people to feel good about the existing state of affairs doesn’t do anything to achieve those goals.”
S&P Global: LNG Project Tracker: Momentum builds 'at least for a couple' of export projects
Corey Paul, 9/16/21
“The biggest U.S. LNG exporter, Cheniere Energy Inc., discussed commercially sanctioning an LNG growth project in 2022, and other LNG infrastructure developers have signed supply deals that could push projects forward after a dearth of final investment decisions in the last few years,” S&P Global reports. “...The next several months could be pivotal for determining whether new U.S. LNG production capacity will make it to the construction stage. The global gas market appears likely to continue its recovery from pandemic-driven disruptions that muted investors' appetite for new multibillion-dollar LNG infrastructure. But this may also be a time when projects that have struggled for a long time finally fade away. Favorable market dynamics have kept the six major LNG export terminals that operate in the U.S. running at close to full bore for months… “More than a dozen North American LNG developers are competing to advance their projects, but those who have managed to sign new off-take deals in recent months have been limited to a relatively small group, including Cheniere and the export hopeful Tellurian Inc. Lingering challenges have included pressure from buyers to be flexible on pricing and contract terms, as well as pressure to bring down project costs. Developers also faced mounting concerns over greenhouse gas emissions associated with U.S. LNG throughout the natural gas supply chain. Nine months into the year, no new projects have received final investment decisions, or FIDs, and some developers canceled or pushed back projects. For Erin Blanton, a senior research scholar at the Center on Global Energy Policy, it is no surprise that the market has not jumped in to finance new projects.”
Globe and Mail: $40-million Suncor-Indigenous partnership ‘a sign of things to come’ for oil sector
EMMA GRANEY, 9/16/21
“A $40-million partnership deal between eight Indigenous communities and Suncor Energy is being hailed as an economic shot in the arm for the Northern Alberta communities, as they unite to buy a stake in a pipeline crucial to the energy giant’s oil sands operations,” the Globe and Mail reports. “Those involved in the deal say the Indigenous energy partnership is a sign of things to come in the oil sector, which has long grappled with ensuring proper consultations over energy projects. Under the arrangement, announced Thursday, a joint Suncor-Indigenous partnership called Astisiy will buy 15 per cent of the Northern Courier Pipeline from TC Energy. The remaining 85-per-cent stake in the pipeline remains in the hands of Alberta’s investment manager, Alberta Investment Management Corp., or AIMCo, which purchased it two years ago… “The new Astisiy partnership has been forged between Athabasca Chipewyan First Nation, Chipewyan Prairie First Nation, Conklin Métis Local #193, Fort Chipewyan Métis Local #125, Fort McKay Métis Nation, McMurray Métis, Fort McMurray #468 First Nation, Willow Lake Métis Nation and Suncor… “Bill Loutitt, chief executive officer of McMurray Métis, told The Globe and Mail that expected revenue from the pipeline will help pay for a new cultural centre on MacDonald Island in Fort McMurray… “The agreement reflects years of relationship-building between local Indigenous communities and companies like Suncor, Mr. Loutitt told the Globe and Mail,, calling it “quite a feat” by Suncor to strike a deal with eight communities.”
CLIMATE FINANCE
Guardian: The climate advocates who say Harvard’s oil divestment is a mistake
Chris McGreal, 9/14/21
“Even as climate activists celebrated Harvard University’s promise to cleanse its multibillion-dollar investment fund of holdings in fossil fuel companies last week, others dedicated to the fight against the climate crisis wondered if the real winner was the oil industry,” the Guardian reports. “...But other major oil industry investors, who are also committed to addressing the climate crisis, regard the dumping of shares as a mistake. They say it removes a key area of leverage over fossil fuel companies. “If big investors divest their holdings, we lose the base of ownership, which is going to be able to drive change,” Anne Simpson, who leads the sustainable investment strategy for the $400bn California Public Employees’ Retirement System, CalPers, told the Guardian. “If we sell our shares in oil and gas companies, we’re losing an opportunity to have an influence.” The difference over strategies hinges on sharply opposing views of the future of oil and gas firms. The Harvard activists, alongside national environmental groups such as 350.org, want to see the fossil fuel companies put out of business as quickly as possible. Simpson and other institutional investors say the oil and gas industry will remain essential to the US economy for some time and will probably contribute to the transition to green energy, and so it is more important to force the business to change the way it operates. Morgen Whitten, an environmental science and public policy student at Harvard who was one of the organizers of the divestment campaign, is skeptical. “There’s no evidence right now that fossil fuel companies can be changed. If engagement is an effective strategy, why hasn’t it already worked?” she told the Guardian.
Property Casualty 360: Liberty Mutual, Chubb make major ESG commitments
By Steve Hallo, 9/17/21
“Liberty Mutual Insurance has committed to slash 50% of its scope 1 and 2 greenhouse gas (GHG), based on 2019 levels, by 2030, while Chubb Ltd. has made it public that it has stopped insuring the Trans Mountain Pipeline in Canada,” Property Casualty 360 reports. “Scope 1 emissions are released by a directly owned or controlled source, while scope 2 are indirect emissions from the generation of purchased energy, according to the Greenhouse Gas Protocol. In support of its GHG reduction goals, Liberty Mutual will work to increase operational efficiencies and identify renewable energy sources to leverage across its real estate holdings, according to the company. Additionally, Liberty Mutual has joined the Partnership for Carbon Accounting Financials and will play a role in that organization’s Insured Emissions Working Group, which will develop the first global standard to measure and disclose insured GHG emissions. The new pledge on GHG reduction follows several environmental, social and governance commitments, including being the first U.S. property & casualty insurer to sign onto the United Nations-supported Principles for Responsible Investment, according to the company… “Chubb’s announcement is a critical win for the environment and indigenous rights. This makes it the 16th insurer to drop coverage of or rule out insuring the Trans Mountain tar sands expansion project,” Elana Sulakshana, energy finance campaigner at Rainforest Action Network, said in a release. “But we need more information to understand if this is a future-facing exclusion policy that restricts insurance for tar sands companies and projects like Trans Mountain moving forward.”
OPINION
Project Syndicate: The Case for a Fossil Fuel Non-Proliferation Treaty
Tasneem Essop, Executive Director of Climate Action Network International, is a steering committee member for the Fossil Fuel Non-Proliferation Treaty Initiative, 9/16/21
“The northern summer of 2021 has brought a series of record-breaking natural disasters,” Tasneem Essop writes for Project Syndicate. “...The lack of an international mechanism directly addressing fossil fuels means that the industry has continued to expand significantly, even since the 2015 Paris climate agreement was signed… “One tool that is gaining global support and would help to put us on a meaningful path toward a livable climate is a Fossil Fuel Non-Proliferation Treaty. Such a treaty would emulate existing international agreements that aim to reduce the threat of nuclear weapons, landmines, ozone depletion, and other security risks. And it would be based on the three pillars of the Nuclear Non-Proliferation Treaty. On the first pillar of a future treaty – non-proliferation – the world has made significant progress in the past few months. The International Energy Agency said that any new fossil-fuel development will conflict with the Paris agreement’s goals, G7 members agreed to stop financing new coal projects, and many jurisdictions banned all new fossil fuel permits. The second pillar is a feasible phaseout. Most climate scientists agree that we need to wind down existing fossil-fuel stockpiles and production. Even without any new coal, oil, or gas projects, the world would produce 35% more oil and 69% more coal by 2030 than is consistent with a 1.5°C pathway. Third, a new treaty should help to enable a just transition away from fossil fuels through a process of international cooperation that has equity at its core. Wealthy fossil-fuel-producing economies would lead the way and share the benefits and burdens of the transition with poorer countries, workers, and affected communities. This should include the provision of financial resources to enable policymakers to implement and sustain necessary climate policies. Hundreds of organizations representing thousands of individuals have joined the call for a Fossil Fuel Non-Proliferation Treaty.”
Globe and Mail: Divest vs. the rest: Harvard’s noble quest with potential environmental consequences
Jeffrey Jones, 9/16/21
“Harvard University elated climate activists last week when it pledged to divest all its fossil fuel holdings, saying such investments don’t fit with the imperative to decarbonize the economy,” Jeffrey Jones writes for the Globe and Mail. “Harvard’s endowment fund had already been selling down its stakes, although it still has investments in private-equity funds that have exposure to the industry. They make up about 2 per cent of the school’s US$42-billion in total holdings… “It’s a noble quest, positioning the richest U.S. university endowment to support the global push to net-zero carbon emissions. Students have been campaigning for this for a decade. But the divestiture movement Harvard is championing also has trade-offs with negative consequences for the environment – not least giving up its influence on corporate policy to allocate capital for the energy transition… “What is needed for action though, is a seat at the table. There’s merit in investment strategies to persuade company boards and managers to devote meaningful resources to improving environmental practices. Several major institutional investors are doing just that. BlackRock Inc., the world’s largest investment manager, is Exhibit A, demanding companies in its portfolios disclose how they will survive in a net-zero world. Companies that lag face proxy votes against management or even potential divestment. The Climate Action 100+, a group of 570 global investors, is pushing large emitters to set goals to reach net-zero emissions, with game plans that include pressing boards of directors to tie executive pay to climate-related targets… “As bastions of research, universities should be front and centre in the effort to meet Paris agreement goals and to reach net-zero emissions by 2050. Some of their endowment funds must be directed to clean technology for doing so. But it’s important to use some of that financial muscle to nudge the old economy into the fight too.”