Showing posts with label wustl. Show all posts
Showing posts with label wustl. Show all posts

Sunday, January 24, 2016

The Students Were and Are Right: Washington University Needs to Disassociate Itself from Peabody Energy: S.E.C. Is Criticized for Lax Enforcement of Climate Risk Disclosure

Two years ago, when students demanded that Washington University end its relationship with Peabody Energy, many scoffed at them. Others ridiculed them.  Yet, more and more stories emerging show that the students were right.  And board, administration, and acquiescent faculty are mere pawns in a bigger, seemingly crooked game, to deceive the public and continue polluting as long as possible.

S.E.C. Is Criticized for Lax Enforcement of Climate Risk Disclosure: New York Times on the Case of Peabody Energy

"As recently as 2011, shares in Peabody Energy, the world’s biggest private sector coal company, traded at the equivalent of $1,000. Today, they hover around $4 each. Over that time, investors who held the stock lost millions.

Peabody, like other coal companies, has been hammered as cheap natural gas erodes the demand for coal. But concerns about climate change are also an issue for the company as customers and investors turn away from fossil fuels.

Peabody saw this coming. Even as the company privately projected that coal demand would slump and prices would fall, it withheld this information from investors. Instead, Peabody said in filings with the Securities and Exchange Commission that it was not possible to know how changing attitudes toward climate change would affect its business.

Peabody’s double talk was revealed as part of a two-year investigation by the New York attorney general. In a settlement in November, Peabody agreed that it would disclose more about climate change risks in its regular filings with the S.E.C."




Wednesday, January 13, 2016

ExxonMobil, Peabody Coal Lobbying for Bill Preventing Climate Change Accounting in US Trade Deals (*corrected 1/13/16)

ICYMI:  As world turns to recognize global warming, fossil fuel majors intensifying efforts to maintain the status quo.  St Louis' Peabody Coal - whose ex-**CEO sits on the Washington University Board of Trustees – is one of the main culprits.  ExxonMobil - now being investigated for misrepresenting their knowledge about global warming – is right there as well.

ExxonMobil, Peabody Coal Lobbying for Bill Preventing Climate Change Accounting in US Trade Deals

**Corrected 1/13/16: I know, Greg Boyce is no longer CEO of Peabody, I say this by force of habit.  But he's still on the WUSTL board of trustees, listed as the "Executive Chairman" of Peabody.  However, as of 12/31/15 he is said to be "retiring" from Peabody altogether, so will no longer be chairman there either.  So maybe he will soon be retiring from the WUSTL board as well. Stay tuned.  And yes, I know, the official name of the company is 'Peabody Energy'.  But they do not produce energy. They dig up, transport, and sell coal.  So let's be clear.



File under: WUSTL Students, know your board of trustees:**More on Steven F. Leer added January 15, 2016.

Additionally, while I used to refer to the 'two coal companies' on the WUSTL board (Arch and Peabody). However, Steven Leer, former Chairman of Arch, is now listed as 'Retired Chairman'.  However, Mr. Leer is still deep into carbon.   Since he has left Arch, he is a director at Cenovus Energy, one of Canada's biggest tar sands oil producers, which also co-owns the Wood River Refinery, across the river from St. Louis.  And, he's a director at Norfolk Southern.  The rail, coal, tar sands, and refinery businesses are all interdependent (and huge polluters, but no mind).

So, as corrected, we can say: A representative of the largest coal company in the world sits on the Washington University board of trustees.  As does a former CEO of another huge coal company, Arch, who now sits on the board of Cenovus, part of the (high-polluting) Canadian tar sands industry.

As for the coal industry, these companies are heading into bankruptcy and restructuring. As such, and on the defensive, they are involved in increasingly questionable business practices. They are also involved in efforts to undermine policies aimed at ameliorating global warming and the science of global warming itself.  If any of this is incorrect, let me know, happy to correct it.

Sunday, March 1, 2015

Divestment from Fossil Fuels: Is "cost" even an issue, or just a red herring to defend the fossil fuel industry?

The “Cost” of Divesting from Fossil Fuels: 
What Would it Be? Does it Even Matter?

Bret Gustafson
March 1, 2015

*This reflects my evolving understanding of this question. Comments welcome.
Modified 3.2.15: 87% of Penn students vote for divestment, added more tips for admins on how to just "own it" if you are looking for the best way to do nothing.
Modified 2.10.17: We are still fighting for some enlightenment from our university leadership.

I was sitting in a meeting of deans and fellow faculty members last Friday when the question of divestment from fossil fuels came up.  Somebody suggested that there would be a significant “cost” to the university if we divested from fossil fuels.  This prompted me to look into the question of “costs.”  What follows is what I found.

Spoiler: Costs of divestment from fossil fuels are greatly exaggerated, would be trivial over time, and talk about “cost” is a political strategy. In short, "cost" is a red herring, but read on if you want the whole story…

Opponents of fossil fuel divestment have two main arguments: (1) That divestment will have no impact on the industry or on attempts to reduce our dependence on fossil fuels, move faster to alternatives, or take steps to address climate change; and (2) That divestment will financially hurt university endowments. That is, it will cost too much.

Argument (1) is nothing more than a political defense of a destructive industry.  Powerful interests will always be the first to dismiss activist efforts as pointless.  That is to be expected.  The idea that divestment will not work is belied by the fact that the fossil fuel industry is spending a lot of money trying to discredit the divestment movement.  In their very defensiveness, the fossil fuel industry reveals the impact that divestment is already having.  These companies are desperate to put off the inevitable.  As one student said of divestment, the question is not whether we will all divest from fossil fuels, but when.

Just own it 

A bit more cynically, some variations on this argument include – as Harvard President Drew Faust said – a call to “engage” the fossil fuel industry.  This is absurd. Do we really believe that shareholder activism or some other unspecified engagement would actually change destructive industries whose very existence (and stock value) relies on digging for fossil fuels, burning them, and emitting the CO2 that causes global warming? 

This just shows how smart people can be made to say dumb things (or, perhaps, disregard their own principles) to defend the positions of those who pay them. A suggestion to administrators might be: Don’t make up silly justifications. People aren’t stupid and that’s disrespectful. And, tip to university leadership: Disrespect of faculty and students just generates disrespect of administration.  So let's just be clear. Let's just own up to it.  

Here are some suggested responses:

Own your ignorance or climate denialism, and say:  “Global warming is caused by solar activity, and fossil fuels are good for the planet.  Nothing should be done because markets and technology will take care of everything.” 

Own your ownership: “Global warming is real, and scary, but the fossil fuel industry has a grip on me and the university and I don't have the principles or fortitude to resist.” 

Own your inaction: "Well, burning fossil fuels does cause global warming, but we believe doing nothing is better than taking the symbolically and practically important step of divestment."

Own your dependence: "Well, I don't know... the coal company gave a lot of money to the university – they even gave money to United Way and the Cardinals – so maybe they are not so bad.  I'd hate to do anything to upset them."

Own your addiction: (Faust said a variation of this too): "Well since we use fossil fuels, it would be a mistake to divest. So I guess we should just keep on burning them and make some money off it while we're at it."

In whatever case, as I hear my students say, “Just own it.”


Is financial cost (or gain) even relevant?

As for argument (2), on the question of cost:  Is cost even relevant?  Were divestment costly for universities – and this is up for debate – it would be mitigated by a gradual shifting of investments to other industries.  There may even be gains, given the decline in coal and oil stocks and the uncertain and risky future of environmentally destructive projects like tar sands and fracking, where much speculative investment capital is going today.  The costs incurred by the planet, in whatever case, are much greater than any losses that might be felt in an investment portfolio. 

Activists point out that divestment is about addressing climate change and improving the environment and public health.  Divestment by universities, they say, would have a real and symbolic impact.  Cost is not the issue.  Perhaps we should incur some costs to make the planet a healthier place. What kind of ethics do you have?  But the conversation should be about science, health, the environment, and morality, not to mention the destructive impact that the fossil fuel industry has on public politics and public knowledge.  It is not about money, but about about values and principles. 

If the logic of “cost” justified our investments, then a public health-centric institution like Washington University should probably also invest more in the lucrative tobacco industry.  (Maybe we are, but would that be right?). 

They say divestment is “political”.  But given the stakes for the climate, and the fact that the fossil fuel industry is deeply politicized in its war on science and government climate protection measures, investment in the fossil fuel industry is equally “political.”

Scientists say that 80% of all known fossil fuel reserves (and all of any future discoveries) should stay in the ground to avoid catastrophic climate impacts.  Should we be profiting from companies whose continued existence will inevitably exacerbate global warming?  

Fossil fuel industries have spent millions fighting against climate science and eroding the integrity of public and private scientific institutions.  Should an institution that claims to be dedicated to real science be profiting from companies that are involved in the corruption and distortion of science?

These are the kinds of debates that divestment should spark.  Raising the issue of cost is merely an attempt to distract the public from the reality of global warming.  The word “cost” itself is a cunning distortion.  The phrase “impact on returns” might be more acceptable. But we should be talking more about “impact on the planet.”

Despite these concerns, the “cost” argument will be made by those whose private financial and political interests (i.e. greed and power) are more important than the public moral and scientific concerns about global warming.  And, some fair-minded members of the university community, who otherwise might be concerned, may be easily swayed by shrill declarations about great financial losses.  Surely, they will say, tuition will rise, my pay will be cut, scholarships will go down, etc. etc.  But is any of this true?  The short answer is no. 

The cost of fossil fuel divestment has been greatly exaggerated

The New York Times recently published a story on a report that argued that divestment from fossil fuels might lead to a 0.7% decrease in returns per year.  (Yes, it doesn’t sound like much).  The report argues that when adjusted for volatility risks (portfolios with fossil fuels have higher volatility), the decrease was .5%. The author argues that there might also be other management costs and that this small percentage could mean millions of dollars to a large endowment.  Yet the report does not acknowledge that investments could offset the decrease when they shift to other sectors that may generate equal or higher returns.  A considerable portion of the report was also dedicated to preemptively dismissing the impact of the divestment movement (Argument 1, above).  Unsurprisingly, the report was paid for by the Independent Petroleum Association, a business chamber that represents the US domestic oil and gas industry.[1]  

The same NYT article makes reference to two other reports that suggest that losses may be even smaller, or even trivial.

The first, prepared by a socially conscious investment company, Northstar Asset Management, came to a much lower figure of .15% decrease on returns, which would be a “worst-case scenario.”  The report concluded that “the cost of fossil fuel divestment has been greatly exaggerated:”

“Even if the entire energy sector in an actively managed global portfolio were divested, the expected cost is only 0.15% annually in a 250 stock portfolio with an average annual expected return of 8%. And, if shareholders limit divestment to the top 200 fossil fuel companies by carbon in proven oil, gas and coal reserves, then the estimated annual cost falls by half again to 0.07% even with no assumption of any other mitigating factors (e.g., fewer holdings, lower expected return, substitution for divested securities, and so on). (p. 10).”

The Times also cites another report, by the Aperio group, which also concludes that the financial risks of divestment have been highly exaggerated:

“When the idea of fossil fuel screening gets floated, the first thing an endowment committee would want to know is the impact on return, especially whether screening imposes any penalty. The research data on a wide range of social and environmental screening show no such penalty (nor any benefit either), although the results are mixed.[2]”

It’s not about cost, it’s about the power of a polluting industry

In another article, Paul Lehner of the National Resources Defense Council, discusses a factsheet prepared by the FTSE on their North American ex Fossil Fuels Indices (those indices free of fossil fuel investments).  He points out that over the past five years this fossil fuel-free index has actually outperformed the same index with fossil fuel investments.  (The FTSE is a global stock-market indexing firm). This is short-term data, and as they say, does not predict future outcomes.  But it suggests that there is no convincing argument to be made that divestment from fossil fuels will inevitably have some devastating financial impact on the university.  As with the doubt-mongering that the fossil fuel industry pursues in its attempt to distort science and public knowledge (see: Willie Soon affaire), the fear-mongering about financial catastrophe of divestment is untrue. To wave it is a banner is unethical.

As Lehner points out, it is not about cost, but rather about the distorted influence that the industry has over the universities and other institutions:

“If universities and other institutions are still afraid to divest, despite the facts, it suggests to me that the worry is really about breaking faith with the oil and gas industry and its very deep pockets. If fossil fuel interests are really so deeply entwined in our educational--not to mention political and financial institutions--then the movement to divest becomes even more important. We must start to disentangle ourselves from this polluting industry that has such a hold on our lives--and our futures.”

In sum, “cost” is a red herring, a distraction. 

Washington University in St. Louis: Nothing to lose, everything to gain

Student bodies all over the world are rapidly joining the call for divestment.  This includes the student body of Washington University in St. Louis, whose Student Union passed a pro-divestment resolution in 2014.  It is in good company with students at many institutions, like the London School of Economics, most recently, which just voted overwhelmingly (432-36) to call for divestment.  Just in on March 2, 2015: 87% of University of Pennsylvania students voted to divest, in a high turnout referendum.  Faculty as well, at many universities – 150 at Columbia, 360 at Stanford, the list goes on – are joining this call.  Stanford and the New School, and a number of other universities have already taken divestment steps.  Young people get it.  It's their planet, their future. For Washington University there is nothing to lose and much to gain. 

We should not be wasting our time talking about costs of divestment.  Nor should we be publishing platitudes about our commitment to climate change research, when we are giving a platform to the distorted messages of the fossil fuel industry – such as “solar activity” may cause global warming or that there will ever be “clean” coal.  To say that this kind of campus corporate sloganeering is unethical is gentle. 

Instead, we need to be having serious discussions about integrity, science, public health and the kind of planet that our children and their children will inherit.






[1] The author of the document was Daniel Fischel, a U Chicago emeritus law and economics professor. For context, Fischel is best known for his defense of various Wall Street figures convicted of crimes during the 1980s financial crises: Michael Milken (convicted for insider trading), Ken Lay & Jeffrey Skilling (Enron securities fraud & felony indictments), Charles Keating (convicted for racketeering re: savings and loan collapse).  Fischel's book Payback, written in support of Michael Milken, seeks to justify unregulated markets by defending the free-wheeling white collar criminal activity on Wall Street during the 1980s.
[2] The report cites a UNEP document that summarizes much of this research.

Saturday, February 21, 2015

Deeper Ties to Corporate Cash for Doubtful Climate Researcher, or What do WUSTL, junk science, flying pigs, solar activity, ghost busters and clean coal time machines have in common?

More on the whole 'solar activity might be the cause of global warming' myth.

Just as we were discussing the the fact that greenhouse gases (primarily CO2 from the burning of fossil fuels) were the most significant cause of anthropogenic global warming…  here is more news that raises questions about why WUSTL Engineering would give a platform to speculation that there is a serious debate about the causes of global warming.

Note: There is not a serious debate. 'Solar activity' is an insignificant factor.  The primary cause of human-induced global warming is the burning of fossil-fuels. 

The story of 'solar activity' is what we refer to as "junk science."  It is financed by the fossil fuel industry.

This is a useful reminder of how corporate money distorts and corrupts science (and the university).
   
Washington University in St. Louis & WUSTL Engineering: You need to clean house.  Respect and reputation spiraling downward for all who wave the banner of 'science' around here.  Finding it hard to believe anything anybody has to say.  Embracing junk science sullies all scientists.    

For those 'real' scientists who keep quiet because they claim to be apolitical, your silence means complicity with the political distortion of climate research here on campus.  

Read the New York Times article on Willie Soon, junk scientist for hire and number one proponent of the myth that "solar activity" is the cause of global warming:
Deeper Ties to Corporate Cash for Doubtful Climate Researcher 

Sorry, NYT, since some readers may not get past your paywall, I have to paste it here. 




For years, politicians wanting to block legislation on climate change have bolstered their arguments by pointing to the work of a handful of scientists who claim that greenhouse gases pose little risk to humanity.

One of the names they invoke most often is Wei-Hock Soon, known as Willie, a scientist at the Harvard-Smithsonian Center for Astrophysics who claims that variations in the sun’s energy can largely explain recent global warming. He has often appeared on conservative news programs, testified before Congress and in state capitals, and starred at conferences of people who deny the risks of global warming.
But newly released documents show the extent to which Dr. Soon’s work has been tied to funding he received from corporate interests.
He has accepted more than $1.2 million in money from the fossil-fuel industry over the last decade while failing to disclose that conflict of interest in most of his scientific papers. At least 11 papers he has published since 2008 omitted such a disclosure, and in at least eight of those cases, he appears to have violated ethical guidelines of the journals that published his work.

The documents show that Dr. Soon, in correspondence with his corporate funders, described many of his scientific papers as “deliverables” that he completed in exchange for their money. He used the same term to describe testimony he prepared for Congress.
Though Dr. Soon did not respond to questions about the documents, he has long stated that his corporate funding has not influenced his scientific findings.
The documents were obtained by Greenpeace, the environmental group, under the Freedom of Information Act. Greenpeace and an allied group, the Climate Investigations Center, shared them with several news organizations last week.
The documents shed light on the role of scientists like Dr. Soon in fostering public debate over whether human activity is causing global warming. The vast majority of experts have concluded that it is and that greenhouse emissions pose long-term risks to civilization.
Historians and sociologists of science say that since the tobacco wars of the 1960s, corporations trying to block legislation that hurts their interests have employed a strategy of creating the appearance of scientific doubt, usually with the help of ostensibly independent researchers who accept industry funding.
Fossil-fuel interests have followed this approach for years, but the mechanics of their activities remained largely hidden.
“The whole doubt-mongering strategy relies on creating the impression of scientific debate,” said Naomi Oreskes, a historian of science at Harvard University and the co-author of “Merchants of Doubt,” a book about such campaigns. “Willie Soon is playing a role in a certain kind of political theater.”
Environmentalists have long questioned Dr. Soon’s work, and his acceptance of funding from the fossil-fuel industry was previously known. But the full extent of the links was not; the documents show that corporate contributions were tied to specific papers and were not disclosed, as required by modern standards of publishing.

“What it shows is the continuation of a long-term campaign by specific fossil-fuel companies and interests to undermine the scientific consensus on climate change,” said Kert Davies, executive director of the Climate Investigations Center, a group funded by foundations seeking to limit the risks of climate change. 
Charles R. Alcock, director of the Harvard-Smithsonian Center, acknowledged on Friday that Dr. Soon had violated the disclosure standards of some journals.
“I think that’s inappropriate behavior,” Dr. Alcock said. “This frankly becomes a personnel matter, which we have to handle with Dr. Soon internally.”
Dr. Soon is employed by the Smithsonian Institution, which jointly sponsors the astrophysics center with Harvard.
“I am aware of the situation with Willie Soon, and I’m very concerned about it,” W. John Kress, interim under secretary for science at the Smithsonian in Washington, said on Friday. “We are checking into this ourselves.”
Dr. Soon rarely grants interviews to reporters, and he did not respond to multiple emails and phone calls last week; nor did he respond to an interview request conveyed to him by his employer. In past public appearances, he has reacted angrily to questions about his funding sources, but then acknowledged some corporate ties and said that they had not altered his scientific findings.
“I write proposals; I let them decide whether to fund me or not,” he said at an event in Madison, Wis., in 2013. “If they choose to fund me, I’m happy to receive it.” A moment later, he added, “I would never be motivated by money for anything.”
The newly disclosed documents, plus additional documents compiled by Greenpeace over the last four years, show that at least $409,000 of Dr. Soon’s funding in the past decade came from Southern Company Services, a subsidiary of the Southern Company, based in Atlanta.


Photo

Senator James M. Inhofe, Republican of Oklahoma, praising scientists like Dr. Soon. CreditCSPAN

Southern is one of the largest utility holding companies in the country, with huge investments in coal-burning power plants. The company has spent heavily over many years to lobby against greenhouse-gas regulations in Washington. More recently, it has spent significant money to research ways to limit emissions.
“Southern Company funds a broad range of research on a number of topics that have potentially significant public-policy implications for our business,” said Jeannice M. Hall, a spokeswoman. The company declined to answer detailed questions about its funding of Dr. Soon’s research.
Dr. Soon also received at least $230,000 from the Charles G. Koch Charitable Foundation. (Mr. Koch’s fortune derives partly from oilrefining.) However, other companies and industry groups that once supported Dr. Soon, including Exxon Mobil and the American Petroleum Institute, appear to have eliminated their grants to him in recent years.
As the oil-industry contributions fell, Dr. Soon started receiving hundreds of thousands of dollars through DonorsTrust, an organization based in Alexandria, Va., that accepts money from donors who wish to remain anonymous, then funnels it to various conservative causes.
The Harvard-Smithsonian Center for Astrophysics, in Cambridge, Mass., is a joint venture between Harvard and the Smithsonian Institution, housing some 300 scientists from both institutions. Because the Smithsonian is a government agency, Greenpeace was able to request that Dr. Soon’s correspondence and grant agreements be released under the Freedom of Information Act.

Though he has little formal training in climatology, Dr. Soon has for years published papers trying to show that variations in the sun’s energy can explain most recent global warming. His thesis is that human activity has played a relatively small role in causing climate change.
Though often described on conservative news programs as a “Harvard astrophysicist,” Dr. Soon is not an astrophysicist and has never been employed by Harvard. He is a part-time employee of the Smithsonian Institution with a doctoral degree in aerospace engineering. He has received little federal research money over the past decade and is thus responsible for bringing in his own funds, including his salary.
Many experts in the field say that Dr. Soon uses out-of-date data, publishes spurious correlations between solar output and climate indicators, and does not take account of the evidence implicating emissions from human behavior in climate change.
Gavin A. Schmidt, head of the Goddard Institute for Space Studies in Manhattan, a NASA division that studies climate change, said that the sun had probably accounted for no more than 10 percent of recent global warming and that greenhouse gases produced by human activity explained most of it.
“The science that Willie Soon does is almost pointless,” Dr. Schmidt said.
The Harvard-Smithsonian Center for Astrophysics, whose scientists focus largely on understanding distant stars and galaxies, routinely distances itself from Dr. Soon’s findings. The Smithsonian has also published astatement accepting the scientific consensus on climate change.
Dr. Alcock said that, aside from the disclosure issue, he thought it was important to protect Dr. Soon’s academic freedom, even if most of his colleagues disagreed with his findings.
Dr. Soon has found a warm welcome among politicians in Washington and state capitals who try to block climate action. United States SenatorJames M. Inhofe, an Oklahoma Republican who claims that climate change is a global scientific hoax, has repeatedly cited Dr. Soon’s work over the years.
In a Senate debate last month, Mr. Inhofe pointed to a poster with photos of scientists questioning the climate-change consensus, including Dr. Soon. “These are scientists that cannot be challenged,” the senator said. A spokeswoman for the senator said Friday that he was traveling and could not be reached for comment.
As of late last week, most of the journals in which Dr. Soon’s work had appeared were not aware of the newly disclosed documents. The Climate Investigations Center is planning to notify them over the coming week. Several journals advised of the situation by The New York Times said they would look into the matter.

Robert J. Strangeway, the editor of a journal that published three of Dr. Soon’s papers, said that editors relied on authors to be candid about any conflicts of interest. “We assume that when people put stuff in a paper, or anywhere else, they’re basically being honest,” said Dr. Strangeway, editor of the Journal of Atmospheric and Solar-Terrestrial Physics.
Dr. Oreskes, the Harvard science historian, said that academic institutions and scientific journals had been too lax in recent decades in ferreting out dubious research created to serve a corporate agenda.
“I think universities desperately need to look more closely at this issue,” Dr. Oreskes said. She added that Dr. Soon’s papers omitting disclosure of his corporate funding should be retracted by the journals that published them.