Fair Finance Webinar on Glencore and Governance

Apologies for the late notice: tomorrow morning, Thursday, 2 May, at 10AM Eastern, Fair Finance International is hosting a webinar called “Below the Surface: Governance Risks and ESG Issues at Glencore.”

After a turbulent year that included lawsuits filed by 197 investors due to alleged losses to shareholders following a conviction for bribery, Glencore is facing human rights and environmental controversies in several jurisdictions. With the company poised to take over Teck Resources’ coal business, Glencore faces new environmental and social controversies related to pollution on indigenous lands and climate risk. The issues raised by workers, community organizations and climate advocates around the world require rigorous oversight, heightened transparency and skilled governance. As the company’s 2024 AGM approaches, investors have an opportunity to assess whether the company is responding appropriately to these challenges.

Register for the webinar here.

Update 8 May 2024: IndustriAll posted this write up of the webinar. I will share video if and when it appears.

Antofagasta’s K-Street Shake Up

A couple of weeks ago, The Daschle Group, one of the K-Street firms lobbying for Antofagasta’s copper and nickel mining project on the edge of the Boundary Waters, filed what’s called a Termination Report. As of 1 March, 2024, the firm would no longer represent the Chilean mining company on the Hill. A few days later, as I noted in a previous post, the Daschle Group reversed itself and filed a new registration to lobby for the terminated client, Antofagasta plc., starting 1 March, 2024. It was a confusing move, which could have simply been a matter of sloppy paperwork or crossed signals. Now, first quarter lobbying disclosures have only added to the confusion.

Wilmer Hale, the lobbying firm that took the lead on the Twin Metals mine during the Trump years, has now filed a Termination Report, indicating that as of 31 March it no longer represents Twin Metals Minnesota.

There appears to be some kind of shake up going on, and it’s hard to say what it’s all about. Twin Metals may be rethinking its lobbying strategy, or just cutting its lobbying expenses, because lobbying can’t really fix what’s broken right now. A wait-and-see stance toward the 2024 election would make sense. The company can always ramp up again in the event of Republican victory.

The Termination Report shows that Wilmer Hale received only $20,000 in Q1. I assume that’s a retainer; it’s exactly what The Daschle Group reports for its on-again off-again efforts for the same quarter. After the 2020 election, and especially after the 2022 (re-)cancellation of Twin Metals (expired) leases, most lobbying for Twin Metals has been done by Brownstein Hyatt. The firm’s roster includes Trump’s Secretary of the Interior David Bernhardt and Twin Metals lobbyists poached from Wilmer Hale. For the first quarter of 2024, Brownstein Hyatt reports Twin Metals income of $110,000. That’s consistent with last year.

Sifting through these disclosure forms is a joyless exercise, and I almost want to apologize for taking readers through it (if any readers have managed to get this far). But consider what’s at stake: these are the same firms, and many of the same people, who pushed a corrupt and unlawful scheme to remove protections for the Boundary Waters during the Trump years, and they are the same people who will push to undo protections again in the event of a Trump victory.

As Stephen Markley warns in today’s New York Times, this is no time to tell ourselves comforting stories about what a second Trump term might bring. The mineral withdrawal, the lease cancellations, and the protections restored by the Biden administration can still be undone; Project 2025, the Heritage Foundation plan to dismantle or hobble federal agencies and destroy modern American government, explicitly calls for a review of these protections, and the Trump cronies who head up the agencies will be swinging the wrecking ball.

“What Project 2025 demonstrates,” Markley writes, “is that an enormous amount of thinking has gone in to how to destroy the government’s capacity to enforce environmental protections, conduct research or even assess the scientific reality of our situation.” That deliberate destruction of government could also clear the way for Antofagasta to realize its North American ambitions.

Barton on Juukan Gorge and Social License

“The mining industry talking to itself about how we need more mining for the energy transition.” That’s how Robin Hicks, a Singapore journalist, characterized the panel on mining and the energy transition at Ecosperity Week 2024. It’s a clever tweet, and there’s some truth to it, but it doesn’t really capture all that’s going on here. The main takeaway from this panel has to do with concerns over social license, most strikingly illustrated by the remarks of Dominic Barton, Chairman of Rio Tinto.


In the first clip, Barton addresses the disaster at Juukan Gorge; in the second clip, he talks about the challenges of attracting investors while “being rated as a tobacco company.” (You can watch the whole panel here. It’s on the Playlist labeled Ecosperity Week 2024: Day 1).

There appeared to be some confusion among the panelists over exactly what social license is, and it was never really cleared up. It should be. Sometimes they talked about social license primarily as an image problem that can be addressed through public relations. That will only lead to more missteps and trouble down the road. Social license comes with demonstrating respect and earning trust, obtaining meaningful consent and keeping durable agreements. That is not something that can be accomplished with a smoother pitch or rebranding.

PR is not a path to trust. As Adam Mathews of the Church of England Pensions Board suggested, what’s required is a slow and difficult process (and companies might not always get what they want from it). It will take listening and dialogue, taking No for an answer, relinquishing and sharing power, entering into binding agreements where possible, and building new, collaborative models of ownership, accountability, and governance.

For mining companies, the energy transition presents an opportunity to revisit priorities. They are already slated to play an outsize role. Are they going to stay in the dirty, profitable, cyclical resource extraction business they know, but don’t want to be known for? Or could these huge global companies evolve into something else altogether, as they themselves sometimes like to imagine, something more akin to for-profit economic development organizations?

The decisions they make today are going to shape the transition we get: fast, fair, fragmented, or failed.

A Post-Roe Proxy Season: Abortion Coverage on the Ballot at Intel

The Center for Reproductive Rights publishes this map of abortion laws by state.

With Intel’s shareholder meeting just about a month away, investors should be aware of Proposal 5, brought by the American Family Association. On its face, the proposal seems to deserve serious consideration: it appears to be asking for disclosures about corporate healthcare policy after Dobbs v. Jackson. That Supreme Court decision, which handed authority to regulate abortion to the states (and opened the door to draconian anti-abortion laws), has implications for companies (see, e.g., this and this, published right after the 2022 decision). Companies with offices and employees in multiple jurisdictions, like Intel, face a complex set of questions, both legal and ethical, ranging from healthcare coverage and travel reimbursements to the exercise of speech in the workplace. A report on how Intel is handling these issues might be welcome. But that’s not what’s going on here at all.

Resolved: Shareholders request the Board of Intel Corporation (the “Company”) issue a public report prior to December 31, 2024, omitting confidential and privileged information and at a reasonable expense, detailing the known and reasonably foreseeable risks and costs to the Company caused by opposing or otherwise altering Company policy in response to enacted or proposed state policies regulating abortion, and detailing any strategies beyond litigation and legal compliance that the Company may deploy to minimize or mitigate these risks.

In its Supporting Statement, the American Family Association accuses the Company of inconsistency: on the one hand, Intel issues an anodyne statement just before the Dobbs decision, saying “health related decisions are among the most personal” and signaling “respect” for “the rights and privacy of our employees to choose what best meets their health needs.” On the other hand, the company “has pledged to continue to support abortion ‘where permitted,’ indicating that the bounds of healthcare are not in fact moral issues for the Company but conveniently determined entirely by state jurisdiction.” I suppose people on the other side of this issue could take umbrage at the same discrepancy, and complain that by complying with restrictive laws in some states, the Company is proving that it doesn’t respect women’s autonomy. Either way, it’s impractical.

The truth of the matter is, Intel never “pledged…to support abortion.” The statement in question reads: “Our U.S. health care options cover a wide range of medical treatments, including abortion where permitted.” What’s really driving the outrage here is that Intel “offers payment for employee travel costs to obtain an abortion in states where it is still legal.” That policy, along with Intel’s “LGBT Activism,” earns the Company a score of -72 on Inspire Insight, a screening tool for Biblically Responsible Investors. It’s the same score that Adobe, Intuit, Wells Fargo, and Nike receive, and for the same sins; but in the view of the American Family Association, Intel has another strike against it. The Company “remains one of the biggest corporate donors to Planned Parenthood,” which an article cited by the proponents (footnote 2) calls a “massive abortion cartel” involved in “the illegal sale of aborted baby parts.” The zealotry motivating this proposal is that thinly disguised.

The intolerance of its proponents is evident, too. As further proof that the Company should not provide medical coverage for “deeply personal issues” like abortion, the Supporting Statement takes up Intel’s coverage of “medically necessary transition-related care.” We are told that “an increasing body of scientific evidence” shows “the harms” of such care, but the proponents never cite a single scientific study to support their point. Instead, they ask: “do the Company’s employees victimized by such treatments deserve healthcare benefits too?” It’s a version of the question detransition activist Chloe Cole asked on behalf of the National Legal and Policy Center at the Disney shareholder meeting last week.

Let’s set aside the casting of trans people as victims long enough to answer the question directly. Do the very small number of people who choose to detransition deserve healthcare benefits? Sure, of course they do, if they are suffering and medical treatment can relieve their suffering; and if that is a significant concern for Intel employees and their families, then the practical accommodation would be a slight extension of healthcare benefits. Basic human compassion would demand nothing less.

But that’s not the point of the question. Instead, it’s supposed to be a test of Intel’s commitment to “Diversity and Inclusion.” If the Company were truly committed to “ideological diversity,” the American Family Association’s argument runs, it would make accommodations for “all views.” This is another transparent attempt to smuggle intolerance under the guise of tolerance, sow confusion, and deny women and LGBT people both moral and bodily autonomy. Shareholders can vote with the board and roundly reject Proposal 5. It’s a Trojan Horse.

P.S. Shareholders can also vote with the board and against Proposal 4, another anti-ESG complaint brought by the reactionary culture warriors at the the National Center for Public Policy Research. (For context, see this and this and this.) The Resolved clause calls for “a board committee on financial stability” at Intel; the Supporting Statement shows what they’re really up to. They are asking the company to drop its support for the Human Rights Campaign, participate in some warmed-over hysteria about Bud Light, join the moral panic about trans athletes and girl’s locker rooms, and publicly distance itself from Black Lives Matter. The expiration date on most of these items is long past. It’s tedious, predictable, and unserious stuff, and the proponents should be sent packing.

Update 10 May 2024. Here are the results of the shareholder vote, filed by Intel with the SEC. Neither proposal discussed here was approved. According to the Company, “3,509,804,090 shares of the Company’s common stock were present or represented by proxy, representing 82.5% of the 4,256,872,276 shares outstanding as of the close of business on March 11, 2024.” Neither proposal met the threshold for resubmission.

A Correction And Some “New” Lobbying for Mining Near the Boundary Waters

The Termination Report filed by the Daschle Group last month, which I wrote about here, now looks like a head fake. Six days after filing that report, the firm filed a new registration to lobby for the same client, Chilean mining company Antofagasta plc. Both the termination and the new registration are effective as of 1 March 2024.

This isn’t an amended registration, and it doesn’t appear that the new filing was done to fix or cure an error. This registration reports Antofagasta as a “new client.” That is simply not true, but maybe there is a reason for checking that box that I don’t understand: it might be the accepted way to correct a Termination Report filed mistakenly or incorrectly. But that only raises more questions about why the Termination Report was filed in the first place. More importantly, “new” here erases a lot of history, years of it. The Daschle Group has lobbied for Antofagasta’s Twin Metals mining project near the Boundary Waters since August of 2021, and has been the only K-Street firm lobbying directly for the Chileans (and not for a US subsidiary).

In any case, the Group now has a new Senate Identification number for these activities. The Lobbying Areas have changed from NAT (Natural Resources) and ECN (Economics and Economic Development) in 2021 to NAT and ENG (Energy Nuclear) in 2024. There are also a few minor changes — the name of the contact person, a new and slightly more elaborate description of the Daschle Group’s business (“public policy and strategic consulting”). None of these changes would justify the termination and re-registration.

I honestly don’t know what’s going on here. But I stand corrected. Antofagasta still has the Daschle Group working the Hill, apparently with a focus on the energy transition. Maybe we’ll find more about what they’re up to when Q1 disclosures come in a couple of weeks.

Update here.

This Proxy Season, More Trojan Horse Proposals at Large Cap Companies

This morning, someone asked me about a shareholder proposal at Kraft Heinz urging the company to issue a Report on Greenhouse Gas Goals. Sounds like a thumbs up, right? Wrong.

This is yet another deceptively-titled, Trojan Horse proposal from the deceptively-named National Center for Public Policy Research. It is one of two well-funded, well-connected reactionary groups bringing so-called anti-ESG proposals at a number of US companies; the other is the National Legal and Policy Center.

These groups pretend to “protect” shareholder interests “against potentially unfulfillable Company ESG promises”; these can range from voluntary emissions reduction goals to anti-discrimination policies (including hiring and equal pay) to human rights obligations. Value Edge Advisors wrote a couple of months ago about one “horrifyingly bigoted” proposal the National Legal and Policy Center brought at Disney: it “purports to rely on anti-discrimination rules to promote discrimination against non-gender conforming and transitioning employees.”

Given their extensive ties to right wing networks like the State Policy Network, it would be worth asking, as the jurist Leo E. Strine, Jr. has urged, whether these Centers of anti-ESG activity and organizations like the American Petroleum Institute are violating the anti-trust laws that Republican lawmakers say they are committed to enforcing against groups bringing ESG proposals. For now, it’s up to shareholders to see through what Strine calls their Orwellian abuse of language, and vote with the board against them.

This particular proposal (page 111) focuses on “risks arising from voluntary carbon-reduction commitments.” The not-so-clever idea is to get Kraft-Heinz to abandon their 2050 Net Zero pledge and their commitment to halving greenhouse gas emissions by 2030. It’s made from the same cookie-cutter used for the Costco proposal I wrote about recently, citing the same bespoke climate-denial research from the Energy Policy Research Foundation as well as another report, “There is No Climate Emergency,” put out by an organization called Clintel. That organization has been exposed as a front for fossil-fuel interests, whose founders enjoy ties to the Heartland Institute and the Koch network; Clintel is “part of a broader disinformation campaign that for decades has peddled a series of arguments long discredited by the scientific community at large.” They deal in bad faith positions, from the patently ridiculous, like the idea that increased CO2 levels are “a good thing,” to the downright reckless, like the idea that addressing climate change will destabilize the economy.

These Trojan Horse proposals are recipes for bad governance and socially irresponsible corporate conduct. Fortunately, they have been losers. The only chance they have of gaining significant support is by fooling people with language that “makes the resolutions appear to support sustainability objectives,” as a report put out last year by the non-profit As You Sow has it. They typically target large cap companies, many of them household names; this year, the smallest company these reactionary groups are taking on is cereal giant Kellogg’s (or Kellanova), where they have a proposal almost identical to the one they’re bringing at Kraft Heinz, focused on voluntary carbon reduction commitments. They are obviously looking to score public victories at big companies with known brands; in the meantime, they are happy just to sow confusion. The last thing they want is for investors to be vigilant, informed, and active.

Here, for what it’s worth, are the proposals brought this proxy season by the National Legal and Policy Center and the National Center for Public Policy Research. I created this list from data available on Proxy Monitor. For those who don’t have their reading glasses on, or who want to have a closer look at the data, I posted a spreadsheet here.

Kohei Saito’s Troubled Account of the Markgenossenschaft in Slow Down: The Degrowth Manifesto

About halfway through Slow Down: The Degrowth Manifesto, Kohei Saito discusses the Markgenossenschaften or cooperative associations that characterized “Germanic tribal societies Tacitus wrote about during the reign of the Caesars in Rome.” He runs into trouble:

…[Karl Nikolaus] Fraas praises especially the Markgenossenschaft (“Mark-associations” [sic]) of ancient Germanic peoples for their sustainable farming practices. While these Germanic tribes are usually thought of as “barbarians,” from the point of view of sustainability, they seem to have been quite advanced. Markgenossenschaft is a broad term for the Germanic tribal societies Tacitus wrote about during the reign of the Caesars in Rome. This period saw a shift from tribal communities focused on hunting and military matters to sedentary agricultural communities.

These Germanic peoples owned land communally and had strong rules regulating production methods. It was unthinkable within the Markgenossenschaft to sell land to anyone outside the community. Other products like pork, timber, wine, and the like were also forbidden to be bought and sold outside the community.

This sort of strong communal regulation supported the renewal of the soil and enabled sustainable farming practices. It even brought about long term improvements in soil fertility. It was a very different arrangement from those of ancient civilizations that had weakened these sorts of communal bonds….

Marx’s strong interest in Fraas’s discussion of Markgenossenschaft can also be seen in his careful reading of the papers on these communities written by German legal historian Georg Ludwig von Maurer. It was Maurer’s work that formed the underpinning for Fraas’s work on Markgenossenschaft….

According to [Maurer], Markgenossenschaft involved not only communal landownership that allowed everyone to cultivate the land equally. Members of the commune also regularly exchanged plots of land to work, each allotment being decided by lottery. Maurer draws attention to how this allowed them to avoid a situation in which the most fertile land belonged to only part of the population, thus preventing unequal wealth distribution.

This arrangement provided a stark contrast to the landifundia [sic] of ancient Rome, vast estates presided over by nobles who managed them using slave labor. What Maurer, a conservative thinker, unearthed in his historical study was a form of egalitarianism practiced by the very same Germanic barbarians who struck fear in the hearts of even the socialists of Marx’s time. (pp. 110-12, emphasis mine)

Let’s dispense with the obvious. I don’t know how the Latin word “latifundia” became the barbarism “landifundia”: it might be Saito’s own mistake, or an error introduced by his translator; and while I don’t want to make too much of it, I’m surprised an editor didn’t flag it. Take it as a sign that the passage should have been reviewed more closely than it was.

The larger problem has to do with Saito’s uncritical acceptance of Fraas and Maurer’s reading of ancient sources, which are supposed to have shaped Marx’s own views on sustainability and ideas about degrowth. The picture of the past Marx took from these authors looks a little distorted. Nineteenth-century readers, and Fraas and Maurer are no exception, tended to take ancient “moralizing” descriptions of the Germani at face value, as J.B. Rives explains in his notes on Germania 26; they drew on “traditional accounts of nomadic peoples, in which the absence of regularly cultivated fields is a commonplace.” The archaeological record, on the other hand, shows “fields with fixed boundaries” – ditches, mostly – and “no indication that the Germani regularly changed their farmland in a semi-nomadic fashion, and little reason to think that it was not privately owned.”

That’s not the full extent of the trouble here. The ancient sources themselves present a number of other difficulties that Saito does not address, and that should, at the very least, warrant circumspection. The idea that the Germani “regularly exchanged plots of land to work” can be teased out of Tacitus, but it makes a hash of the Latin grammar; it’s more likely another rendering of the idea found in earlier writers that the Germani lead a semi-nomadic life, and that “different stretches of land are cultivated in turn” or “one after another” (that’s how Rives renders Tactius’ in vices).

The whole passage in the Germania seems to have been developed from these earlier sources, not direct observation or contemporary report. Tacitus, as Rives notes, was “not too careful” about squaring the stuff he’d lifted with the rest of his text.

As for Caesar, Rives calls his account of the Germani “highly tendentious” and even “ideological” (because describing the nomadic, warlike people beyond the Rhine served his claim that he had conquered all of Gaul); and Saito’s reading of the text (or the reading of Gallic War 6.22 he takes from Maurer) does nothing to check that. The supposed “egalitarianism” of the Markgenossenschaft, for example, is not exactly front and center in Caesar’s account. Tacitus writes that the lands of the Germani are apportioned “secundum dignationem,” according to honor or social rank; Caesar, that “the magistrates and the leading men each year apportion to the tribes and families, who have united together, as much land as, and in the place in which, they think proper, and the year after compel them to remove elsewhere (transire cogunt).”

This system of allotment and forced movement comes close to the coercive control by powerful leaders (or state power, “invasive state intervention”) that Saito deplores throughout his book. But Caesar pretty clearly understands its benefits. It is not to “avoid unequal wealth distribution” – as Saito puts it, or to promote “self-governance and mutual aid.” It is, instead, necessary to enforce moral discipline among the plebes and “keep the common people in a contented state of mind, when each sees his own means placed on an equality with [those of] the most powerful.”

So there are some serious discrepancies here. To be fair, Saito is not writing about these ancient texts or even ancient historical reality. He’s trying instead to trace the evolution of Marx’s thought after he completed Capital volume 1. Still, it strikes me as odd that Saito doesn’t concern himself with the question whether Marx’s “careful reading” of Fraas and Maurer reproduced their fantasies and flawed interpretations, or that Marx’s view of ancient communal life might itself be impaired by their misreadings. Shouldn’t it? Wouldn’t it help to explore things from this angle if the project is to understand Marx historically? Or would situating Marx firmly in the nineteenth century create difficulties for the argument here? What would it mean if these ancient Germanic tribes were not actually the models “of sustainability and steady-state economics from communal societies” that Marx took them to be and incorporated “into his revolutionary thought,” but a nineteenth-century idealization? Isn’t it worth trying to understand the roots and branches of views that are questionable or even downright wrongheaded?

To put it another way, what real bearing does all this have on Saito’s argument in Slow Down? First, Saito holds up these ancient Germanic people as one important model of “how precapitalist communal societies lived and worked while managing their land cooperatively.” (The indigenous people of the global south offer another model.) He argues that degrowth economics should learn from and emulate “the steady-state economy enforced by the traditions of precapitalist communal societies”; “the stability of a communal society detached from economic growth would foster a metabolic relationship between humans and nature that would be both sustainable and equal.” So we might be cutting pretty close to the bone here.

This brings me to a second point. For Saito, genossenschaften or cooperatives are an essential part of the economic remedy to our growth-driven climate crisis. (I can agree with him on this score; I just can’t follow the path he takes to get there.) But is it really an economic remedy he’s proposing? Sometimes, and sometimes it looks as if Saito wants to make another kind of argument: a moral argument. As I read Slow Down, I noted several places where this unmade, or not fully-fledged, moral argument began to surface. “The present crisis should be spurring us to reflect upon our behavior”; we have surrendered agency; “we must change our mode of living” (the word “must” keeps a steady beat throughout the book); “we must break ourselves out of our addiction to our present consumption practices and shift the emphasis of production to those things necessary for us to thrive while also practicing self-restraint.”

Could transitioning to degrowth economics help in this regard? Perhaps, but it’s not entirely clear how, or how Saito imagines the transition will be accomplished despite the addictions and excesses of our present mode of life. There’s plenty of loose talk about transitioning, overcoming, toppling, as one might expect, but I was still confused on this point by the book’s end. I guess it’s a long-term undertaking, and all we can do is make good faith efforts to build alternatives to the current failing system. At times, however, Saito almost seems to be demanding (“must”!) something else: some kind of moral revolution, a great awakening that would make future people conduct themselves with the moral rectitude and restraint of the ancient Germani, or at least the Germani of the nineteenth-century imagination.

The KLM Greenwashing Case Highlights the Problem with Green Growth

A Dutch court ruled on Wednesday of this week that KLM has been engaging in greenwashing. The airline painted “too rosy a picture” in advertisements of its reforestation program and of the measures it has taken to make air travel more sustainable. The decision gives the airline industry and other big polluters more “clarity” about the sorts of claims they can make when it comes to sustainability, a KLM spokesperson said. It should also prompt a broader and more honest conversation about the idea of green growth.

The court declared that the company’s “Fly Responsibly” campaign violated the EU’s Unfair Commercial Practices Directive. The steps KLM has actually taken to reduce emissions, the court writes, “only marginally reduce negative environmental aspects” of air travel, and its marketing and promotions “falsely create the impression that flying with KLM is sustainable.”

The ads that I’ve watched – you can find them on YouTube – make what the court calls “vague and general statements requiring environmental benefits,” and they do something else as well. They actively promote decoupling: namely, the idea that the airline industry can pursue growth while reducing emissions. “KLM,” the plaintiffs complain, “claims it is tackling climate change when in fact it is committed to aviation growth. None of the measures KLM is betting on outweigh that growth.”

The court accepts as fact that “business as usual,” which in this case translates to “growth in air traffic,” runs “completely contrary to the Paris target” of 1.5C. The proposed text of a rectification letter to KLM’s customers and of an almost identical statement to be published in Dutch newspapers takes up this point. It reads, in part:

KLM plans to keep growing. As long as we grow, our total CO2 emissions will increase. Our suggestion that our emissions will decrease and that flying can be done “sustainably” or “responsibly”, and [that flying KLM will help contribute to] a “more sustainable future” was false and misleading….

…we asked [customers to make] small financial contributions to reforestation projects or the cost of using small amounts of alternative fuels. We said this would “offset”, “reduce” or serve as “offsetting” the negative climate impact of flying. This is just not true. The payments do not contribute to achieving the climate target of the Paris Climate Agreement….our marketing campaign was incorrect and misleading. The only…way to meaningfully mitigate the effect of flying on the climate and contribute to achieving climate targets is by not flying. [emphasis mine, some fixes to clean up a messy machine translation.]

The plaintiffs, Dutch NGOs FossielVrij and Reclame Fossielvrij, hailed the decision as a landmark. It sends a clear message to airlines, according to attorney Johnny White: “we expect that this ruling will have significant implications for the kind of green claims that aviation as a highly polluting industry is allowed to make in Europe and also beyond.” Hiske Arts, a campaigner for Fossielvrij, goes even further, predicting that the effects of the ruling will be felt beyond the airline industry: “we finally have this very clear decision of the courts saying that it’s illegal for companies to claim they are tackling the climate crisis while in reality they are fueling the crisis.”

This is where things could get really interesting. The decision puts companies in every industry on notice about greenwashing and phony sustainability claims. It also might expose those claims for what they are: an unconscionable delay tactic at a time of crisis, or, at best, a failure to acknowledge that there are real limits to growth.

Leo Strine Takes On Climate Denying Demagogues

A column by Pilita Clark in today’s Financial Times called my attention to a new paper by jurist and corporate governance expert Leo E. Strine, Jr. : “Ignorance is Strength: Climate Change, Corporate Governance, Politics, and the English Language.” As you can probably guess from the title, Strine has been reading Orwell, and he’s struck by the Orwellian character of what he calls “the climate denying anti-ESG movement”:

In many ways, there could be no less ideological issue than human-caused climate change. No person on Earth has any rational or emotional reason to want carbon and methane-based products to cause warming or other harm. Any sane socialist, liberal, conservative, independent, reactionary, or anarchist would be happy if we could use these products to keep us warm or cool, depending on the season, to help us move by car, rail, or plane, or for myriad other valuable purposes without any harm. But wishes are not realities, and human-caused climate change is real and not reasonably deniable.

Not only that, human-caused climate change is an objectively undeniable economic, not just environmental and societal, problem and risks an enormous decline in economic output and tremendous downside harm to many industries. And, if anything, the response of the corporate and institutional investor sector to the risks of climate change has been too slow and too tepid, and the pace of climate change and its corresponding harm is outrunning efforts to constrain it.

One might think that the compelling implications of these objective realities would cause a concerted public-private effort, devoid of ideology or partisanship, to address the fact of human-caused climate change on something like a war footing. That might be thought particularly so within the ranks of business elites and investors, where rationality in the face of facts is expected of fiduciaries.

Instead, however, the so-called culture wars have fully penetrated the debate over climate change and corporate governance and in a distinctly “Orwellian” way—keeping in mind that Orwell was not himself Orwellian. Rather, the debate is Orwellian in the sense that it involves the manipulative use of language, the denial of objective fact, and the process of doublethink that Orwell warned were all inimical to freedom. [my emphasis]

Strine sees climate denial and anti-woke campaigns for what they are: “a conspiracy against empirical truth,” and a deeply cynical form of identity politics, or what I would call anti-politics:

For the political leaders engaging in the rhetoric of climate denial in the context of their larger attacks on ESG, there is no apparent policy end—no vision of the good—that they genuinely embrace and that the rhetoric is employed as means to accomplishing.

Instead, it cements a bond of distinctive identity between themselves—the Inner Party leaders—and the Party rank and file; the point is whether that rhetoric helps those who use it to secure power. And the poll data suggests that it does. In an increasingly polarized electoral system in which fewer elected officials run in competitive districts, climate change ignorance and attacks on woke capitalism are affects and symbols of tribal identity on the part of the Party faithful.

In this respect, climate denial—the rejection of empirical fact—marries with other tribal beliefs at odds with factual reality….

The point of their rhetoric is not to advance an idea of the good that is grounded in truths that the leaders themselves accept as a basis for their own behavior. It is to secure the power base of the Party leaders by shaping and manipulating the tribal identities of the Party faithful.  [my emphasis]

Strine suggests “one way to redress this threat to our society” toward the close of his paper: calling out the bad faith of the politicians who rail about “woke capital.”  It’s a modest proposal, maybe too modest, in my view, given how late the hour is; but citizens, journalists, investors, and responsible leaders in the private and the public sector up against these attacks on reality could do worse than follow Strine’s script:

Asking and insisting on principled answers—over and over again if necessary—to questions like these is urgent:

  • Just a few years ago, you admitted that human beings caused climate change. Why are you denying that now?
  • What is your scientific basis for denying that the emission of huge amounts of carbon and methane in the past 50 years is not causing the demonstrable increase in temperatures, storms, glacier meltage, and reef deaths?
  • If corporations breach their fiduciary duties by taking stands on political or social issues, how come you have accepted millions of dollars in contributions from them? Will you agree to stop accepting those contributions?
  • If the Net Zero Alliance is illegal under the antitrust laws, why are you not investigating the American Petroleum Institute?
  • If corporations must focus on profits, doesn’t an insurance company have to price climate risk in writing policies covering property that is at risk for damage because of climate change?
  • If institutional investors must be prudent in investing, don’t they have to take into account objective reality, such as the threat climate change poses to certain industries?
  • Do you accept the evidence that your own state has suffered greatly from increased storms and heat waves over the last two decades resulting from climate change? In fact, haven’t you sought federal assistance to pay your state to help deal with the resulting harm?
  • Why should federal tax payers subsidize your state if you continue to deny the reality of climate change and refuse to do your part?

One Less K-Street Firm Lobbying for Control of the Boundary Waters

To promote its Twin Metals copper and nickel mining project on the edge of the Boundary Waters, Chilean mining company Antofagasta contracted in October of 2021 with Baker Donelson, aka The Daschle Group. Now The Daschle Group has been let go; it filed a Termination Report on 1 March.

For the past three years, The Daschle Group was one of three firms lobbying for the Twin Metals mining project in the US House and Senate, and the only K-Street shop lobbying the federal government directly for Antofagasta Minerals S.A.. The two other firms on Antofagasta’s payroll, Wilmer Hale and Brownstein Hyatt, fly what in nautical circles would be called a flag of convenience and technically lobby for Twin Metals, the wholly-owned US subsidiary of Antofagasta.

In its first three quarters working for Antofagasta, The Daschle Group took in $180,000 in lobbying fees, and by the end of 2022 the Group reported lobbying income of $440,000 for this one project alone. But then things changed. For three of the last five quarters, the Group reported no lobbying activity for its Chilean client; in Q2 and Q4 2023, the Group lobbied on “mining opportunities in northeast Minnesota” but reported income of only $30,000 per quarter, not much more than it got as a retainer in those quarters when it reported doing no lobbying at all.

As anyone who has done any consulting knows, clients come and go, and the filing of the Termination Report may simply indicate that an ordinary business relationship had run its course. But there may be a little more to it than that.

The Daschle Group was brought on right around the time that the Biden administration announced it would complete the scientific study of the potential effects of sulfide mining in the Rainy River Watershed.

Everyone already had a pretty good idea what this study would find: mining in this area poses “an unacceptable risk.” (Those are the words of Tom Tidwell, former United States Forest Service Chief.) That is why, during the Trump years, mining proponents pressured Secretary of Agriculture Sonny Perdue to cancel the study (which he did, clumsily and abruptly) and keep its preliminary findings from Congress (which he also did, clumsily and shamefully). That is also why, after the 2020 election, the mining company needed friends in high places, like the House and the Senate, to intervene on its behalf and find some way around the science, or come up with a story about why, despite the science, this mining project serves the American public interest.

The Daschle Group’s work on this issue appears to have gone galloping out of the gate, reaching its high mark ($120K) in Q4 2021, only to stumble and never fully regain its footing. Maybe the battle it was brought on to fight, which sure looks like it had something to do with the resumption in October 2021 of the canceled scientific study, was decisively lost. These disclosure forms don’t offer much visibility into the client relationship or even the work that lobbyists do, so it’s impossible to say for certain.

Still, there are patterns to trace. A second, short surge of lobbying activity, in Q2-Q3 2022, came just after the Biden administration canceled the mineral leases that the Trump administration had unlawfully renewed, in late January of 2022. In March of 2022, despite having its mineral leases canceled and Mine Plan of Operations rejected, Twin Metals testified at the Senate Committee on Energy and Natural Resources Hearing On Domestic Critical Mineral Supply Chains. In the runup to the 2022 election, and right around the time Antofagasta sued the Biden administration over the cancellation of its mineral leases, Republicans like Pete Stauber vowed to “investigate” the administration’s actions. The Group could have had a hand in some of this activity.

But after this big 2022 push on the Hill and once the 118th Congress is seated, Brownstein Hyatt takes on most of the lobbying work for the Chilean company, and The Daschle Group gets benched.

Does this Termination Report indicate that Antofagasta might be pulling back on lobbying, and if so, why? Is the company rethinking its political project or shifting its lobbying strategy in the runup to the 2024 elections? Or do the income reports really just show that Brownstein Hyatt is doing a much better job of selling services than the other two firms? It’s not easy to untangle  these questions, let alone answer them. Q1 2024 lobbying disclosures, due next month, may offer a little more insight, and give us a better sense of how Antofagasta now views its North American prospects.