Startup Backed by Billionaire Investors on Crusade Against Climate Investing, ‘Stakeholder Capitalism’

By Emel Akan, July 9, 2022

A few years ago, it would have been hard to imagine an activist hedge fund gaining three board seats at America’s largest oil and gas company. A fledgling fund, Engine No. 1, with just 0.02 percent ownership in ExxonMobil, voted out three board members at the oil giant in 2021, scoring a victory for the climate change movement.

The fund had backing from “big three” institutional investment firms BlackRock, Vanguard, and State Street.

Exxon wasn’t the only target of shareholder activism. The world’s largest oil producers, such as Shell, Chevron, and BP, have all faced shareholder revolts from activist investors who urged them to address climate change.

However, the actions of these investors have crippled U.S. oil and gas production, contributing to the current energy crisis, according to Vivek Ramaswamy and Anson Frericks, co-founders of Strive, an Ohio-based asset management firm.

Launched in May, Strive says it wants to replace the voices of large investment firms in theU.S. economy with those of everyday citizens. The founders claim that large fund managers breach their fiduciary duties by placing too much emphasis on climate change and“stakeholder capitalism” rather than higher returns.

Among Strive’s notable backers are billionaire investors Bill Ackman and Peter Thiel.

Read the full The Epoch Times article here.