Fossil fuel companies use philanthropy to 'stifle community opposition': Environmental Defence Canada
Why It Matters
Fossil fuel companies have been using sponsorship, funding and donations to become increasingly embedded in communities. By providing critical infrastructure, companies are strategically able to avoid being held accountable by the communities they serve, according to the charity.
Canadian oil and gas companies are using philanthropic funding to direct money towards community infrastructure, programs and organizations, and as a result, “buying community consent.”
“They may fund community projects, municipal work, raise money for charities or good causes, and generally participate in community activities,” according to the charity Environmental Defence Canada.
“This is essentially buying their way into communities’ good graces, not unlike bribery,” the organization wrote. “Creating the impression that an oil company is a positive contributor to the community can stifle community opposition to the company or the industry writ large.”
This is one of several strategies that the fossil fuel industry uses to reduce accountability and protect its financial interests, the charity said. Environmental Defence Canada is publishing research on the strategies employed by “Big Oil” to continue its extractive practices.
While tactics like greenwashing, advertising and government lobbying are well-known, there are additional strategies that the industry uses to promote the continued, uninterrupted use of fossil fuels.
Environmental Defence Canada also found that fossil fuel companies make strategic investments in school curricula, such as sponsoring field trips, striking partnerships with governments, or providing funding and program support to schools and non-profits.
The philanthropy tactic works in tandem with other strategies, said Emilia Belliveau, program manager, energy transition at Environmental Defence Canada. Oil and gas companies have also been known to fund influencer campaigns, launch their own net-zero initiatives, and frame fossil fuels as a point of national or regional pride, according to the charity.
Environmental Defence Canada has also identified 28 groups funded by the industry that have set up grassroots advocacy campaigns, called ‘astro-turf’ groups.
According to the organization, many fossil fuel companies aim to establish a “social license” with communities, persuading them that oil and gas are essential for the Canadian economy.
“This is a strategic choice by the companies because they know that it is a worthwhile investment for them to reduce the criticism they receive and to create a sense of dependence on their company,” Belliveau said.
Oil money gifted to universities, fire departments, and climate resilience groups
There are several examples of this relationship between the fossil fuel industry and non-profits and community groups.
As a former student at Dalhousie University in Nova Scotia, Belliveau recalled the university’s decision to accept a large donation from Shell.
Environmental Defence Canada also pointed towards examples of fossil fuel companies providing funding for climate action projects and fire rescue departments.
“What’s important to remember in this case is that they are doing this type of sponsorship and they are creating a positive news story and community reputation out of it,” Belliveau said.
“But the reason why the services are needed in the first place, or the specific types of equipment, or the increase in the need for those services, is, in large part, because of the existence of the industry there.”
Companies can withdraw their funding: Environmental Defence Canada gives the example of the Suncor Energy Foundation cancelling a six-figure funding commitment to an Alberta climate resilience charity earlier this year. The withdrawal of funding had implications for the charity’s work with Indigenous communities, as well as other projects.
When the organization posted about this issue on social media, Suncor Energy Foundation’s lawyers warned them that they were “flying too close to the sun.”
Future of Good reached out to Shell and Suncor via email. Neither responded by publication time. Future of Good has also been a recipient of operating funding through Suncor’s charitable arm, the Suncor Energy Foundation, in the past.
Belliveau recognizes that underfunded organizations, charities and arts and culture spaces often turn to private companies for funding, donations and sponsorship.
“I do think it’s worthwhile for organizations to be discerning about where they get their funding, and understand that this is a strategy the industry is using. But I don’t think the emphasis should be on those who are strapped for cash and just need to get resources.”
Tell us this made you smarter | Contact us | Report error
