Foundation News

By Dan Chu, Executive Director, Sierra Club Foundation

For centuries, what is now known as the Arctic National Wildlife Refuge existed harmoniously as Indigenous peoples stewarded the lands of Northeastern Alaska alongside roaring rivers, steep mountainous slopes, and abundant flora and fauna. And since 1960, when this region was federally protected by the Department of the Interior, the Sierra Club and Sierra Club Foundation have steadfastly defended the region from natural resource extraction and oil development.

Until 2017, this sacred and majestic region of our nation existed as one of the last great places not drilled or mined by industry. Fossil fuel interests (notably, the Alaska delegation) for decades endeavored to pass legislation opening up the Arctic Refuge to drilling, but a strong coalition maintained opposition and blocked these attempts. Tragically, right before the end of 2017 a rider was slipped into the massive GOP tax overhaul bill opening up the refuge oil development.

With 1.5 million acres of the Arctic Refuge now under direct threat of irreversible damage, we knew we had to act. Unfortunately, with the bill already signed the Sierra Club’s traditional strengths of political organizing and lobbying didn’t offer much promise of success. The Foundation, however, could use its own strengths as a grantmaking and investments organization to defend the Refuge at this critical time.

In response to this threat, the Gwich'in Steering Committee inked a letter to banks who might finance drilling and to oil companies highlighting the reputational risk of damaging the refuge. Over 100 organizations co-signed, including the Sierra Club Foundation. On top of this, the Foundation coordinated an additional letter denoting the financial risks of such an endeavor. This investor letter was signed by stakeholders representing over 2.5 trillion dollars in assets under management, a powerful signal to companies that supporting any oil development in the Arctic Refuge would be a poor business decision.

These strategies have proven effective. In the ensuing months, we have met with leaders of more than a dozen major banks. I am hopeful that this strategy of financial advocacy, in tandem with the leadership of the Gwich’in Steering Committee, can ensure that no financing is available to pursue oil drilling in remote coastal plains.

Just a few days ago, the largest earthquake ever struck the Arctic Refuge and again highlighted the risks of drilling in such a fragile and volatile ecosystem. As we continue to face the worst attacks in memory on our environment from the current president, I know we must band together in solidarity to stop these threats. My hope is that a renewed coalition of organizations, from tribal governments to environmental nonprofits to socially conscious banks and investors, can permanently protect the Arctic Refuge for centuries to come.