Rockefellers pull money away from fossil fuels

HE WAS once the world’s richest man thanks to his vast fortunes made in oil. Now his descendants are turning their backs on the industry that made them wealthy.

Standard Oil Company founder John D Rockefeller Snr (Senior) in New York in 1894 photo. F/L Historical

THE Rockefellers, the first family of oil, are divesting from fossil fuels in a fresh boost for the fight against climate change ahead of a UN summit.

Britain also pledged new aid to tackle deforestation, a key contributor to climate change, a day after tens of thousands marched around the world to urge world leaders to do more to address the environmental crisis.

In an announcement timed a day ahead of the climate summit, an alliance of private institutions, individuals and local governments with a total of more than $US50 billion ($A54.1 billion) of assets announced in New York that they were divesting from fossil fuels.

Among them was the Rockefeller Brothers Fund, an $US840 million endowment run by John D. Rockefeller’s descendants, which said it would reduce exposure to fossil fuels as much as possible and end all investments in coal and tar sands — two of the dirtiest forms of energy — by the end of the year.

John D. Rockefeller was once the world’s wealthiest person as the founder of Standard Oil — whose descendant, ExxonMobil, is a frequent foe of climate initiatives.

“We can no longer continue feeding our addiction to fossil fuels as if there is no tomorrow, for there will be no tomorrow,” South Africa’s anti-apartheid icon Desmond Tutu said as he welcomed the announcement in a video message.

While the divestment is small compared with the vast size of the fossil fuel industry, campaigners hailed the announcement, which came a day before world leaders including US President Barack Obama hold a summit on climate change at the UN.

“Climate change is the defining issue of our time. Now is the time for action,” UN Secretary-General Ban Ki-moon told a conference with business leaders.

Apple chief Tim Cook, days after launching the iPhone 6, travelled to New York to pledge that the tech giant would prioritise low-carbon growth.

“We have to look at ourselves and ask ourselves — are we going to be the first generation that leaves the next one worse off?” Cook said.