Impact Investing is steering capital away from critical U.S. industries, limiting access to capital for companies that support U.S. energy independence, second amendment rights and basic American values. Every week a new endowment, bank or fund announces a new Impact Investing strategy that further limits capital flows to essential industries. Freedom Capital seeks to reverse that trend by profitably investing in critical industries that support America’s prosperity, security and freedom.
by Jeff McClure, Freedom Capital CEO, April 4, 2016
Last week the Rockefeller Family Fund, controlled by descendants of John D. Rockefeller, sold its Exxon Mobil
Corp. stock and announced it will dump all other fossil‐fuel investments in the latest move against the
industry that made their fortune.
The Fund, in its press release stated that, “There is no sane rationale for companies to continue to explore for
new sources of hydrocarbons. The science and intent enunciated by the Paris agreement cannot be more
clear: far from finding additional sources of fossil fuels, we must keep most of the already discovered
reserves in the ground…” They called their decision an “ethical” one and derided the “morally reprehensible
conduct on the part of ExxonMobil.”
Fossil fuels may not be perfect, but they have gone a long way toward raising the standard of living for
billions of people globally, minimizing the need for manual labor, enabling people who would otherwise fulfil
jobs now done by fossil fuel powered machines to become educated, productive members of society. The
energy revolution now occurring in the United States is revitalizing numerous economically hard hit areas of
the country and is helping to secure our future by making us independent from foreign oil.
At first glance, the Rockefeller’s divestment announcement might seem to be little more than a society page
footnote or another feel good move by a left leaning management team. But a deeper look reveals that their
move has serious implications for the entire capital market. Their press release lauds the “Socially
Responsible Investment” movement to which they align themselves. Socially Responsible Investment funds
constitute $6.57 trillion or one in every six professionally managed dollars in the U.S., making it the fastest
growing sector of the financial marketplace. The sector grew by 76% in the past two years.
That much capital creates an impact. If Exxon’s cost of capital is driven up by left‐leaning, non‐economically
driven divestment movements, they’ll drill fewer wells, invest less in exploration and pump less fuel, raising
its cost, damaging our economy and impacting the poor disproportionately.
If the Rockefellers want to villainize the industry in which they made their vast fortune, contributing to higher
energy costs for the rest of us, particularly harming the poor, shouldn’t they willingly forfeit the profits their
forefather earned on it? Shouldn’t they at least be forced to consider the ethical implications of their socalled
socially responsible action? And shouldn’t there be a clear alternative in the marketplace for those
who see the world differently and actually want to support a more prosperous, secure, energy‐independent