A Voice for Change? A Network Analysis of Equity Ownership in Canada’s Fossil Fuel Industry

Abstract

Financial actors may exert considerable influence over the governance of fossil fuel corporations, which bolster or impede steps towards climate action. However, the influence of financial actors on climate instability remains to be examined. This network analysis of equity ownership uncovers the structure of control of financiers in Canada’s fossil fuel industry and examines how sensitive the industry is to major stockholders. The results infer that ownership and influence are concentrated among a small subset of predominantly foreign and corporate equity owners. Moreover, the collective influence of just 14 major stockholders is significant. Finally, high debt loads of fixed assets make fossil fuel companies particularly sensitive to their shareholders. The results infer that these major stockholders will be unlikely to use their voice to curtail carbon emissions. Thus, this study not only allows us to identify key financial actors but map their influence over the economic activities directly associated with climate stability. The paper contributes to theory and practice, bridging the literature on corporate governance, equity ownership, and climate stability.