Goldman Sachs will no longer fund drilling in Arctic refuge sacred to First Nations

In the wake of a U.S. banking giant's announcement that it will no longer invest in new oil projects in the Arctic National Wildlife Refuge, Gwich'in leaders are heading to Bay Streetto push some of Canada's biggest banks to do the same.

Investment firm Goldman Sachs released an updated environmental policy framework this week. In it, the company says it will "decline any financing transaction that directly supports new upstream Arctic oil exploration or development," including but not limited to new work in the Alaskan refuge.

It's the latest win for Gwich'in leaderswho have been lobbying banks to refuse to fund development in the refuge.

Supporters of drilling say it would be an economic boon in the region, but the Gwich'in and other critics notethe refuge, which is a winter home for polar bears, is also sacred calving ground for the Arctic Indigenous group's traditional food source: caribou.

"For them to really understand the importance of this makes my heart very humble and grateful," said Gwich'in Steering Committee Executive Director Bernadette Demientieff.

May also be financially motivated

Goldman Sachs's decision not to fund drilling in the refugefollows other international banks, including Barclays and the Royal Bank of Scotland, which have said they won't fund exploration projects in the region.

In explaining its decision, Goldman Sachs acknowledgedIndigenous people have used the land for centuries but the decisionmay also be financially motivated.

"Oil development in the Arctic Circle is prone to harsh operating conditions, sea ice, permafrost coverageand potential impacts to critical natural habitats for endangered species," the firm notes in its framework.

Demientieff said Gwich'in leaders have been talking with the bank for two years to get this result.

"We do not have the ability to give up ... This is our way of life," she said.

Scotiabank, TD, RBC, CIBC

Gwich'in leaders are now taking the fight north of the border.

CBC reached Vuntut Gwitchin First Nation Councillor Cheryl Charlie as she was boarding a flight to Toronto, where she plans tomeet representatives from Scotiabank, Toronto-Dominion, Royal Bank of Canada and CIBC to ask them to follow the U.S. company's lead.

A representativefrom the Gwich'in Tribal Council also planson attending the meetings.

"The Goldman Sachs announcement is a step in the right direction," she said. "Hopefully this week we can build on that."

A representative from RBC confirmed the bank is meeting with the Vuntut Gwitchin First Nation and said they "regularly meet with a broad range of stakeholders to understand their perspective." CIBC also confirmed it had met with the group.

Scotiabank declined to comment for this article.TD did not immediately respond to requests for comment.

On a recent episode of Goldman Sachs' corporate podcast, Exchanges, John Goldstein,head of the company's sustainable finance group,said that taking environmental issues into accountcan make investments less riskyand improve one's odds of making money.

"The business case is fundamentally better than it's ever been," he said.

The company saidits decision will also apply to "upstream" oil exploration elsewhere in the Arctic, and that any transactions relating to Arctic oil that it does fund will be subject to "enhanced due diligence."

Banks pull out, politicos weigh in

Bankshave been pulling out even as U.S. President Donald Trump and Senate Republicans clearthepolitical path to drilling in the region.

A 2017 tax cut approved by the then Republican-controlled Congress created a plan to allow oil leases in the area.

Vuntut Gwitchin First Nation Councillor Cheryl Charlie saidGwich'in people will continue to use everytool possible to stop drilling in the refuge.

"Talking to financial institutions in Canada isone strategy that we have Talking to governments is another strategy," she said.

"Altogether, it demonstrates the level of effort and commitment that the Vuntut Gwich'in is going to go in order to protect our way of life."