Who Pollutes The Most? Corporations Under The Microscope

Corporations are the biggest contributors to global pollution. The top 20 most polluting companies in the world are all in the fossil fuel industry and contribute 35% of all carbon dioxide worldwide. A recent study revealed that the five most significant oil and gas companies spent $200 million lobbying to delay, control, or block policies addressing climate change. According to the Carbon Majors Database, 100 companies are responsible for 71% of global GHG emissions that cause global warming. Chevron, Exxon, BP, and Shell are among the highest emitting investor-owned companies. These companies have contributed to the climate emergency and have collectively delayed national and global action for decades.

The 20 most polluting companies

Corporations are indeed among the biggest polluters. A 2021 report by The Carbon Disclosure Project (CDP) revealed that 100 companies were responsible for 71% of global GHG emissions since 1998. Over half of the world's industrial emissions since 1988 can be traced back to just 25 state companies and entities.

According to a 2019 report by The Guardian, the top 20 polluting companies contributed to a third of all carbon emissions. These companies have contributed 480 billion tonnes of carbon dioxide equivalent since 1965. The leading state-owned polluter, Saudi Aramco, has produced 4.38% of all carbon dioxide and methane since 1965. Chevron, Exxon, BP, and Shell are also among the top investor-owned polluters.

• Saudi Aramco
• Chevron
• Exxon
• BP
• Shell
• PetroChina
• China National Petroleum
• Other companies that did not reply to The Guardian's request for comment

While these companies have a huge role to play in driving climate change, there is a growing wave of companies acting in the opposite manner. Nearly 100 companies, including Apple, Facebook, Google, and Ikea, have committed to 100% renewable power under the RE100 initiative. Volvo has also announced that all its cars will be electric or hybrid from 2019.

Fossil fuel companies and climate change

Fossil fuels are formed from the decomposition of carbon-based organisms that died millions of years ago. They are extracted and burned for energy, and they currently supply around 80% of the world's energy. The three types of fossil fuels are coal, oil, and gas. When burned, fossil fuels produce carbon dioxide (CO2), which is a greenhouse gas that traps heat in the atmosphere, causing global warming.

The fossil fuel industry has been identified as the dominant cause of global warming and climate change. The Intergovernmental Panel on Climate Change (IPCC) found that in 2018, 89% of global CO2 emissions came from fossil fuels and industry. Fossil fuel companies have been aware of the devastating impacts of their products on the climate for more than 50 years, yet they have continued to expand their operations, driven by billion-dollar profits.

A study by the Climate Accountability Institute revealed that just 20 fossil fuel companies are responsible for a third of all carbon emissions. These companies have contributed 480 billion tonnes of carbon dioxide equivalent since 1965. Chevron, Exxon, BP, and Shell are among the highest-emitting investor-owned companies, with the top four businesses contributing to more than 10% of the world's carbon emissions. ExxonMobil, in particular, has faced heavy criticism for its environmental record and has been accused of spreading disinformation and engaging in deceptive practices.

Despite the urgent need to address climate change, fossil fuel companies have often obstructed efforts to transition to cleaner energy sources. They have influenced politicians and regulators, spread disinformation, and delayed or blocked policies addressing climate change. However, there is a growing movement of companies committing to renewable energy, and some fossil fuel companies are starting to invest in green initiatives. While these efforts are encouraging, more significant changes are needed to address the climate emergency.

Investor backlash against polluters

The 20 most polluting companies in the world are all in the fossil fuel industry, contributing 35% of all carbon dioxide emissions worldwide. These companies have been identified as substantially responsible for the climate emergency and have delayed national and global action for decades.

Despite their profitability, there has been some investor backlash against these polluters. Some significant investment funds have stated they will no longer support funds that include these "dirty firms". A study revealed that the five most significant oil and gas companies spent $200 million lobbying to delay, control or block policies addressing climate change. This has led to a growing wave of companies acting in the opposite manner, with nearly 100 companies, including Apple, Facebook, Google and Ikea, committing to 100% renewable power.

Climate litigation poses a financial risk to fossil fuel companies, as research has shown that the stock market reacts negatively to news of a climate lawsuit or a court decision against a company. This has encouraged lenders, financial regulators and governments to consider the effect of climate litigation when making investment decisions.

The number of companies pledging to hit net-zero emissions by 2050 has increased in recent years, but these long-term aspirations are not supported by shorter-term plans. Investor pressure groups, such as Climate Action 100+'s (CA100+), are pushing for more immediate action and greater transparency from companies. CA100+ members manage a combined $68 trillion in assets and aim to use their financial weight to get big polluters to cut their emissions and disclose more details about their efforts.

The future of the oil industry is uncertain, and investors must decide whether to continue investing in fossil fuels or move towards clean energy.

Oil, gas, and coal executives

A 2019 analysis by Richard Heede of the Climate Accountability Institute revealed that just 20 fossil fuel companies, including investor-owned corporations like Chevron, Exxon, BP, and Shell, are responsible for more than a third of all carbon emissions since 1965. This equates to about 480 billion tonnes of carbon dioxide equivalent. These companies have been accused of perpetuating the carbon era and accelerating the climate crisis, despite knowing the environmental impact of their actions.

The oil and gas industry, in particular, has come under scrutiny for its contribution to climate change. With global emissions rising by around 2% in 2017, the industry's role in exploring, producing, refining, and distributing fossil fuels has been heavily criticized. While some oil and gas companies have started to invest in renewable initiatives and carbon capture technologies, there are concerns that these efforts are not enough to offset their emissions.

Additionally, oil, gas, and coal executives have been accused of derailing progress and offering empty platitudes instead of utilizing their vast capital and technical expertise to transition to a low-carbon future. There have been calls for investors to divest from fossil fuel companies and for governments to implement policies that address the climate crisis. Groups like Just Stop Oil (JSO) and the Citizen's Arrest Network (CAN) have employed disruptive protests and legal tactics to bring attention to the issue and hold these companies accountable.

While the coal industry is facing an irreversible decline due to intrinsic cost issues, oil and gas continue to dominate the energy landscape. However, there is a growing wave of companies committing to renewable energy initiatives, and the world is gradually moving away from fossil fuels towards clean energy. As a result, investors in fossil fuel companies may find their investments becoming riskier over time.

The future of the oil industry

The oil industry is facing a critical juncture, with mounting concerns around climate change and the transition to cleaner energy sources. While fossil fuels continue to dominate the global energy mix, there is a growing recognition that the shift towards clean energy is irreversible. This has significant implications for the future of the oil industry, which is facing increasing investor pressure and changing social attitudes. As a result, the industry is being forced to transform how it operates and create long-term value, with a focus on reducing greenhouse gas emissions and aligning with global climate goals.

To adapt to this changing landscape, the oil industry is investing in low-carbon technology projects and exploring new business models. Some companies within the industry are also setting ambitious emissions reduction targets and prioritizing the lowest carbon barrels to lower their carbon footprint. Additionally, the industry is well-positioned to scale up crucial technologies for clean energy transitions, such as hydrogen, carbon capture, offshore wind, and liquid biofuels. However, this will require a significant shift in how financial resources are allocated.

Overall, the future of the oil industry is characterized by uncertainty and change. While the industry is expected to remain integral to the global economy, it will need to adapt to declining market share and address the environmental concerns associated with its operations. By investing in clean energy projects and reducing emissions, the industry can play a role in the transition to a low-carbon future while also creating long-term value.

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