Pollution's Corporate Culprits: Who's Responsible For Environmental Damage?

Corporations play a significant role in contributing to pollution and climate change. A 2015 Carbon Tracker study found that fossil fuel companies risked wasting over $2 trillion in the following decade by pursuing environmentally detrimental projects. Notably, a small number of companies are responsible for a disproportionately large amount of pollution. For instance, a 2018 report by CDP (formerly the Carbon Disclosure Project) revealed that just 100 companies, primarily fossil fuel producers, were responsible for 71% of global greenhouse gas emissions from 1988 to 2015. This includes emissions from both the production and subsequent use of the fossil fuels they sold. Furthermore, Coca-Cola and Pepsi are among 20 corporations responsible for the most ocean pollution, with plastic pollution being a significant issue.

Fossil fuel combustion

In 2022, fossil fuel combustion accounted for about 74% of total US anthropogenic greenhouse gas emissions. The transportation sector, which relies heavily on petroleum-based fuels, is the largest source of direct greenhouse gas emissions. Commercial, industrial, and residential sectors also contribute significantly through the combustion of fossil fuels for energy, heat, and refrigeration.

The role of corporations in fossil fuel combustion is significant. A 2017 report revealed that just 100 companies were responsible for 71% of global emissions between 1988 and 2015. ExxonMobil, Chevron, Shell, and BP are among the highest-emitting investor-owned companies. These companies have faced criticism for their environmental records and advertising practices, with BP, for example, spending millions on a campaign promoting its low-carbon energy initiatives while maintaining a primary focus on oil and gas.

The continued extraction of fossil fuels at the current rate is projected to have catastrophic consequences, with global average temperatures expected to rise by up to 4°C by the end of the century. This would result in substantial species extinction and global food scarcity risks. While corporations have a crucial role in driving climate change, there is a tension between short-term profitability and the urgent need to reduce emissions. Nevertheless, there is a growing wave of companies supporting the transition to a carbon-free economy, with many committing to 100% renewable power.

Greenhouse gas emissions

Corporations play a significant role in greenhouse gas emissions. According to various reports, including the Carbon Majors Database and the Carbon Disclosure Project (CDP), just 100 companies have been responsible for 71% of global greenhouse gas emissions since 1988. This includes fossil fuel producers such as ExxonMobil, Shell, BP, and Chevron, as well as state-owned entities. The fashion industry is also a significant contributor, being the second-biggest industrial polluter, responsible for 10% of global emissions.

Some corporations have been criticized for their lack of action on climate change, prioritizing profits instead. For instance, Exxon, a multinational gas and oil company, was aware of climate change for decades but blocked measures to reduce emissions. Many corporations set greenhouse gas reduction targets, but these often exclude emissions associated with the entire life cycle of their products, including raw material extraction and disposal.

However, there is a growing trend of corporations supporting the transition to a carbon-free economy. Companies like Apple, Facebook, Google, and Ikea are leading the way by committing to obtaining 100% renewable energy. Additionally, oil and gas companies are making green investments, with Shell investing $1.7 billion in renewables and Chevron and BP investing in carbon capture and storage projects. While these efforts are encouraging, critics argue that the pace of change and the sums involved are insufficient to address climate change adequately.

Ocean pollution

Oceans cover about 70% of the Earth's surface and are vital for the planet's health. They act as a thermostat, transferring heat from the tropics to higher latitudes and absorbing carbon dioxide. However, human industrial and consumption activity is adversely impacting the oceans and their complex ecosystems.

One of the biggest sources of ocean pollution is nonpoint source pollution, which occurs due to runoff from various sources like septic tanks, vehicles, farms, and forest areas. This type of pollution can make water unsafe for humans and wildlife, leading to beach closures and affecting shellfish-growing waters. Each year, millions of dollars are spent to address and control nonpoint source pollution.

Corporations play a significant role in ocean pollution, particularly in the plastic pollution crisis. A cleanup project by Greenpeace and the Break Free From Plastic movement identified hundreds of multinational brands contributing to plastic pollution, with Coca-Cola and Pepsi highlighted as being among the top 20 corporate polluters. Fast fashion brands are also criticized for creating environmental and social harm through unsustainable practices.

Additionally, agrochemical companies like Bayer, Syngenta, and ChemChina contribute to ocean pollution through the production of pesticides, herbicides, and fertilizers, which pollute oceans through rainwater runoff into rivers. The meat and dairy industry is another major contributor, with companies emitting large amounts of greenhouse gases, which increase ocean acidity and harm marine life.

Fossil fuel companies are also responsible for a significant portion of ocean pollution. A study found that just 25 corporate and state-owned entities were responsible for over half of global industrial emissions since 1988, with ExxonMobil, Shell, BP, and Chevron among the highest emitters. The burning of fossil fuels releases greenhouse gases, leading to ocean acidification and disruption of marine ecosystems.

Addressing ocean pollution requires systemic change and corporate accountability. While individual actions like reducing plastic consumption and cleanup efforts are important, corporations must also provide more sustainable choices and address their contributions to this global crisis.

Industrial emissions

The CDP study reveals that 25 state-owned entities or corporate entities are responsible for over 50% of global industrial emissions since 1988, the year the Intergovernmental Panel on Climate Change (IPCC) was established. ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies during this period. The continued extraction of fossil fuels at the current rate is projected to have catastrophic consequences, including substantial species extinction and global food scarcity risks.

Industrial activities, particularly the burning of fossil fuels for energy, are a significant source of direct industrial emissions. In 2022, 60% of electricity was generated by burning fossil fuels, mainly coal and natural gas. Additionally, certain chemical reactions necessary for producing goods from raw materials contribute to industrial emissions. When indirect emissions from electricity use are considered, industrial activities account for an even larger share of greenhouse gas emissions.

A study by Leuz and colleagues analysed the carbon emissions of 14,879 publicly owned companies and compared them to company revenues and profits. The study estimated that the "corporate carbon damages" from these companies could run into the trillions of dollars globally, based on the proposed cost of carbon dioxide pollution by the US government. The utility, energy, transportation, and materials manufacturing industries were found to have average damages exceeding their profits.

While corporations play a significant role in industrial emissions, it is important to note that consumer choices and behaviours also contribute to the emissions attributed to these companies. Scope 3 emissions, resulting from the downstream combustion of fossil fuels, account for 90% of total company emissions. Therefore, individual actions and choices, such as consuming less or transitioning to renewable energy sources, can also have a substantial impact on reducing industrial emissions.

Commercial and residential emissions

Commercial and residential sector emissions have increased substantially over the years, with buildings using 75% of the electricity generated in the US. This includes electricity for heating, ventilation, air conditioning, lighting, appliances, and plug loads. In 2022, the residential and commercial sectors accounted for 31% of emissions, or 6,343 million metric tons of CO₂ equivalent.

Direct emissions from the commercial and residential sectors accounted for 13% of total US greenhouse gas emissions in 2022. These emissions come from fossil fuel combustion for heating and cooking, waste and wastewater management, and leaks from refrigerants in homes and businesses. In 2022, emissions from natural gas consumption represented 78% of direct fossil fuel CO2 emissions from these sectors.

The commercial and residential sectors also produce indirect emissions from the use of electricity. When these indirect emissions are included, the sectors' contribution to total US greenhouse gas emissions increases significantly. In 2015, indirect CO2 emissions from the use of electricity generated off-site resulted in residential and commercial buildings generating 29% of total US emissions.

Improvements in energy efficiency have led to emissions reductions in both the residential and commercial sectors. However, the increased use of appliances and electronics is expected to result in a net increase in greenhouse gas emissions by 2050. To mitigate this, there are opportunities to reduce emissions from buildings by increasing electrification and improving energy efficiency, including through the use of "intelligent efficiency" technologies.

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