Helena Joyce
The world is currently facing one of the biggest threats to its existence in the form of climate change. While consumers are often encouraged to buy 'greener' products, the main culprit of fossil fuel emissions and climate change is corporations. According to a report by The Carbon Majors Database, just 100 companies have been responsible for 71% of global greenhouse gas emissions since 1988, with 25 state-owned entities contributing to over 50% of global industrial emissions. ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies. The fashion industry is another major contributor to climate change, being the second-biggest industrial polluter and responsible for 10% of global emissions.
| Characteristics | Values |
|---|---|
| Number of companies responsible for most GHG emissions | 57 since 2016, 100 since 1988 |
| Percentage of GHG emissions caused by these companies | 80% since 2016, 71% since 1988 |
| Number of companies responsible for over 50% of global industrial emissions | 25 |
| Industries with the most GHG emissions | Fossil fuels, fashion, transport |
| Companies with the most emissions | ExxonMobil, Shell, BP, Chevron, TotalEnergies |
What You'll Learn
Fossil fuel emissions
Fossil fuels are the most polluting sector in the world. A small number of fossil fuel producers and their investors are responsible for a significant proportion of global emissions. According to a 2017 Carbon Majors Report by the Carbon Disclosure Project (CDP), just 100 companies have been the source of 71% of global GHG emissions since 1988. ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies since 1988. The report also reveals that 32% of emissions come from public investor-owned companies.
The Carbon Majors Report highlights the role of companies and investors in tackling climate change. It aims to improve transparency among fossil fuel producers and help investors understand the emissions associated with their fossil fuel holdings. The report found that fossil fuel companies risked wasting trillions of dollars by pursuing coal, oil, and gas projects that could become worthless due to international action on climate change and the advancement of renewable energy sources. This poses substantial threats to investor returns, as noted by CDP's technical director, Pedro Faria.
The 2021 Guardian investigation, in collaboration with leading scientists and NGOs, exposed the fossil fuel companies perpetuating the climate crisis. The analysis, undertaken by Richard Heede at the Climate Accountability Institute, calculated the carbon emissions throughout the supply chain, from extraction to consumer use. The investigation revealed that 20 fossil fuel companies are responsible for more than one-third of all greenhouse gas emissions in the modern era. These companies have continued to expand their operations despite being aware of the devastating impact of their industry on the planet.
The latest Carbon Majors Report in 2025 revealed that more than half of all fossil fuel carbon emissions in 2023 came from just 36 companies, including Saudi Aramco, Shell, ExxonMobil, Coal India, and several Chinese companies. These firms were tied to over 20 billion tonnes of CO2 emissions. The report also included historical data from 1854 to 2023, showing that since the Industrial Revolution, two-thirds of carbon emissions could be attributed to 180 companies, with 11 of those no longer in existence.
Electricity Waste: Pollution's Unseen Impact
You may want to see also
Fashion industry emissions
The fashion industry is one of the most polluting industries in the world. It is responsible for 2-8% of annual global carbon emissions, with clothing accounting for a fifth of the world's 300 million tons of plastic pollution annually. If current trends continue, the industry's greenhouse gas emissions are projected to increase by over 50% by 2030, and it could account for 26% of global carbon emissions by 2050.
The garment industry's carbon-intensive legacy begins with the production of fibers and dyes and ends with the thousands of years it takes for these garments to degrade. Producing polyester, the world's most widely used clothing fiber, and other synthetics require 1.3 billion barrels of oil annually. When washed, these garments release microplastics into the water, contributing to the enormous plastic stream that ends up in the sea.
The fast fashion business model, emphasizing rapid and large-scale production to keep up with trends, is a significant contributor to emissions. The constant need for new garments significantly increases the industry's environmental footprint. Consumers frequently buy and discard wearable clothes as new trends emerge, and the cycle of buying and discarding increases carbon emissions.
Fabric production and manufacturing processes are major emission sources. The clothing industry uses over 60% of textiles, with production often taking place in developing countries, increasing carbon emissions during production and transportation. A 2024 study found that jeans production and cross-border transportation contributed 91% of the carbon footprint of fast fashion consumption.
There are growing calls for a more sustainable industry, with some clothing makers and consumers advocating for change. The New York Fashion Act seeks to hold big brands accountable for their environmental impact and exploitation of workers, requiring companies to map their supply chains and disclose their environmental and social impacts. To reduce emissions, brands must determine and make transparent their current emissions, form strategic partnerships, and increase the use of circular business models like clothing resale and rental.
Industrialization's Pollution Legacy in Eastern Europe
You may want to see also
Transport emissions
The rise in transport emissions is driven by the increased volume of travel, despite improvements in vehicle efficiency. From 1970 to 2010, emissions from road vehicles accounted for 80% of the rise in transport emissions. International aviation, domestic aviation, and international and coastal shipping have also experienced increases in emissions. However, rail emissions have declined due to a significant share of electricity powering railways.
The electrification of the transport sector is crucial for reducing transport emissions. Electricity's share in transport energy consumption is projected to increase sevenfold by 2050 compared to its 2011 level. Electric vehicles (EVs) are considered the single most important technology for decarbonizing the transport sector, as they have lower lifecycle emissions than internal combustion engines. Initiatives like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the development of sustainable fuels like SAF for aviation also contribute to decarbonization efforts.
Additionally, stringent fuel efficiency standards for passenger cars and heavy-duty vehicles (HDVs) such as buses and trucks are crucial for cutting transport emissions. Private companies are also taking initiatives, such as prototyping zero-emission trucks and committing to carbon neutrality. Decarbonizing the transport sector is essential for creating a cleaner, healthier, and more affordable future for everyone.
Human-Induced Noise Pollution: Understanding Our Sonic Impact
You may want to see also
Investor responsibility
Climate change is one of the biggest threats to our world in the 21st century, and corporations have a large part to play in driving this change. A Carbon Majors Report by CDP, a non-profit organisation, revealed that just 100 companies out of the hundreds of thousands in the world have been responsible for 71% of global GHG emissions since 1988. This small set of fossil fuel producers may hold the key to systemic change on carbon emissions.
Investors have a significant responsibility to engage with carbon majors and urge them to disclose climate risk. They should move out of fossil fuels and into clean energy, as the world is transitioning to a sustainable economy at an accelerated pace. Those holding investments in fossil fuel companies will find their investments becoming more and more risky over time, as the energy sector is changing fast.
A Carbon Tracker study in 2015 found that fossil fuel companies risked wasting more than $2tn over the coming decade by pursuing coal, oil and gas projects that could be worthless in the face of international action on climate change and advances in renewables. This poses a substantial threat to investor returns.
Investors should be aware of the emissions associated with their fossil fuel holdings and push for transparency among fossil fuel producers. They should also be mindful of the environmental impact of the companies they invest in and encourage them to transition to renewable energy.
Additionally, investors should consider the broader impact of their investments on the planet's health and the urgency to implement sustainable practices. This includes reducing emissions, addressing waste and pollution, and promoting regenerative agriculture and sustainable fuels.
Construction's Soil Pollution: Understanding the Impact
You may want to see also
Corporate transparency
The Carbon Majors Database report, published by the non-profit organization Carbon Disclosure Project (CDP), reveals that 25 state-owned entities and 75 public investor-owned companies are responsible for a significant share of global emissions. ExxonMobil, Shell, BP, and Chevron are among the highest emitting investor-owned companies. The CDP aims to improve transparency among fossil fuel producers and help investors understand the emissions associated with their holdings.
To achieve corporate transparency, it is essential to accurately measure and publicly report emissions data. This includes not only the direct emissions of a company's operations (Scope 1) but also the indirect emissions from purchased energy and upstream and downstream activities (Scopes 2 and 3). By comprehensively accounting for all emission sources, corporations can set meaningful reduction targets and be held accountable for their environmental impact.
Some corporations have already taken steps toward greater transparency and sustainability. For example, Apple, Facebook, Google, and Ikea have committed to transitioning to 100% renewable energy. Volvo has also announced plans to electrify its entire car range. However, many other companies continue to prioritise short-term profitability over environmental concerns, underscoring the need for stronger regulatory frameworks and public pressure to ensure widespread corporate transparency and action on pollution reduction.
In conclusion, corporate transparency is vital to addressing pollution and its impact on the planet. By shining a light on the activities of major polluters and holding them accountable, we can drive the systemic change needed to tackle climate change and protect our environment for future generations.
US Pollution Impact on China: Who's Responsible?
You may want to see also
Frequently asked questions
A 2021 report by CDP found that 100 companies have been responsible for 71% of global GHG emissions since 1988. 25 state-owned entities were responsible for over 50% of global industrial emissions during the same period. ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies.
The fossil fuels sector is the most polluting industry in the world. Other highly polluting industries include agriculture, fashion, and transport.
Large corporations produce and sell products that require raw materials with associated upstream emissions. When consumers use these products, they also generate downstream emissions through product use and disposal.
Multinational gas and oil company Exxon was aware of climate change for decades but instead led efforts to block measures to cut emissions. Some companies also hide their true emissions by underestimating their Scope 3 emissions, which include emissions from harvesting virgin pulp and other raw materials.
Investors can play a key role by moving away from fossil fuel investments. Corporations can also make their products more sustainable and support the transition to a carbon-free economy. Governments can implement regulations and policies to reduce emissions and hold companies accountable.
