Pollution's Culprits: Are 100 Companies Responsible For Climate Change?

The idea that 100 companies are responsible for 71% of pollution has become a common phrase in discussions about climate change. The statistic comes from a 2017 report by the Carbon Disclosure Project, which found that 100 fossil fuel producers were responsible for 71% of global GHG emissions since 1988. This report sparked media coverage and debate about the role of companies and investors in tackling climate change. However, the report's emphasis and limitations have often been ignored or misinterpreted, with some arguing that individual actions and personal consumption choices are also responsible for driving climate change.

The Carbon Majors Report of 2017

The Carbon Majors Database, utilised in the 2017 report, is a significant contribution to understanding climate accountability. It covers 52% of global industrial greenhouse gas (GHG) emissions since the Industrial Revolution, including 62% when accounting for defunct companies. This database presents a producer-side perspective, demonstrating that a relatively small group of decision-makers within the fossil fuel industry holds substantial responsibility for anthropogenic climate change.

The findings of the Carbon Majors Report of 2017 have important implications for climate litigation and policy. By identifying the key contributors to global emissions, the report provides a roadmap for targeted interventions and regulatory actions. Additionally, the report underscores the urgency of transitioning away from fossil fuels, highlighting the risks associated with continued expansion in fossil fuel extraction. According to the report, if fossil fuel extraction rates persist, global average temperatures are projected to rise by approximately 4°C above pre-industrial levels by the end of the century, leading to catastrophic consequences.

While the Carbon Majors Report of 2017 has been influential in shifting the focus of climate change responsibility to companies, it is essential to acknowledge the limitations of solely attributing emissions to these entities. Individual consumption choices and broader systemic factors also play a role in driving climate change. Therefore, a comprehensive approach that addresses emissions at both the producer and consumer levels is necessary to effectively combat this global challenge.

The role of fossil fuel producers

Fossil fuel companies remain significant polluters, producing and selling fossil fuel products while scientists advocate for a mass switch to renewable energy. These companies extract, refine, and market carbon fuels that, when used as intended, contribute 87% of all CO2 from fuels, cement, and land use, and about 62% of all greenhouse gas emissions that drive atmospheric warming and climate change.

The top 20 fossil fuel companies, including Saudi Aramco, Chevron, Gazprom, ExxonMobil, BP, and Royal Dutch Shell, have collectively produced the fuels that led to 480 billion tonnes of carbon dioxide and methane being emitted from 1965 to 2017. This amounts to 35% of all global fossil fuel emissions during that period.

The Climate Accountability Institute (CAI) was formed in 2011 to confront fossil fuel companies and urge them to align their production and emissions with the targets set by the Paris Agreement and the work of the IPCC. CAI's work includes attributing emissions to carbon producers, modelling their impact on the global climate, and contributing to efforts to hold these companies accountable for climate damages.

Scope 1 and Scope 3 emissions

The claim that 100 companies are responsible for 71% of global emissions is a commonly cited statistic, particularly in discussions about climate change and personal responsibility. This figure originates from the 2017 Carbon Majors Report, which attributed 70.6% of global GHG emissions since 1988 to 100 entities. However, it's important to understand the breakdown of this figure into Scope 1 and Scope 3 emissions to accurately interpret the report's findings.

Scope 1 emissions refer to direct greenhouse gas (GHG) emissions that arise from sources owned or controlled by an organisation. This includes emissions from burning fuel in vehicles, boilers, furnaces, and other assets directly associated with the company. Scope 1 emissions also encompass fugitive releases of methane and emissions from self-consumption of fuel.

Scope 3 emissions, on the other hand, are indirect emissions that occur across an organisation's entire value chain, both upstream and downstream. These emissions are not produced by the company itself but arise from activities associated with its suppliers, customers, and other stakeholders. Scope 3 emissions include the combustion of coal, oil, and gas for energy purposes, as well as the use and disposal of products by consumers.

In the context of the Carbon Majors Report, it's important to note that the 70.6% figure includes Scope 3 emissions. This means that fossil fuel producers are held accountable for emissions from extraction to end-use. While the report attributed this significant portion of global emissions to 100 entities, it's worth mentioning that these entities consist of companies, investors, and stock exchange-listed organisations.

The breakdown of Scope 1 and Scope 3 emissions reveals a more nuanced understanding of the report's findings. While the 100 companies indeed play a significant role in contributing to global emissions, the choices and consumption patterns of individuals also factor into the equation. As consumers, our decisions and actions can influence the demand for products that contribute to Scope 3 emissions. Therefore, individual actions and personal consumption choices remain crucial in the collective effort to address climate change.

The impact on climate change accountability

The Carbon Majors Report of 2017 brought to light the fact that 100 companies are responsible for 71% of global GHG emissions. This report has had a significant impact on climate change accountability and the public discourse surrounding it.

The report shifted the focus of climate change responsibility from individuals to corporations and investors. It emphasised the role that firms and their investors play in tackling climate change. This has led to increased scrutiny and criticism of the top polluting companies, especially in the fossil fuel industry. The report also highlighted the importance of transitioning to a sustainable and carbon-free economy, with some large corporations already committing to obtaining energy from 100% renewable sources.

However, the report's interpretation and impact on accountability have been mixed. Many people misinterpreted the report, either due to a lack of understanding or deliberate exploitation by those wishing to maintain the status quo. This misinterpretation has led to climate inaction, with some arguing that aiming all the responsibility at corporations is misleading and ignores the role of individual actions and consumption choices.

The report's impact on accountability is further complicated by the breakdown of emissions into Scope 1 and Scope 3 categories. Scope 3 emissions, which account for 90% of total company emissions, include the downstream combustion of fossil fuels by consumers. This means that while the 100 companies are responsible for producing and selling the fossil fuels, the emissions from burning these fuels are ultimately generated by consumer behaviour.

Overall, the Carbon Majors Report of 2017 has had a significant impact on climate change accountability by bringing attention to the role of corporations and investors. However, the interpretation and impact of the report have been mixed, with ongoing debates about the relative responsibilities of corporations, governments, and individuals in tackling climate change.

The need for systemic change

The Carbon Majors Report of 2017 brought to light a startling fact: 100 companies are responsible for 71% of global greenhouse gas emissions. This report, the first of its kind, relied on a global GHG emissions database to pinpoint the specific industrial sources of emissions.

While the report has had a significant impact on discussions around climate change, it has also led to a great deal of misunderstanding and misinterpretation. Many people have latched onto the headline figure of 100 companies emitting 71% of global emissions, without delving into the nuances of the report's methodology and limitations. This has resulted in a dangerous trend of climate inaction, with responsibility for climate change being placed solely on these 100 companies.

It is important to recognize that while these companies do bear a significant responsibility for their contribution to global emissions, individual actions and consumption choices also play a significant role in driving climate change. The report highlights the need for systemic change, which requires both individual and collective measures to reduce carbon emissions. This includes making more sustainable choices, such as reducing consumption, using public transportation, and purchasing green or sustainable products.

However, it is essential to acknowledge that not everyone has the financial means to make these choices. Green products, for example, often cost significantly more than their non-green alternatives, making them unaffordable for many working-class individuals. Additionally, corporations have a responsibility to make their products more sustainable and accessible to all consumers. Unfortunately, many corporations prioritize profits over the environment, choosing to ignore the impact of their actions on the planet. This ignorance is evident in the actions of companies like Exxon, which blocked measures to cut emissions despite being aware of climate change for decades.

To effectively address climate change, a multi-faceted approach is necessary. While individuals can make efforts to reduce their carbon footprint, the onus is on these 100 companies, particularly fossil fuel producers, to implement systemic change and reduce their emissions. This can be achieved through a variety of measures, including reducing operational emissions, transitioning to lighter fossil fuels, and investing in carbon capture and storage technologies. By holding these companies accountable and advocating for regulatory changes, we can work towards a more sustainable future.

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