Greta Jimenez
A small number of fossil fuel producers and their investors are responsible for a large proportion of global greenhouse gas emissions. According to a report by the Carbon Disclosure Project (CDP), 100 companies have been responsible for 71% of global GHG emissions since 1988. The Carbon Majors Report identifies ExxonMobil, Shell, BP, Chevron, Peabody, and BHP Billiton as the highest-emitting investor-owned companies. However, it is difficult to accurately compare total global emissions to the emissions of the 100 most polluting companies, and consumers and human activities also play a significant role in global warming. Various indexes, such as PERI's Greenhouse 100 Polluters Index, identify the top corporate air and water polluters and greenhouse gas emitters, with the goal of enhancing transparency and encouraging stakeholders to take action.
| Characteristics | Values |
|---|---|
| Number of companies responsible for majority of global emissions | 100 |
| Percentage of global emissions | 71% |
| Nature of emissions | Greenhouse gases, carbon dioxide, methane |
| Type of companies | Fossil fuel producers, cement producers, oil and gas companies |
| Time period | 1988-2015, 1998-2017, 2020 |
| Specific companies | ExxonMobil, Shell, BP, Chevron, Peabody, Marathon Petroleum, Phillips 66, Valero Energy |
| Initiatives to reduce emissions | RE100, carbon capture and storage, green investments |
| Indexes ranking companies by emissions | PERI's Greenhouse 100, Toxic 100 Air Polluters, Toxic 100 Water Polluters |
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What You'll Learn
Fossil fuel companies
The Carbon Majors Report, published by CDP in collaboration with the Climate Accountability Institute, highlights the critical role of a small number of fossil fuel producers and their investors in tackling climate change. The report found that over half of global industrial emissions since 1988 can be traced back to just 25 companies. The scale of historical emissions from these fossil fuel producers is considered significant enough to have contributed to climate change.
Despite growing awareness of the need to transition to renewable energy, fossil fuel companies continue to invest heavily in their industry. In 2018, approximately $1.2 trillion was invested in fossil fuels, with $170 billion going towards fossil fuel supply projects in the United States alone. This persistence in pursuing fossil fuel projects despite the risks of climate change has been criticised as economically risky and a threat to future generations.
In addition to their contribution to global warming, fossil fuel companies also cause local air pollution. The burning of fossil fuels releases soot, known as PM2.5, which is small enough to enter the bloodstream, increasing the risk of stroke, heart disease, lung cancer, and respiratory illnesses. The health impacts of air pollution have been recognised, leading to laws such as the Clean Air Act to reduce these health threats. However, fossil fuel companies have often opposed such regulations.
While some fossil fuel companies have started to invest in renewable energy projects and advertise their commitment to sustainability, their current practices remain largely unchanged. For instance, BP, despite its advertising campaign about low-carbon energy, still allocates over 96% of its annual expenditure to oil and gas. As a result, organisations like ClientEarth have called for a ban on fossil fuel advertising unless it includes tobacco-style health warnings to inform the public about the true impacts of these fuels.
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Climate change
The energy sector is undergoing a rapid transition, and investors in fossil fuel companies may find themselves stranded as the world moves towards cleaner energy sources. The report by CDP also found that between 1988 and 2015, 25 corporate and state-owned entities were responsible for more than 50% of global industrial emissions. ExxonMobil, Shell, BP, and Chevron are among the highest emitting investor-owned companies during this period. If fossil fuel extraction continues at the same rate, global average temperatures are projected to rise by up to 4°C, leading to potential species extinction and threats to world food production.
While some companies are resistant to change, there is a growing movement of corporations supporting the transition to a carbon-free economy. Apple, Facebook, Google, and Ikea have committed to obtaining energy from 100% renewable sources. Volvo has also joined this initiative by announcing that all its cars will be electric or hybrid from 2019 onwards. Oil and gas companies are also starting to invest in greener initiatives. For example, Shell established a renewables arm in 2015 with a $1.7 billion investment, and Chevron is investing in carbon dioxide injection projects to capture and store carbon. BP has expressed its determination to be part of the solution for climate change by investing in renewables and low-carbon innovation.
Despite these positive steps, the barrier of "absolute tension" between short-term profitability and the urgent need to reduce emissions persists. A Carbon Tracker study in 2015 found that fossil fuel companies risked wasting over $2 trillion in the following decade by pursuing coal, oil, and gas projects that could become worthless due to international climate action and renewable energy advancements. This poses substantial threats to investor returns, highlighting the financial risks associated with continued investment in fossil fuels. As Michael Mann, a leading climate specialist, states, "The great tragedy of the climate crisis is that seven and a half billion people must pay the price – in the form of a degraded planet – so that a couple of dozen polluting interests can continue to make record profits."
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Greenhouse gas emissions
According to a report by the Carbon Disclosure Project (CDP), 100 companies have been responsible for 71% of global greenhouse gas emissions since 1988. The report, which is based on a database of publicly available emissions figures, identifies 25 corporate and state-owned entities as the source of more than half of global industrial emissions during this period. Notably, 32% of emissions come from public investor-owned companies, highlighting the significant role of investors in the transition to a sustainable economy.
The Carbon Majors Report, published in collaboration with the Climate Accountability Institute, specifically focuses on fossil fuel producers. It asserts that a relatively small number of these producers and their investors could be pivotal in addressing climate change. Among the highest emitting investor-owned companies since 1988 are ExxonMobil, Shell, BP, and Chevron.
While the Carbon Majors Database study provides valuable insights, it's important to recognize that it focuses primarily on carbon dioxide and methane emissions from fossil fuel and cement production, which constitute a majority of global atmospheric greenhouse gases. However, total global emissions encompass a broader range of sources, including emissions from land use, agriculture, and other human activities such as heating buildings and electricity use.
Despite this distinction, the impact of the identified companies on climate change is significant. The report warns that if fossil fuel extraction continues at the same rate over the next 28 years as it did between 1988 and 2017, global average temperatures are projected to rise by 4°C by the end of the century.
To address this challenge, an increasing number of large corporations are committing to renewable energy initiatives. For instance, companies like Apple, Facebook, Google, and Ikea have pledged to transition to 100% renewable power under the RE100 initiative. Additionally, oil and gas companies are making green investments, with Shell investing $1.7 billion in a renewables arm in 2015, and Chevron and ExxonMobil exploring carbon capture and storage projects.
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Environmental performance
The environmental performance of the world's top 100 polluting companies is a critical issue that has come under increasing scrutiny in recent years. Various reports and indexes have been published, ranking and evaluating the impact of these companies on the planet. The Carbon Majors Report, compiled by the non-profit organization CDP, is one such example. It found that just 100 companies have been the source of over 70% of the world's greenhouse gas emissions since 1988, with more than half of global industrial emissions traceable to just 25 entities. ExxonMobil, Shell, BP, and Chevron are among the highest emitting investor-owned companies during this period.
The PERI (Political Economy Research Institute) at the University of Massachusetts Amherst has also contributed to the conversation with its Top 100 Polluter Indexes. These indexes identify the top corporate air and water polluters and greenhouse gas emitters, utilizing data from the US EPA. PERI's Greenhouse 100 Index includes a Suppliers Index, which ranks companies by their supply of products that result in greenhouse gas emissions when used, and a Coal Index, which focuses specifically on coal producers. Marathon Petroleum, Phillips 66, Valero Energy, Exxon Mobil, Peabody Energy, and Chevron are among the top suppliers according to the most recent index.
While the above-mentioned companies are among the highest emitters, it is important to acknowledge that some of them are taking steps towards environmental improvement. For example, Chevron has invested in carbon dioxide injection projects to capture and store carbon, and ExxonMobil has explored carbon capture and storage options. Additionally, Shell established a renewables arm in 2015 with a $1.7 billion investment, and BP is investing in renewables and low-carbon innovation.
Despite these efforts, critics argue that the pace of change and the sums involved are insufficient to combat climate change effectively. According to a research paper published by Paul Stevens of Chatham House, international oil companies must completely transform their business models within the next 10 years or face a rapid decline. This sentiment is echoed by Charlie Kronick of Greenpeace UK, who emphasizes the need for investors to recognize the potential for a managed decline in the oil industry and to redirect their capital towards the industries of the future.
In conclusion, the environmental performance of the top 100 polluting companies is a complex issue that demands urgent attention. While some companies are making strides towards sustainability, the overall impact of these corporations on the planet remains significant. To effectively tackle climate change, a combination of regulatory measures, consumer behavior changes, and industry-led initiatives may be necessary.
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Oil and gas companies
The oil and gas sector is responsible for various forms of pollution, including air, water, and soil contamination. Air pollution from the burning of excess natural gas at oil and gas wells, a process known as flaring, releases methane, a potent greenhouse gas. Methane pollution contributes to climate change and has adverse effects on air quality and human health. A study by the University of North Carolina Institute for the Environment found that pollutants from US oil and gas production, such as nitrogen oxide, fine particulate matter (PM2.5), and ozone (O3), led to thousands of excess deaths, asthma attacks, and new cases of childhood asthma in 2016. The health impacts of these pollutants extended beyond areas with significant oil and gas production to densely populated cities with no gas activity.
Oil and gas development activities can contaminate water sources through hydraulic fracturing, which involves injecting toxic chemicals into drinking water supplies. Runoff from construction and well pads can introduce sediment and chemicals into nearby water bodies, impacting aquatic ecosystems. The storage and disposal of drilling wastes in pits can also contaminate groundwater and surface waters, leading to vegetation death and soil sterilisation.
Some of the top-emitting investor-owned oil and gas companies since 1988 include ExxonMobil, Shell, BP, and Chevron. These companies have faced criticism for their environmental records and have been urged to transition to more sustainable practices. While some, like Chevron and ExxonMobil, have explored carbon capture and storage technologies, there are concerns that their efforts may not be enough to mitigate the environmental and health impacts of their operations.
To address the pollution and emissions from the oil and gas industry, researchers advocate for emissions reduction policies and strategies that go beyond end-of-pipe pollution controls. By focusing on reducing O&G-produced NO2 emissions, for instance, regulations could help mitigate childhood asthma cases and provide secondary health benefits in downwind areas. Additionally, companies investing in renewable energy sources and committing to 100% renewable power, such as Shell's renewables arm established in 2015, can contribute to positive environmental changes.
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Frequently asked questions
The Carbon Majors Database Report identifies 100 companies responsible for 71% of global industrial greenhouse gas emissions from 1988 to 2015. The top 10 companies that emit the most carbon dioxide include ExxonMobil, Shell, BP, Chevron, Peabody, and BHP Billiton.
The most polluting types of emissions are carbon dioxide and methane, which are released from fossil fuel and cement production. These emissions make up a majority of global atmospheric greenhouse gases.
The top 100 polluting companies are responsible for 71% of emissions related to fossil fuel and cement production. This includes both direct emissions from the companies themselves and indirect emissions from the consumption of their products.
Total global emissions account for greenhouse gases released from food production, burning gasoline, deforestation, oil production, and more. Human activities that drive climate change the most include heating buildings, electricity use, agriculture, farming, and fossil fuel-burning facilities and vehicles.
