Who's Polluting Our Air? The Worst Corporate Offenders

Air pollution is a pressing issue that has severe consequences for the environment and public health. While individual actions can contribute to air pollution, it is important to recognise that corporations play a significant role in driving climate change. A recent report revealed that just 100 companies, primarily fossil fuel producers, have been responsible for 71% of global greenhouse gas emissions since 1988. These emissions are a result of the entire lifecycle of their products, from the extraction of raw materials to consumer use and disposal. Leading state-owned polluters include Saudi Aramco, while notable investor-owned companies with high emissions include ExxonMobil, Shell, BP, and Chevron. Despite many companies setting greenhouse gas reduction targets, critics argue that these targets often fail to address the full scope of emissions associated with their products. However, there is a growing trend of companies embracing renewable energy sources, with Apple, Facebook, Google, and Ikea committing to 100% renewable power.

Fossil fuel companies and their investors

The Carbon Majors Database report, published by the non-profit organization Carbon Disclosure Project (CDP), reveals that just 100 companies have been responsible for 71% of global GHG emissions since 1998. Of these, 25 state-owned entities account for over half of the world's industrial emissions, and 32% of emissions come from public investor-owned companies. This highlights the significant role of investors in driving climate change.

The Fossil Fuel Investment Report, released in May 2024, exposes the fossil fuel holdings of over 7,500 institutional investors, including pension funds, insurance companies, and asset managers. These investors collectively held $4.3 trillion in bonds and shares of fossil fuel companies, with US institutional investors alone accounting for $3.1 trillion. The top fossil fuel investors include Vanguard, BlackRock, and State Street, with assets worth $444 billion, $431 billion, and $184 billion, respectively.

The impact of fossil fuel companies extends beyond just emissions. Richard Heede of the Climate Accountability Institute calculates that the top 20 fossil fuel companies have contributed 480 billion tonnes of carbon dioxide equivalent since 1965. Heede's research also reveals that these companies have delayed global action on climate change and perpetuated the carbon era, despite being aware of the environmental impact of their products. Michael Mann, a leading climate scientist, emphasizes the moral failing of political systems that allow polluting interests to prioritize profits over the well-being of the planet and its inhabitants.

As the energy sector undergoes rapid changes, investors in fossil fuel companies face increasing risks. Experts warn that continuing to invest in fossil fuels will become riskier over time as the transition to renewable energy sources accelerates. Companies that fail to adapt and reduce their emissions will not only contribute to the worsening climate crisis but also threaten their long-term sustainability and profitability.

Oil, gas, and coal executives

Today, oil, gas, and coal executives continue to derail progress and thwart the shift to a low-carbon future. Despite the transition to clean energy, oil and gas production is nearing record levels in the United States, causing concern among health experts about air quality and human health. A study by the School of Public Health at the University of North Carolina found that air pollution from the oil and gas sector has substantial adverse impacts on air quality, human health, and health costs. The pollutants nitrogen oxide, fine particulate matter (PM2.5), and ozone (O3) from oil and gas production have led to thousands of excess deaths, asthma attacks, and new cases of childhood asthma.

In addition to the direct health impacts, oil, gas, and coal executives also contribute to climate change through their supply chain and the lifecycle of their products. A report by Richard Heede at the Climate Accountability Institute calculates how much carbon is emitted throughout the supply chain, from extraction to use by consumers. This includes emissions from the production of raw materials, transportation, and the use and disposal of products, which are often omitted from corporate emissions reduction goals.

It is important for oil, gas, and coal executives to take urgent action to reduce their contributions to climate change and air pollution. This includes setting more ambitious greenhouse gas reduction targets that address all emissions associated with their products' life cycles, increasing the use of recycled materials, and supporting the transition to a carbon-free economy. By doing so, these executives can help to reduce the serious health and environmental consequences of their industries.

Top polluters in America

The United States has made significant progress in reducing air pollution over the years. Between 1970 and 2023, total emissions of the six principal air pollutants dropped by 78%, according to the EPA. However, certain companies and industries continue to be major contributors to air pollution in the country.

The energy sector, particularly coal-fired power plants, has historically been a significant source of air pollution in the United States. Southern Company, one of the nation's top electricity generators, was ranked as one of the top three corporate air polluters by Forbes in 2013, emitting the equivalent of 118 million metric tons of carbon dioxide per year. While Southern Company has been pursuing cleaner alternatives, such as nuclear power, and claims to be working to reduce its emissions, it still plays a significant role in air pollution.

Another major polluter is American Electric Power (AEP), which emits approximately 130 million metric tons of carbon dioxide annually, accounting for about 2% of the annual total. AEP has also been transitioning from coal to natural gas, with a spokeswoman noting their efforts to reduce emissions. Duke Energy, ranked second by Forbes, emits 127 million tons of carbon dioxide per year.

Oil refiners like ExxonMobil and BP are also significant contributors to air pollution. ExxonMobil's refinery and chemical plant in Baton Rouge, Louisiana, released 2.6 million pounds of chemicals into the air in 2014, including toxic substances like hydrogen cyanide and benzene. Additionally, steelmakers like U.S. Steel and ArcelorMittal require a massive amount of energy to smelt iron ore, leading to substantial emissions.

It is worth noting that air pollution is not just a local issue. Traveling pollution is a significant problem, with states like Indiana and Kentucky contributing to air quality issues in multiple other states. Additionally, a study by the Carbon Disclosure Project (CDP) revealed that just 100 companies worldwide are responsible for 71% of global GHG emissions since 1998, underscoring the impact of corporate emissions on climate change.

State-owned companies

Saudi Aramco, a leading state-owned polluter, has produced 4.38% of global carbon dioxide and methane emissions since 1965. This is a striking amount for a single company and underscores the urgent need for action. The top 20 companies, including Saudi Aramco, have contributed a staggering 480 billion tonnes of carbon dioxide equivalent since 1965.

Michael Mann, a prominent climate scientist, emphasised the moral failing of political systems that have allowed this situation to occur. He urged politicians to take decisive action to curb the activities of these polluting interests. The report by The Guardian also examined the financial and lobbying structures that enable fossil fuel firms to expand their operations, despite their devastating impact on the environment.

Additionally, a report by the Carbon Disclosure Project (CDP) revealed that 25 state companies and entities were responsible for over 50% of global industrial emissions since 1988. This report shed light on the critical role of companies and investors in addressing climate change. It is important to note that the CDP is a non-profit organisation dedicated to global disclosure of information, aiding governments, companies, and investors in managing their environmental impact.

While the situation may seem dire, there is a growing wave of companies supporting the transition to a carbon-free economy. Notable mentions include Apple, Facebook, Google, and Ikea, which have committed to obtaining 100% renewable energy. These companies are leading the way and providing hope for a sustainable future.

Companies with inaccurate emissions reporting

A small number of fossil fuel producers and their investors are responsible for a large portion of global GHG emissions. According to The Carbon Majors Database, 100 companies have been responsible for 71% of global GHG emissions since 1998. ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies since 1988.

However, emissions reporting by these companies often falls short of addressing the full scope of their emissions. For instance, P&G's climate target only applies to 2% of its estimated emissions, with the company seemingly omitting substantial volumes of greenhouse gas emissions from its Scope 3 emissions estimates.

Inaccurate emissions reporting can occur when businesses neglect to address all emission sources and/or use insufficient emissions factors. This creates an "accuracy gap", which can lead to legal non-compliance and greenwashing. Greenwashing refers to when a company tries to deceive consumers into believing it is environmentally responsible when it is not.

To improve the accuracy of emissions reporting, businesses can utilize carbon accounting engines, such as Normative's carbon accounting engine, which uses 30 million data points and 25,000 emissions factors to provide comprehensive emissions calculations. By closing the accuracy gap, businesses can ensure compliance with reporting legislation and unlock opportunities with consumers, employees, and investors.

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