Which Companies Emit The Most Carbon?

The climate crisis is an urgent issue, and reducing carbon emissions is crucial to mitigating its worst impacts. While various sectors contribute significantly to the global carbon footprint, the role of companies in driving the climate emergency cannot be overlooked. Research has revealed that just 20 companies, primarily in the fossil fuel industry, are responsible for a significant portion of global carbon emissions. These companies have continued to expand their operations despite being aware of the devastating consequences of their actions. As the world strives to meet its climate goals, holding these corporate polluters accountable and transitioning to a carbon-free economy are essential steps in the fight against climate change.

Western petroleum multinationals

The top investor-owned contributors to emissions include ExxonMobil, Chevron, BP, and Shell, with these four companies alone being responsible for over 10% of the world's carbon emissions since 1965. Notably, ExxonMobil ranked 11th in global emissions, with 1.4% of the total, less than half of its historical average. These Western petroleum multinationals have net-zero emissions targets, and some have made investments in renewable energy. However, their definitions of net-zero goals and methods vary.

The Carbon Majors Database, compiled by world-renowned researchers, reveals that 57 oil, gas, coal, and cement producers are directly linked to 80% of global fossil CO2 emissions since the 2016 Paris Climate Agreement. This group includes Western petroleum multinationals, demonstrating their significant contribution to the climate crisis. The database assigns responsibility for emissions to entities profiting from extracting fossil fuels, shifting the narrative away from individual consumers.

Multinational firms have the economic power and global influence to be key agents in the fight against climate change. Their commitment to climate action is crucial, and various networks and platforms have recorded an increasing number of corporations embracing climate initiatives. For instance, the NAZCA platform recorded actions from 2,431 companies in 2018, including emissions reduction pledges and commitments to renewable energy production.

Fossil fuel production

Fossil fuels are the largest contributor to carbon emissions. The burning of oil, coal, and natural gas accounts for the majority of carbon dioxide emissions, and the transportation sector is the largest emitter due to its near-complete dependence on petroleum fuels. The industrial sector, while the highest energy end-use sector, emits less CO2. Natural gas is the largest contributor to industrial sector CO2 emissions.

The top 20 fossil fuel companies are responsible for a third of all carbon emissions, with 90% of emissions attributed to the use of their products, such as petrol, jet fuel, and thermal coal. The Carbon Majors Database from InfluenceMap, a London-based climate think tank, found that just 36 oil, gas, coal, and cement producers contributed more than 50% of the world's fossil fuel-linked CO2 emissions in 2023. The database assigns responsibility for global emissions to companies that extract fossil fuels.

According to the database, the leading state-owned polluter, Saudi Aramco, produced 4.38% of all carbon dioxide and methane since 1965. CHN Energy, a Chinese coal company, was the third-biggest emitter of fossil fuel-related CO2 in 2023. The top 20 companies have contributed 480 billion tonnes of carbon dioxide equivalent since 1965.

While some companies argue that they are not directly responsible for how the fossil fuels they extract are used, many accept the climate science and support targets to reduce emissions. The continued rise in emissions from fossil fuels is impeding progress in limiting global warming.

Investor-owned enterprises

The Carbon Majors Database report, compiled by the Carbon Disclosure Project (CDP), reveals that 32% of emissions come from public investor-owned companies. This makes their investors a key agent in the transition to a sustainable economy. According to the report, ExxonMobil, Shell, BP, and Chevron are among the highest emitting investor-owned companies since 1988. Together, these four companies are responsible for more than 10% of the world's carbon emissions since 1965. Chevron tops the list of investor-owned corporations, closely followed by Exxon, BP, and Shell. These companies have faced heavy criticism for their environmental records and have been the target of legal actions by advocacy groups.

While some of these investor-owned enterprises have started to invest in renewable energy and carbon capture projects, critics argue that the sums involved and the pace of change are insufficient. For example, Shell established a renewables arm in 2015 with a $1.7 billion investment, while Chevron is investing in two of the world's largest carbon dioxide injection projects. ExxonMobil has also been exploring carbon capture and storage options. However, these efforts are not enough to offset the massive carbon emissions for which these companies are responsible.

The CDP report highlights the "absolute tension" between short-term profitability and the urgent need to reduce emissions. Fossil fuel companies risk wasting trillions of dollars by continuing to pursue coal, oil, and gas projects that may become worthless due to international climate action and the growing renewables sector. This poses a significant threat to investor returns, as warned by Michael Brune, executive director of the Sierra Club: "Not only is it morally risky, it's economically risky... Those left holding investments in fossil fuel companies will find their investments becoming more and more risky over time."

As the energy sector undergoes a rapid transition, investors in fossil fuel companies will increasingly face the risk of stranded assets and diminished returns. On the other hand, companies supporting the transition to a carbon-free economy, such as Apple, Facebook, Google, and Ikea, are leading the way toward a more sustainable future.

State-owned companies

The leading state-owned polluter, Saudi Aramco, has produced 4.38% of all carbon dioxide and methane since 1965. Other state-owned companies among the top global emitters include CHN Energy, a Chinese coal company, which was the third-biggest emitter of fossil fuel-related CO2 in 2023.

The Carbon Majors Report, published by the environmental non-profit CDP and the Climate Accountability Institute, found that 25 corporate and state-owned entities were responsible for more than half of global industrial emissions since 1988. This report aims to improve transparency among fossil fuel producers and help investors understand the emissions associated with their investments.

The global polluters list, compiled by The Guardian, also identified state-owned companies as major contributors to carbon emissions. This list considers the annual production of oil, natural gas, and coal by companies and calculates the emissions attributed to their products throughout the supply chain.

While some state-owned companies are taking steps towards greener investments and carbon capture initiatives, the overall impact of this cohort of state-owned firms on the climate crisis is undeniable. Their actions, or lack thereof, have far-reaching consequences for the future of the planet and humanity.

Climate change responsibility

Climate change is an urgent global issue, and accountability for the harm caused by climate change is increasingly being tied to specific companies. The responsibility for climate change lies with those who have contributed the most to carbon pollution, and it is important to identify these major polluters to address the problem effectively.

A recent study by InfluenceMap, a London-based climate think tank, revealed that just 57 companies accounted for 80% of the world's CO2 emissions over the last six years. These companies, including investor-owned corporations like ExxonMobil, Shell, BP, and Chevron, as well as state-owned entities like Saudi Aramco, Gazprom, and Coal India, have substantially increased fossil fuel production despite international agreements to reduce carbon emissions. The database also shows that state-owned companies were responsible for a majority (52%) of global emissions in 2023, with 16 out of the top 20 global emitters being state-owned.

The extraction and burning of fossil fuels by these companies have disrupted the natural equilibrium in the biosphere, leading to climate change and global warming. The problem is widespread, with notable production spikes in North America, the Middle East, and Asia. The database further highlights that the increase in production since 2016 has been dominated by Asia, particularly in the coal industry.

While these companies bear significant responsibility, it is also important to acknowledge the historical context. The industrialization of Western countries over the past two centuries has contributed to stagnant growth in colonies, and the West accounts for over 70% of cumulative global emissions. However, it is worth noting that China's emissions in 2021 were more than double those of the US, and the East has industrialised within a few decades compared to the longer timeframe of the West.

Addressing climate change requires immediate action and a shift in priorities. Stricter laws and international cooperation are crucial to manage and reduce the environmental threats posed by these carbon-emitting giants. By holding these companies accountable and transitioning to cleaner energy sources, we can work towards mitigating the harmful effects of climate change and ensuring a sustainable future for all.

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