Big Business Pollution: What's Their Contribution?

Corporations are the main culprits of climate change, with just 100 companies responsible for 71% of global emissions since 1988. These companies, including ExxonMobil, Shell, BP, and Chevron, have contributed significantly to global warming and climate change through their fossil fuel production and state-owned entities. The fashion industry is also a significant contributor, with overconsumption in fast fashion being a major issue. While consumers are often encouraged to make greener choices, the onus should be on these large corporations to change their business models and reduce their emissions. Many companies have set greenhouse gas reduction targets, but these often fail to address the emissions associated with the entire product lifecycle.

The top 100 companies are responsible for 71% of global emissions

The Carbon Majors Report, published in July 2017 by the Carbon Disclosure Project (CDP) in collaboration with the Climate Accountability Institute, revealed that just 100 companies are responsible for 71% of global greenhouse gas (GHG) emissions. The report, which was the first to rely on a worldwide GHG emissions database for past and present emissions at a company level, analysed emissions data from hundreds of thousands of companies around the world. It found that a small number of fossil fuel producers and their investors are key to tackling climate change.

The 100 companies identified in the report have been the source of over 70% of the world's GHG emissions since 1988, the year the Intergovernmental Panel on Climate Change (IPCC) was established. This includes scope 3 emissions, which means that fossil fuel producers are held accountable for all emissions from extraction to use and combustion. The report also revealed that 32% of emissions come from publicly investor-owned companies, highlighting the important role of investors in the transition to a sustainable economy.

Among the highest emitting investor-owned companies since 1988 are ExxonMobil, Shell, BP, and Chevron. The report also identified China Coal (now China Energy), Saudi Aramco, and Gazprom as some of the world's worst climate criminals. 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 degrees Celsius by the end of the century. This would likely result in catastrophic consequences, including substantial species extinction and global food scarcity risks.

While the media coverage of the report brought attention to the 100 companies responsible for 71% of GHG emissions, it has also been criticised for simplifying the issue and not adequately addressing the methodology and limitations of the study. However, the report has had a significant impact on climate change accountability and has led to increased discussion about the role of companies and investors in driving and tackling climate change. Many large corporations are now supporting the transition to a carbon-free economy, with companies like Apple, Facebook, Google, and Ikea committing to obtaining energy from 100% renewable sources.

Fossil fuel companies risk wasting trillions by ignoring climate change

Climate change is one of the biggest threats to our world in the 21st century, and fossil fuel companies play a significant role in contributing to this crisis. According to the Carbon Majors Database, just 100 companies out of the hundreds of thousands worldwide are responsible for 71% of global GHG emissions that cause global warming. This statistic underscores the urgent need for these companies to address their impact on the environment.

Fatih Birol, the chief economist of the International Energy Agency (IEA), warns that fossil fuel companies risk wasting billions of dollars by ignoring climate change. Birol emphasizes that climate policies will impact the business of any energy company, regardless of their specific industry. He urges companies to take climate policies seriously and align their investment decisions accordingly to avoid wasting resources and missing out on investment opportunities.

The Carbon Tracker Initiative, a think tank, estimates that fossil fuel firms could waste up to US$2.2 trillion in the next decade by pursuing uneconomic projects. This estimate takes into account international efforts to limit global warming and the rapid advancements in clean technologies. The US, Canada, China, Russia, and Australia are among the countries with significant financial exposure to unneeded fossil fuel projects.

Additionally, Professor Ottmar Edenhofer, chief economist at the Potsdam Institute for Climate Impact Research, highlights the urgency of the situation. He points out that emissions have been rising at an increasing rate over the last decade, underscoring the need for immediate action. Edenhofer advocates for putting a global price on carbon pollution and encourages national leaders to recognize the positive impact that revenues from carbon taxes could have.

By ignoring climate change and failing to adapt their business models, fossil fuel companies not only risk wasting trillions of dollars but also contribute to the worsening of the climate crisis. It is crucial for these companies to recognize the impact of their operations on the environment and to take proactive measures to mitigate their carbon emissions.

The fashion industry is the second-biggest industrial polluter

Fast fashion brands like Zara, H&M, Shein, Uniqlo, Forever 21, Primark, and Mango put out new styles at a record pace, consuming huge amounts of resources and generating mountains of waste. The industry is a major contributor to water pollution, with synthetic fibres like polyester, nylon, and acrylic accounting for 35% of global microplastic pollution in oceans. The dyeing and finishing processes, which are integral to clothing production, require a significant amount of water, with the textile sector consuming about 1.5 trillion litres of freshwater. This is particularly problematic in countries with already scarce water resources, such as Bangladesh, Cambodia, India, Pakistan, and Vietnam, where fast fashion is produced.

In addition to water pollution, fast fashion is responsible for the growing levels of waste generation and environmental degradation. It accounts for about 92 million tons of waste per year, with 85% of all textiles ending up in dumps. The use of non-biodegradable synthetic fibres exacerbates the problem, as they can take hundreds of years to break down. Furthermore, the production of fast fashion often involves the exploitation of cheap labour in developing nations with lenient laws and regulations, leading to land degradation and air pollution.

The impact of the fashion industry on the environment has led to a growing movement towards slow fashion, which advocates for more sustainable practices, including the reuse of clothes, recycling, upcycling, and mindful textile purchasing. While some consumers are encouraged to make greener choices, the main culprits of climate change are corporations, with just 100 companies responsible for 71% of global greenhouse gas emissions.

Procter and Gamble (P&G) omits substantial emissions from estimates

While it is challenging to ascertain the exact percentage of pollution caused by big businesses, a report by the Carbon Disclosure Project (CDP) reveals that 100 companies are responsible for 71% of global GHG emissions causing global warming since 1998. This highlights the significant role of corporations in addressing climate change. Among these major polluters is Procter and Gamble (P&G), a manufacturer and marketer of fast-moving consumer goods with well-known brands such as Head & Shoulders, Tide, Ariel, Olay, Pantene, Pampers, and Gillette.

P&G's total GHG emissions in 2021 were 2.4 million tonnes of CO2 equivalents, an 8.6% decrease from 2020. However, a closer examination of their emissions report reveals some concerning details. P&G's Citizenship Report 2022 highlights their commitment to environmental sustainability and their goal of achieving net-zero GHG emissions across their operations and supply chain by 2040. While this ambition is commendable, a critical analysis of their emissions calculations shows that they may be omitting substantial emissions from their estimates.

P&G's Climate Transition Action Plan focuses on Scope 1 and 2 emissions, which include direct GHG emissions from sources owned or controlled by the company and indirect GHG emissions associated with purchased electricity. However, the company's Scope 3 emissions, which account for a significant portion of their supply chain emissions, are not given the same level of attention. P&G acknowledges that approximately 10% of their ingredients contribute to around 90% of their supply chain emissions, yet the report lacks detailed quantitative data on the overall Scope 3 emissions and their specific reduction targets for this area.

Furthermore, while P&G mentions their commitment to responsible sourcing of commodities like wood pulp, palm oil, and paper packaging, they do not provide sufficient information on the environmental impact of their supply chain beyond direct emissions. This includes the carbon footprint associated with the extraction, production, and transportation of these commodities, which can be significant. By omitting or underreporting these indirect emissions, P&G presents a less comprehensive picture of their total environmental impact.

To conclude, while P&G has made strides toward sustainability and set ambitious goals, their emissions reports and sustainability commitments fall short of addressing the full scope of their emissions. By omitting substantial emissions from their estimates, particularly in the realm of Scope 3 emissions and the environmental impact of their supply chain, P&G may not be fully transparent about the extent of their contribution to pollution and climate change. A more comprehensive and transparent approach to emissions reporting, including all scopes and supply chain impacts, is necessary for corporations like P&G to accurately assess their environmental footprint and implement effective solutions.

The Pentagon emits more greenhouse gases than many countries

While it is difficult to ascertain the exact percentage of pollution caused by big businesses, a report by the Carbon Disclosure Project (CDP) found that just 100 companies out of the hundreds of thousands worldwide are responsible for 71% of global GHG emissions that cause global warming. This includes international oil companies and the fashion industry, which is the second-biggest industrial polluter, responsible for 10% of global emissions.

The Pentagon, which oversees the US military, is also a major contributor to greenhouse gas emissions. In 2017, it released about 59 million metric tons of carbon dioxide and other greenhouse gases, according to a study by Brown University. This is more than the emissions of many smaller countries, including Portugal, Sweden, and Denmark. If the Pentagon were a country, it would be the world's 55th largest contributor to greenhouse gas emissions.

The Pentagon's emissions are largely due to its role as the world's single largest consumer of oil. War-related emissions, including for overseas operations in Afghanistan, Pakistan, Iraq, and Syria, have also contributed significantly to the Pentagon's carbon footprint. According to Crawford, one of the authors of the Brown University study, there is "a lot of room" for the Pentagon to reduce its emissions.

The Pentagon has recognized climate change as "a national security issue" and has launched initiatives to prepare for its impact. It has also made efforts to reduce its fuel consumption since 2009, such as by making its vehicles more efficient and adopting cleaner energy sources at its bases. However, Crawford suggests that rethinking certain missions, especially those to the Persian Gulf for oil, could further reduce the Pentagon's emissions and help push towards sustainability.

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