Brian Barton
A small number of fossil fuel producers and their investors are responsible for a large proportion of global industrial emissions. According to a report by the Carbon Disclosure Project (CDP), just 100 companies have been responsible for 71% of global greenhouse gas emissions since 1988. The report identifies ExxonMobil, Shell, BP, and Chevron as among the highest-emitting investor-owned companies. Another study by the Climate Accountability Institute found that 20 companies contributed to 35% of all energy-related carbon dioxide and methane worldwide, totalling 480 billion tonnes of carbon dioxide equivalent since 1965. These findings highlight the significant role that companies and their investors play in tackling climate change and the need to hold them accountable for their environmental impact.
| Characteristics | Values |
|---|---|
| Number of companies responsible for most pollution | 20-100 |
| Percentage of global emissions | 35%-71% |
| Percentage of emissions from public investor-owned companies | 32% |
| Companies responsible for most emissions | ExxonMobil, Shell, BP, Chevron, Peabody, BHP Billiton |
| Companies supporting transition to carbon-free economy | Apple, Facebook, Google, Ikea |
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What You'll Learn
- companies are responsible for 71% of global emissions
- companies are responsible for 50% of global industrial emissions
- ExxonMobil, Shell, BP, Chevron are among the highest-emitting companies
- The fashion industry is the second-largest industrial polluter
- Fossil fuel companies risk wasting $2tn by pursuing coal, oil, and gas projects
100 companies are responsible for 71% of global emissions
According to a 2017 report by the Carbon Disclosure Project (CDP), 100 companies are responsible for 71% of global greenhouse gas (GHG) emissions. The report, titled "CDP Carbon Majors Report 2017", was published in collaboration with the Climate Accountability Institute. It focused on carbon dioxide and methane emissions from fossil fuel and cement production, which contribute significantly to global atmospheric greenhouse gases.
The Carbon Majors Database, which informed the report, contains data on carbon dioxide and methane emissions from fossil fuel (oil, gas, coal) and cement producers dating back to 1854. The database identifies 100 fossil fuel producers, known as "carbon majors," which include companies such as ExxonMobil, Shell, BP, Chevron, Peabody, and BHP Billiton.
The CDP report revealed that between 1988 and 2015, these 100 companies were responsible for 71% of global GHG emissions. This figure includes scope 3 emissions, holding fossil fuel producers accountable for emissions from extraction to combustion. The report also highlighted the role of investors, with 32% of emissions attributed to public investor-owned companies.
While the media widely communicated the finding of 100 companies being responsible for 71% of emissions, there has been misinterpretation and misunderstanding of the report's context and limitations. It is important to note that the 71% figure represents global industrial greenhouse gas emissions, which are a part of total global emissions. Total global emissions include greenhouse gases released from food production, burning gasoline, deforestation, oil production, and other human activities such as heating buildings, electricity use, agriculture, and farming.
Despite the misinterpretations, the report sheds light on the significant responsibility of certain companies and investors in tackling climate change. It highlights the need for transparency among fossil fuel producers and the importance of investors engaging with carbon majors to address climate risk. Additionally, it underscores the risks associated with continued investment in fossil fuels as the world transitions towards clean energy.
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25 companies are responsible for 50% of global industrial emissions
A 2017 report by the Climate Accountability Institute and the Carbon Disclosure Project revealed that 25 companies are responsible for 50% of global industrial emissions. The report, titled "Carbon Majors Report", was published in collaboration with the Climate Accountability Institute and the Carbon Disclosure Project (CDP), a non-profit organization. It highlights the role of fossil fuel producers and their investors in tackling climate change.
The 25 companies identified in the report are a mix of corporate and state-owned entities, with ExxonMobil, Shell, BP, and Chevron among the highest emitting investor-owned companies. These companies have contributed significantly to climate change through their historical emissions. The report also found that 32% of emissions come from public investor-owned companies, underscoring the responsibility of investors in the transition to a sustainable economy.
While the report focuses on the emissions of fossil fuel producers, it is important to note that consumer behavior also plays a significant role in climate change. According to the Carbon Tracker study in 2015, fossil fuel companies risk wasting over $2 trillion in the coming decade by pursuing carbon-intensive projects that may become worthless due to international action on climate change and the advancement of renewable energy technologies. This shift towards clean energy is already underway, with companies like Apple, Facebook, Google, and Ikea committing to 100% renewable power under the RE100 initiative.
The fashion industry is another major contributor to climate change, accounting for 10% of global emissions. However, the blame is often placed on consumers, particularly those from working-class backgrounds, rather than the companies producing fast fashion. Corporations have the power to make their products more sustainable but often prioritize profits over environmental concerns. For instance, Exxon, a multinational gas and oil company, was aware of climate change for decades but blocked measures to reduce emissions.
Overall, the "Carbon Majors Report" sheds light on the responsibility of a small number of companies and their investors in driving climate change, underscoring the need for systemic change and transparency in the fossil fuel industry.
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ExxonMobil, Shell, BP, Chevron are among the highest-emitting companies
A 2017 report by CDP, an environmental non-profit, revealed that 100 companies have been responsible for 71% of global greenhouse gas emissions since 1988. Of these 100 companies, ExxonMobil, Shell, BP, and Chevron are among the highest-emitting investor-owned companies. These four companies, along with Total, ConocoPhillips, and Eni, comprise a group of seven international oil companies listed on American and European stock markets.
The aforementioned group of four companies has contributed significantly to global greenhouse gas emissions and planetary warming over the past century. Their fossil fuel-based business models must undergo a profound transformation if the world aims to achieve decarbonization by mid-century and avoid the catastrophic consequences of climate change. While these companies have increasingly discussed clean energy and pledged decarbonization strategies, their actions and investments often fall short of their statements and commitments.
ExxonMobil, for instance, has faced heavy criticism for its environmental record. Despite exploring carbon capture and storage, their resistance to reducing emissions from hydrocarbon development has strengthened over the years. Chevron, meanwhile, rejected the notion that its assets might become stranded due to climate change and continued to develop new fossil fuel reserves. Both Chevron and ExxonMobil have shown a pronounced tendency to refuse climate-related commitments and actions to reduce fossil fuel production and exploration.
BP and Shell, the two European majors in the group, have acknowledged the contribution of fossil fuels to climate change and the need to limit greenhouse gas emissions. However, their actions have not always aligned with their statements, as they engaged in new fossil fuel exploration in 2020. While these companies have made green investments, the sums involved and the pace of change are often criticized as insufficient to address the urgency of the climate crisis.
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The fashion industry is the second-largest industrial polluter
The fashion industry is widely believed to be the second-largest industrial polluter in the world. The dominant business model in the sector is "fast fashion", which encourages consumers to frequently buy and discard clothes. This has resulted in the fashion industry producing about 92 million tons of waste per year.
The industry is responsible for 20% of global wastewater, with 70% of untreated industrial waste being disposed of into water bodies. In Cambodia, the garment industry accounts for 69% of all toxic discharges, and in China, which produces 65% of clothing worldwide, it's responsible for 20% of global industrial water pollution.
The fashion industry also contributes significantly to carbon emissions, with clothing and footwear production responsible for 8% of global greenhouse gas emissions. It is estimated that the industry produces more carbon emissions than all international flights and maritime shipping combined. Synthetic fibres like polyester are responsible for 35% of global microplastic pollution in oceans, and the dyeing and finishing processes require significant water resources.
However, there are some positive signs of change, with producers and consumers of fashion increasingly recognising the need for sustainability. Some companies, including large retailers like H&M and Guess, are integrating sustainability principles into their business strategies through garment collection schemes and recycling programmes. Smaller companies are also helping to change the environmental landscape of fashion, with firms like Freitag, Indosole, and Novel Supply building sustainability into their business models.
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Fossil fuel companies risk wasting $2tn by pursuing coal, oil, and gas projects
According to a 2015 Carbon Tracker study, fossil fuel companies risk wasting over $2 trillion in the coming decade by pursuing coal, oil, and gas projects. This is due to the potential worthlessness of these projects in the face of international action on climate change and the rapid advancement of clean energy technologies. The report highlights the danger of investing in projects that may become stranded assets, with up to $2.2 trillion at risk. The US, Canada, China, and Australia are among the most vulnerable countries, with significant exposure to investment risk.
The study emphasizes the disconnect between the industry's current practices and the necessary reductions in greenhouse gas emissions to meet the 2°C target. It suggests that fossil fuel companies should reassess their business models and embrace commercial opportunities in low-carbon energy. The report also underscores the importance of carbon capture and storage technology for the long-term viability of coal and gas industries. However, the development of this technology has been slow, and its success is not yet proven at a commercial scale.
The Carbon Majors Report, published by the environmental non-profit CDP in collaboration with the Climate Accountability Institute, identifies 100 companies as the source of more than 70% of global greenhouse gas emissions since 1988. This report focuses on the role of fossil fuel producers and their investors in tackling climate change, highlighting the tension between short-term profitability and the urgent need to reduce emissions. It calls for improved transparency among fossil fuel producers and urges investors to engage with carbon majors to understand the climate risks associated with their holdings.
The transition to clean energy is gaining momentum, with nearly 100 companies committing to 100% renewable power under the RE100 initiative. Oil and gas companies are also making green investments, recognizing the increasing risk associated with fossil fuel investments. As the world moves towards clean energy, investments in fossil fuel companies are becoming riskier, and energy sector transition could leave fossil fuel investors stranded.
To summarize, fossil fuel companies risk wasting $2 trillion by pursuing coal, oil, and gas projects that may become worthless due to climate change efforts and the rise of clean energy. This situation underscores the urgent need for fossil fuel companies to adapt their business models and investors to reconsider their support for these industries. The transition to clean energy is well underway, and companies that fail to recognize this shift risk significant value destruction.
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Frequently asked questions
According to a report by the Carbon Disclosure Project (CDP), 100 companies have been responsible for 71% of global GHG emissions since 1988.
ExxonMobil, Shell, BP, and Chevron are among the highest emitting investor-owned companies. The Carbon Majors Database report also names Peabody and BHP Billiton as two of the top 10 companies emitting the most carbon dioxide.
The energy sector, including oil, gas, and coal companies, is one of the most polluting industries. The fashion industry is the second-biggest industrial polluter, responsible for 10% of global emissions.
