Just 100 companies have been the source of more than 70% of the world’s greenhouse gas emissions since 1988, according to a new report.
The Carbon Majors Report (pdf) “pinpoints how a relatively small set of fossil fuel producers may hold the key to systemic change on carbon emissions,” says Pedro Faria, technical director at environmental non-profit CDP, which published the report in collaboration with the Climate Accountability Institute.
Traditionally, large scale greenhouse gas emissions data is collected at a national level but this report focuses on fossil fuel producers. Compiled from a database of publicly available emissions figures, it is intended as the first in a series of publications to highlight the role companies and their investors could play in tackling climate change.
The report found that more than half of global industrial emissions since 1988 – the year the Intergovernmental Panel on Climate Change was established – can be traced to just 25 corporate and state-owned entities. The scale of historical emissions associated with these fossil fuel producers is large enough to have contributed significantly to climate change, according to the report.
ExxonMobil, Shell, BP and Chevron are identified as among the highest emitting investor-owned companies since 1988. If fossil fuels continue to be extracted at the same rate over the next 28 years as they were between 1988 and 2017, says the report, global average temperatures would be on course to rise by 4C by the end of the century. This is likely to have catastrophic consequences including substantial species extinction and global food scarcity risks.
While companies have a huge role to play in driving climate change, says Faria, the barrier is the “absolute tension” between short-term profitability and the urgent need to reduce emissions.
A Carbon Tracker study in 2015 found that fossil fuel companies risked wasting more than $2tn over the coming decade by pursuing coal, oil and gas projects that could be worthless in the face of international action on climate change and advances in renewables – in turn posing substantial threats to investor returns.
CDP says its aims with the carbon majors project are both to improve transparency among fossil fuel producers and to help investors understand the emissions associated with their fossil fuel holdings.
A fifth of global industrial greenhouse gas emissions are backed by public investment, according to the report. “That puts a significant responsibility on those investors to engage with carbon majors and urge them to disclose climate risk,” says Faria.
Investors should move out of fossil fuels, says Michael Brune, executive director of US environmental organisation the Sierra Club. “Not only is it morally risky, it’s economically risky. The world is moving away from fossil fuels towards clean energy and is doing so at an accelerated pace. Those left holding investments in fossil fuel companies will find their investments becoming more and more risky over time.”
|Count||Company||Percentage of global industrial greenhouse gas emissions|
|2||Saudi Arabian Oil Company (Aramco)||4.50%|
|4||National Iranian Oil Co||2.28%|
|7||Petroleos Mexicanos (Pemex)||1.87%|
|9||Royal Dutch Shell PLC||1.67%|
|10||China National Petroleum Corp (CNPC)||1.56%|
|13||Petroleos de Venezuela SA (PDVSA)||1.23%|
|14||Abu Dhabi National Oil Co||1.20%|
|16||Peabody Energy Corp||1.15%|
|18||Kuwait Petroleum Corp||1.00%|
|20||BHP Billiton Ltd||0.91%|
|22||Petroleo Brasileiro SA (Petrobras)||0.77%|
|25||Nigerian National Petroleum Corp||0.72%|
|26||Petroliam Nasional Berhad (Petronas)||0.69%|
|28||Arch Coal Inc||0.63%|
|29||Iraq National Oil Co||0.60%|
|33||Alpha Natural Resources Inc||0.54%|
|34||Qatar Petroleum Corp||0.54%|
|38||National Oil Corporation of Libya||0.50%|
|39||Consol Energy Inc||0.50%|
|42||Oil & Natural Gas Corp Ltd||0.40%|
|47||Anadarko Petroleum Corp||0.33%|
|48||Egyptian General Petroleum Corp||0.31|
|49||Petroleum Development Oman LLC||0.31%|
|50||Czech Republic Coal||0.30%|
|51||China Petrochemical Corp (Sinopec)||0.29%|
|52||China National Offshore Oil Corp Ltd (CNOOC)||0.28%|
|54||Singareni Collieries Company||0.27%|
|55||Occidental Petroleum Corp||0.26%|
|58||North Korea Coal||0.23%|
|60||Suncor Energy Inc||0.22%|
|62||Devon Energy Corp||0.20%|
|63||Natural Resource Partners LP||0.19%|
|64||Marathon Oil Corp||0.19%|
|67||Canadian Natural Resources Ltd||0.17%|
|69||Exxaro Resources Ltd||0.16%|
|73||Alliance Resource Partners LP||0.15%|
|74||Syrian Petroleum Co||0.15%|
|76||NACCO Industries Inc||0.13%|
|78||Adaro Energy PT||0.13%|
|79||Petroleos del Ecuador||0.12%|
|81||Kiewit Mining Group||0.12%|
|82||AP Moller (Maersk)||0.11%|
|83||Banpu Public Co Ltd||0.11%|
|84||EOG Resources Inc||0.11%|
|85||Husky Energy Inc||0.11%|
|86||Kideco Jaya Agung PT||0.10%|
|87||Bahrain Petroleum Co (BAPCO)||0.10%|
|88||Westmoreland Coal Co||0.10%|
|89||Cloud Peak Energy Inc||0.10%|
|90||Chesapeake Energy Corp||0.10%|
|92||Teck Resources Ltd||0.09%|
|95||Noble Energy Inc||0.06%|
|96||Murphy Oil Corp||0.06%|
|97||Berau Coal Energy Tbk PT||0.06%|
|98||Bukit Asam (Persero) Tbk PT||0.05%|
|99||Indika Energy Tbk PT||0.04%|
|100||Southwestern Energy Co||0.04|