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JAKARTA, BERITALINGKUNGAN.COM – A report issued by the Carbon Disclosure Project (CDP) recently revealed that only 100 out of hundreds of thousands of companies worldwide are responsible for 71% of global greenhouse gas (GHG) emissions that have led to global warming since 1988. The report highlights the crucial role of companies and investors in climate change mitigation efforts.
CDP, a non-profit organization dedicated to global information disclosure, indicates that over half of the world’s industrial emissions since the formation of the Intergovernmental Panel on Climate Change (IPCC) in 1988 can be traced back to just 25 companies and state entities.
According to the report as cited by Beritalingkungan.com from the activesustainability.com website (15/04/2024), 32% of the total emissions come from publicly owned companies, positioning investors as key agents in the transition to a sustainable economy. Investors can make their economic support contingent on companies’ commitments to decarbonize the energy sector.
As highlighted by many experts, investors continuing to invest in fossil fuel-focused companies will find this strategy increasingly risky over time. The energy sector is undergoing rapid changes, and this transition could leave those investing in fossil fuels stranded.
Investment Risks in Fossil Fuels
If companies continue to extract fossil fuels at the current rate as in the past 28 years, it is estimated that the global average temperature will rise by up to 4°C. This increase could potentially lead to the extinction of various species and seriously threaten global food production.
Largest CO2 Emitting Companies
So, which companies emit the most CO2 or have large emissions? According to CDP, between 1988 and 2015, 100 companies were responsible for 71% of global GHG emissions.
The Carbon Majors Database report lists the following 10 companies as the largest emitters of carbon dioxide into the atmosphere:
100 companies responsible for 71% of GHG emissions
- China Coal 14.3%
- Saudi Aramco 4.5%
- Gazprom OAO 3.9%
- National Iranian Oil Co 2.3%
- ExxonMobil Corp 2.0%
- Coal India 1.9%
- Petróleos Mexicanos 1.9%
- Russia Coal 1.9%
- Royal Dutch Shell PLC 1.7%
- China National Petroleum Corp 1.6%
On the other hand, more and more large companies are supporting the transition to a carbon-free economy and have committed to obtaining energy from 100% renewable sources. This initiative is led by a group of companies including Apple, Facebook, Google, and Ikea.
This CDP report provides a clear picture of how the corporate sector can and should play a role in global efforts to reduce the impacts of climate change and underscores the importance of investor roles in driving such changes (Marwan Aziz).
