The Greening Effect

Oil companies have lowered emissions by 12% during a five-year period.

September 19, 2017

LONDON – Major oil companies have long been among the largest corporate polluters, but lately, the firms have reduced their greenhouse gas footprints annually, Bloomberg reports. Between 2010 and 2015, 62 of the world’s 100 biggest companies steadily slashed emissions yearly, with an overall 12% drop during that period, according to Bloomberg New Energy Finance.  

This suggests that oil companies had already begun to counter climate change even before President Donald Trump indicated the United States would back out of the Paris accord. “It doesn’t matter if Trump stays in Paris; it’s irrelevant as the states and big corporations are moving forward with clean energy,” said Peter Terium, chief executive officer of the German power generator Innogy SE. “They’re not waiting. We’re seeing renewable energy becoming more and more competitive opposite fossil fuels like coal.”

BP Plc, Chevron Corp, Exxon Mobil Corp., Royal Dutch Shell Plc, and Total SA—the five largest oil firms—together lowered their emissions on average 13% between 2010 and 2015. BP slashed 25.5% to lead the group, while Exxon’s emissions declined 14%.

“This is a reflection of growing pressure from shareholders, investor groups and civil society for more disclosure of greenhouse gas emissions, as well as setting reduction targets,” said Laura McIntyre-Brown, analyst at Bloomberg New Energy Finance. “There’s also an evident trend of increased emissions disclosure among many of the biggest companies.”

Since 2000, Exxon shelled out around $8 billion to install low-emission energy tools, while Shell is focusing on “good projects” rather than simply achieving goals. The report also found that all five companies had put into place climate and efficiency policies and anti-pollution initiatives.

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