Mercedes Mullins
Fossil fuels are a major contributor to the climate crisis, with the world's largest fossil fuel companies responsible for a significant portion of global carbon dioxide emissions. Despite the devastating impact of the industry on the planet, many big companies continue to exploit oil, gas, and coal reserves, driving the planet closer to an existential threat. A recent report by the Carbon Majors Project revealed that just 36 entities, including Saudi Aramco, ExxonMobil, Chevron, Shell, and BP, produced over 20 billion tonnes of CO2 emissions in 2023, accounting for half of the world's planet-heating emissions. With governments and corporations failing to take urgent action, individuals are increasingly seeking ways to reduce their fossil fuel investments and financed emissions. As the climate emergency intensifies, the transition to renewable energy sources becomes ever more critical.
| Characteristics | Values |
|---|---|
| Number of companies responsible for a third of all carbon emissions | 20 |
| Number of companies responsible for half of global emissions | 36 |
| Number of companies in the Carbon Underground 200 list | 200 |
| Number of companies responsible for almost half the rise in global temperature and close to a third of the sea level rise between 1880 and 2010 | 90 |
| Number of companies responsible for 35% of all energy-related carbon dioxide and methane worldwide | 20 |
| Number of companies in the top 20 carbon-producing entities in 2023 | 20 |
| Number of companies in the top 20 carbon-producing entities that are state-controlled | 16 |
| Number of companies in the top 5 publicly traded oil companies | 5 |
| Number of State Street funds linked to MSCI fossil-free indices | 2 |
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What You'll Learn
The top 20 companies that use fossil fuels
A 2025 report by Euronews revealed that 36 fossil fuel firms were responsible for half of the global emissions in 2023. These firms included Saudi Aramco, Shell, ExxonMobil, Coal India, and several Chinese companies. Chinese companies contributed the most, with 23% of global fossil fuel emissions in 2023.
According to the Guardian, the top 20 companies on the list of major carbon emitters have contributed to 35% of all energy-related carbon dioxide and methane worldwide, totalling 480 billion tonnes of carbon dioxide since 1965. Chevron, Exxon, BP, and Shell are among the highest-emitting investor-owned companies.
The Carbon Underground 200 is an annually updated list of the top 100 public coal companies and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves.
While companies have a huge role to play in driving climate change, investor action is also critical. A Carbon Tracker study in 2015 found that fossil fuel companies risked wasting over $2 trillion in the following decade by pursuing coal, oil, and gas projects that could become worthless due to international climate action and renewable energy advancements.
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The impact of emissions from fossil fuels
- Rising global temperatures: CO2 and methane emissions from the 90 biggest industrial carbon producers were responsible for almost half of the rise in global temperatures between 1880 and 2010.
- Sea level rise: The same emissions were also responsible for close to a third of the sea level rise during the same period.
- Extreme weather events: The increase in global temperatures has led to more frequent and intense extreme weather events, such as hurricanes, floods, and heat waves, causing catastrophic damage and losses worldwide.
- Health impacts: Emissions from fossil fuels contain harmful pollutants that contribute to air pollution, leading to respiratory and cardiovascular diseases and other health issues in humans.
- Environmental degradation: Fossil fuel emissions contribute to environmental degradation, including ocean acidification, biodiversity loss, and ecosystem disruption.
- Economic impacts: The impacts of fossil fuel emissions on the environment and human health can have significant economic consequences, including damage to infrastructure, reduced agricultural productivity, and increased healthcare costs.
It is clear that the impact of emissions from fossil fuels is far-reaching and poses a serious threat to our planet, humanity, and future generations. As such, there is a growing urgency to transition away from fossil fuels and towards renewable and sustainable energy sources to mitigate the worst effects of climate change.
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Fossil fuel companies and their shareholders
The focus has now shifted to the shareholders of these listed fossil fuel companies and their potential influence on the management of these physical assets. The world's 15 largest asset manager groups, with a combined $40 trillion in capital market assets, have increased their holdings of thermal coal reserves by more than 20% since the Paris Agreement. This indicates a lack of strategic effort to transition away from coal.
Shareholders and investors play a crucial role in perpetuating the carbon era and accelerating the climate crisis. Fossil fuel companies receive substantial financial support from governments, including tax breaks and subsidies, which result in significant returns on investments. For instance, the US provides fossil fuel firms with $31 billion in subsidies annually, and Trump's tax-and-spend bill is expected to grant an additional $4 billion per year over the next decade.
To address these concerns, campaigns such as the fossil divestment movement aim to empower individuals to impact the fossil fuel value chain through ownership. Shareholder power is being utilized to drive change within companies, with 893 financial institutions responsible for $6.15 trillion in assets making divestment pledges. Additionally, platforms like Fossil Free Funds provide tools for everyday investors to make sustainable investment choices, reducing their fossil fuel investments and financed emissions.
As the world faces urgent deadlines to mitigate the most catastrophic consequences of global heating, the transition to renewable energy sources becomes increasingly vital. By recognizing the influence of shareholders and their responsibility, efforts can be made to rein in dependence on fossil fuels and accelerate the shift towards a more sustainable future.
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Fossil fuel divestment movements
Fossil fuel divestment is the act of moving one's money and investments out of the fossil fuel industry. It is the opposite of an investment, and it involves getting rid of stocks, bonds, or investment funds that are considered unethical or morally ambiguous. Fossil fuel divestment aims to reduce carbon emissions and accelerate the transition to renewable energy by stigmatizing fossil fuel companies and putting public pressure on them to invest in renewable energy sources.
The fossil fuel divestment movement has gained significant traction in recent years, with a growing number of institutions and organizations joining the cause. As of July 2023, more than 1500 institutions with over $40 trillion in assets worldwide have committed to some form of fossil fuel divestment. These institutions include universities, religious organizations, retirement funds, and other educational, philanthropic, and governmental entities.
One of the most prominent examples of fossil fuel divestment is Fossil Free Stanford, a successful student-led campaign that resulted in the university divesting its endowment of US$18.7 billion from coal extraction companies. Other notable divestment campaigns include those at Harvard University, the Massachusetts Institute of Technology (MIT), and Boston University, which joined other prominent universities worldwide in their commitment to fossil fuel divestment.
The movement has faced criticism from fossil fuel industry representatives, who argue that divestment will not reduce the demand for fossil fuels and that it may result in environmentally conscious investors losing influence over the industry. However, supporters of divestment cite various reasons for their decisions, including aligning investments with core values, combating the fossil fuel industry, and protecting portfolios from climate-related financial risks.
Despite the debate, the fossil fuel divestment movement continues to gain momentum, with growing public concern about the climate crisis and a desire to transition to clean energy and environmentally-friendly initiatives.
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The highest-emitting fossil fuel companies
Fossil fuel companies have been under scrutiny for their role in the climate crisis. Research has revealed that the top 20 fossil fuel companies are responsible for more than one-third of all greenhouse gas emissions in the modern era, with their relentless exploitation of the world's oil, gas, and coal reserves. These companies have continued to expand their operations despite being aware of the devastating impact on the planet.
The list of the top 20 highest-emitting fossil fuel companies is dominated by state-owned and multinational firms. The exact ranking of these companies can vary depending on the methodology and data used, but here is a list of some of the notable companies that are often mentioned:
Saudi Aramco:
Saudi Aramco, a Saudi Arabian company, topped the list in a report by InfluenceMap with 1.839 metric tons of carbon dioxide equivalent (MtCO2e), accounting for 4.38% of global CO2 emissions. If Aramco was a country, it would be the fourth-largest polluter in the world, after China, the US, and India.
Coal India:
Coal India is the world's largest government-owned coal producer and is often listed as one of the top contributors to carbon emissions.
CHN Energy:
CHN Energy, a Chinese state-owned mining and energy company, is also among the top emitters. China has multiple state-owned entities that contribute significantly to global fossil fuel emissions.
ExxonMobil, Chevron, Shell, TotalEnergies, and BP:
These five publicly traded oil companies together accounted for 5% of global carbon dioxide emissions from fossil fuels. They have also been criticized for scaling back low-carbon energy investment plans and increasing fossil fuel production.
Other notable mentions:
Other companies that are often mentioned in the context of high emissions include Westfarmers (Australia), Vale (Brazil), and RWE (Germany).
It is important to recognize that the impact of these companies' emissions extends beyond just numbers. The emissions from coal, oil, and gas produced by these fossil fuel companies have contributed to the rise in global temperatures, sea-level rise, and the overall climate crisis.
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Frequently asked questions
The top 20 fossil fuel companies are responsible for over a third of all greenhouse gas emissions. The top five publicly traded oil companies—ExxonMobil, Chevron, Shell, TotalEnergies, and BP—are together responsible for 5% of global carbon dioxide emissions from fossil fuels. Saudi Aramco, a state-owned oil company, was the highest emitter in 2023.
The emissions from these companies have been linked to almost half of the rise in global temperatures and close to a third of the sea level rise between 1880 and 2010. They are also responsible for intensifying extreme heatwaves and delaying the next ice age.
There have been divestment campaigns to encourage individuals to remove their investments from fossil fuels. Additionally, campaigns are working to empower individuals to impact the fossil fuel value chain and hold companies accountable for their contributions to climate change. Regulatory actions have also been taken, such as the complaint against BlackRock for misleading investors.
The lack of significant government regulation to restrict the extraction or use of fossil fuels has been a challenge. Additionally, the financial and lobbying structures that allow fossil fuel firms to continue growing, as well as the influence of shareholders, have hindered progress.
Individuals can use platforms like Fossil Free Funds to inform themselves about their investments and reduce their fossil fuel investments and financed emissions. They can also support and join campaigns advocating for change, such as the Fossil Fuel Non-Proliferation Treaty Initiative.
