Four of the world鈥檚 biggest oil companies have been accused of greenwashing for failing to match their words on climate change with action, after a study concluded the firms aren鈥檛 seriously transitioning to low-carbon energy.
Many international oil and gas giants have trumpeted their transition away from fossil fuels to renewable energy and hydrogen in recent years, with European companies making the boldest claims. In 2020, BP and both promised to reach net-zero emissions by 2050.
However, an analysis of the corporate reports, statements and spending of BP, Shell and US-based Chevron and ExxonMobil found a mismatch between rhetoric and reality.
Advertisement
鈥淭heir claims about efforts to transition to clean energy are not supported by actions and investments,鈥� says at Kyoto University, Japan.
Searching through the four firms鈥� annual reports from 2009 to 2020, Trencher and his colleagues found a clear increasing trend in the use of 39 keywords and phrases such as 鈥渃limate change鈥� and 鈥渢ransition鈥�.
However, the researchers found a lack of concrete actions to meet clean-energy targets set over the period. They also discovered that the companies were spending only a tiny fraction of the billions they invest in energy projects each year on low-carbon projects.
From 2010 to the third quarter of 2018, the latest data the team could access, BP spent on average 2.3 per cent of its annual capital expenditure on low-carbon energy. Shell was on 1.33 per cent, followed by Chevron at 0.23 per cent and ExxonMobil at 0.22 per cent.
The team also found 鈥渃onsiderable evidence鈥� of strategies hampering the companies鈥� ability to transition to green energy, says Trencher. For example, the companies haven鈥檛 reduced oil and gas production across the period studied: since 2015, Shell and Chevron have increased production, and BP had too until 2020.
鈥淕iven the mismatch between discourse, pledges, actions and investments, aligning with recent studies, we conclude that no major [oil company] is currently on the way to a clean energy transition,鈥� the team writes.
Several of the companies have announced more aggressive decarbonisation plans since the period studied. Shell this month said half its spending would be on the energy transition by 2025, while its equivalent would be 40 per cent by 2025.
Responding to the study's findings, a Shell spokesperson says: 鈥淲e have always been clear that the business plans we have today will not get us to net zero. So, our plans must change over time.鈥�
A spokesperson for BP highlighted its post-2020 action on renewables and electric car chargers, noting that the period covered by the analysis means "it will not be able to take these developments and progress fully into account". The other two companies were contacted for comment.
Trencher says even with more recent progress, people should 鈥渘ot overlook the history of regressive actions we have documented鈥�.
and have recently reported bumper profits thanks to high oil and gas prices, at a time when energy bills are rapidly rising in the UK and Europe, prompting . The UK government , but Trencher says: 鈥淭his does not seem like a bad idea.鈥�
PLoS One
