Oil firms ‘greenwash' on climate, study finds

Accusations of greenwashing against major oil companies that claim to be in transition to clean energy are well-founded, according to the most comprehensive study to date.

- Damian Carrington

The research, published in a peer-reviewed scientific journal, examined the records of ExxonMobil, Chevron, Shell and BP, which together are responsible for more than 10% of global carbon emissions since 1965. The researchers analysed data over the 12 years up to 2020 and concluded that the company claims did not align with their actions, which include increasing rather than decreasing exploration.

The study found a sharp rise in mentions of “climate”, “low-carbon” and “transition” in annual reports in recent years, especially for Shell and BP, and increasing pledges of action in strategies. But concrete actions were rare and the researchers said: “Financial analysis reveals a continuing business model dependence on fossil fuels along with insignificant and opaque spending on clean energy.”

Numerous previous studies have shown there are already more reserves of oil and gas and more planned production than could be burned while keeping below the internationally agreed temperature target of 1.5C. In May 2021, the International Energy Agency (IEA) said there can be no new fossil fuel developments if the world is to reach net zero by 2050.

Oil companies are under increasing pressure from investors to align their businesses with climate targets. But their plans have faced scepticism, prompting the researchers to conduct the new research, which they said is both objective and comprehensive.