How Corporations Profit Off of Climate Change Denial

How Corporations Profit Off of Climate Change Denial

If a cause was found for a life-threatening illness, would it be sensible to focus more efforts on regulating the contaminant responsible, or one that causes a mere cold? Applying the same thought process to the environment, as two-thirds of Americans agree, the government should take action against corporate-caused pollution instead of allowing corporations to reframe and treat pollution as an issue induced by individual actions, which is not only false, but incredibly harmful. A study published in Nature shows the chances of preventing a global temperature increase of over 1.5°C are slim unless fossil fuel infrastructure becomes obsolete. The question then emerges: why aren't there more government- and civilian- backed initiatives aimed at controlling the larger cause of climate change ― corporations?

One of the answers to this question is, put simply, deception. Steered by misleading campaigns and greenwashing, many consumers are driven to believe that the fate of the world lies in their actions as individuals. While any effort towards making more sustainable choices is necessary and productive in its own rights, focusing primarily on individual actions deflects from the impact of corporate polluters. A report compiled by the Carbon Disclosure Project found that 70% of the world’s greenhouse gas emissions (GHG) since 1988 have been the result of 100 fossil fuel companies, compared to the equivalent 5.43 gigatons of carbon dioxide produced by U.S. households each year. 

Focusing on smaller, individual-based action over more significant contributors to  environmental damage is also present in the preservation of our oceans. It seems surprising that many people are directing their efforts toward less pressing actions such as banning plastic straws over items such as fishing nets, which present a drastically larger threat to marine life. According to the Netflix documentary Seaspirary, there are approximately 1,000 sea turtle deaths from plastic each year compared to the 250,000 sea turtles captured, injured or killed every year by fishing vessels in the U.S. alone. The majority of plastic in the Great Pacific Garbage Patch (GPGP) is abandoned fishing gear, with 46% of the GPGP being composed of fishing nets, rather than the straws and bottles that are being discussed to a greater extent. The fishing industry is not being placed at the center of the discussion on water pollution despite its greater detrimental nature, once again shifting the narrative away from big industries and corporations and towards individual actions.

This emphasis on the role of ordinary people to solve climate change is further exhibited by the fossil fuel industry’s false narrative. The requirements of the Paris Agreement call for a limit of no more than a 2°C increase above pre-industrial levels, which would require a shift to renewable energy sources. However, any progress to do so is thwarted by fossil fuel companies casting doubt on climate change and pushing for greater consumer responsibility. A 2019 Influence Map report  revealed that ExxonMobil, Royal Dutch Shell, Chevron, BP and Total invested over 1 billion into climate-related branding and lobbying in the three years following the Paris Agreement. Through decades of misleading the public, fossil fuel interests have made climate change appear to be a matter of debate, potentially the reason behind why nearly 10% less Americans view climate change as a significant threat to their country compared to the international median.

However, the unwillingness of polluting corporations and industries to change is not rooted in a lack of knowledge. Though fossil fuel companies and politicians have been informed about the environmental consequences of burning fossil fuels since the 1950’s, the top 20 fossil fuel firms continue to expand, making them responsible for one-third of all carbon emissions. The practice of corporate denial of climate change began with, and is best exemplified by, the story of ExxonMobil.

In the case of Exxon, Minnesota’s Attorney General sued the company for carrying out a “campaign of deception” that aimed to weaken scientific evidence supporting climate change. The evidence for this lawsuit dates back to 1981 when Marty Hoffert, a scientist working for Exxon, created a model that displayed the significant warming Earth will undergo in the coming years. During this time, Exxon was investing millions into climate change research. Hoffert soon noticed discrepancies between his own findings and those voiced by company executives, including chief executive Lee Raymond, who made statements about the scientific evidence for anthropogenic climate change being inconclusive. 

Following the record-breaking summer heat of 1989, more credibility was generated towards the work of National Aeronautics and Space Administration (NASA) scientist Dr. Jim Hansen, who warned the public that "the greenhouse effect has been detected, and is changing our climate now.” In 1989, Exxon’s strategy chief, Duane Levine, created a private presentation for the company. The presentation is often referenced by those investigating Exxon’s emissions records because it revealed the company’s fear of deteriorating the public’s opinion of the fossil fuel industry. During this time, various energy companies and fossil fuel dependent industries united to create the Global Climate Coalition that lobbied politicians and the media in order to oppose actions to lower emissions of GHG. 

According to Drexel University emeritus professor Bob Brulle, between 2003 and 2007, ExxonMobil donated $7.2 million to institutions that denied or downplayed the consequences of climate change. Through Exxon and the Koch Brothers’ funding, right-wing think tanks were provided with a platform to spread the message of climate change denial. Around 90% of climate change skepticism papers in the U.S. stem from right-wing think tanks. These think tanks, such as the Cato Institute, Heartland Institute, and Heritage Foundation, are often funded and even created by fossil fuel companies.  

Corporations also recruit climate change denying scientists as a means of spreading climate science skepticism. In the 1990s, fossil fuel and oil stakeholders placed scientists who argued against climate change as experts and credible sources whose findings should be weighted at the same level as climate scientists. Groups like the American Legislative Exchange Council (ALEC) were created in order to spread the science of climate change denial and hide any signs of fossil fuel companies spreading those ideologies.

Deceitful action is not a thing of the past; many other companies are currently making hopeful promises that are not being fulfilled. The same year that Chevron pledged to invest $100 million into lowering emissions in its new Future Energy Fund, the company invested $20 billion into oil and gas. Additionally, only 0.13% of an average company's budget is allocated to corporate social responsibility (CSR). Well-known companies including Costco and Netflix touted their goals of reducing their contributions to climate change, all while not expressing their emission reduction targets. Levi Strauss and the well-known agriculture company Cargill set goals for emissions, yet struggled to reach them. Technology companies, such as Google and Microsoft, are working to lower emissions, but finding that the technology they hoped to utilize to reach their lofty goals is expensive and early in development. 

It is clear that individual actions alone cannot mitigate climate change, but changes are required of corporations. Major progress was made when President Biden rejoined the Paris Agreement, but greater transparency is necessary to hold corporations accountable for their massive contribution to climate change. For one, there are still no regulations that require uniform disclosure of environmental information like emissions. A bill proposed in January 2021 would require any company that reports more than $1billion in gross annual revenue to report their carbon footprint. Further legislation should be created that holds corporations accountable for setting required emissions targets and ensures they meticulously plan and execute a way to reach them. Additionally, as consumers, voters and shareholders, it is crucial to push for extensive changes to be made by top emitters. It is time to put an end to corporate lies and deceit and hold industries accountable.