Oil Industry Ethics Evolution Report (1).pdf

FIRST DRAFT, 22 Aug 2025
The Evolving Ethic of Energy: A Critical
Analysis of the Oil, Gas, and Mining
Industry from Colonialism to a New
Climate Mandate
Executive Summary
This report provides a comprehensive analysis of the evolution of ethical considerations within
the oil, gas, and energy mining industry, tracing a path from the foundational injustices of the
Western colonial era to the complex challenges of the present day. It argues that the historical
ethical failings of the extractive industries are not isolated incidents but represent a continuous,
evolving pattern rooted in the imposition of foreign legal and philosophical frameworks. The
report first examines the colonial paradigm of ownership and exploitation, highlighting how the
superseding of indigenous land rights led to a legacy of dispossession and paternalism, as
exemplified by the case of the Anglo-Iranian Oil Company. It then transitions to the post-war
period, detailing the industry’s shift toward modern, though often performative, corporate social
responsibility (CSR) while simultaneously engaging in a systematic campaign of climate science
denial and disinformation. The analysis of local impacts, including pollution and the complicity in
the "resource curse" through corruption, reveals a pattern of externalizing social and
environmental costs for commercial gain.
The final sections of the report move from diagnosis to prescription. The concept of a "fair price"
for energy is deconstructed and redefined through the lens of energy justice, a framework that
demands equity in the distribution of benefits and burdens, procedural fairness, and a
commitment to restorative action. The report then synthesizes the moral imperatives articulated
in Pope Francis's encyclicals, Laudato Si' and Fratelli Tutti, with the practical, action-oriented
principles of organizations like Energy For One World. This synthesis provides a new, holistic
mandate for the industry—a shift from extraction to stewardship. The report concludes with
concrete recommendations for Western big oil boardrooms, advocating for the cessation of all
climate deception, the implementation of robust anti-corruption measures, and the full
integration of energy justice principles into all corporate operations. The central conclusion is
that a new era of ethical conduct for the energy industry is not merely a matter of improved
public relations or legal compliance, but a fundamental reorientation of its purpose toward
universal well-being, transition and long-term sustainability.
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I. The Foundations of Exploitation: Colonialism, Ownership, and
Asymmetric Power
The Colonial Paradigm of Resource Control
The ethical foundation of the modern extractive industries is deeply intertwined with the history
of Western colonialism. This period was marked by a fundamental clash of philosophical
frameworks regarding resource ownership. The European colonial powers operated under a
premise of private property, where land was a commodity to be acquired through inheritance,
purchase, or grants, and was inextricably linked to an individual’s wealth, social status, and
political influence. This contrasted sharply with the traditional indigenous perspective, which
viewed land and its resources as a shared, communal asset. From this viewpoint, rights to the
land were not permanent but were contingent upon its use for the collective good, such as for
hunting, fishing, or agriculture.
This conceptual difference was not resolved through dialogue or mutual understanding but
through the imposition of the colonial legal and philosophical framework. This created a moral
and legal justification for what was, in effect, a seizure of wealth. Resources in newly
"discovered" or "un-civilized" lands were considered un-owned, and thus ripe for the taking by a
“civilizing” power. This initial act of dispossession established a foundational injustice that
defined the relationship between colonizers and local populations, a pattern of unequal power
that has persisted long after the formal end of colonial rule.
A powerful early example of this paradigm in action is the Anglo-Iranian Oil Company (AIOC), a
large British multinational that, in 1933, secured a 60-year concession giving it exclusive rights
to all oil operations in Iran. The company's view of Iran as its "own town" reflected a deeply
entrenched colonial mindset. The AIOC's actions exemplified the paternalistic and
discriminatory nature of this era. The company was discriminatory toward its Iranian employees,
holding a negative view of their technical potential and resisting their advancement to senior
positions. This resistance was not merely a matter of prejudice but a tactical decision rooted in
the desire to maintain monopolistic control; redistributing employment in favor of Iranians
threatened to compromise the company's business control. While the AIOC was willing to make
some concessions on housing and healthcare, these were seen as insufficient, highlighting a
superficial approach to corporate responsibility that failed to address the core ethical issue of
control and power. This intransigent and outdated behavior ultimately provoked Iranian
demands for a fairer arrangement, culminating in the 1951 nationalization crisis. This case
demonstrates that the ethical failings of the colonial era were not merely incidental but were
directly tied to business strategy and ultimately contributed to geopolitical instability.
The Legacy of Dispossession and Paternalism
The ethical harms of the colonial era went far beyond the simple economic exploitation of
resources. A historical analysis of European empire building, for example in sub-Saharan Africa,
reveals a pattern of epidemiological and bodily harm caused by conquest and economic
development. The establishment of uneven and inadequate infrastructure, including healthcare
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systems, created a cycle of dependency and harm. Moreover, the concerted and inadvertent
efforts to undermine indigenous practices further solidified the power asymmetry. This
paternalistic approach, where the colonizing power determined what was best for the local
population, is a direct ethical parallel to the AIOC's behavior in Iran. The concessions on
housing and healthcare were a form of paternalism, offering limited benefits while refusing to
cede real control or a fair share of the profits. The nationalization of the Iranian oil industry was
a direct challenge to this model, illustrating that superficial ethical gestures are inadequate when
the foundational power structure is unjust.
The legacy of this historical dispossession continues to manifest as a central legal and ethical
issue today. In the post-colonial era, indigenous peoples have been fighting for generations to
regain recognition of their rights to land and resources. The Inter-American jurisprudence has
identified the right of indigenous peoples to their traditionally owned lands and the natural
resources found on them as necessary for their economic, spiritual, cultural, and physical
well-being. International bodies, such as the United Nations, have officially recognized the rights
of indigenous peoples to their cultural values, customary use of land, and input into
development projects. This stands in stark contrast to the colonial model, where treaties often
ceded tribal lands to settler governments while "reserving" rights to traditional uses. However,
the ethical and legal battles persist. While some agreements have been reached, such as the
investment by First Nations in oil and gas projects in Canada, this cooperation has been
facilitated by an increase in organized opposition from environmental groups, which has created
a common cause between First Nations and the petroleum industry. The ongoing legal and
political struggles over land claims and resource rights demonstrate that the ethical evolution of
the industry is a slow-moving rectification of the initial colonial sin of property misrecognition and
the imposition of a foreign philosophical framework.
II. The Post-War Reckoning: Corporate Responsibility and
Environmentalism
The Dawn of Modern Corporate Social Responsibility (CSR)
In the decades following World War II, as economies boomed and corporate power expanded,
the concept of business ethics began to evolve from ad-hoc moral considerations to a more
structured, codified approach. The term "ethics" became more integrated into professional
societies and organizations, leading to the gradual expansion of codes of ethics that addressed
a variety of specific issues, from sexual harassment to human rights and bribery. This
movement, often referred to as Corporate Social Responsibility (CSR), was not an intrinsic
moral shift but a response to rising societal awareness and a loss of public trust. The oil and gas
industry, in particular, became a pioneer in promoting CSR, partly due to the high risks and
potential for environmental harm associated with its operations. The goal was to provide a
framework for guiding employees and stakeholders and to align corporate actions with values.
However, the effectiveness of these early ethical codes was limited, as they often coexisted
with, and were overshadowed by, a deeper ethical failure related to the most significant
environmental challenge of the era: climate change.
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The Unfolding Crisis: Climate Change, Disinformation, and Accountability
The true test of the industry's ethical framework came with the emergence of climate science.
As early as 1958, major oil companies were hiring scientists and engineers to research the role
of fossil fuels in global warming, with the goal of understanding how atmospheric changes might
affect their business. By the late 1970s and early 1980s, internal company documents from
Exxon and Shell contained stunningly accurate predictions of rising global temperatures and
warnings of "dramatic environmental effects". An internal Exxon memo from 1978 noted the
scientific consensus that the climate is affected by fossil fuels. One internal Exxon study from
1979 concluded that the potential problem was "great and urgent," while a 1982 document
explicitly stated that the science on human-caused climate change was "unanimous". This
internal knowledge was not acted upon in any meaningful way. Instead, the companies made a
deliberate decision to "bury the findings and manufacture a counter narrative to undermine the
growing scientific consensus".
This systematic campaign of "deception, disinformation, and doublespeak" was a calculated
ethical failure, prioritizing short-term profits over public health and safety. The industry’s public
relations efforts focused on shifting responsibility to consumers, as seen with BP's
popularization of the "carbon footprint" and its launch of a personal calculator to make climate
change a matter of individual lifestyle choices. At the same time, companies like Chevron ran
public relations campaigns, such as the "People Do" ads, which invested more in marketing
than in the conservation projects they purported to support. The deliberate nature of this
deception has been documented in internal communications. For instance, in a December 2015
email, an Exxon communications advisor admitted that the company did not "dispute much of
what these stories report" regarding its climate deception, even as the company publicly called
the investigative reporting "inaccurate and deliberately misleading".
This systematic discrepancy between what companies knew internally and what they told the
public is now at the heart of a growing wave of lawsuits from cities, states, and counties across
the United States. These lawsuits, which are based on internal documents and scientific
attribution, seek to hold the industry accountable for climate-related damages by alleging that its
actions constitute a "public nuisance" and a form of fraud.
A landmark case in this legal counter-offensive is the Dutch court's 2021 ruling against Shell,
which ordered the company to reduce its global carbon emissions by 45% by 2030. The court’s
decision was heavily influenced by international soft-law instruments on business and human
rights and demonstrated that if governments have a responsibility to address climate change,
then so do corporations. This ruling represents a critical turning point, applying human rights
principles to corporate climate responsibility and showing that the industry's ethical maturity will
be measured not by its ability to create new CSR policies, but by its capacity to move from
reactive defense to proactive responsibility for the climate crisis it helped to create and then
obscure.
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Table 1: Big Oil's Climate Knowledge and Public Deception Timeline
Date Source What They Knew What They Said/Did
1958 Industry Research The oil industry was
hiring scientists to
research the role of
fossil fuels in global
warming.
Initial internal research
for corporate insight.
1977-1982 Exxon Internal
Documents
Researchers accurately
projected a warming
trend of 0.20°C per
decade. An internal
memo states the
science was
"unanimous" that
burning fossil fuels
would have "dramatic
environmental effects".
No public
acknowledgment.
James Black warned of
a "window of five to ten
years before the need
for hard decisions". The
Esso Atlantic
monitoring project was
called off and research
downgraded.
1980s Chevron Commercials The company was
aware of the need for
conservation.
Launched the "People
Do" ad campaign,
which spent more on
public relations than on
the conservation
projects themselves
and misleadingly
presented legally
required actions as
voluntary good deeds.
1988 Shell Internal Report A confidential report on
"The Greenhouse
Effect" detailed the
science and potential
for sea-level rise.
Public statements and
actions did not align
with these internal
concerns, as evidenced
by a later legal ruling.
Early 2000s BP Ad Campaign The company
understood the link
between fossil fuels
and climate change.
Launched a campaign
popularizing the term
"carbon footprint" to
shift responsibility for
climate change to
individual consumers.
The company
simultaneously funded
anti-climate messaging
and lobbied against
climate legislation.
2015 InsideClimate News Internal company Exxon publicly called
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Date Source What They Knew What They Said/Did
Report documents showed that
Exxon knew about
climate change risks as
early as the 1970s.
the findings "inaccurate
and deliberately
misleading" despite
internal
communications
confirming the validity
of the reporting.
2021 The Hague District
Court Ruling
A court found that Shell
had an obligation to
reduce emissions and
that its internal policies
were inadequate.
Shell was ordered to
cut its global emissions
by 45% by 2030, a
landmark ruling that set
a powerful precedent
for corporate climate
accountability.
III. The Moral Hazards of Extraction: Local Impacts, Corruption, and
the Resource Curse
Pollution and Public Health
Beyond the global issue of climate change, the extractive industries face immediate and
localized ethical challenges related to pollution and public health. Oil and gas operations, by
their very nature, have a significant impact on the environment, often resulting in greenhouse
gas emissions, water pollution, and habitat destruction. These impacts are not theoretical; they
have tangible consequences for the communities living near extraction and refining facilities. For
example, a public health investigation by the Los Angeles County Department of Public Health
found that neighborhood facilities in a state of disrepair led to resident health complaints of
headaches, nausea, respiratory irritation, and eye, nose, and throat irritation. The investigation
concluded that there was insufficient regulatory oversight and inadequate mitigation measures
to reduce the health risks to the adjoining community. This is a recurring ethical failure, where
the burden of environmental and health costs is disproportionately borne by local populations,
particularly those without the political or economic power to advocate for themselves. While
regulations like the Clean Air Act and Clean Water Act exist, their enforcement is often
inadequate, leaving communities vulnerable to the negative externalities of industry operations.
The "Paradox of Plenty": Corruption and Political Instability
The ethical landscape of the extractive industries is further complicated by the pervasive
problem of corruption, which is a key component of the "resource curse" or "paradox of plenty".
This phenomenon describes the failure of many resource-rich countries to fully benefit from their
natural wealth, leading instead to higher rates of conflict, authoritarianism, and lower rates of
economic stability. The perfect scenario for corruption arises when a few individuals hold all the
power over natural resources, public information is scarce, and there is a lack of accountability
for decision-makers. This creates a powerful incentive for rent-seeking behavior, where
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individuals in power divert public funds for private use, thereby diverting them away from public
welfare.
Western big oil firms have frequently been the "supply side" of this corruption, engaging in a
symbiotic relationship with the "demand side" of corrupt government officials. This is a strategic
choice to leverage the weak institutions and lack of accountability in resource-rich nations for
commercial gain. A firm may view corruption as an easy way to gain advantages, such as
securing access to resources and reducing political interference in their operations. The large
investments and long production timelines of extractive projects create a strong incentive for
companies to continue operating even when faced with demands for corrupt transactions.
Specific case studies illustrate the mechanisms of this corruption in detail:
● The TotalEnergies Bribery Case: The French oil company TotalEnergies was charged in
the United States and France for paying $60 million in bribes to a government official in
Iran to secure lucrative oil rights. These illegal payments were disguised as "business
development expenses" , revealing a sophisticated mechanism for concealing corrupt
deals. The fact that the company failed to implement effective internal accounting controls
highlights the systemic nature of the failure to maintain accountability for assets.
● The Shell/Eni OPL 245 Scandal: This case is a central example of a Western firm
knowingly entering into a corrupt deal. In 2011, Shell and the Italian oil company Eni paid
$1.3 billion to the Nigerian government to acquire a lucrative oil field. However, nearly all
of that money was funneled to a company controlled by a former Nigerian oil minister who
had been convicted of money laundering. Emails and internal correspondence later
revealed that senior Shell officials were knowingly participating in the bribery scheme. The
fact that this oil field, with an estimated nine billion barrels of oil, was never developed due
to the scandal demonstrates the ultimate financial and operational risk of such behavior.
The ethical failure in these cases is not merely a legal violation; it is a strategic decision to
leverage the instability and lack of accountability in resource-rich nations for commercial gain,
thereby perpetuating the very conditions that harm local populations and fuel conflict.
Table 2: The Endemic Nature of Corruption in the Extractive Sector: Case Studies
Case Company(ies) Country/Region Mechanism of
Corruption
Ethical
Implications
Bribery for Oil
Rights
Total S.A. (now
TotalEnergies)
Iran The company paid
$60 million in
bribes to a
government official
to secure oil rights.
Payments were
disguised as
"business
development
expenses" to
conceal their true
nature.
This act of
corruption led to
legal charges in
the U.S. and
France and
demonstrated a
systemic failure to
implement
effective internal
controls. It also
perpetuates the
"resource curse"
by reinforcing
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Case Company(ies) Country/Region Mechanism of
Corruption
Ethical
Implications
unaccountable
governance.
OPL 245 Bribery
Affair
Royal Dutch Shell,
Eni S.p.A.
Nigeria (Niger
Delta)
The companies
paid $1.3 billion for
an oil block, with
prosecutors and
activists alleging
that most of the
money was
funneled to a
former oil minister
and other officials
through
intermediaries.
Internal emails
revealed senior
executives'
knowledge and
complicity in the
scheme. The
scandal led to
legal battles,
public outrage,
and the failure to
develop the oil
field,
demonstrating that
such deals are
fraught with
financial and
reputational risk. It
also deepened the
long-standing
distrust between
the company and
the local
community.
Petroleum
Revenue
Mismanagement
N/A (General
Case)
Nigeria A textbook
example of the
"resource curse"
where oil revenue
provides the bulk
of government
income, reducing
reliance on citizen
taxation. This
leads to a lack of
public scrutiny and
accountability, and
funds are diverted
for private gain or
mismanaged.
This behavior fuels
authoritarianism,
conflict, and a
failure to improve
the standard of
living for citizens,
despite immense
national wealth.
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IV. Redefining Value: Towards a Just and Fair Energy System
The Ethical Imperative of a Fair Price
The traditional view of a "fair price" for energy goods and services has historically been limited
to a purely economic calculation based on market forces, such as supply, demand, and the
costs of building, financing, and operating power plants and the electricity grid. However, this
narrow perspective is an ethical failure because it systematically ignores the social, human, and
environmental externalities of energy production. From a broader, ethical standpoint, the
distribution of energy is "full of unfairness and inequalities". For example, people in
underdeveloped countries often lack access to clean energy, which directly contributes to health
problems such as infant mortality and respiratory illnesses. This reveals a critical disparity: while
the costs of production are borne by the few, the benefits of consumption are disproportionately
enjoyed by the wealthy. The public, in fact, often overweighs economic concerns with social and
environmental ones. A truly fair price must account for the full life-cycle costs of a project, not
just the financial ones, including environmental harm, social disruption, and health impacts.
The Four Tenets of Energy Justice
The modern framework of "energy justice" provides a more robust and holistic ethical model for
the industry's future. It goes beyond the traditional economic view of pricing to address the
fundamental issues of who bears the costs and who reaps the benefits of energy production and
consumption. The framework encompasses four key dimensions:
● Distributional Justice: This tenet addresses the fair distribution of benefits and burdens
related to energy. It seeks to avoid situations where certain populations, often
marginalized and low-income communities, bear a disproportionate share of the costs,
such as pollution and displacement, while lacking access to the benefits, such as jobs or
clean energy. This can be seen in the historical and ongoing struggles of indigenous
communities over land rights and resource access, where they have carried a
disproportionate burden of extractive projects.
● Procedural Justice: This principle is concerned with who has access to and influence
over energy decision-making processes. It advocates for the inclusion of all affected
persons, particularly local and indigenous communities whose traditional knowledge and
unique circumstances are often overlooked. The history of extractive industries is replete
with examples of corporate decisions being made without meaningful consultation with
local stakeholders.
● Recognition Justice: This tenet calls for the identification and acknowledgment of
historical injustices and inequalities in the energy system. It requires a conscious effort to
understand how past practices, such as the colonial imposition of ownership models and
discriminatory practices, have created and perpetuated present-day disparities. The need
for this form of justice is a direct counterpoint to the failures seen in the AIOC case, where
British managers refused to recognize the legitimacy of Iranian demands.
● Restorative Justice: This principle describes the remediation of a perceived energy
injustice. It calls for action to repair the harm caused by past and present injustices, such
as environmental degradation or the misappropriation of resources. This goes beyond
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mere compensation; it involves a commitment to healing the wounds created by the
energy industry's past actions, as seen in the ongoing legal and ethical battles over local
pollution.
The application of this framework is critical for the ongoing energy transition. The shift to
renewable energy, while ethically imperative, risks creating "new ways to generate unfairness" if
not managed correctly. It is essential to ensure that the benefits of renewable energy are shared
equitably and that marginalized groups are included in the transition. This requires a
fundamental shift from a model of resource exploitation to a model of energy justice, where a
"fair price" is not a market equilibrium but a reflection of a commitment to universal equity and
well-being.
V. A Call for Universal Fraternity: Lessons from the Vanguard
The ethical challenges facing the oil and gas industry today require more than just technical or
regulatory solutions; they demand a fundamental moral reorientation. This reorientation finds its
most compelling articulation in the philosophical and practical work of two distinct, yet
complementary, movements: the moral compass of the Vatican and the action-oriented blueprint
of organizations dedicated to sustainable energy.
The Moral Compass of the Vatican
In his encyclical Laudato Si', Pope Francis provides a powerful moral diagnosis of the current
environmental crisis. He argues that climate change is real and "a result of human activity," and
he issues an urgent appeal to protect the planet and the world's most vulnerable people. The
central ethical concept is "integral ecology," which connects the "cry of the earth" to the "cry of
the poor," arguing that environmental destruction and growing global inequality are not separate
problems but are reflections of a world that has placed profit and relentless growth above all
other considerations. The Pope's subsequent apostolic exhortation, Laudate Deum, builds on
this, directly criticizing oil and gas companies for "greenwashing new fossil fuel projects" and for
a lack of "ambitious efforts in the West" to tackle the climate crisis.
Pope Francis's second major encyclical, Fratelli Tutti, extends this ethical framework to the
social and political sphere. It critiques a global economy that, while making us "neighbours," fails
to make us "brothers" by imposing a single cultural model that exploits local conflicts and
disregards the common good. The encyclical calls for a "better kind of politics" rooted in "social
charity" and the pursuit of human dignity, urging a shift to a world without walls, borders, or
rejected people. This philosophical vision of a "universal fraternity" provides the moral
foundation for a new way of operating in the world, one that sees all people as part of a single,
interconnected human family.
Blueprint for a Shared Future: The Mission of Energy For One World
The moral imperatives articulated by Pope Francis are given a practical, action-oriented form by
organizations and thought leaders working in the field of global energy. The concept of "Energy
For One World" is embodied by various entities, including the work of its founder, Adriaan
Kamp, and by organizations such as the World Energy Council and Energy For One World.
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These groups share a mission to "promote the sustainable supply and use of energy for the
greatest benefit of all people" and a vision of "humanising energy". Their work provides a clear
and actionable blueprint for the energy industry.
A central principle of this work is the need for global collaboration, transcending traditional
divides between the corporate world and politics, between conventional energy suppliers and
clean-tech, and between the developed "North" and the developing "South". The focus is on
ensuring universal access to affordable, reliable, and modern energy services, particularly in
developing nations, where hundreds of millions still lack electricity and clean cooking fuels. This
directly addresses the "cry of the poor" from Laudato Si' by advocating for scalable solutions
and financing mechanisms to close the energy access gap.
Furthermore, the work of these organizations highlights the critical ethical dimension of energy
consumption, particularly for developed countries. The argument is made that developed
nations have an ethical responsibility to reduce energy consumption, and upkeep resource
reserves through efficiency and conservation. This is not merely a technical choice but a moral
one, as it directly reduces demand for fossil fuels, which are the fastest-growing source of
greenhouse gas emissions. This emphasis on efficiency, upkeep of resource reserves and
conservation provides a practical pathway for the energy industry to move towards a more
sustainable and equitable future.
The lessons for the energy industry are clear: the moral and practical paths are one and the
same. The industry must move beyond a narrow profit motive and embrace a new mission
rooted in universal fraternity and shared well-being. This requires a fundamental redefinition of
its role, from a purveyor of commodities to a steward of a shared, essential resource,- available
and affordable to the very least, and dedicated to ensuring its benefits are available to all,
without damaging the planet.
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VI. Recommendations for the Boardroom: From Extraction to
Stewardship
The history of the oil, gas, and energy mining industry is marked by a consistent pattern of
ethical failures, from the colonial disregard for indigenous rights to the modern denial of climate
science and complicity in corruption. The analysis presented in this report reveals that these are
not isolated incidents but symptoms of a business model that has systematically externalized its
social and environmental costs. For Western big oil firms to achieve a sustainable and ethical
future, they must fundamentally transform their corporate mandate from extraction to
stewardship. The following recommendations provide a blueprint for a boardroom-level shift that
aligns corporate strategy with the principles of universal fraternity and energy justice.
A New Corporate Mandate: Beyond CSR
The historical adoption of CSR in the energy industry has proven to be an inadequate response
to its profound ethical challenges. As a high-risk sector prone to corruption and environmental
harm, the industry’s ethical mandate must evolve beyond reactive public relations and legal
compliance. The new mandate must be a proactive commitment to a new value proposition, one
that integrates social and environmental well-being into the core of its business model.
Actionable Strategies for the Boardroom
1. Implement a "Pillar of Truth and Accountability":
● Recommendation: Boards must end all forms of climate disinformation, lobbying against
climate legislation, and "greenwashing". The history of internal knowledge and external
deceit has created an irreparable trust deficit.
● Action: Boards should mandate full, transparent, and immediate public disclosure of all
internal climate science and projections. This requires a formal cessation of all funding
and support for lobbying groups or third-party organizations that seek to undermine
climate action or sow doubt about the scientific consensus.
2. Embrace a "Stewardship of the Resource":
● Recommendation: Actively work to end the "resource curse" by establishing and
enforcing robust, transparent anti-corruption mechanisms that go beyond legal
compliance. This means treating corruption as an existential threat to long-term viability,
not just a legal risk.
● Action: Boards must mandate that all transactions and payments in resource-rich nations
are independently audited and publicly disclosed, following international standards.
Furthermore, companies should actively support governance reform in host countries and
refuse to engage in deals where transparency and accountability cannot be guaranteed.
3. Integrate the Four Tenets of Energy Justice:
● Recommendation: Apply the energy justice framework to all new and existing projects,
from inception to decommissioning. This requires a holistic ethical assessment that
moves beyond a simple cost-benefit analysis.
● Action:
○ Distributional Justice: Boards must ensure that a fair portion of profits is allocated
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to the local and national communities from which resources are extracted.
○ Procedural Justice: Grant meaningful decision-making power to local and
indigenous communities in all project planning, not just token consultation. This
involves incorporating their unique knowledge and concerns into the project
lifecycle.
○ Recognition Justice: Boards should publicly acknowledge and apologize for
historical injustices and the negative impacts of past operations on local
communities.
○ Restorative Justice: A portion of all project revenues must be dedicated to
remediating past environmental damage and socio-economic harm, such as local
pollution and health issues.
4. Prioritize a Just and Equitable Transition:
● Recommendation: Boards must shift capital and corporate strategy away from new fossil
fuel projects toward investments in electrification, power grids, renewable energy, energy
efficiency, and technology transfer. This must be done with an explicit focus on social
equity.
● Action: The focus should be on building "a path-finding journey" that bridges the gap
between conventional and clean energy suppliers, as advocated by Energy For One
World. Companies should invest in and partner with initiatives that provide equitable
access to energy for the world's poorest, as championed by organizations like Energy For
One World, thereby addressing the "cry of the poor" directly. This represents a crucial
step from a business model based on extraction to one based on stewardship and
universal benefit.
This ethical evolution is the only viable path forward for an industry at a critical crossroads. By
embracing a new mandate rooted in truth, accountability, and justice, Western big oil firms can
move beyond their legacy of exploitation and become leaders in building a truly sustainable and
equitable energy future.
A compelling case exists for a moral imperative that requires big oil companies to accelerate the
transition to a low-carbon economy. This imperative is rooted in their historical role in the climate
crisis and their current capacity to drive change. It extends beyond simple corporate
responsibility to a fundamental ethical obligation to mitigate harm and contribute to a just and
sustainable future.
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The Moral Imperative of Transition
The core of the moral imperative lies in the principle of "do no harm" and the concept of
reparations. For decades, major fossil fuel companies have been the primary drivers of
greenhouse gas emissions, despite having internal knowledge of the climate risks associated
with their products since the mid-20th century. This history creates a moral duty to rectify the
damage done and prevent further harm. This isn't just about reducing emissions; it's about
actively leading the shift to a new energy paradigm.
Making Room for Renewables in Resource Countries
In countries where big oil companies have historically exploited oil and gas resources, their
moral duty is twofold: to decarbonize their own operations and to facilitate a just energy
transition for local communities.
● Investment and Infrastructure: Companies should invest a significant portion of their
profits from these regions into local renewable energy projects. This includes building
solar and wind farms, developing smart grids, and creating infrastructure for energy
storage. They have the financial capital and technical expertise to make this happen
quickly.
● Knowledge Transfer and Retraining: A just transition means not leaving local workers
behind. Big oil companies should establish and fund comprehensive programs to retrain
oil and gas workers for jobs in the renewable energy sector, such as manufacturing solar
panels, installing wind turbines, or managing battery storage facilities. This helps ensure
that the economic benefits of the energy transition are shared equitably.
● Community Development: Beyond energy, companies must address the long-term
environmental and social impacts of their past operations. This involves cleaning up
polluted sites, restoring ecosystems, and investing in diversified, sustainable local
economies that are no longer dependent on fossil fuel extraction.
Driving Electrification in Consumer Markets
In consumer markets, the moral imperative shifts to influencing consumption patterns and
facilitating the adoption of clean energy. The focus should be on principles that actively
discourage fossil fuel use while promoting alternatives.
● Reallocating Capital: Companies should redirect their vast marketing and research
budgets away from promoting petrochemical products and towards advertising and
developing renewable energy solutions. For example, instead of opening more gas
stations, they should convert them into electric vehicle (EV) charging hubs powered by
renewable energy.
● Innovating and Scaling Clean Technologies: Big oil companies possess unique
expertise in large-scale project management, This knowledge should be leveraged to
rapidly scale up clean technologies..
● Avoiding Greenwashing: A key principle is genuine action over misleading claims.
Companies must set and adhere to ambitious, absolute emissions reduction targets that
align with climate science. This means reducing total emissions, not just their "emissions
14

intensity," and transparently reporting their progress.
New Principles for a New Era
To truly fulfill their moral imperative, big oil companies must adopt a new set of principles that go
beyond incremental change:
1. Decline in Production: A fundamental ethical principle is to actively manage a decline in
fossil fuel production in line with global climate goals. This runs counter to their traditional
business model but is necessary to limit global temperature rise.
2. Polluter Pays: They must accept financial responsibility for climate-related damages and
contribute to a global fund to help vulnerable nations adapt to climate change.
3. End of Subsidies and Lobbying: Companies must cease lobbying efforts that
undermine climate policies and stop seeking government subsidies for fossil fuel projects.
Instead, they should advocate for policies that support a rapid and just transition.
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