Leaked documents expose deceitful partnerships fueling prominent US consulting firm: 'It is unconscionable'

Leaked documents have revealed that American consulting firm McKinsey & Company has been working with its clients to boost oil production despite claiming to be helping the world go green. 

What's happening?

As the Guardian reported, documents obtained by the outlet and the Center for Climate Reporting showed that at least 5% of McKinsey's revenue in 2023 came from Neom, a massive futuristic city planned in the vast Saudi Arabian desert. 

The project marks a stepping stone to help the world's second-largest oil producer transition to clean energy. It may also boost McKinsey's reputation by proving that it actively advises clients on eco-friendly projects.

However, at the same time, the consulting agency is working with the Saudi government to keep its oil flowing, with between 1-5% of its United Arab Emirates revenue acquired from oil giant Saudi Aramco in 2023. 

According to the Guardian, court records have confirmed McKinsey also has ties to other polluting companies, including those linked to Canada's tar sands oil and Koch Industries, which critics say is using its wealth to perpetuate the climate crisis. 

"In a year set to be the hottest on record, it is unconscionable to have a clientele list that reads as the 'whodunit' of the climate crisis," Rachel Rose Jackson from nonprofit Corporate Accountability, told the Guardian. "The more [McKinsey] continues to partner closely with and profit from the very actors condemning people and the planet, the more complicit it becomes."

Why is this concerning?

With the world racing against the clock to keep our planet's temperature within safe levels, it's crucial to decarbonize across all industries as quickly as possible. If McKinsey is supporting oil projects while claiming to be helping the world move toward cleaner energy, it will undermine efforts to wean off dirty fuels and put communities at risk of facing extreme weather, diseases, and other consequences of rising temperatures.

According to the Guardian, court documents link McKinsey to around two-thirds of the 57 oil and gas companies responsible for most pollution since the Paris Agreement was adopted. 

However, a spokesperson for the agency told the Guardian and CCR: "We have been open about our work with fossil fuel clients and hard-to-abate sectors, and see no contradiction with our commitment to the energy transition. In decarbonisation scenarios consistent with Paris agreement levels, fossil fuel use is projected to decline, but will continue to be a part of the energy mix to meet the world's energy needs."

What's being done about it?

In 2021, a consultant at McKinsey wrote an internal memo to the firm's top leaders urging them to take more aggressive action on client pollution. While over 1,100 people signed the letter, former consultants felt that not much was done to address the firm's ties to heavily polluting clients. 

While we may not be able to control companies' actions, we can make a difference by educating ourselves about greenwashing and ensuring we support sustainable brands. In addition, making energy-efficient improvements such as installing solar panels or upgrading to a heat pump can slash electric bills and reduce pollution — a win for you and the planet. 

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