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50 Shades of Greenwashing: BP vs. Delta Airlines

  • ukrsedo
  • Jan 27
  • 2 min read

Updated: Jan 30


Greenwashing, also known as green sheen, is a deceptive marketing practice falsely portraying an organization's products, goals, or policies as environmentally friendly.


Rusty green robot on sandy ground, set against a plain beige background. The robot looks aged and has a whimsical, vintage charm.
A rusty robot painted green symbolizes the concept of greenwashing, where something appears eco-friendly on the surface despite underlying environmental issues.

Beyond Petroleum

2000: BP rebranded itself as "Beyond Petroleum" to emphasize its commitment to renewable energy.

"We need to reinvent the energy business... We need to go beyond petroleum" (c) Lord John Browne, CEO (1995-2007)

2010: The Deepwater Horizon oil spill, one of the worst environmental disasters in history.

2020: BP announced plans to become a net-zero company by 2050.

2023: BP announced that it would aim for only a 25% production decrease by 2030, down from the original 40%. Earlier this year, as the company exited some high-profile renewable energy, it advanced long-term oil extraction efforts in the Gulf of Mexico, Iraq and Azerbaijan. Between 2020 and 2023, as the “decade of delivery” took shape, the company’s percentage of low-carbon capital expenditure never broke into the double digits.


Delta Airlines and SAF (Sustainable Aviation Fuel)

Math to the Rescue

I wanted to give an example of Delta as a silver lining in the ESG arena - slow but strategic and consistent. Not until I read the last article.

Whenever I'm confused, I'm calling math to the rescue:

  • The additional cost of SAF is $3 per gallon.

  • Tax benefit: $1.50 per gallon.

  • Total consumption: 4 billion gallons per year.

  • Substitution percentage: 50%.

Delta Airlines will lose $3 billion if they substitute 50% kerosene with SAF.

Their profit margin would drop from 5.6% in 2024 to -19.4%.

Hold my beer

According to this study, a decrease in the profit margin could lead to a 37.5% drop in stock price, implying that the company's value over 600 million shares might fall by $15.25 billion.

Is this the current cost of sustainability for Delta Airlines?

$1 billion lawsuit, you said? Hold my beer.


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