Environment, social and governance

2020 was an important year for bp – perhaps the most important in our 111-year history. We wanted to provide a summary of bp has achieved the year on ESG-related topic – to remind on developments that you may have seen and flag others that you may have missed. This has been achieved with input from – and support of – our stakeholders, not least our investors and those within the investor community. We’re grateful for the dialogue.

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A new purpose and ambition

bp’s purpose is to reimagine energy for people and our planet – and our ambition is to be a net zero company by 2050 or sooner, and to help the world get to net zero.

• We provided details of 10 aims that support delivery of this ambition, which importantly consider both the upstream (production) and downstream (sales) components of our value chain, as well as absolute and intensity metrics.
• Aim 1 is to be net zero across our operations (scopes 1 and 2) and Aim 2 is to be net zero across the carbon in our upstream production (scope 3), as detailed in our ambition summary

New strategy

Pivoting from being an International Oil Company to an Integrated Energy Company.

• ?We plan to be very different by 2030 – reducing our oil and gas production by 40%, raising our low carbon investment 10-fold, almost double customer touchpoints in our convenience and mobility business to 20 million per day.
  
• We provided interim 2025 targets and 2030 aims to track progress towards bp being net zero.

Revised long-term price assumptions

Revised long-term price assumptions to reflect the impact of COVID-19 and the likelihood of greater efforts to ‘build back better’ towards a Paris-consistent world.

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Financial frame

A new financial frame and compelling investor proposition – introducing a balance between committed distributions, profitable growth and sustainable value – to create long-term value for bp’s stakeholders.

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Reinventing bp

To deliver our strategy, we are retiring bp’s upstream/downstream model and building a ?leaner, flatter, more integrated company. 1st January will mark the beginning of the new organization.

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Diversifying bp ?

We struck a deal to enter the fast-growing US offshore wind market; are planning to begin industrial-scale production of green hydrogen at our Lingen refinery in Germany; are leading a partnership to develop the UK’s first decarbonized industrial hub – Net Zero Teesside; and through Lightsource bp began generating 800MW of new solar power.

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Progress through partnerships

Knowing we can deliver more when we work together, we agreed clean energy partnerships with Amazon, Equinor, Microsoft, ?rsted and Uber, and with the cities of Houston and Aberdeen.

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Focusing hydrocarbons

Focusing hydrocarbons: with new oil and gas production in Egypt, Oman and the North Sea. These projects keep bp on track to deliver 900,000 extra barrels per day by end-2021, relative to 2015. With margins averaging 35% higher than our base portfolio, these new barrels are a cash engine powering our transformation. Our commitment to safe and reliable operations remains unchanged.

Commitment to people and planet

Our new sustainability frame governs our wider approach to environmental and social issues and focuses on three areas - get to net zero, improve people’s lives, and care for our planet.

• Our updated human rights policy clarifies our commitments to the communities where we live and work, and to everyone who works for and with us.
  
• Our new biodiversity position sets out our aim to achieve a net positive impact on biodiversity in our new projects.
  
• Accredited as a UK Living Wage Employer – a first for a major energy and convenience retail employer, resulting in a pay-rise for around three-quarters of employees in the ?UK retail business.
• Made one of our largest-ever charitable donations to UK mental health charity Mind and, separately, introduced new ways to help our people manage their mental wellbeing.
• Supporting our communities: throughout this extraordinary year, offering support to governments and partners, including donating $2 million to the WHO’s COVID-19 Solidarity Response Fund, providing free fuel to emergency services vehicles in the UK and donating supercomputing capability to help stem the spread of the disease.

New disclosures

We’ve provided new disclosures, including our first trade associations and tax transparency reports and ESG datasheet. We declared our support for TCFD and our intent to consider SASB metrics; both to be reflected in future reporting.

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We have welcomed the positive response to our strategy and other developments from investors and other stakeholders. Our focus now is firmly on delivery.? ?

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