BP sets ambition for net zero by 2050
BP announced that it aims to become a net zero company by 2050 or sooner, and to help the world get to net zero. To deliver on this ambition, BP will fundamentally reorganise to become a more focused, more integrated company.
BP’s new CEO Bernard Looney also announced a new purpose and a new ambition for the company. BP’s new purpose is “reimagining energy for people and our planet.”
The purpose is underpinned by an industry-leading ambition – for BP to become a net zero company by 2050 or sooner, and to help the world get to net zero – and this ambition is supported by 10 goals.
“The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner. To deliver that, trillions of dollars will need to be invested in replumbing and rewiring the world’s energy system. It will require nothing short of reimagining energy as we know it,” Looney said.
“This will certainly be a challenge, but also a tremendous opportunity. It is clear to me, and to our stakeholders, that for BP to play our part and serve our purpose, we have to change. And we want to change – this is the right thing for the world and for BP.”
“Energy markets are changing, driven by climate change, technology and societal expectations, and the Board supports Bernard and his new leadership team´s ambition for BP. Aiming for net zero is not only the right thing for BP, it is the right thing for our shareholders and for society more broadly. As we embark on this ambitious agenda, we will maintain a strong focus on safe, reliable and efficient operations and on delivering the promises we have made to our investors,” said Helge Lund, BP chairman.
BP’s ambition is supported by 10 goals: 1) Net zero across BP’s operations on an absolute basis by 2050 or sooner; 2) Net zero on carbon in BP’s oil and gas production on an absolute basis by 2050 or sooner; 3) 50% cut in the carbon intensity of products BP sells by 2050 or sooner; 4) Install methane measurement at all BP’s major oil and gas processing sites by 2023 and reduce methane intensity of operations by 50%; 5) Increase the proportion of investment into non-oil and gas businesses over time.
BP also announced five goals to help the world get to net zero: 1) More active advocacy for policies that support net zero, including carbon pricing; 2) Further incentivise BP’s workforce to deliver aims and mobilise them to advocate for net zero; 3) Set new expectations for relationships with trade associations; 4) Aim to be recognised as a leader for transparency of reporting, including supporting the recommendations of the TCFD; 5) Launch a new team to help countries, cities and large companies decarbonise.
BP said it will reorganise into four business groups to deliver performance and value growth: Production & Operations; Customers & Products; Gas & Low Carbon Energy; and Innovation & Engineering.
BP will host a capital markets day in September to set out its strategy and near-term plans.