bp

bp aims to achieve net zero by 2050 and has based all its targets on the base year 2019. The company is aiming to reduce its scope 1 and 2 emissions by 20% by 2025, 50% by 2030 and 100% by 2050. bp is also targeting to reduce its scope 3 emissions from the use of sold products by 10-15% by 2025, 20-30% by 2030 and 100% by 2050. This 2030 interim aim is a significant reduction in ambition from the company’s previous target to reduce scope 3 emissions by 35-40%. Next to this, bp is aiming to reduce the emissions intensity (based on its full value chain) of sold energy products by 5% by 2025, 15-20% by 2030 and 100% by 2050. However, the company is not on track to achieve its emissions intensity targets. bp should look to setting interim targets no more than five years apart to incentivise near-term actions on its long-term goals.

bp continues to be a member of trade associations that hold a negative stance on climate policy, aiming to influence these associations from within. The company provides funding to American Petroleum Institute (API) and has a representative on its board. API has been found to strongly oppose efforts to restrict further oil and gas development in the United States. bp faces the risk of undermining its climate-positive public statements and strategy and can increase its credibility by withdrawing membership from associations that oppose climate policies.

bp intends to increase its investment in “transition growth engines”, meaning bioenergy, the convenience segment, EV charging, renewables and hydrogen, to USD 7-9 billion annually in 2030. This represents about 50% of the company’s total expected capital expenditure (CapEx). However, more transparency is needed on its efforts in the convenience segment, the type of biofuels it’s investing in and the emissions intensity of its anticipated blue hydrogen production, to assess their alignment with a low-carbon economy. The company should increase the share of its CapEx for low-carbon products in order to increase the credibility of its transition plan.

bp has an ambitious transition plan to achieve net zero emissions in scope 1, 2 and 3 by 2050. It plans to install methane measurement at all existing major oil and gas sites by 2023, publish the data and drive a 50% reduction in the methane intensity of its operations. It also intends to increase the proportion of its investments in non-oil and gas businesses. bp has set 2025 and 2030 interim targets and aims for its scope 1, 2 and 3 emissions.

To reduce scope 1 and 2 emissions, bp plans to increase efficiency through electrification, elimination of routine flaring, increase in renewable power and refinery bio-conversion. To address production emissions, bp plans to use CCS technology. By 2030, bp also plans to increase its biofuel production to 100,000 barrels daily, grow its network of EV charging points from 22,000 in 2022 to 100,000 and achieve a renewable energy generation capacity of 50 gigawatts (GW). At the same time, bp aims to expand production of both blue and green hydrogen.

In 2022, bp spent USD 4.9 billion on its lower-emission segments (approximately 30% of its total CapEx for the year). This includes investment in wind and solar energy, bioenergy, the convenience segment, EV charging and blue and green hydrogen projects, as well as CCS. In 2022, bp increased its installed renewables capacity to 2.2 GW. Bp has also developed a carbon management service to help customers develop carbon-neutral programmes and access carbon credit schemes. However, there is no evidence the company has integrated emissions reduction into its engagement with suppliers.

bp’s scope 1, 2 and 3 emissions intensity between 2017 and 2022 has not decreased at the rate required by its 1.5°C pathway. bp has also recently changed strategic direction causing a decline in the ambition of its short-term low-carbon transition plan. To align with its 1.5°C pathway, bp needs to decrease its scope 1, 2 and 3 emissions intensity by over 4% annually. The company needs to take more action to meet the goals of the Paris Agreement.

bp recently acquired businesses in line with its low-carbon transition plan, such as AMPLY Power (EV fleet charging) and 50% of Lightsource bp (solar power). At the same time, bp has confirmed that it plans to increase investment in oil and gas projects until at least 2030. The company’s investment activities and the recent decrease in the ambition of its short-term targets throw into question the credibility of its commitment to the low-carbon transition.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including workers, communities, suppliers, partners, industries, NGOs and government. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. The company incorporates social dialogue and stakeholder engagement in its just transition planning. However, no evidence was found that the company has a set of time-bound, measurable indicators to assess and mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to create 120 new direct jobs for its offshore wind projects in Aberdeen. The company also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. It does this through partnering with minority, women, LGBTQ+ and veteran-owned enterprises. However, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. The company also discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as modern slavery and human trafficking. While the company takes action to mitigate these risks in its own operations and supply chain, no evidence was found that it engages with affected stakeholders. Moreover, no evidence was found of the company having a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. In addition, no evidence was found that the company commits to gender equality and women’s empowerment and discloses indicators of workforce diversity.

While the company commits to protecting personal data, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company discloses its global tax strategy and the corporate income tax it pays in each relevant jurisdiction. Additionally, the company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, no evidence was found that the company has a lobbying and political engagement policy or that it specifies that it does not make political contributions.