BP unveils new emissions targets and new company structure

BP’s new Group Chief Executive Bernard Looney recently unveiled his ambition for BP to achieve net zero greenhouse gas (GHG) emissions by 2050 or sooner in response to the climate emergency. ‘The world’s carbon budget is finite and running out fast. We need a rapid transition to net zero’, Looney said, as he announced plans including a major structural overhaul, increased investments in low carbon energy technology, and a decrease in fossil fuel spending.

The ambition is supported by 10 aims, the first five to get BP to net zero and the next five to help the world get to net zero:

• Net zero across BP’s operations on an absolute basis by 2050 or sooner. 
• Net zero on carbon in BP’s oil and gas production on an absolute basis by 2050 or sooner.
• A 50% cut in the carbon intensity of products BP sells by 2050 or sooner.
• Install methane measurement at all BP’s major oil and gas processing sites by 2023 and reduce methane intensity of operations by 50%.
• Increase the proportion of investment into non-oil and gas businesses over time.
• More active advocacy for policies that support net zero, including carbon pricing.
• Further incentivise BP’s workforce to deliver aims and mobilise them to advocate for net zero.
• Set new expectations for relationships with trade associations.
• Aim to be recognised as a leader for transparency of reporting, including supporting the recommendations of the TCFD.
• Launch a new team to help countries, cities and large companies decarbonise.

To deliver the ambition, Looney explained that BP will ‘fundamentally reorganise to become a more focused, more integrated company’, by replacing Upstream and Downstream with comprising four business groups to ‘deliver performance and value growth’ – Production & Operations; Customers & Products; Gas & Low Carbon Energy; and Innovation & Engineering.

BP’s new ambition to be a net zero company by 2050 or sooner covers the GHG emissions from its operations worldwide, currently around 55mn tCO₂e/y, and the carbon in the oil and gas that it produces, equivalent currently to around 360mn tCO₂e  emissions a year – both on an absolute basis. Taken together, delivery of these aims would equate to a reduction in emissions to net zero from what is currently around 415mn tCO₂e/y.  

‘The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero,’ said Looney. ‘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. 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.’

BP intends to host a capital markets day in September at which the leadership team will set out more information on BP’s strategy and near-term plans.

Bernard Looney, Group Chief Executive, BP
Photo: BP