BAKU, Azerbaijan, Feb.13
By Leman Zeynalova – Trend:
BP’s business will be completely transformed over the coming decades with renewables and carbon abatement getting very big, Trend reports citing Luke Parker, vice president, corporate analysis at Wood Mackenzie research and consulting company.
Parker’s remarks came after BP set a new ambition to become a net zero company by 2050 or sooner, and to help the world get to net zero.
“BP joins Shell, Total, Equinor and Repsol in making a major commitment to reduce its net carbon footprint. “This marks a major turnaround in BP’s position. Just 12 months ago former CEO Bob Dudley said the company could not be held accountable for how people use its products. Looney is taking the company in a very different direction,” said the analyst.
BP’s ambition is supported by ten aims: Five aims to get BP to net zero: 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 percent 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 percent; 5) Increase the proportion of investment into non-oil and gas businesses over time.
Five aims to help the world get to net zero: 6) More active advocacy for policies that support net zero, including carbon pricing; 7) Further incentivise BP’s workforce to deliver aims and mobilise them to advocate for net zero; 8) Set new expectations for relationships with trade associations; 9) Aim to be recognised as a leader for transparency of reporting, including supporting the recommendations of the TCFD; 10) Launch a new team to help countries, cities and large companies decarbonise.
Parker pointed out that the commitment appears to be unconditional. In terms of scale of commitment, this puts BP towards the top of the pack, along with Repsol and Equinor.
“This will see BP’s business completely transformed over the coming decades: renewables and carbon abatement will get very big, legacy oil and gas will eventually get smaller. But the transition to 2050 is a multi-decade transition - not something that will happen in the next year or so,” noted the analyst.
To deliver the ambition, BP will fundamentally reorganise to become a more focused, more integrated company, comprising: Four business groups to deliver performance and value growth: Production & Operations; Customers & Products; Gas & Low Carbon Energy; and Innovation & Engineering.
Three integrators to identify and maximise opportunities: Sustainability & Strategy; Regions, Cities & Solutions; and Trading & Shipping.
Four core enablers to support business delivery: Finance; Legal; People & Culture; and Communications & Advocacy.
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