Oil and Gas News

BP plots transformation to net zero company by 2050

BP has set a goal to become a net zero company by 2050, assisting the world to also reach this target.

The company’s ambition would be achieved on the basis of 10 aims, which are broken down into two sections: five aims to get BP to net zero and five aims to help the world get to net zero.

BP’s first five aims include: net zero across all operations, net zero on carbon in oil and gas production, cut 50 per cent in the carbon intensity of products sold (all by 2050), install methane measurement at all oil and gas processing sites by 2023 and increase the proportion of investment into non-oil and gas businesses over time.

The second five aims include to be more active with advocacy for policies that support net zero, incentivise the company’s workforce, set new expectations for relationships with trade associations, become recognised as a leader for transparency of reporting and launch a new team to help countries, cities and large companies decarbonise.

BP chief executive officer Bernard Looney said the new purpose and ambition for the company were to transform the whole organisation and maintain a commitment to performing while transforming.

The company’s new purpose is “reimagining energy for people and our planet”.

Looney said the purpose was 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.

“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,” Looney explained.

“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’s current business segments – upstream and downstream – will be dismantled and reorganised globally under the new company plan.

The company is further aiming to become a more focused and integrate entity with 11 teams, which will make up the company’s new leadership team.