Introduction by Bob Dudley

The world is growing like never before, creating opportunity for billions of people. And all this growth requires energy. But as the world demands more energy it also demands that it be produced and delivered in new ways, with fewer emissions

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At BP, we embrace this dual challenge. We have always looked to the future, adapted to change and met challenges like this head on.

In this report, we examine how the energy world is rapidly changing, set out our low carbon ambitions and show how we are helping to advance the energy transition.

Our experience

Two decades ago, BP was one of the first energy companies to address the threat of climate change, pioneering alternatives like wind, solar and biofuels. We invested billions of dollars to make renewable energy a genuine alternative.

Some of our investments worked out – others did not. We were early, but I don’t think we were wrong, because we learned valuable lessons along the way.

To deliver significantly lower emissions, every type of energy needs to be cleaner and better. A race to renewables will not be enough. That’s why we are making bold changes across our entire business.

Our low carbon ambitions

Here’s how we are doing it: by reducing, improving, creating. We’re reducing emissions in our own operations; we’re improving our products to help customers lower their emissions; and we’re creating low carbon businesses.

We are able to do this because of the innovative mindset of our people, our unique global research network, and the potential being unleashed by digital, big data and advanced technologies. This is allowing us to rapidly develop new ways to tackle emissions and improve efficiency, and to deploy these throughout BP.

Reduce

We have set clear targets for emissions in our operations. So even as our business grows to meet growing demand, our net carbon emissions will not. We’ll deliver this through sustainable reductions in our greenhouse gas emissions, by keeping a cap on our methane intensity and, as necessary, with offsets to keep net emissions at 2015 levels. We appreciate that there’s more to do – but we see this as a critical next step in our journey to reduce emissions.

Improve

We’re producing more natural gas – a lower carbon alternative to coal and a complement to renewables. And we’re working with auto manufacturers to create fuels and lubricants that allow drivers to go further with fewer emissions.

Create

We are also creating low carbon businesses, such as LightSource BP, adding solar to our long-established renewables businesses in wind and biofuels.

And some of our most exciting work is in venturing, where we are making investments in a range of smart technologies and experimenting with new business models. The energy landscape is evolving quickly and no single solution is emerging as yet. But we will be ready to scale up the most promising innovations into viable new businesses as the future becomes clearer.

To validate all these efforts and encourage further action, we are introducing an accreditation programme across BP that we’re calling Advancing Low Carbon.

A shared challenge

I am surrounded by people who want to play their part: engineers, scientists, technicians, economists, specialists in energy policy. We are all hungry to do more. But we know that on our own, it is never going to be enough.

The transition to a low carbon economy requires everyone to be involved, from individual consumers to global corporations, and from local authorities to national governments. When we all work together we can make progress, as happened in Paris in 2015.

We support the ambitions of the historic Paris Agreement, but the pledges made then and the actions taken since will not be enough to prevent a 2oC rise. To help meet the challenge, we believe carbon must be priced – and only governments can do that.

Put a price on carbon and you incentivize everyone to use less energy. You incentivize the use of lower carbon fuels. And you incentivize innovation and the hunt for all kinds of ways to lower emissions. All my experience over the past 40 years in the energy business tells me that when you inspire people, human ingenuity will find solutions.

It won’t be easy, true progress seldom is, but BP will never stop working to help the world keep moving and, more importantly, keep advancing.

Bob Dudley
Group chief executive

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