Letter from Bob Dudley
As the world demands more energy to fuel increasing prosperity and provide people with a better quality of life, it also demands energy delivered in new ways, with fewer emissions. For the energy sector, this dual challenge is the defining issue of our times
At BP we’re not daunted by this challenge. In fact, we see the possibilities it presents, and continue to make bold changes across the group as part of our commitment to advancing a low carbon future.
The world needs more energy but produced and used in cleaner, better ways. This is reflected in our strategy to grow advantaged oil and gas in the upstream; market-led growth in the downstream; pursuing low carbon growth opportunities and modernizing the group. It also informs how we work.
Our low carbon ambitions
Our ‘reduce, improve, create’ framework focuses the whole of BP on reducing emissions in our operations, improving our products, and creating low carbon businesses. We are backing this up with clear targets and I am pleased to report we made good progress in 2018. To maintain the momentum, we are now incentivizing around 36,000 employees who are eligible for an annual cash bonus to play a role by linking their reward to one of our emissions reduction targets.
Consistent with the Paris goals
We firmly believe our strategy is consistent with the climate goals of the Paris Agreement and have welcomed a resolution from a group of institutional investors for a range of additional reporting. This will help further understanding of how our strategy is consistent with the Paris climate goals.
Collective action
We have a role to play in solving the dual challenge but can’t do it alone. Everyone, from consumers to corporations to governments, needs to take responsibility. That’s why we’re working with partners and a number of organizations across the industry, including the Oil and Gas Climate Initiative (OGCI). Now representing 30% of global oil and gas production, the OGCI is supporting efforts to tackle methane emissions and create opportunities for carbon capture, use and storage.
Safe, responsible and fit for the future
We remain focused on operating responsibly and safety continues to be our number one priority. While we welcome the improvement seen in our key safety measures in 2018, our attention is always on caring for the people behind the numbers. This extends to wherever we operate around the world, and you’ll find updates in this report on some of our activities to respect the communities in which we work.
Only by operating as a responsible and reliable business do we earn the trust of investors and society more widely – trust that is essential for BP to fully play its part in advancing a low carbon future and human progress.
Bob Dudley
Group chief executive