Getting to net zero
We’ve set five aims to get bp to net zero by 2050 or sooner and five aims to help the world get there too
Getting to net zero
In February 2020 we set out our ambition to be a net zero company by 2050 or sooner and to help the world get to net zero. This ambition is supported by 10 aims: five to help us become a net zero company, and five to help the world meet net zero. Taken collectively, these set out a path that we believe is consistent with the Paris goals.
Why net zero matters
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. 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.Bernard Looney,chief executive officer
What we mean by net zero
When we talk about helping the world get to net zero we mean achieving a balance between sources of anthropogenic emissions and removal by sinks of greenhouse gases, as set out in Article 4.1 of the Paris Agreement*.
When talking about bp becoming a net zero company by 2050, or sooner, in the context of our new ambition and aims 1 and 2 , this means achieving a balance between:
- the relevant Scope 1 and 2 emissions associated with our operations (aim 1) or Scope 3 emissions associated with carbon in bp’s equity share of production of oil and gas excluding Rosneft (aim 2)
- the total of applicable deductions from activities such as sinks, for example carbon capture, use and storage (CCUS) and land carbon projects.
Climate change and the energy transition
The world needs a rapid transition to net zero. To meet the goals of the 2015 Paris Agreement we believe society must take decisive and collective action. We believe companies that have begun a process of transformation to net zero, as bp has, will be critical in delivering the opportunities presented by the energy transition and achieving these goals.
Five aims to get bp to net zero
We’re aiming to dramatically reduce carbon in our operations and our products while growing new low carbon businesses, products and services.
This will mean tackling around 415 million tonnes of emissions – around 55 million from our operations and 360 million tonnes from the carbon content of our upstream oil and gas production. Importantly, these are absolute reductions to net zero, which we believe is what the world needs most of all. We are also aiming to cut the carbon intensity of the products we sell by 50% by 2050 or sooner.
Aim 3: halving intensity
Our aim 3 is to cut the carbon intensity of the products we sell by 50% by 2050 or sooner.
This is a life cycle carbon intensity approach, per unit of energy. It covers marketing sales of energy products and potentially, in future, certain other products, for example, associated with land carbon projects (79.3gCO2e/MJ in 2019).
Aim 4: reducing methane
Our aim 4 is to install methane measurement at all our existing major oil and gas processing sites by 2023, publish the data, and then drive a 50% reduction in methane intensity of our operations.
And we will work to influence our joint ventures to set their own methane intensity targets of 0.2%.
Five aims to help get the world to net zero
We’ll advocate for policies that support net zero, incentivize and mobilize our global workforce behind us, and reset our relationships with trade associations.
We’ll work with cities and corporates to help them achieve their decarbonisation goals and become a recognized industry leader for the transparency of our reporting.
Aim 6: advocating
Our aim 6 is to more actively advocate for policies that support net zero, including carbon pricing.
We have stopped corporate reputation advertising campaigns and this is enabling us to redirect resources to promote well designed climate policies. In future, any corporate advertising will be to push for progressive climate policy; communicate our net zero ambition; invite ideas; or build collaborations. We will continue to run recruitment campaigns and advertise our products, services and partnerships – although we aim for these to increasingly be low carbon.
Aim 7: incentivizing employees
Our aim 7 is to incentivize our global workforce to deliver on our aims and mobilize them to become advocates for net zero. This will include continuing to allocate a percentage of remuneration linked to emissions reductions for leadership and around 28,0001 employees.
1. This figure was around 37,000 in February 2020. It is approximate and has been revised in line withrestructuring as part of reinvent bp and reflects lower headcount overall.
Aim 8: aligning associations
Our aim 8 is to set new expectations for our relationships with trade associations around the globe.
We will make the case for our views on climate change within the associations we belong to and we will be transparent where we differ. And where we can’t reach alignment, we will be prepared to leave.
Aim 9: transparency leader
Our aim 9 is to be recognized as an industry leader for the transparency of our reporting.
On 12 February 2020, we declared our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We intend to work constructively with the TCFD and others – such as the Sustainability Accounting Standards Board – to develop good practices and standards for transparency.
