So bp will have to change. But we also want to change, because it is the right thing for the world, and the right thing for our company. That’s why our ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero too.
We support the goals of the Paris Agreement and we believe that our ambition and aims, collectively, set out a path that is consistent with these goals.
We believe our current strategy is consistent with the climate goals of the Paris Agreement. In March 2020 we published our response to a shareholder resolution, requisitioned by Climate Action 100+, addressing this question.
You can read more about this in our 2019 Annual Report and Form 20F.
In the near-term our approach to lower carbon and reducing emissions is set out in our ‘reduce, improve, create’ RIC framework.
In 2019 we linked our ‘Sustainable Emissions Reductions’ (SERs) target to the annual cash bonus for 37,000 eligible employees. In 2020 we increased that component of the total bonus calculation and the bp Leadership team will have 20% of their annual bonus tied to SERs.
Read more about our RIC framework.
There are many different pathways to achieve the Paris goals, with substantial variation in the implied energy mix. We use scenarios to explore this uncertainty. When we evaluate the consistency of our new material capex investments with the Paris goals, we consider a range of different possible pathways and scenarios.
The Intergovernmental Panel on Climate Change (IPCC) is the United Nations’ body for assessing the science related to climate change. It is the leading source of data that summarises the potential pathways to achieve the Paris goals. The IPCC compiles a database of the published results on mitigation pathways from modelling teams around the world. The chart shows a range of modelled pathways for carbon emissions from energy and industrial use, collected by the IPCC, that meet the long-term temperature goals in the Paris Agreement, together with the paths associated with two of bp’s own scenarios. The Energy Outlook ‘rapid transition’ scenario clearly sits well within the range. Also highlighted is the ‘Sustainable Development Scenario’ from the International Energy Agency (IEA SDS), which is often cited as a reference case for a scenario that is consistent with meeting the Paris goals.
Our processes for identifying and managing climate-related risks are integrated into bp’s risk management policy and the associated risk management procedures. bp’s risk management system is designed to address all types of risks and as part of this system our operating businesses are responsible for identifying and managing their risks. Risks which may be identified include potential effects on operations at asset level, performance at business level and developments at regional level from extreme weather or the transition to a lower carbon economy. As part of our annual planning process we review the group’s principal risks and uncertainties.
Climate change and the transition to a lower carbon economy has been identified as a principal risk (see Annual Report page 69). This covers various aspects of how risks associated with the energy transition could manifest. Similarly, physical climate-related risks such as extreme weather are covered in our principal risks related to safety and operations.
As part of their consideration of bp’s strategy, the board and executive team consider risks and opportunities associated with climate change and the energy transition informed by a range of external inputs, including the International Panel on Climate Change (IPCC), academic research and emerging regulatory requirements, and BP materials such as the different scenarios described in the Energy Outlook 2019.
The potential impacts of such climate-related risks are described in our Annual Report (Risk factors, pages 70-71). We place importance on pursuing a flexible strategy which gives us optionality where there is uncertainty about the pathways to achieve the Paris goals. This positions us to deliver our strategic priorities, and net zero ambition and aims.
Read more on our net zero ambition at bp.com/ourambition
In our 2019 Annual Report and Sustainability Report , we published a figure for the associated CO2 emissions assuming full combustion of this carbon by-end users: this is the figure we aim to get to net zero.
We produce nearly 2.7 million barrels of oil equivalent a day across our upstream. That amounts to around 360 million tonnes of emissions if it were all combusted.
Our Aim 3 is to cut the carbon intensity of the products we sell by 50% by 2050 or sooner. In our 2019 Annual Report and Sustainability Report we published a figure for the lifecycle carbon intensity of our marketed energy products, including the assumed customer emissions.
Read more here.
We see the carbon content of upstream production as the main Scope 3 challenge for our sector.
Our Aim 3 is to halve the carbon intensity of the products we sell on a lifecycle approach per unit of energy. This includes their carbon content whether the carbon was produced by us or bought in from other producers. This carbon intensity approach to marketed products is in line with some of our peers, and it enables us to monitor our progress in terms of all forms of energy we provide. It will require us to work more broadly with our supply chain and across all forms of energy we provide.
Tackling customer emissions is likely to need policy support such as a robust carbon price that provides the right incentives for everyone – energy producers and consumers alike – to reduce their emissions. That is why another of our aims (Aim 6) is to advocate for more actively for policies that support net zero. This includes carbon pricing – which can make lower carbon options more competitive and attractive to consumers.
The GHG Protocol Corporate Standard sets out 15 categories of Scope 3 emissions. For our industry the most important of these categories is the ‘use of sold products’ (category 11). For this category of Scope 3, we report the estimated CO2 emissions from the assumed 100% end-use comsumption of the carbon in our upstream oil and gas production.
This is based on bp equity share figure based on bp’s net share of production excluding bp’s share of Rosneft. This metric aligns with our new aim to be net zero across the carbon in our upstream oil and gas production on an absolute basis. Going forward, we believe this metric will allow us to monitor and report progress against this aim.
Read more in our 2019 Sustainability report.
And one of our net zero aims (Aim 9) is to be recognized as an industry leader for the transparency of our reporting.
We intend to work constructively with the TCFD, and others, to develop good practices and standards for transparency.
This will be a multi-year journey, but we have already started, and our latest reporting provides information supporting the recommended disclosures on governance, strategy, risk management, and metrics and targets (see Annual Report pages 42-43).
Read more at bp.com/TCFD.
We believe that a well-designed carbon price is the most efficient way to reduce greenhouse gas (GHG) emissions. It provides the right incentives for everyone – energy producers and consumers alike – to play their part in reducing emissions. The UK experience provides clear evidence that carbon prices work - in the five years following the introduction of a carbon price floor in the UK in 2013, UK coal-fired power generation fell by almost 85%.
Aim 6 in support of our net zero ambition is to more actively advocate for policies that support net zero, including carbon pricing. We advocate for carbon pricing through groups such as the US Climate Leadership Council and World Bank Carbon Pricing Leadership Coalition. We also recognize that other policy measures may be required to target gaps in carbon pricing coverage or to address other market failures
Our carbon pricing principles are at bp.com/carbonpricing.
Wherever we do business our goal is always to avoid, minimize and mitigate potential impacts of our operations and projects.
We approach every major project aiming to understand and sustain the local environment through reciprocal engagement with local communities. To identify potential impacts, we carry out detailed environmental and social assessments before starting major projects. In 2019 we updated our requirements and associated guidance in our operating management system (OMS), for sites to effectively mitigate their environmental and social impacts through the mitigation hierarchy1. We believe that incorporating the principles of circular business models can help us use natural resources, including waste from projects, in a more sustainable way.
bp operating sites around the world manage their environmental and social impacts in line with our operating management system (OMS), which includes requirements to consult with people who may be affected by our activities. During 2019 we reviewed and strengthened the group-wide environmental and social requirements that support the OMS. These new group-level requirements now apply to operations as well as projects. They cover relevant aspects of environmental and social practices, mandate carbon management plans for all operations above a threshold and require closer engagement with local communities. The new requirements will be rolled out from January 2020 and any new projects starting after this date will adhere to them. Existing operations will be developing conformance plans to implement the new requirements in 2020.
We support international efforts to rapidly halt the decline in biodiversity and recognize the need to conserve sensitive areas that house our planet’s rich natural and cultural heritage. We believe that it is for governments to decide if certain areas should be protected, or restrictions placed on their development.
We assess our potential impacts on biodiversity when we plan new projects and we aim to avoid activities in sensitive areas. If activities are likely to take us into or close to an international protected area, we carry out a detailed risk assessment and require executive approval before any physical activities are undertaken. We recognize that some areas may be considered too sensitive for oil and gas activities. Through our group practice we set a requirement to achieve no net loss when undertaking new projects in sensitive areas. No major operated project has entered an international protected area since 2006 and we have no existing operations or projects inside UNESCO World Heritage sites. No new requests to enter an international protected area were submitted in 2019. We review bp operating activities in or near protected areas each year and disclose where bp is operating.
For a full list of our major operating sites in or close to international protected areas see bp.com/protectedareas.
We also engage with others to make sure we keep up to speed with best practice, including conservation organizations such as Conservation International, Fauna & Flora International and The Nature Conservancy.
In addition, academic research helps us to understand biodiversity trends, issues and threats. For example, in Mauritania and Senegal we are working with national and international scientists on the Biodiversity Action Plan for the Greater Tortue Ahmeyim development. We recognize the important intrinsic links between climate change and biodiversity and we’re making investments in natural climate solutions including REDD (reducing emissions from deforestation and degradation).
We welcome the steps being taken to develop the new post-2020 global biodiversity framework and will be looking at our own approach to the topic and working with IPIECA on developing industry good-practice guidance on the implementation of the framework for the oil and gas sector. We are currently in the process of updating our biodiversity position, which will be launched in summer 2020.
Read more at bp and the environment.
We’ve made good progress in preventing and reducing spills over the past 10 years. This reflects the targeted actions we’ve taken to improve performance. However, in 2019 we saw an increase in the total number of oil spills1 from 124 in 2018 to 152. This is mainly due to acquisitions over the past 18 months, but we are taking steps to improve the performance of these assets.
Over several years we’ve focused on building competency across bp, resulting in a safe system of work, which supports the identification of process safety risks and a reduction in spills. We’re sustaining this through training in key processes, such as isolations or re instatements and the operation of valves, carried out by our operators.
We choose the most appropriate investigation methodology, depending on an incident’s severity and complexity. The most robust methodology we use, for investigating the most serious and complex incidents, is the ‘logic tree’. This is a bp investigation training and certification which has been externally accredited by The National Examination Board in Occupational Safety and Health.
Our risk process has been implemented across the group and is continuously updated to help enable us to use the most effective processes and tools.
In Upstream, all of our regions develop annual loss of primary containment (LOPC) plans, which address the key measures they need to take to prevent LOPCs, which comprise the vast majority of all spills. The regions collaborate with each other to share best practice and a centralteam works to make sure that any systemic gaps are closed rapidly.
We support international efforts to rapidly halt the decline in biodiversity and recognize the need to conserve sensitive areas that house our planet’s rich natural and cultural heritage. As part of our purpose – to reimagine energy for people and the planet – we are taking action to restore, maintain and enhance nature.
In May 2020 we updated our biodiversity position to build on and strengthen our existing approach. We will aim to achieve a net positive impact on biodiversity in our new projects and aim to enhance biodiversity around our existing major operating sites. And we are defining ‘no-go’ areas for bp operating new oil and gas exploration and production in:
Read more about our approach to biodiversity at bp.com/biodiversity.
A list of our major operating sites in or close to international protected areas can be found at bp.com/protectedareas.
We engage with local communities to help prevent or reduce the risks and impacts of our operations, in ways that can directly benefit them if possible.
We focus at a local level, concentrating on the varied circumstances we meet wherever we operate or plan to do so. We engage with local communities throughout the life cycle of our operations, from planning through active operations to decommissioning and site remediation.
We aim to minimize the impacts that our presence could have on local communities and to ensure they benefit from our activities. We also want to reduce and mitigate the impacts our operations may present to the livelihoods, land, environment, cultural heritage, health and wellbeing of local people, including indigenous people.
Our social engagement strategies respect local circumstances and the needs of communities at different stages of the project lifecycle. For our major projects, we engage through our community liaison officers (CLOs), who play a key role in building trust at a local level. CLOs manage our day-to-day relations with local communities and other stakeholders affected by and living close to our projects and operations.
We have operational-level community grievance mechanisms in place to capture feedback, including complaints. This can come through direct engagement with BP employees, especially community liaison officers, and by email or telephone. We try to respond to substantiated complaints promptly and when we’ve caused or contributed to any adverse impact, we provide or co-operate in providing remediation through legitimate processes.
In 2018 we issued guidance to our operating businesses on community complaints mechanisms, in line with the UN Guiding Principles on Business and Human Rights criteria.
In 2019, most of the concerns raised by people living near our projects and operations related to damage to their property or crops and also to job opportunities. Overall, the number of complaints decreased. We attribute this to the fact that key projects have now become steady-state operations.
In many cases our community engagement and grievance management mechanisms are open to stakeholder monitoring, such as project leaders’ consultant reports and site visits. In addition, information on our social performance is widely shared with the relevant communities, as well as local and international NGOs.
We first set out our current diversity and inclusion ambition in 2012. It’s based on our core values of safety, respect, excellence, courage and one team.
Our overarching themes have been ‘respect and inclusion’ and ‘valuing difference’. Our definition of inclusion covers both visible and invisible differences, stressing the value of both. These include differences in thoughts and ideas, cultures and approaches as well as more visible aspects. It’s important to recognize that people often don’t fit into only one diversity strand but may relate to several groups or interests. We are building a culture that understands this intersectionality and values every individual’s unique and complex sense of identity.
Both the energy sector and our business have traditionally had a gender imbalance, with more men than women in some roles. This is something that we’ve been working to address over a number of years and while we’ve made some progress, we know there’s still further to go to achieve a gender balance. Overall, the proportion of women employed across bp continues to be higher than ever before. 38% (2018 35%) of our workforce were women in 2019. We’re pleased to see improvements in areas of the company where women were previously under-represented and to have women leading some of our core businesses, such as petrochemicals, shipping and treasury, and countries including Canada, China, Mexico and the US. Our graduate intake is almost balanced, with 45% women and 55% men.
In 2012 we set two 2020 gender goals: for women to hold 25% of our group leader roles and 30% of our senior level leader roles. Our group leaders were 25% women at the end of 2019, compared to 17% when we first reported on this in 2012 (an increase of 47%). We’re still short of our 30% goal for senior level leaders, at 26% in 2019, so we remain focused on this.
In the US we aim to have ethnic minorities making up 20% of our group and senior level leaders and 30% of our workforce by 2025. We reached 22% (2018 18%) for our leaders and 28% (2018 27%) for our workforce in 2019.
In the UK, EMEA and other regions, although we haven’t set any specific ambitions for ethnic and minority representation, we recognize that it’s an important issue. We’ve conducted research to help us understand more about our black, Asian and minority ethnic (BAME) employees in the UK and assess their grades and progress through bp. At present in the UK, ethnic minorities make up 17% of our employees, compared to an estimated 14% of the UK working population.
In many of the countries where we operate, we provide significant employment opportunities. Many of these opportunities are taken by nationals, who can balance our international expertise with their experience of local conditions and cultures. We recruit them and invest in their training and development whether or not host governments require us to do so.
Across bp as a whole, 25% of our global leaders are non-US or non-UK nationals. In the upstream we’re making progress on employee nationalization with goals of up to 90% in many countries.
In the UK we publish a gender pay gap report for five bp UK legal entities that employ 250 or more people.
This gender pay gap report shows the difference in average pay between men and women, irrespective of their roles. Our 2019 report, the third to be published, shows small improvements compared to 2018, including improvements in our highest pay gap entities, bp Exploration Operating Company Limited and bp p.l.c. The mean gender pay gap remained reasonably static from 2018-19, changing between 1-3% in each of the reporting entities.
Our gender pay gap exists mainly because we employ different numbers of men and women at different levels in our workforce, and in specific roles that attract higher pay, bonuses or allowances. Representation of women has increased in leadership roles overall since 2018, leading to small reductions in average pay gaps.
We are working to reduce differences over time and recognize that this is a long-term representation challenge we need to address.
As part of our work to modernize and transform bp, we’re doing more to embrace flexible working – allowing employees to find a better work-life balance and work more productively. We’ve refreshed and launched our global flexible working principles and reviewed our leave allowances, providing every employee with a minimum amount of paid parental or carer leave.
In 2019 more of our employees have found ways of working flexibly, for example by combining home and office time. In the UK a number of teams embraced flexible working, while in Hungary, our Budapest and Szeged offices have used a flexible working model to optimize available space. At our Houston office in the US, new ways of working remotely were required when the office had to shut temporarily due to hurricane Harvey. They proved so successful that some teams have continued these new practices.
Yes, we do.
Our human rights policy commits us to respect internationally recognized human rights as set out in the International Bill of Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.
We support the UN Guiding Principles on Business and Human Rights which state that it is the duty of the States to protect human rights and it is the responsibility of companies to respect human rights.
We are a founding member of the Voluntary Principles of Security and Human Rights.
bp is committed to identifying, preventing and addressing human rights risks associated with our business activities. Our human rights focus areas are labour rights, security and human rights, and the rights of people in communities.
We expect our employees and contractors to act in accordance with our code of conduct, human-rights policy and expectations of suppliers.
We’re committed to respecting workers’ rights, in line with the International Labour Organisation Core Conventions on Rights at Work and we expect our contractors, suppliers and joint ventures we participate in to do the same. Our expectation is that workers in our operations, joint ventures and supply chains are not subject to abusive or inhumane practices, such as child labour, forced labour, trafficking, slavery or servitude, discrimination, or harassment.
To assist in communicating these expectations to our businesses, contractors and suppliers we’ve developed the bp labour rights and modern slavery principles. The principles clarify our position on a range of issues, including workers having clear employment contracts, employer-pays principles in relation to recruitment fees, and not withholding worker passport or identity documents. They build on and add to the existing high-level requirements and expectations in our code of conduct, human rights policy and supplier expectations. The principles are now being cascaded through our businesses and will be communicated to our contractors and suppliers through our procurement processes.
Safety is a core value at bp.
We track our safety performance using industry standard metrics and work continuously to improve all aspects of our performance. Our focus on safety has resulted in steady improvement against international oil and gas industry benchmarks.
The total number of tier 1 and 2 incidents increased in 2019, mainly reflecting performance in assets acquired over the past 18 months. Removing these assets for a year-on-year comparison, the total reduced slightly in 2019, and represented a 32% reduction over the past five years.
Our recordable injury frequency (RIF) continues to show a downwards trend, with fewer recordable injuries than in any year since our records began. RIF reduced by 16% in 2019 including the addition of BHP assets, representing an overall reduction of 32% over the past five years – this equates to 155 fewer recordable injuries in our facilities.
Despite significant challenges relating to the operating the environment, bp’s operations continued to perform safely and reliably in the first quarter of 2020.
We are taking significant steps to protect and support its staff through the pandemic. These include reducing manning levels where possible and changing working patterns to support social distancing; introducing testing to reduce spread of virus in offshore installations; requesting all staff who are able to do so to work from home since mid-March; and deploying personal protective equipment (PPE), enhanced cleaning and social distancing measures in retail sites.
Read more about our response to COVID-19 here.
Our safety data is available online at bp.com/ESGdata.
Our HSE charting tool allows you to filter and analyse information on BP's health, safety and environmental performance. Historic data is available and can be viewed in a variety of chart formats at bp.com/HSE.
We operate in over 70 countries and have around 50,000 suppliers. These include contractors, vendors, service providers and contingent labour, many of whom also have further suppliers. Including trading operations, our annual procurement spend is approximately $59 billion (2018 $67 billion).
Given the substantial contribution they make to our activities, bp suppliers and contractors play an important part in enabling us to be a strong, successful business and responsible corporate citizen. We engage with our suppliers and contractors to communicate our standards and encourage ethical and sustainability performance in our supply chains. In many instances, we use contracts to help ensure this is the case, for example by requiring contractors to meet local workforce requirements for nationals or to support local enterprise. We aim to work with suppliers who strive for sustainability in their supply chains and innovation and excellence in the delivery of products or services, working in accordance with our code of conduct, human rights policy and other expectations of suppliers. These are set out in our supplier expectations document. Our labour rights and modern slavery principles are also available to assist our businesses in checking suppliers’ performance on these aspects.
Our values of safety, respect, excellence, courage and one team represent the qualities and actions we wish to see in bp. They inform the way we do business and the decisions we make. We use these values as part of our recruitment, promotion and individual performance management processes.
The board is of the opinion that interaction with our people is the best way to get direct feedback and an understanding of the important issues of the workforce, as well as deepen the board’s operational understanding. Only by visiting and meeting with employees from all aspects of the business can the board fully assess the culture and tone of bp.
The board monitors employee opinion via an annual ‘Pulse’ survey which includes measurement of how the bp values are incorporated into culture around our global operations. We also launched our continuous listening survey ‘Pulse Live’ to parts of bp in 2019, which enables us to monitor changes in employee sentiment on a weekly basis. We plan to roll out ‘Pulse Live’ across the whole organization in 2020.
The overall employee engagement score in our 2019 survey was 65% (compared with 66% in 2018). Pride in working for bp was 75% (compared with 76% in 2018, the highest level for 10 years).
The board believes governance of bp is best achieved by delegation of its authority for the executive management of bp to the CEO, subject to defined limits and monitoring by the board. The board routinely monitors the delegation of authority, ensuring that it is regularly updated, while retaining ultimate responsibility.
Non-executive directors (NEDs) are expected to be independent in character and judgement and free from any business or other relationship that could materially interfere with exercising that judgement. It is the board’s view that all bp NEDs are independent. The board is satisfied that there is no compromise to the independence of, and nothing to give rise to conflicts of interest for, those directors who serve together as directors on othercompany’s boards or who hold other external appointments. Directors are required to provide the board with sufficient information to evaluate their independence and the board keeps the other interests of the NEDs under review and regularly reviews the conflicts of interest register.
We need a diverse workforce to be successful as a company, especially as we advance in the energy transition, to help us solve complex challenges that matter, build long term and trusted relationships and make a real contribution to a low carbon future.
When reviewing the composition of the board, the nomination and governance committee considers not only the skills and experience of existing board members, but also their background and diversity. When seeking to identify candidates to join the board, the committee considers the merits of diversity, including gender, in helping to bring greater balance to the board’s discussion and debates on strategy and associated matters. Diversity is considered as an integral part of succession planning. In addition to merit as an overarching principle, executive gender and ethnicity were taken into consideration as part of the board’s wider executive succession review in 2019, while diversity of thought, deriving from a robust combination of gender, social or ethnic backgrounds, was a prominent factor in the selection process, ensuring that bp has a diverse executive pipeline.
In 2019, we achieved our goal for women to represent 30% of our board. At the end of 2019 the board comprised five female directors (2018 5, 2017 3) representing 42% of a 12-person board (46% of an 11 person board at 20 March 2020). Our senior management, as defined by the Corporate Governance Code 2018, and their direct reports, comprise 38% female and 18% black, Asian and minority ethnic (BAME) individuals.
We strive to create an open culture where dialogue between the board, senior management and the workforce, which includes a wide range of employees, contractors, agency and remote workers across all of our geographical locations, is encouraged and expected. ‘Respect’ and ‘courage’ are two of our corporate values that underpin this and are embedded in our performance management system.
In 2019 we changed our annual cash bonus, linking it directly to our sustainable emissions reduction (SER) target. This means that for around 37,000 eligible employees, including executives, part of their overall reward is now linked directly to meeting our low carbon emissions targets. In February 2020 we built on this, announcing a new aim to mobilize our workforce to be advocates for net zero. This included increasing the percentage of remuneration linked to SERs.
The annual bonus is determined in line with performance in a number of areas, including environmental measures. The weighting of the environment target in our 2020 annual bonus scorecard has been doubled to 20%.
More information on our remuneration policy can be found here.
bp pays corporation income taxes, royalties, production taxes, stamp duties, employment and other taxes in countries where we have operations.
In 2019, we paid $6.9bn in income and production taxes to governments (2018: $7.5bn).
We also collect and pay employee taxes, as well as indirect taxes such as excise duties and VAT.
In 2020 we intend to expand our disclosures with the publication of a tax transparency report.
We comply with tax laws and have open and constructive relationships with tax authorities. We participate in initiatives to simplify and improve tax regimes to encourage investment and economic growth.
Our approach to tax aligns with our code of conduct, which sets out what is expected of everyone at bp. This includes acting in a manner that is safe, ethical and consistent with applicable laws and regulations. We do not tolerate the facilitation of tax evasion by people who act for or on behalf of bp.
You can read 'Our approach to tax and Payments to governments' reports at bp.com/revenuetransparency.
We operate in parts of the world where bribery and corruption present a high risk, so it’s important that we make our position regarding both absolutely clear to our employees, contractors, suppliers and others in any way connected to our business.
Our code of conduct explicitly prohibits engaging in bribery or corruption in any form. Our group-wide anti-bribery and corruption policy and procedures include measures and guidance to assess risks, understand relevant laws and report concerns. They apply to all BP operated businesses. Appropriate training is focused on the needs of employees in locations or roles assessed to be at a higher risk of bribery and corruption. In 2019 around 11,000 (2018 10,957) employees completed anti-bribery and corruption training.
We assess any exposure to bribery and corruption risk when working with suppliers and business partners. When appropriate, we put in place a risk mitigation plan and will choose not to work with a counterparty or reject tenders if we conclude that the risks are too high. We also conduct anti-bribery compliance audits on selected suppliers when contracts are in place. We take corrective action with suppliers and business partners who fail to meet our expectations, which may include terminating contracts. We issued 25 audit reports in 2019 (compared with 27 in 2018).
We also support anti-corruption efforts through our active participation in the Extractive Industries Transparency Initiative (EITI).
Read more in our 2019 Sustainability Report.
bp supports transparency of government revenue flows from oil and gas activities as an important tool in promoting accountability and good governance. This helps citizens hold public authorities to account for the way they use funds received through taxes and other agreements.
bp is a founding member of the Extractive Industries Transparency Initiative (EITI), which supports the disclosure of payments made to and received by governments in relation to oil, gas and mining.
Our code of conduct sets clear expectations for how we work at bp. It applies to all our employees and members of the board. We train bp employees about how to apply the code in their daily work and in 2019 this training focused on employees sharing stories about how the code and values have helped guide their actions in difficult situations.
The training is available in 18 languages and in 2019 around 39,000 employees completed it in full. We also provide respect and harassment prevention training to help employees and line managers understand their roles in creating a harassment-free work environment.
Our employees are bound by our code of conduct, which requires them to report any suspected human rights abuses or incidents of wrongdoing in bp or in our business partners’ operations, including bribery and corruption. They can report these through their line
management, our human resources team, or by using our independent and confidential ‘OpenTalk’ service.
Read our code of conduct at bp.com/codeofconduct.
Our expectations of suppliers are documented in order to help them develop and strengthen their relationships with us by acting in accordance with the code.
Read our expectations at bp.com/supplierexpectations.
We make disclosures under the relevant laws within the jurisdictions in which we operate. For example, bp is registered in the Transparency Register of the European Union and we make disclosures under the US Lobbying Disclosure Act (LDA).
bp prohibits the use of bp funds or resources to support any political candidate or party. We recognize our employees’ right to participate as individuals in the political process. Employees who do this must make it clear that their personal views and actions are not those of bp.
In the US, bp provides administrative support to the operation of the bp employee political action committee (PAC) to facilitate employee involvement and compliance with campaign finance law.
bp is a member of many industry associations that offer opportunities to share good practices and collaborate on issues of importance to our sector. We aim for alignment between our policies and those of trade associations but understand that associations’ positions reflect a compromise of the assorted views of the membership and we will be respectful of others’ views and perspectives. Therefore, we can’t expect that a trade association’s position will always be the same as our own.
In February 2020 we announced our aim to set new expectations for our relationships with trade associations around the globe. We will make the case for our views on climate change and we’ll be transparent where we differ. And where we can’t reach alignment, we will be prepared to leave.
Read Our participation in trade associations: climate at bp.com/tradeassociations.