Page 79 - World Airnews Magazine March 2020 Edition

NEWS DIGITAL NEWS DIGITAL

BP SETS AMBITIONS TARGETS BY

2050

BP’s new CEO Bernard Looney has
announced a new purpose and a new
ambition for the company. He wants BP to
become a net zero company by 2050 and
wants to help the world get there as well.
The purpose is underpinned by an
industry-leading ambition supported by
ten aims.
To deliver all this, BP will fundamentally
transform its whole organisation, and Birrell, will be BP’s new operational centre,
maintain its commitment to performing linked to emissions reductions. bringing its operations together, focused on Over the next few months, the new BP
while transforming. • Setting new expectations for driving safety, efficiency and value growth. leadership team will focus on building their
Bernard Looney said: “The world’s BP’s relationships with trade associations, Customers & Products, headed by Emma teams and on developing BP’s strategy to
carbon budget is finite and running out making the case for BP’s views on climate Delaney, will focus on customers as the deliver the ambition.
fast; we need a rapid transition to net change, being transparent where views driving force for the energy products and
zero. We all want energy that is reliable differ, and being prepared to leave those services of the future, and on customer “Together we will aim to build a more
and affordable, but that is no longer where alignment cannot be reached. experience and expansion in rapidly agile, innovative and efficient BP. A
enough. It must also be cleaner. To deliver • Being recognised as an industry changing markets. purpose-driven, digitally-enabled, fully-in-
that, trillions of dollars will need to be leader for the transparency of reporting, tegrated organisation. I’m confident that
invested in replumbing and rewiring the working constructively with the TCFD and Gas & Low Carbon Energy, led by Dev this new leadership team, together with all
world’s energy system. It will require other groups to develop good practices and Sanyal, will unite energy teams currently our people, has the skill and will to turn BP
nothing short of reimagining energy as we standards for transparency of reporting. dispersed around BP to create focused into a thriving sustainable energy business
know it. BP today announced its support for the low carbon solutions. It will also pursue that is a force for good in a net zero world.”
opportunities in decarbonisation and new
“This will certainly be a challenge, but recommendations of the TCFD. value chains such as hydrogen and CCUS.
also a tremendous opportunity. It is clear • Launching a new team to Innovation & Engineering, headed by
to me, and to our stakeholders, that for BP create integrated clean energy and David Eyton, will bring added momentum PERFORMING WHILE
to play our part and serve our purpose, we mobility solutions and to help countries, to BP’s venturing and Launchpad invest- TRANSFORMING
have to change. And we want to change cities and corporations around the world ments and act as a catalyst for creating Despite the planned group-wide
– this is the right thing for the world and decarbonise. value from disruptive opportunities. It will programme of change, BP’s fundamental
for BP.” also house BP’s engineering discipline and commitments remain unchanged – to
Helge Lund, BP’s chairman, said “Energy safety and operational risk team. safety and to investors.
markets are changing, driven by climate RE-INVENTING BP “BP needs to continue to perform as we
change, technology and societal expec- The structure of BP’s organization- and of transform. As committed as I am to making
tations, and the Board supports Bernard much of the industry - has been broadly Three integrators will be established to transformation happen, I am equally
and his new leadership team´s ambition “This is what we mean by making BP the same for more than a century, split into find and maximise opportunities for BP: committed to some fundamental principles
for BP. Aiming for net zero is not only the net zero. It directly addresses all the 50%. separate organisations - upstream, down- Strategy & Sustainability, headed by that have served us well. Safe and reliable
right thing for BP, it is the right thing for our carbon we get out of the ground as well And over time BP also aims to increase stream, and other businesses. To deliver Giulia Chierchia, who is joining BP from operations will always underpin all we do,
shareholders and for society more broadly. as all the greenhouse gases we emit from the proportion of investment it makes into its new ambition and aims, BP will now McKinsey, will ensure that sustainability is and we remain committed to meeting the
As we embark on this ambitious agenda, our operations. These will be absolute non-oil and gas businesses: undergo a fundamental re-organisation. embedded at the top of BP and provide a promises we have made to our sharehold-
we will maintain a strong focus on safe, reductions, which is what the world needs. “We expect to invest more in low carbon “We need to reinvent BP. Our historic single group-wide approach to strategy and ers. We can only reimagine energy if we are
reliable and efficient operations and on If this were to happen to every barrel of oil businesses - and less in oil and gas - over structure has served us well but, in order capital allocation. financially strong, able to pay the dividend
delivering the promises we have made to and gas produced, the emissions problem time. The goal is to invest wisely, into to keep up with rapidly-evolving customer Regions, Cities & Solutions, led by our owners depend on and to generate the
our investors.” for our sector would be solved. But of businesses where we can add value, demands and society’s expectations, we William Lin, will build relationships with cash to invest in new low and no-carbon
course, the world is not that simple; the develop at scale, and deliver competitive need to become more integrated and regions, cities and large corporations, businesses.”
whole energy system has to be trans- returns,” he said. more focused. So we are undertaking a aiming to develop integrated energy and BP’s commitment to safe and reliable
RE-IMAGINING ENERGY formed and everyone has a contribution The ambition includes a series of aims major re-organisation, introducing a new carbon solutions that can bring emissions operations is unchanged with safety as a
down at scale.
BP’s new ambition to be a net zero to make – producers and sellers of energy, targeted at supporting the world’s progress structure, a new leadership team and new Trading & Shipping, led by Carol Howle, core value. The new structure is expected
to underpin and strengthen safety
company by 2050 or sooner covers policy makers and everyone who uses towards net zero: ways of working for all of us,” he said. will build on BP’s existing deep expertise performance.
the greenhouse gas emissions from its energy, ”said Looney • More actively advocating for Under the plans, BP’s existing, largely in its existing business to more effectively
operations worldwide, currently around 55 Therefore, BP also aims to help its policies that support net zero, including autonomous business segments will be help BP capture new commercial opportu- BP also remains committed to its investor
million tonnes of CO² equivalent (MteCO²e) customers reduce their emissions by carbon pricing; stopping corporate dismantled and the group re-organised nities and add value. proposition of growing sustainable free
a year, and the carbon in the oil and gas halving the carbon intensity of the products reputation advertising and redirecting globally into a more focused and more cash flow and distributions to shareholders
that it produces, equivalent currently to it sells, again by 2050 or sooner - offering resources to promote net zero policies, integrated entity, comprising 11 teams. over the long term. It continues to be
around 360 MteCO²e emissions a year - customers more and better choices of ideas, actions, collaborations and its own The heads of these teams will make up Four teams will serve as enablers of committed to a strong financial frame
both on an absolute basis. low- and no-carbon products. net zero ambition. BP’s new leadership team. business delivery namely finance led by including deleveraging the balance sheet
Taken together, delivery of these aims BP also aims to install methane measure- • Incentivising BP’s global work- Performance and value growth will be Murray Auchincloss, legal headed by Eric and maintaining capital discipline, to
would equate to a reduction in emissions to ment at all of its existing major oil and gas force to deliver on the aims and mobilise delivered by four business groups: Nitcher, people and culture, headed by delivering its free cash flow targets for
2021, and to staying focused on costs and
Kerry Dryburgh and communications and
net zero from what is currently around 415 processing sites by 2023 and then reduce them to become advocates for net zero; Production & Operations, led by Gordon advocacy led by Geoff Morrell.
MteCO²e a year. the methane intensity of its operations by increasing the percentage of remuneration pursuing efficiencies. Q
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