Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical Conduct
• Employee Relations
• Community Relationships
• Health, Safety, and Environment (HSE)
• Social Investment

Environmental Achievements

• Environment management systems at about half of major operations certified to ISO 14001; the rest to achieve this by 2001.
• Successful commercialization of compressed natural gas (CNG) as transportation fuel in Egypt (85% fewer pollutants than gasoline).
• G8 Solar Showcase demonstrated potential of renewable solar energy.
• Innovative cleanup strategy reclaimed land contaminated by detergents and tars in Pumpherston, Scotland.

Social Achievements

• Launched a new Global Social Investment (GSI) initiative focusing on sustainable jobs and wealth creation in operating communities.
• Implemented a multi-faceted ethics program with workshops and employee interaction.
• Harmonized human resources processes, including pay and benefits, and created a new framework for staff development.
• Developed a comprehensive strategy for diversity and inclusion.
• Schools Link program continued to engage volunteers with local schools on environmental issues.

Governance Achievements

• Implemented a worldwide greenhouse gas emissions trading program.
• Internal Audit function promotes best practices and resolves ethical issues.

Climate Goals & Targets

Environmental Challenges

• Restructuring following the merger resulted in job changes, relocation, and redundancy for significant numbers of employees.
• Concerns about climate change.

Mitigation Strategies

• Tried to minimize uncertainty by informing employees as soon as possible about their positions.
• Implemented a worldwide greenhouse gas emissions trading program.
• Developed programmes to build a shared vision for the merged organization and leadership development initiatives.

Supply Chain Management

Responsible Procurement

• Guidelines on relationships with contractors and suppliers via Intranet.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Compressed natural gas (CNG) technology

Awards & Recognition

• Chairmen’s Awards (various projects)

Environmental Metrics

ESG Focus Areas

• Climate change
• Human rights
• Lower carbon energy
• Biodiversity
• Water
• Social investment
• Ethical conduct
• Health, safety and environmental performance

Environmental Achievements

• Reduced GHG emissions by 9.6% (excluding ARCO) compared to 1999; 3% decrease after accounting for acquisitions and divestments.
• Exceeded target of introducing cleaner fuels in 40 cities by supplying them in 56 cities.
• Reduced total emissions to air by 19% (excluding ARCO and Burmah Castrol) compared to 1999.
• 60 of 139 main sites certified to ISO 14001 by the end of 2000.

Social Achievements

• Launched new BP brand to unify staff globally.
• Improved employee satisfaction index by four percentage points (from 55% to 59%).
• Launched a global BP Employee Matching Fund to support employee community engagement.
• Developed a diversity and inclusion strategy with group-wide focus.

Governance Achievements

• Updated Guidelines on Business Conduct.
• Published ethical conduct policy and guidelines.
• Introduced new ethical conduct and security websites for employees.
• Ran ethical conduct certification process throughout BP.

Climate Goals & Targets

Environmental Challenges

• Uncertainty about the magnitude and timing of temperature increases and their consequences due to climate change.
• Need to reduce oil spills and unrecovered oil volume.
• Balancing economic growth with environmental and social considerations.
• Managing relationships with governments and NGOs internationally.

Mitigation Strategies

• Set a company-wide target of reducing GHG emissions to 10% below 1990 levels by 2010.
• Implemented internal emissions trading system.
• Developed a holistic approach to water management.
• Undertook social impact studies in several countries.
• Developed a global social investment strategy.

Supply Chain Management

Responsible Procurement

• Supplier diversity program in the US.
• Encouraging local suppliers in Algeria and Angola.
• Promoting black economic empowerment in South Africa.

Climate-Related Risks & Opportunities

Opportunities

• Development of lower carbon energy technologies.

Sustainable Products & Innovation

• Cleaner fuels
• Solar technology

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Biodiversity
• Human Rights
• Social Investment
• Diversity and Inclusion
• Ethical Conduct

Environmental Achievements

• Met target of reducing greenhouse gas emissions to below 1990 levels (over 10% cumulative reduction)
• Achieved 70% reduction in water use at Kwinana refinery

Social Achievements

• Improved safety performance – threefold improvement in injury rate since 1997
• Developed social investment strategies in Trinidad, Azerbaijan, Colombia, and other locations
• Launched Helios Awards to recognize employee sustainability initiatives
• Global Employee Matching Fund surpassed first-year expectations ($10.3 million employee contributions matched by BP)

Governance Achievements

• Amended business policies to prohibit facilitation payments
• Increased female representation in senior leadership by around 40% and representation from non-Anglo Americans by around 25%

Climate Goals & Targets

Environmental Challenges

• Fatalities in Papua New Guinea due to kerosene contamination (5 deaths, 64 injured)
• Fatalities at Augusta, USA polymer plant (3 deaths)
• Job losses at Grangemouth complex in Scotland (around 700 jobs)
• Oil spill in Alaska due to pipeline sabotage (6,000-barrel spill)
• Safety concerns and maintenance issues at Prudhoe Bay oil field
• Negative public attention regarding facilitation payments

Mitigation Strategies

• Recalled contaminated kerosene, assisted victims, and worked with Consumer Affairs Council on compensation
• Completed thorough accident investigation at Augusta plant and implemented preventative measures
• Restructuring of Grangemouth operations, efforts to redeploy employees, and collaboration with local authorities
• Rapid isolation of oil leak in Alaska, clean-up efforts, and no reported wildlife mortalities
• Review of Prudhoe Bay facility, recommendations for safety system upgrades
• Amended business policies to prohibit facilitation payments

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Providing cleaner fuels with lower carbon content
• Growing renewable energy business
• Research into separation and storage of carbon dioxide

Environmental Metrics

ESG Focus Areas

• Responsible Operations
• Climate Change
• Social and Economic Development
• Good Governance
• Environmental Stewardship
• Health and Safety
• Security and Human Rights
• Community Engagement

Environmental Achievements

• Successfully completed BTC pipeline construction in Georgia with measures to minimize environmental impact.
• Approved Georgian Oil Spill Response Plan (OSRP).
• Significant progress in land reinstatement after pipeline construction.
• WREP achieved 99% operating efficiency without a lost-time incident for seven years.
• 72.6% of waste generated during construction was recycled.

Social Achievements

• Supported various projects in education, healthcare, and energy with $14.5 million from the BP pledge.
• Initiated the Pipeline Monitoring and Dialogue Initiative for NGO monitoring and capacity building.
• Implemented the Regional Development Initiative to support social and economic development.
• Successfully resolved the majority of community grievances related to land acquisition and compensation.
• Completed health and safety inductions for over 12,000 people.

Governance Achievements

• Increased transparency through multiple layers of monitoring and assurance (15 layers).
• Established a transparent process for publishing information about the BTC grant program.
• Implemented the BP Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Managing the transition from projects to operations safely and efficiently.
• Managing expectations and promoting transparency.
• Safeguarding security of people and assets.
• Protecting the natural environment.
• Capacity building for NGOs and local staff.
• Absence of domestic waste management facilities meeting EU standards.

Mitigation Strategies

• Implemented comprehensive safety management systems and training programs.
• Engaged in open dialogue and consultation with stakeholders.
• Collaborated with national and local authorities to enhance security.
• Developed and implemented environmental management systems and mitigation measures.
• Launched NGO monitoring program and provided training and support.
• Developed a waste management strategy and planned to build an EU-compliant facility.

Supply Chain Management

Responsible Procurement

• Preference for local contractors and suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of low-carbon energy solutions (BP Alternative Energy)

Environmental Metrics

ESG Focus Areas

• Safety
• Process Safety Management
• Operational Integrity
• Environmental Management
• Decommissioning and Remediation
• Security
• Engaging with Communities
• Climate Change
• Low-carbon power
• Low-carbon transport
• Development
• Good Governance
• Enterprise Development
• Education
• Energy for Development
• People
• Compliance and Ethics

Environmental Achievements

• Reduced total operational GHG emissions by 2.4Mte compared to 2005 (excluding Innovene)
• Continued implementation of a seven-year $450 million energy-efficiency program
• Achieved 11 million tonnes of growth offset by around 6Mte of sustainable reductions since 2001
• Improved energy efficiency and GHG reductions through various projects
• Expansion of manufacturing facilities in India and Spain doubled solar cell production capacity

Social Achievements

• Improved personal safety, with reported recordable injury frequency the lowest in recorded history (0.47 per 200,000 hours worked)
• Increased the number of women in leadership since 2000
• Launched the Focus on the Future program at Texas City refinery, investing around $1 billion over five years
• Increased spending on integrity and reliability across five US refineries from $1.2 billion in 2005 to an average of $1.7 billion per year from 2007 to 2010
• Launched a new security standard with mandatory requirements for all businesses
• Improved strategies to attract local leaders and employees in emerging economies (e.g., 72% of professional staff in Azerbaijan are now nationals)
• Increased employee satisfaction index by 2% to 66% favorable
• Community investment of $106.7 million

Governance Achievements

• Launched a new compliance risk management program
• Rolled out BP code of conduct
• Implemented a new security risk management function
• Upgraded the business security risk management tool
• Participated in international discussions on security and human rights
• Widened application of the Voluntary Principles on Security and Human Rights

Climate Goals & Targets

Environmental Challenges

• Seven workforce fatalities in 2006
• Oil spills and pipeline corrosion issues in Alaska
• Texas City refinery incident (2005) and ongoing investigations
• Metallurgical failure during testing of subsea production equipment at Thunder Horse platform
• Negative media coverage and litigation

Mitigation Strategies

• Implemented a six-point plan to address process safety issues across the group
• Invested more than $550 million (net) on integrity management in Alaska over two years
• Launched the Focus on the Future program at Texas City refinery
• Developed a new operating management system (OMS) to reduce risk
• Expanded responsibilities of BP America Inc. chairman and president to include monitoring of US operations
• Established an external advisory board and appointed an independent ombudsperson to investigate employee concerns

Supply Chain Management

Responsible Procurement

• Developing tools and processes to improve supplier selection, development, and performance management in emerging economies

Climate-Related Risks & Opportunities

Opportunities

• Development of low-carbon energy businesses (solar, wind, hydrogen, biofuels)

Reporting Standards

Frameworks Used: GRI G3 Guidelines (C+ level), IPIECA/API indicators

Certifications: ISO 14001 (most major sites)

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• BP Ultimate fuels
• Ultra Low Sulphur Diesel
• Energy-efficient lubricants
• Solar cells
• Wind power
• Biofuels

Awards & Recognition

• Catalyst Award for diversity and inclusion

Environmental Metrics

ESG Focus Areas

• Safety
• Localization
• Operating Efficiency
• Social Programs
• Environmental Protection
• Community Engagement
• Education
• Enterprise Development
• Access to Energy

Environmental Achievements

• Completed remediation work on soil and surface and ground water contaminated by an oil spill in 2002
• Reached 100% operating efficiency in the Georgia section of the BTC pipeline for the last four months of 2007
• Decreased methane and sulfur dioxide emissions
• Initiated a biodiversity monitoring program
• Began a photo-landscape monitoring program to demonstrate progress in restoring the landscape

Social Achievements

• Supported initiatives promoting enterprise development and education
• Increased the percentage of Georgian nationals in the workforce to 84%
• Provided financial support to nine Georgian students for postgraduate education in the UK
• Supported a business and economics center in the Georgian Parliament
• Provided training to contractors on Georgian labor code, transparent recruitment, and grievance procedures

Governance Achievements

• Completed internal ethics certification process
• Addressed areas for improvement identified in a human rights assessment report
• Provided training on basic human rights and the Voluntary Principles on Security and Human Rights for private sector security firm

Climate Goals & Targets

Environmental Challenges

• Delays to Kodiana special projects due to severe winter conditions, permitting delays, and contractor capacity issues
• Start-up issues with gas production from the Shah Deniz field delaying gas delivery to Georgia
• Need to build local contractor capability to ensure professional standards in safety, human resource management, and environmental management
• Legal and administrative challenges related to state land treatment and permitting delays
• Maintaining high performance levels achieved in 2007

Mitigation Strategies

• Planning to complete Kodiana special projects in 2008
• Provided training and development opportunities for local contractors
• Working with government authorities to address legal and administrative challenges
• Implementing safety leadership programs and training initiatives to maintain high performance levels

Supply Chain Management

Responsible Procurement

• Using local contractors and suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Operational Efficiency
• Nationalization
• Land Rights
• Community Relations
• Environmental Protection
• Contractor Development

Environmental Achievements

• Successfully obtained ISO 14001 certification for BTC/SCP pipelines and facilities.
• Made progress towards EU standards for waste management.
• Completed construction of a security base for the government.
• Completed mechanical construction of the Emergency Drain Down Facility (EDDF).

Social Achievements

• Increased the proportion of Georgian nationals in the workforce to 93%.
• Improved staff medical insurance plan.
• Launched a three-year $1.5 million project management training initiative.
• Supported humanitarian relief activities and made grants to assist with emergency aid.

Governance Achievements

• Reached agreement with the government on land rights and safety zones around pipelines.
• Commissioned an independent assessment of the Voluntary Principles on Security and Human Rights (VPs) implementation.

Climate Goals & Targets

Environmental Challenges

• Increase in illegal taps on the Western Route Export Pipeline (WREP).
• Financial and operational difficulties among contractors.
• Impact of military conflict in August 2008.
• Need to develop local contractor capability.
• Further improving safety performance (increase in recordable injuries).

Mitigation Strategies

• Discussions with the Georgian government to eliminate oil theft from WREP.
• Assessing options for replacing sections of WREP.
• Implementing an action plan to improve driving safety.
• Formalizing processes to comply with BP group standards on integrity management.
• Introducing a web-based integrated safe systems of work (ISSOW) system.

Supply Chain Management

Responsible Procurement

• Working with local contractors where possible

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Society
• Governance
• Climate Change
• Energy Future
• Human Rights

Environmental Achievements

• Reduced CO2 emissions (excluding Deepwater Horizon) to 64.9 Mte from 65.0 Mte in 2009.
• Reduced energy consumption by approximately 8 million tonnes since 2002.
• Reduced corrosion- and erosion-related leaks in Alaska by 31% relative to 2006.
• TATA BP Solar facility in India reduced water consumption by approximately 30% through recycling.

Social Achievements

• Established the $20 billion Deepwater Horizon Oil Spill Trust for claims and costs.
• Provided hundreds of millions of dollars for economic, health, and environmental programs in the Gulf Coast.
• Invested $115.2 million in community programs globally.
• Enterprise Development and Training Programme (EDTP) in Azerbaijan awarded contracts worth around $42 million to clients.

Governance Achievements

• Established a new safety and operational risk function.
• Reorganized upstream business into three divisions.
• Implemented recommendations from the BP US Refineries Independent Safety Review Panel.
• Appointed four new non-executive directors with expertise in various fields.

Climate Goals & Targets

Environmental Challenges

• Deepwater Horizon oil spill and its environmental and socio-economic consequences.
• Safety incidents resulting in fatalities and increased injury frequency.
• Concerns about contractor oversight and management.
• Need to rebuild trust with stakeholders.

Mitigation Strategies

• Launched comprehensive safety and risk management programs.
• Implemented recommendations from internal and external investigations.
• Established the Gulf Coast Restoration Organization.
• Strengthened contractor management processes.
• Increased transparency and communication with stakeholders.
• Reviewed and updated oil spill response plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct for suppliers and contractors.
• Contractual requirements for compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Investment in low-carbon energy sources

Reporting Standards

Frameworks Used: GRI G3 (A+ level), IPIECA Oil and Gas Industry Voluntary Guidance on Sustainability Reporting (2010)

Certifications: ISO 14001

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Advanced biofuels
• Wind and solar energy
• Energy-efficient lubricants

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Risk Management
• Compliance
• Environmental Restoration
• Economic Restoration
• Climate Change
• Alternative Energy
• Human Rights
• Stakeholder Engagement
• Contractor Management
• Community Development

Environmental Achievements

• Reduced GHG emissions by 3.1 Mte compared to 2010 (various factors contributed to this reduction)
• Completed the majority of mechanical and manual shoreline clean-up in the Gulf of Mexico
• Implemented voluntary drilling standards in the Gulf of Mexico exceeding regulatory requirements
• Zhuhai 2 PTA plant achieved 75% fewer water discharges, 65% fewer GHG emissions, and 40% less solid waste than conventional plants.

Social Achievements

• Paid $7.8 billion for claims, advances, and other payments related to the Deepwater Horizon incident
• Supported tourism and seafood industries in the Gulf of Mexico through various initiatives
• Established a $100 million Rig Worker Assistance Fund
• Increased Omani nationals in Oman workforce to over 60%

Governance Achievements

• Established an independent safety and operational risk function
• Restructured upstream business into three divisions
• Refreshed values and code of conduct
• Aligned employee performance and reward with values

Climate Goals & Targets

Environmental Challenges

• Deepwater Horizon oil spill and its aftermath
• Unrest in Egypt and Libya
• Growing skills gap in the energy industry
• Concerns about the environmental impacts of hydraulic fracturing
• Concerns about the environmental and social impacts of oil sands development
• Global climate change and its implications
• Uncertainty over the renewal of the US production tax credit for wind energy
• Increasing pressures on the global water supply

Mitigation Strategies

• Strengthened safety, risk management, and compliance across BP
• Implemented enhanced standards on drilling in the Gulf of Mexico and other deepwater operations
• Restructured upstream business and centralized drilling wells activity
• Refreshed values and code of conduct
• Aligned employee performance and reward with values
• Conducted a best-practice review of contractor management
• Incorporated carbon pricing into investment appraisals
• Increased investment in alternative energy
• Developed a mobile deepwater well capping package
• Shared lessons learned from the Deepwater Horizon accident with industry peers and regulators
• Engaged with local communities and government agencies on the restoration of the Gulf Coast
• Supported ongoing seafood monitoring and testing programs
• Supported community organizations and programs throughout the Gulf region
• Developed sustainable water management practices

Supply Chain Management

Responsible Procurement

• Systematic selection processes including pre-contract audits for high-consequence activities
• Requirements for contractors to comply with BP's code of conduct
• Bridging documents to define how safety management systems coexist between BP and contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Investment in lower-carbon energy resources
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3 (A+ level), IPIECA, API, IOGP Oil and Gas Voluntary Guidance on Sustainability Reporting (2010), UN Global Compact

Certifications: ISO 14001 (at most major operating sites)

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• Advanced Castrol lubricants
• Ultimate fuels
• Biofuels

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social Investment
• Governance
• Angolanization

Environmental Achievements

• Improved waste management practices
• Reduced number of oil in water excursions (though total tonnes discharged increased due to operational issues)
• Implementation of strict noise controls at seismic operations to mitigate impact on marine fauna
• Expansion of EMS to include PSVM FPSO

Social Achievements

• Increased Angolan national employees to approximately two-thirds of professional grade employees
• Investment of millions of dollars in social initiatives supporting community development (education, enterprise development, poverty reduction, health)
• 173 trainees graduated from the offshore technicians programme since 2001
• 25 new graduates from the BP-supported Masters programme in oil and gas law in 2012
• Significant local content (over 20%) in PSVM project

Governance Achievements

• Significant steps taken to embed OMS in Angola activities
• Implementation of BP's code of conduct, including anti-bribery and corruption training for employees and suppliers
• Regular analysis of gifts accepted and declined to monitor compliance
• Internal ethics certification process completed

Climate Goals & Targets

Environmental Challenges

• Operating in a developing country with infrastructure challenges and a history of conflict
• Compliance with anti-corruption laws and ethical business practices
• Development of Angola's human and institutional capacity
• Shortage of qualified Angolan employees
• Competition for qualified local labor
• New foreign exchange law requiring repatriation of funds
• Managing expectations of stakeholders in Angola's changing environment
• Malaria and cholera outbreaks

Mitigation Strategies

• Extensive employee and contractor training on code of conduct and applicable laws
• Audit program for partners and scrutiny of high-risk agents
• Investment in education and enterprise development programs
• Angolanization program focusing on quality and number of Angolan employees
• Learning and development programs to build local capacity
• Consultation with National Bank of Angola on foreign exchange law implementation
• Road safety campaigns and driver training
• Malaria prevention awareness sessions and policies

Supply Chain Management

Responsible Procurement

• Preferential treatment given to local labor and nationally-produced goods, machinery, and equipment
• Significant spending with Sonangol-related suppliers ($641 million in 2012)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001:2004

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• People
• How we operate
• The energy future
• Society

Environmental Achievements

• Reduced direct greenhouse gas emissions by approximately 8.7Mte since 2002
• 8% improvement in energy intensity at Toledo refinery (2010-2013)
• Reduced water discharge by 75% at Zhuhai PTA plant using a recycling technique
• Created 220 acres of wetlands at Cherry Point refinery, providing habitat for bird and amphibian species

Social Achievements

• Spent $78.8m on community investment
• Conducted 21 human rights training events
• Developed a training programme for motorcycle mechanics in India, training over 100,000 mechanics since 2010
• Supported local companies in Azerbaijan securing contracts valued in excess of $450 million

Governance Achievements

• Launched non-operated joint venture policy
• Implemented group policy for identifying and managing risks associated with non-operated joint ventures
• Increased employee understanding of BP values by 12 percentage points

Climate Goals & Targets

Environmental Challenges

• Terrorist attack at In Amenas gas plant in Algeria
• Water scarcity at around half of major operating sites
• Managing risks in non-operated joint ventures
• Addressing climate change and reducing GHG emissions
• Maintaining a diverse and inclusive workforce

Mitigation Strategies

• Mobilized emergency response system and implemented security enhancements at In Amenas
• Using IPIECA's Global Water Tool to manage water risks
• Implementing a group policy for non-operated joint ventures
• Investing in alternative energy and energy efficiency measures
• Setting diversity targets and implementing diversity and inclusion training programmes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Anti-corruption provisions and HSE requirements in upstream contracts
• Global agreements with strategic contractors and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Potential GHG regulation

Opportunities

• Development of energy-efficient products and lower-carbon energy sources

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Advanced Castrol engine oils, biofuels

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Society
• Climate Change
• Energy Security
• Human Rights
• Community Development
• Governance
• Risk Management
• Supply Chain

Environmental Achievements

• Reduced direct GHG emissions by 1.7Mte compared to 2013 (primarily due to divestments)
• 8% improvement in EII at Toledo refinery (2011-2013)
• 6 refineries developed energy efficiency plans
• Continued efforts to reduce flaring and venting
• Invested in water treatment company to manage operations in water-scarce areas
• Updated oil spill planning scenarios and response strategies for almost three-quarters of businesses with spill potential

Social Achievements

• Increased women in group leadership to 18%
• Awarded contracts worth over $259 million to local Omani companies since 2013
• Revised social investment framework to include guidance on evaluating potential risks
• Delivered human rights workshops to over 270 employees
• Supported community development initiatives in Trinidad & Tobago, Azerbaijan, and other locations
• Improved malaria prevalence in Bintuni Bay, Indonesia to less than 1% from 12% in 2003

Governance Achievements

• Strengthened ethics and compliance presence
• Enhanced guidance related to trading behaviors and conflicts of interest
• Engaged employees and board members in code of conduct certification
• Dismissed 157 employees for non-compliance or unethical behavior
• Preparing to comply with UK regulations on reporting taxes paid to governments

Climate Goals & Targets

Environmental Challenges

• Higher number of safety incidents in 2014 compared to 2013
• Climate change and its impact on operations
• Water scarcity in some operating areas
• Geopolitical risks and security concerns in certain regions
• Potential environmental and community impacts of hydraulic fracturing
• Managing human rights risks in the supply chain
• Legal proceedings related to the Deepwater Horizon accident

Mitigation Strategies

• Continued focus on safety improvements and lessons learned from incidents
• Investing in natural gas and renewables, factoring a carbon cost into investment decisions
• Developing water-saving innovations and investing in water treatment technologies
• Implementing robust security management systems and crisis management plans
• Applying responsible well design and construction practices for hydraulic fracturing
• Integrating human rights considerations into impact assessments and supply chain processes
• Seeking fair and just outcomes in legal proceedings while protecting shareholder interests

Supply Chain Management

Supplier Audits: 72 audit reports issued in 2014 (upstream contractors)

Responsible Procurement

• Standard model contracts with human rights clauses
• Pre-qualification questionnaires and audits for Downstream suppliers
• Minimum workforce welfare standards for Khazzan gas project

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• GHG regulation
• Carbon pricing

Opportunities

• Development of energy-efficient products
• Investment in natural gas and renewables

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact

Certifications: ISO 14001 (most major operating sites)

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Castrol EDGE engine oil
• Biofuels (ethanol, biobutanol)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Competitiveness
• Future
• People
• Environment
• Society
• Ethics and Transparency

Environmental Achievements

• Reduced greenhouse gas (GHG) and other air emissions
• Monitoring of deep sea environments around our operated offshore blocks has shown no measureable impacts
• Completed coastal sensitivity mapping to assist oil spill response preparedness

Social Achievements

• Angolanization rate reached 79% with plans to achieve 90% by 2020
• $6.4 million spent in 2015 on a wide range of social projects
• Continued to invest in and support Angolan communities and institutions

Governance Achievements

• Improved control of HSSE regulatory compliance by updating our compliance management system
• Four employees were dismissed in 2015 for serious breaches of the code of conduct

Climate Goals & Targets

Environmental Challenges

• Low oil price environment
• Condition of the country’s physical infrastructure
• Need for a larger and better skilled local labour force
• Changes in the foreign exchange regime
• Angola’s over-dependence on the oil and gas sector
• Challenges for compliance with anti-corruption laws

Mitigation Strategies

• Increasing competitiveness
• Effective cost management
• Consulting with the National Bank of Angola
• Supporting the development of the national economy
• Implementing a comprehensive HSE Improvement plan
• Strengthening our portfolio of high-return and longer-life upstream assets

Supply Chain Management

Responsible Procurement

• Preferential treatment to local labour and nationally-produced goods

Climate-Related Risks & Opportunities

Awards & Recognition

• FILDA award in the social and environment category (2015)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Human Rights
• Value to Society
• Environment
• Diversity & Inclusion
• Governance
• Risk Management

Environmental Achievements

• Sustainable GHG emissions reductions of 0.5Mte in 2017
• Reduced methane intensity to 0.2%
• 2.9Mte of CO2 equivalent avoided through renewables business in 2017
• Reduced GHG emissions at Zhuhai 3 petrochemical plant by 65% compared to comparable plants

Social Achievements

• Increased women's representation in operational roles in Brazil's biofuels business by more than double since 2013
• Supported more than 100 community-based organizations and local businesses in Trinidad & Tobago through the Beyond Borders program
• Provided training and small grants to over 250 women in Turkey to support their businesses
• Community investment of $89.5 million

Governance Achievements

• Implemented Advancing Low Carbon accreditation program
• Linked 20% of longer-term share awards to progress against strategic priorities, including low-carbon performance
• Board visits to operations in Hungary, Norway, UK, and US
• Published gender pay gap data in the UK

Climate Goals & Targets

Environmental Challenges

• Increases in total flaring volume due to Khazzan gas development startup
• Challenges in achieving gender balance at executive and senior levels
• Managing contractor safety (more than half of BP's work hours are done by contractors)
• Addressing modern slavery risks in the supply chain
• Managing potential impacts on communities near operations (e.g., damage to crops, property)

Mitigation Strategies

• Offsetting any increase in emissions above 2015 levels not covered by sustainable reductions
• Developing mentoring, sponsorship, and coaching programs for women
• Implementing standard model contracts with health, safety, and security requirements for contractors
• Conducting modern slavery risk reviews and labor rights assessments
• Engaging with communities through consultations and addressing concerns

Supply Chain Management

Supplier Audits: 36 anti-bribery compliance audits in 2017

Responsible Procurement

• Code of conduct
• Human rights policy
• Expectations of suppliers
• Standard procurement contracts with human rights requirements

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Storms
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Shift to electric vehicles

Opportunities

• Growth in gas and renewables
• Development of energy-efficient products and services
• Carbon capture, use, and storage (CCUS)

Reporting Standards

Frameworks Used: GRI G4 core guidelines, UN Global Compact, IPIECA climate reporting framework, TCFD recommendations

Certifications: ISO 14001 (printer)

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

BP's activities contribute to these goals through energy production, job creation, and efforts to reduce emissions

Sustainable Products & Innovation

• Carbon neutral lubricants
• Jet fuel made from household waste
• Lower carbon chemicals
• Renewable gas fuel

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Society
• Operations

Environmental Achievements

• Achieved 256,792 CO2 equivalent tonnes of greenhouse gas (GHG) sustainable emissions reduction, with about 37,672 tonnes achieved in 2019.
• Generated 40% less total hazardous waste than in 2018.
• Generated 37% less non-hazardous waste than in 2018.
• Maintained the injection efficiency of produced water at a maximum level of 99.6%.

Social Achievements

• Spent $86 million jointly with co-venturers on social programs.
• Supported more than 300 young people from local communities to get access to higher education.
• Completed the third phase of a project providing early intervention and inclusive preschool services to 902 children.
• Supported 203 community members with training and equipment in beekeeping and small farming.

Governance Achievements

• Joined the Azerbaijan Extractive Industries Transparency Commission (EITC).
• Submitted 2018 EIT report to the commission.
• Conducted 20 supplier reviews in 2019 focusing on ethics and compliance.

Climate Goals & Targets

Environmental Challenges

• Low oil prices.
• Global pandemic (COVID-19) affecting operations and communities.
• Substantial flaring and cold vent during the year, contributing to increased GHG volumes.

Mitigation Strategies

• Continued commitment to net-zero ambition.
• Played a part in helping communities and supporting governments during the pandemic.
• Implemented improved maintenance and monitoring practices for sewage treatment.
• Reassessed pigging program, reducing routine runs by 23% while maintaining system integrity.
• Deployed Unmanned Surface Vessel (USV) for pipeline inspection, enhancing safety.

Supply Chain Management

Supplier Audits: 20 supplier reviews

Responsible Procurement

• Enterprise Development Programme (EDP)
• National Manufacturing Programme

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14001

Certifications: ISO 14001

Third-party Assurance: Deloitte & Touche LLC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Net zero
• Improve people’s lives
• Care for our planet

Environmental Achievements

• Reduced operational greenhouse gas emissions by 16%
• Reduced total hydrocarbons flared from 1,395kt to 831kt in 2020
• Delivered 1.0 million tonnes of sustainable emissions reductions (SERs) in 2020 through operational improvements

Social Achievements

• Provided emergency food supplies and survival kits to communities in India
• Supported the purchase of COVID-19 medical supplies and testing equipment through Castrol
• Provided free fuel to emergency services in the UK (more than 10 million litres)

Governance Achievements

• Published first tax transparency report for 2019
• Updated business and human rights policy
• Launched a new biodiversity position

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting financial performance and operations
• Unprecedented market conditions with volatile oil and gas prices
• Reduced demand for products due to lockdowns

Mitigation Strategies

• Reduced capital expenditure by about 25%
• Made $2.5 billion of cost savings by 2021 compared with 2019
• Delivered plans for $15 billion of announced divestments

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Labour rights and modern slavery principles

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable energy and low-carbon technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 13

Aims and initiatives contribute to these goals through renewable energy development, just transition, sustainable livelihoods, and biodiversity conservation

Sustainable Products & Innovation

• Opal fuel
• Sustainable aviation fuel (SAF)
• Biofuels
• Renewable natural gas

Awards & Recognition

• Khazzan for SMEs won Riyada’s ‘best development initiative’

Environmental Metrics

ESG Focus Areas

• Net zero
• People
• Planet

Environmental Achievements

• Reduced operational Scope 1 and 2 emissions by 35% compared to the 2019 baseline
• Reduced total air emissions by 38% compared with 2020
• Reduced upstream methane emissions by 40% to around 43.0kt, from 71.6kt in 2020
• Developed renewables to FID of 4.4 GW

Social Achievements

• Launched ‘Thrive’ wellbeing portal
• 14,000 employees attended mental health training
• More than 10,900 employees and family members signed up to Headspace app
• Published first DE&I report
• Spent around $200 million with more than 100 minority, woman, and veteran-owned companies in the US

Governance Achievements

• Published second tax transparency report
• Published UK ethnicity pay gap data
• Expanded TCFD disclosures using the WBCSD Scenario Catalogue

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic travel restrictions affecting ability to get people to and from operations
• Increase in recordable injury frequency (RIF) and days away from work case frequency (DAFWCF) compared with 2020
• Number of oil spills remained the same as in 2020
• Uncertainty caused by the COVID-19 pandemic

Mitigation Strategies

• Provided ongoing information about burnout and stress management
• Refreshed Safety Leadership Principles
• Rolling out IOGP’s Life Saving Rules across operating businesses
• Integrating IOGP’s Process Safety Fundamentals
• Enhanced internal standards and ability to receive and respond to community feedback

Supply Chain Management

Responsible Procurement

• Trialled inclusion of sustainability factors in major purchasing decisions
• Focused on supplier sustainability strategies, greenhouse gas emissions, use of renewable energy and circular approaches to product design and content

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Extreme waves
• Sea level rise
• Extreme temperatures
• Flooding

Transition Risks

• Impact on value of hydrocarbon business
• Impact on ability to grow or deliver expected returns from transition growth businesses
• Impact on ability to implement strategy

Opportunities

• Growth of transition growth businesses

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN Global Compact, IPIECA

Certifications: ISO 14001

Third-party Assurance: Deloitte

Sustainable Products & Innovation

• New bespoke corrosion inhibitor for Trinidad and Tobago operations (reduced water impact, lower toxicity, lower cost)

Awards & Recognition

• Gold status by the United Nations Environmental Programme for methane emissions plans
• President’s Award for 2021 from the Chartered Institute of Ergonomics & Human Factors

Environmental Metrics

ESG Focus Areas

• Net zero
• Improving people's lives
• Caring for our planet

Environmental Achievements

• 41% cut in Scope 1 and 2 absolute emissions compared to 2019.
• 15% lower absolute emissions from carbon in upstream oil and gas production compared to 2019.
• 2% reduction in the average carbon intensity of sold energy products against the 2019 baseline.
• Methane intensity decreased from 0.14% in 2019 to 0.05% in 2022.

Social Achievements

• All employees paid a fair wage worldwide in 2022.
• Launched a social mobility framework for action.
• Became the first major energy, mobility and convenience employer to be accredited as a living wage employer in the UK.

Governance Achievements

• Sustainability plans developed and set priority actions to support delivery of aims.
• Sustainability assessment template developed for use in all investment cases reviewed by RCM.
• Expanded the sustainability measures in our long-term incentive plan scorecard for group leaders, including linking performance to progress on our net zero operations aim (aim 1).

Climate Goals & Targets

Environmental Challenges

• Four employee fatalities in 2022.
• Increase in recordable injury frequency (RIF) and days away from work case frequency (DAFWCF) compared with 2021.
• Challenges in aligning trade association positions with bp's climate policy.

Mitigation Strategies

• Implementing a safety intervention plan in C&P business.
• Rolling out and embedding IOGP Life Saving Rules across operating businesses.
• Piloting IOGP Process Safety Fundamentals.
• Updating OMS to emphasize human performance and Safety Leadership Principles.
• Prioritizing collaboration with NOJVs with greatest potential to reduce methane emissions.
• Publicly dissenting or resigning membership from trade associations with material misalignment on high-priority issues.

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Buying inclusively process
• Sustainable procurement policy (in development)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Changes in freshwater availability

Transition Risks

• Impact on hydrocarbon business value
• Impact on growth of transition growth engines
• Impact on strategy implementation due to evolving attitudes towards the energy sector

Opportunities

• Growth of bioenergy, renewables, and hydrogen businesses
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Oil and Gas Exploration and Production Standard, TCFD

Certifications: ISO 14001

Third-party Assurance: Deloitte LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)

Initiatives described throughout the report contribute to these goals through various actions such as renewable energy development, emissions reductions, community investment, biodiversity restoration, and water stewardship.

Sustainable Products & Innovation

• Renewable natural gas (RNG)
• Sustainable aviation fuel (SAF)
• Green hydrogen
• Castrol POWER1 ULTIMATE engine oil in 100% post-consumer recycled bottles

Awards & Recognition

• Gold status for methane emissions measurement under OGMP 2.0 reporting framework

Environmental Metrics

ESG Focus Areas

• Tax
• Energy Transition
• Transparency

Environmental Achievements

• Reduced CO2e emissions by 406,000 tonnes through 'green completions' approach at Block 61, Oman.

Social Achievements

• Ongoing conversations with stakeholders (tax authorities, investors, civil society, policymakers, global tax experts, and communities) to improve disclosures and build trust.
• Simplified corporate structure by removing 49 entities in 2023.

Governance Achievements

• Full adoption of The B Team’s seven Responsible Tax Principles.
• Improved management of tax audits through central oversight and best practice sharing.
• Active involvement in The B Team’s Responsible Taxes Working Group.

Climate Goals & Targets

Environmental Challenges

• Uncertainty regarding tax treatment of imported bioproducts in the EU.
• Complexities of OECD BEPS Pillar Two model rules.
• High tax rates in the North Sea (UK) impacting investment.
• Inconsistencies in tax legislation and interpretation of regulations for biofeedstocks.
• High upfront capital expenditure required for hydrogen projects.
• Supply chain constraints and lengthy permitting procedures hampering low-carbon energy investment.
• Potential for carbon leakage due to varying carbon pricing policies globally.

Mitigation Strategies

• Engaging with external trade bodies to advocate for clear classification guidance and consistent interpretation of regulations (EU biofeedstocks).
• Working with standard setters, governments, and the OECD to clarify guidance and simplify compliance (BEPS Pillar Two).
• Engaging with UK authorities to advocate for a competitive and stable tax regime that supports investment in low-carbon energy.
• Engaging with US authorities to clarify tax credit provisions for biogas.
• Engaging with governments to highlight the need for support (subsidies or tax incentives) for low-carbon capital expenditure (hydrogen).
• Developing a white paper on how oil and gas companies can participate in the energy transition (Indonesia).
• Supporting the OECD’s Inclusive Forum on Carbon Mitigation Approaches.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Changes in tax policies related to energy transition

Opportunities

• Investment in low-carbon energy projects

Reporting Standards

Frameworks Used: The B Team’s seven Responsible Tax Principles, GRI Standard 207: Tax, Extractive Industries Transparency Initiative (EITI)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Energy Security
• Energy Affordability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Rising carbon emissions despite increased climate ambitions and investment in low-carbon energy.
• Need to transition from 'energy addition' to 'energy substitution' phase.
• Energy security concerns highlighted by the war in Ukraine and Middle East disruptions.
• Disappointing progress on energy efficiency improvements.
• High cost of low-carbon energy vectors and technologies.
• Need for accelerated investment in critical minerals mining and exploration.

Mitigation Strategies

• Exploring two scenarios: Current Trajectory and Net Zero, to analyze potential energy system evolutions.
• Promoting greater electrification fueled by faster wind and solar growth.
• Accelerating energy efficiency improvements.
• Increasing use of low-carbon energy sources and technologies (biofuels, low-carbon hydrogen, CCUS).
• Addressing energy security and affordability alongside sustainability goals.
• Investing in low-carbon energy, with a focus on renewables.
• Developing and expanding supply chains for critical minerals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed