BP PLC, one of the world’s major integrated energy companies, released its 2024 Sustainability Report amid a strategic transformation in portfolio and net zero ambitions. The report provides insight into operational emissions management, renewable investments, methane reduction leadership, and social commitments, reflecting the complexity of transitioning an oil and gas giant into a low-carbon energy provider.
Strategic Reset and Governance Structure
In early 2024, BP initiated a “fundamental reset” of its sustainability aims to sharpen focus on core business transformation, cash flow growth, and enhanced shareholder returns. Sustainability governance remains embedded at the board level via the Sustainability Committee, guiding rigorous performance management and risk mitigation. CEO Murray Auchincloss emphasizes a pragmatic approach, balancing traditional energy operations with low-carbon investments.
BP’s five refreshed sustainability aims include:
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Net zero operational emissions by 2050,
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Reducing lifecycle carbon intensity of sold products,
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Methane intensity near zero,
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Reducing net freshwater use in stressed catchments,
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Supporting biodiversity conservation.
Greenhouse Gas Emissions and Progress
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Operational Scope 1 and 2 emissions declined 38% against a 2019 baseline, totaling 33.6 million metric tons CO₂e in 2024.
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Methane intensity reduced to 0.07% through pioneering real-time emissions measurement and response systems, the lowest in the oil & gas sector.
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Scope 3 emissions, accounting for most value chain emissions, are subject to active mitigation though remain a challenge given portfolio composition.
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Flaring rates reduced by 18% since 2022, with commitments to near-zero routine flaring by 2025.
Renewable Energy and Energy Transition Investments
BP reached milestones by closing financing for the $7 billion Tangguh UCC carbon capture-and-storage (CCUS) project and the Northern Endurance Partnership CCS cluster, signifying progress in supporting clean energy infrastructure.
The bp pulse electric vehicle charging business sold its first terawatt-hour (TWh) of energy in 2024, supporting the EV transition:
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Expansion to over 12,000 public chargers globally,
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Leading the UK EV infrastructure market with over 3,200 chargers.
Renewable capacity investments exceed $5 billion annually but are subject to reallocation based on market conditions.
Water Stewardship and Biodiversity
In water-stressed regions, BP implemented water-saving technologies reducing freshwater use by 9% in 2024. Biodiversity initiatives focus on net positive impact areas with active restoration projects in collaboration with NGOs. BP’s net positive impact targets aim to maintain or enhance biodiversity within operational sites supporting critical habitats.
Social Performance and Employee Engagement
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Safety performance improved with recordable injury frequency down 15% vs 2023 and zero operational fatalities reported.
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Community investments totaled $271 million, directed to local infrastructure, health, and education.
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Diversity and inclusion: Women represent 32% of senior management roles.
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Engaged 1,027 suppliers in ESG due diligence audits, a 30% increase from 2023.
Transparency, Assurance, and Reporting Standards
BP commits to transparency with independent assurance by Deloitte on key ESG KPIs. Reports align with GRI, SASB, TCFD, and EU ESRS standards, supporting investor confidence.
BP’s digital ESG data dashboards provide timely access and ensure compliance with multiple regulatory frameworks including SEC and SFDR.
Key Quantitative Data Points (2024)
| Indicator | Value | Benchmark/Target |
|---|---|---|
| Scope 1 & 2 Emissions (MtCO₂e) | 33.6 | 38% reduction since 2019 |
| Methane Intensity (%) | 0.07 | Industry lowest |
| Routine Flaring Reduction (%) | 18% decrease since 2022 | Near-zero by 2025 target |
| Renewable Energy Investment ($B) | >5 | Subject to portfolio focus |
| Public EV Chargers (#) | >12,000 | Market leader in UK |
| Safety Incident Rate | Down 15% from 2023 | Zero fatalities |
| Community Investment ($M) | 271 | Growing annually |
| Women Senior Managers (%) | 32 | Targeted increase ongoing |
| Suppliers Audited (#) | 1,027 | Increased 2024 vs 2023 |
Future Outlook
BP’s strategy balances traditional fossil fuel business with accelerating green investments, focusing on hydrogen, CCS, and renewables while seeking to optimize new energy asset returns. The company reiterates collaboration with regulators and markets for just and sustainable energy transitions.
Useful Links and Reports
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BP Sustainability Report 2024:
https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/sustainability/group-reports/bp-sustainability-report-2024.pdf -
BP ESG Datasheet 2024:
https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/sustainability/group-reports/bp-esg-datasheet-2024.pdf -
BP Sustainability Reporting Centre:
https://www.bp.com/en/global/corporate/sustainability/reporting-centre-and-archive.html -
Analysis of BP’s Sustainability Strategy:
https://sustainabilitymag.com/articles/how-is-bps-poor-2024-results-hit-its-low-carbon-spend
