First 100 Days: Illustrating the Journey to Net Zero

In these painful and challenging times as the world tackles a global pandemic, my heart goes out to everyone impacted. Through adversity, we are all reminded of the things which matter most. I hope you and your loved ones stay safe and stay well.

It has been 100 days since Bernard Looney announced bp’s ambition to become a net zero company by 2050, or sooner. Nobody will have anticipated the seismic shift that followed, as nations grapple with the coronavirus pandemic. As we too respond to the pandemic, our ambition remains resolute and its scale cannot be underestimated. No other oil and gas company has put the focus on reducing absolute emissions to net zero to such an extent. The whole energy system needs to be transformed and that’s why I am encouraged by many of our industry peers having since laid out net zero plans of their own. The energy landscape is undergoing a revolution. This was never about being first or pioneering forward alone. Net zero is not an arms race, but a necessary journey that society must embark upon together.

I think of myself as an activist; with access to the resources of a global company providing me with a platform to make a positive impact

Getting personal

I am incredibly passionate about this space and am proud to be part of a fantastic bp team that contributed to the framing of our ambition. For me, this is not just professional. It is personal. I recently became a father, and now more than ever, I feel deeply responsible in ensuring we all play our part in tackling the climate crisis and offering up the solutions that the world desperately demands. In this way, I think of myself as an activist; with access to the resources of a global company providing me with a platform to make a positive impact.

What is a ‘net zero’ company?

‘Net zero’ is defined by the Paris Agreement as a state which balances the anthropogenic (man-made) greenhouse gases (GHGs) emitted from sources, with removals by anthropogenic ‘sinks’. This is typically defined at a country level. There is no formally agreed definition of net zero at a company level. So, what does a net zero company – and particularly a net zero energy company – look like? In the first instance, emissions must be reduced wherever possible, either at source or through carbon capture. Anything that cannot be reduced, must be ‘removed’. Removals include enhancing biological sinks (e.g. reforestation projects) and engineered solutions (e.g. direct air capture).

Carbon emissions are complex, occurring at every stage of a company’s value chain. These include not just the emissions from an organisation’s own operations (referred to as scope 1 and 2) to do business, manufacture products or provide a service; but also, emissions generated by its customers using these products or services (scope 3). Scope 3 includes 15 emissions categories, with the ‘use of a product by a customer’ (category 11) by far the largest contributor for an energy company. In a truly net zero ‘system’, both the operational (scope 1 and 2) and customer (scope 3) emissions would be net zero.

Metrics for reducing emissions

In the energy space, there are different methods to track progress. Reductions can be measured in an ‘absolute’ sense (based on total volume of emissions), or in terms of ‘intensity’ (volume of emissions, per unit of energy). There is no right or wrong metric, and both serve a purpose. Every company has a different approach, and this makes like-for-like comparisons difficult.

At bp, we are aiming to reduce absolute emissions to net zero – from all our operations (scope 1 and 2) and for the carbon in the oil and gas we produce through its use by our customers (scope 3). In addition, we also have an intensity reduction metric, but this alone is not a reliable measure of progress as carbon intensity can, in theory, fall within a portfolio even as absolute emissions grow – by simply adding disproportionate amounts of renewable energy to the mix, while at the same time growing fossil energy. A focus on reducing total emissions is crucial in achieving the Paris goals.

Acting with purpose, I feel connected to a company determined to be a force for good

Making changes now

We are 100 days in on a 30-year journey and are in action already, leaving three trade associations following a review of climate policies and making changes now through our ALC programme - supporting 76 activities that have cut or removed emissions. Acting with purpose, I feel connected to a company that is determined to be a force for good. Many people feel 2050 is too distant a timeframe for realising our ambition. The energy system is complex and deeply embedded; changes cannot happen overnight. There is plenty going on behind the scenes to chart the path ahead and give you the confidence to judge us on our actions. More of this will be shared in September.

Illustrating net zero

Coming back to net zero and to help bring our ambition to life, we have produced the below video which illustrates what we are doing and why. I hope this helps bring some clarity on our approach and I would welcome a conversation to hear your views too.

#bpNetZero