What is bp's New Sustainability Strategy?

In 2024, bp’s operational Scope 1 and 2 emissions were 38% lower than in 2019 – but increased from 2023.

After a downturn in profits in 2024, the business announced that it will cut its renewable investments by more than US$5bn per year and ramp up its commitment to fossil fuels. 

“It is five years since we introduced a strategy underpinned by our sustainability frame and I am pleased with how far we have come,” says Giulia Chierchia, EVP Strategy, Sustainability and Ventures at bp.

“We are now focusing our aims on those that are most relevant to the long-term success of our business and to our net zero ambition.”

A new sustainability strategy

One outcome of bp’s “fundamental reset” in strategy is a “more focussed” set of sustainability aims. 

Murray Auchincloss, CEO at bp, says in the report: “bp’s portfolio is predominantly oil and gas and we continue to invest in this core business. But the past five years have also seen us build strong positions in lower carbon energies.

“It's been a team effort in every way. The energy transition has to be a collaboration between business, government and wider society.”

The company now has five sustainability aims:

• Net zero operations: Bringing Scope 1 and 2 emissions within bp’s operational control to net zero by 2050
• Net zero sales: Reducing the average lifecycle carbon intensity of the energy products it sells by 2050
• People: Supporting its employees and local communities through the energy transition 
• Biodiversity: Support biodiversity where it operates
• Water: Reducing its net freshwater use in stressed catchments where it operates.

Previously, bp’s sustainability reports included a goal of achieving “net zero production”, reducing its Scope 3 emissions across the carbon in its upstream oil and gas production by 2050. 

Its 2023 sustainability report also contained an aim to increase the proportion of investment it makes into its non-oil and gas businesses.

When its strategy changes were announced, Helge Lund, bp’s Chair, said: “The board believes that this is an important strategic reset for bp and is confident that it, together with rigorous performance management, will deliver improved performance and sustainable value for bp’s shareholders. 

“Over the past 12 months, we have worked closely with Murray and his team as they have developed the new direction, ensuring it reflects the significant changes we have seen in energy markets and our purpose of delivering energy to the world today and tomorrow. 

“This new direction places free cash flow growth, returns and value at its heart."

In its 2024 results, the company reported a 35% fall in annual profits to US$8.9bn and a 61% drop in fourth quarter profits year-on-year.

Net zero operations at bp

The report says: “Our aim is to reach net zero by 2050 or sooner for Scope 1 and 2 emissions within bp’s operational control (on a CO₂ e basis), including by maintaining ‘near-zero’ methane intensity across our operated producing assets, enabled by supportive government policies.”

It is targeting a 20% reduction in its operational emissions by the end of 2025 and aiming for between a 45% and 50% reduction by the end of 2030 against its 2019 baseline. 

In 2024, its Scope 1 emissions increased to 32.8MtCO₂e from its 2023 level of 31.1MtCO₂e and its Scope 2 emissions decreased by 0.2MtCO₂e. 

“Looking ahead, we continue our work on our sustainability frame, including the activities that now fall within our day-to-day work,” Giulia said on LinkedIn.

“This progress provides the opportunity to simplify our aims, focusing them on those most relevant to our long-term success and net zero ambition.”

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