BP’s Big Pivot: Can the Company Really Get to Net Zero & Help the World Get There Too?

- In August, BP announced that it plans to transition from an oil company to an integrated energy company, kickstarting an era of delivery toward its net zero ambition. Over the next decade, the company plans to reduce emissions by 30-40% and move from 2.5 gigawatts to 50 gigawatts of renewable electricity. According to Bernard Looney, BP’s new strategy reflects the “ambitious edge of realism”: it is a strategy that strikes the balance between being bold and grounded in reality.
- Looney explained that BP’s shift toward sustainability is not a form of altruism; rather, it is about creating sustainable value. Trillions of dollars will soon be spent rewiring and replumbing the earth’s energy system—this represents a tremendous opportunity to create value for BP’s shareholders.
- Partnerships are the key to a successful energy transition. Looney revealed that BP and Equinor are joining forces to develop 4.4 gigawatts of offshore wind. BP is also partnering with DiDi, a Chinese vehicle-for-hire company, to develop electric-vehicle charging infrastructure.
“Before I took over as CEO, I had an opportunity to listen to and talk with a lot of people, including activists, NGOs, and our employees. I walked away with an inescapable conclusion that we had to change and we want to change. The world is on an unsustainable path,” Bernard Looney

Summary