Oil giant BP today set out a new ambition to become a net-zero company by 2050 or sooner.
The target covers the greenhouse gas emissions from BP’s operations and the carbon in the oil and gas it produces, helping customers shrink their carbon footprints.
The London-headquartered firm will reorganise to become “more focused and integrated” in a bid to achieve its ambitious new target.
It means tearing up a structure that has been in place for more than a century, consisting of upstream, downstream and “other businesses”.
Post-reorganisation, BP will be made up of four divisions: Production and operations, customers and products, gas and low carbon and innovation and engineering.
The supermajor vowed to stay committed to its fundamentals of safe operations and delivering returns to investors.
BP made the announcement ahead of a webcast scheduled for this afternoon featuring its new chief executive, Bernard Looney, who faces the task of steering BP through the energy transition.
Further detail will be provided at a capital markets day in September, but the firm did say it would ramp up investments in non-oil and gas businesses, and install methane monitoring devices at all of its sites by 2023.
Mr Looney, who used to lead BP’s North Sea business, said: “The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner.
“To deliver that, trillions of dollars will need to be invested in replumbing and rewiring the world’s energy system. It will require nothing short of reimagining energy as we know it.
“This will certainly be a challenge, but also a tremendous opportunity. It is clear to me, and to our stakeholders, that for BP to play our part and serve our purpose, we have to change.
“And we want to change – this is the right thing for the world and for BP.”
Chairman Helge Lund said: “Energy markets are changing, driven by climate change, technology and societal expectations, and the board supports Bernard and his new leadership team´s ambition for BP.
“Aiming for net zero is not only the right thing for BP, it is the right thing for our shareholders and for society more broadly.
“As we embark on this ambitious agenda, we will maintain a strong focus on safe, reliable and efficient operations and on delivering the promises we have made to our investors.”
More to follow.