BP Hedges Against An Uncertain Future Climate
Published: 19 May 2010
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7 pages, 3 figures
Executive Summary
This case study is one in a series of Verdantix reports that analyse corporate climate change and sustainability strategies. BP is the third largest integrated oil and gas company in the world, providing around 2% of the world’s primary energy and generating revenue of $246 billion in 2009. BP references rising energy demand to justify and forecast a large share for its fossil fuel resources in the world’s energy mix over the next 20 years. The firm is investing in a broad portfolio of alternative energy businesses and R&D, while advocating a carbon price and public funding to support such new technologies. The firm’s greenhouse gas efficiency achievements will be vulnerable to a shift towards unconventional fossil fuels. Climate change creates both threats to BP through market changing technologies, and opportunities, such as increasing natural gas sales at the expense of coal. BP partly manages these risks by applying an internal carbon price to new projects and through its policy influence. Through its clean energy investments BP is hedging against dramatic changes to the world’s energy mix.
TABLE OF CONTENTS
BP SEEKS TO MANAGE RISKS AND POSITION FOR EMERGING MARKETS
Defensive Strategy Balances Energy Security and Climate Change
BP Focuses On Efficient Operations And Alternative Energy Sales
BP Takes A Pragmatic Risk Management Approach To Climate Change
TABLE OF FIGURES
Figure 1. BP’s Climate Change Initiatives Target Risk Management And Revenue Generation
Figure 2. BP’s Total Emissions And GHG Intensity Of Production Increased In 2009
Figure 3. BP Has Rapidly Increased Its Wind Power Generating Capacity
COMPANIES MENTIONED
BP Alternative Energy, BP Foundation, BP Solar, Carbon Mitigation Initiative, DuPont, Energy Biosciences Institute, Fair Pensions, Fedex Freight, Google, Greenlight Energy, Hydrogen Energy International, Martek Biosciences, Orion Energy, Rio Tinto, Tropical BioEnergia, US Department of Energy, Verenium, Vericipia Biofuels, Wal-Mart