BP sustainability report 2005

Vancouver, Canada - (GLOBE-Net) - Today’s businesses currently need to consider 3 basic but important issues: (1) what they take, (2) what they make, and (3) what they waste and the three have never been more intimately connected then they are today. With dwindling resources and an every growing demand on the eco-system we must reevaluate how we do business.

Considering that the entire cement manufacturing industry world wide produces approximately 3% of the world GHG’s, BP’s operations and manufactured petroleum based products account for a standing contribution of approximately 5% of the world wide total GHG production per year.

We are pleased to see that BP is actively looking for new cleaner solutions to the every growning energy demand. BP has released its Sustainability Report 2005, entitled ‘Making Energy More’. For more information please download a copy from this link provided, Click Here.

Tony Hayward, BP’s chief executive for exploration and production was a featured speaker during the opening plenary at GLOBE 2006. Hayward sees corporate environmental responsibility as intrinsically linked to profit.

“You used to not be able to discuss business and the environment in the same sentence,” he said. “It’s not the same anymore…profit is enhanced and sustained by good social and environmental performance.”

As outlined in the report, for BP, ‘sustainability’ means the capacity to endure as a group: by renewing assets; creating and delivering better products and services that meet the evolving needs of society; attracting successive generations of employees; contributing to a sustainable environment; and retaining the trust and support of our customers, shareholders and the communities in which it operates.

This year’s report is entitled ‘Making energy more’ because it focuses on improvement – whether to the quality of our products, the way BP manages environmental issues or the influence the company may have on the communities wherein it operates.

Each year the company aims to improve its sustainability reporting to reflect the concerns of its readers more closely as well as the priorities of the business. This year, BP placed more emphasis on the business case for activities that benefit society and promote environmental sustainability.

For the second year, in-depth analysis was used to define the non-financial issues material to the company’s reporting. The company further developed this ‘materiality’ process by categorizing issues according to the level of public exposure and awareness they have received, and by taking into account the source of the interest – for example, the media, regulatory organizations or engagements with NGOs or socially responsible investors.

Responsible Operations

According to BP, operating responsibly has two levels. At its core it is about compliance with the law. This can be difficult enough, especially in jurisdictions where laws either do not exist or are inconsistently applied. At a second, higher level, a company with aspirations to succeed in the long term must have universal standards of individual and collective behaviour that are applied in every activity, everywhere around the world. In a large, diverse organization such as BP, this continues to be a major challenge.

BP and Climate Change

BP states clearly that Climate change represents a significant challenge for the industry. The company’s role here goes well beyond minimizing its own emissions. It involves contributing to the policy debate, supporting research and developing new, cleaner technologies in power and transport.

As stated by The Lord Browne of Madingley, BP’s Group Chief Executive in the introduction to the report, “No company in the oil and gas industry, however, can fail to recognize that, as the demand for our products rises, so too does the risk that their use will contribute to the environmental challenges associated with an increasing concentration of carbon in the atmosphere. The science of climate change may be incomplete but we would be foolish to ignore the mounting evidence and the conclusion of many of the world’s most eminent scientists that precautionary action is necessary.”

In 2005, BP achieved a milestone when it launched a major business, BP Alternative Energy, dedicated to generating and marketing low-carbon power. This new business aims to invest $8 billion over 10 years in generating and marketing low-carbon power from solar, wind, hydrogen and natural gas sources

BP and Development

Another major global issue BP seeks to influence is that of social and economic development. Although the company’s main contribution to developing countries is typically in the form of government revenues, jobs, skills and products, it also has a wider role to play in promoting sound governance and contributing to the progress of its host communities.

In 2005, BP appointed its first director of education, whose role is both to co-ordinate the company’s existing activities and to develop a continuing program to maximize its contribution to the development of human capacity in the places where it operates.

Overall the BP report provides a readable and informative picture of the global energy sector and the role progressive corporations can and must play on sustainability issues if they expect to survive what promises to be a trying future in terms of global climate change and socio-economic development in many parts of the world.

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