BP Aims at Becoming a 'Net Zero Company' by 2050
BP unveiled its “new ambition” on Wednesday to sharply reduce the carbon footprint of its operations, with the aim of becoming a “net zero company” by 2050 or sooner. This includes achieving net zero on carbon produced by BP’s oil and gas production, as well as a 50% cut in the carbon intensity of the products that the company sells. Newly appointed CEO Bernard Looney said that BP needed to “reinvent” itself, stating that “the world’s carbon budget is finite and running out fast; we need a rapid transition to net zero.” Alternative energy sources such as solar, wind, and biofuels currently account for only a fraction of BP’s operations and capital budget. Pressure from activists, policymakers and investors on oil companies to play a greater role in tackling climate change continues to mount, especially in the aftermath of the recent extreme weather events, from raging forest fires in Australia and California, to deadly floods in the Far East and South Asia, and recurring heatwaves across Europe. BP plans to share greater detail on its emissions reduction initiatives and renewable energy investment plans in September.