BP PLC
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*3. [http://www.bp.com/sectiongenericarticle.do?categoryId=9015602&contentId=7028561 Environmental Performance] | *3. [http://www.bp.com/sectiongenericarticle.do?categoryId=9015602&contentId=7028561 Environmental Performance] | ||
*4. [http://www.bp.com/sectiongenericarticle.do?categoryId=9015609&contentId=7028568 Energy Efficiency & GHG Emissions] | *4. [http://www.bp.com/sectiongenericarticle.do?categoryId=9015609&contentId=7028568 Energy Efficiency & GHG Emissions] | ||
| + | *5. [http://www.bp.com/sectiongenericarticle.do?categoryId=9015613&contentId=7028571 Emissions Affecting Aair Quality] | ||
Revision as of 08:48, 19 July 2007
Contents |
BP PLC and the Environment
One of BP’s group values is to seek to drive down the environmental impact of its operations by reducing waste, emissions and discharges and by using energy efficiently.
2006 saw the culmination of two years’ work to clarify and strengthen the processes and requirements that we apply to our new projects. These are brought together in a new group practice called environmental requirements for new projects (ERNP), launched in 2006. Implementation of ERNP aims to ensure that we design, build and operate all our new projects to consistent and high environmental standards.
(1)
Environmental Requirements for new Projects
Our new environmental requirements for new projects (ERNP) originated in work commissioned by the group chief executive in 2004 after we were challenged by investors over our processes for assessing and working in environmentally sensitive areas.
In 2005, we expanded the scope of this work to embrace all BP's new projects, beyond just sensitive areas, as we developed a far more integrated approach to environmental management and performance.
In 2006, this approach was approved as a group practice, part of the new OMS, defining the environmental impact management processes and requirements to which BP will operate. We intend that all new projects in BP will use the practice by the end of 2007.
The practice was developed primarily for major projects, where the potential for environmental impact is often the greatest. However, it also applies to smaller projects that may have the potential for similar levels of impact in environmentally sensitive areas.
There are two key elements:
- A set of nine environmental impact management processes that are undertaken at different times in the life of a project.
- A series of 12 environmental performance requirements that cover the different aspects of environmental performance, ranging from energy efficiency to local community impacts
The ERNP has undergone extensive consultation within BP and externally. A key stakeholder in this process was F&C Asset Management, an institutional shareholder, which provided the original environmental challenge to BP in 2004.
“The process that BP launched to produce its environmental requirements for new projects was unusual in three ways. First, the company admitted that its procedures needed revision. Secondly, it undertook extensive consultation with parties who were at times very critical. Thirdly, it has produced a tangible result and not simply hot air.
The new requirements bring much greater clarity about how BP intends to plan projects and operate in or near ecologically-sensitive areas. They are not perfect, but they are the best I have seen from the sector. The guidelines should give reassurance to investors that BP understands the emerging risks associated with biodiversity and ecosystem management.
However, the challenge will be in implementation. In the light of recent performance, BP needs to convince its critics that in a company of such size, it is able to turn good headquarters policies into effective operational practice”.
(2)
Environmental Performance
Energy Efficiency & GHG Emissions
BP is committed to delivering continuous commercial business improvement and greenhouse gas reductions through energy efficiency.
Many of 2006’s efficiency gains resulted from continued implementation of the seven-year $450 million energy efficiency programme that began in 2004 and enables businesses to carry out sustainable energy-reducing activities, cutting costs as well as GHG emissions. Since 2001, we have been tracking the underlying growth in BP emissions from our business growth and comparing it to the emission reductions achieved across our operations. After five years, we estimate that some 11 million tonnes (Mte) of growth has been offset by around six million tonnes of sustainable reductions. We now estimate that since BP began focussing on its internal GHG emissions performance in 1998, nearly $2 billion of net present value has been created from reduced procurement or increase production. We also judge our overall energy efficiency performance in various business sectors through normalized GHG per unit of production performance against a 2001 baseline.
Our total 2006 operational GHG emissions of 64.4 Mte of CO2 equivalent 1 on a direct equity basis were some 2.4 Mte lower than 2005 when they were 66.8 Mte (excluding Innovene’s 2 2005 contribution). The growth of our business generated an extra 1.3 Mte of emissions, but this was offset by continuing efficiency projects that delivered 1.2 Mte of reductions. The combined effect of acquisitions and divestments, temporary operational variations and reporting protocol changes accounted for a 2.5 Mte decrease.
In the exploration and production segment and the refining business, our performance in 2006 was 24.2teCO2e/mboe and 915teCO2e/kbduEDC3 respectively, This reflects increasing GHG intensity within our mature upstream assets and lower availability of our refining assets when compared with 2005. Our petrochemicals businesses maintained their 2005 performance levels with further efficiency gains in aromatics and acetyls, offset by increased production from our energy intensive olefins and derivatives assets in Asia. (4)
Emissions affecting Air Quality
Our goal in managing these emissions is to understand the impacts they may have on local and regional ambient air quality. BP seeks to avoid, prevent and reduce air emissions in order to mitigate the potential for effects on human health and harm to the environment.
In 2006, our total emissions to air (aggregating all monitored pollutants but excluding carbon dioxide) was 764kte, which was 4% lower than the 2005 emissions (797kte when adjusted for the Innovene divestment and the disagreggation of non-operated facilities. The 2006 emissions total is about 44% lower than the 1,355kte reported in 1999.
Ozone-depleting substances We are planning to eliminate the use of specific ozone depleting substances (ODS) before it is required by international and national obligations. Emissions of ODS to comply with the Montreal Protocol on Substances That Deplete the Ozone Layer, an international agreement designed to protect the stratospheric ozone layer. We plan to end our use of ODS before it is required by international and national obligations. Emissions of ODS have occurred as a result of using certain types of fire-suppression equipment, as losses from refrigeration equipment, or as unintended by-products of our manufacturing of the chemical purified terephthalic acid.
This is the third year that we have reported on ozone depleting substances (ODS) and other halocarbon emissions from our worldwide operations. During 2006, we emitted 645 tonnes of ODS on a CFC-11 equivalent basis. This is a 61% increase from our 2005 emissions, mainly as a result of events in which the fire and explosion prevention systems were activated due to actual or false alarms. We also emitted 13.3 tonnes of hydrofluorocarbons which was a slight increase from 12.4 tonnes emitted in 2005 (when adjusted for the innovene divestment of 1.3 tonnes). (5)
