BP PLC
From Lauraibm
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)
