Case study: How BP supports local workers and suppliers
Firmly committed to creating jobs and growing local businesses in the communities in which it operates, BP seeks to recruit its workforce from the community or country in which it is based. Additionally, when certain skills are in short supply, BP offers training programmes and on-the-job development.
This case study is based on the 2017 Sustainability Report by BP published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
BP tries to source goods and services from diverse suppliers and recruit its workforce from the communities where it operates Tweet This!, because it believes it’s not just good for the local community – it’s also good for BP. In order to support local workers and suppliers BP took action to:
- address skills shortages
- advance local economies
- promote supplier diversity
- develop a local workforce
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With this case study you will see:
- Which are the most important impacts (material issues) BP has identified;
- How BP proceeded with stakeholder engagement, and
- What actions were taken by BP to support local workers and suppliers
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What are the material issues the company has identified?
In its 2017 Sustainability Report BP identified a range of material issues, such as climate change and the energy transition, safety, human rights, governance and risk, people and ethics. Among these, supporting local workers and suppliers stands out as a key material issue for BP.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups BP engages with:
| Stakeholder Group |
| Communities |
| Employees |
| Governments |
| Industry associations |
| Non-governmental organisations |
| Shareholders and analysts |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics BP met with almost 100 different organisations which included investors, NGOs and business partners, and organised sessions with its employees.
What actions were taken by BP to support local workers and suppliers?
In its 2017 Sustainability Report BP reports that it took the following actions for supporting local workers and suppliers:
- Addressing skills shortages
- In Georgia, BP has been implementing technical development programmes for local workers for several years, supporting a government priority to address skill shortages. In 2017, BP partnered with the Georgian Technical University to establish a training centre for high voltage electrical engineering, industrial automation, mechanical engineering and other technical areas. The first group of over 70 students, started in November 2017.
- Advancing local economies
- In Azerbaijan, BP’s enterprise development programme helps local companies build their skills so that they can meet international standards and improve their competitiveness in the market. Since its beginning more than a decade ago, the programme helped local businesses secure contracts with BP worth more than $530 million.
- Promoting supplier diversity
- In the US, BP partners with organisations like the National Minority Supplier Development Council, to provide mentoring and training programmes for businesses that will help them develop their skills and become more competitive when bidding for BP’s contracts. In 2017, BP spent $478 million with over 200 minority and women’s business enterprises.
- Developing a local workforce
- In 2017, in Oman, BP started producing gas to cover approximately 40% of the country’s daily gas needs. In addition to helping meet Oman’s growing energy needs, BP implements a multi-year training programme that helps Omani nationals develop their technical skills. The programme begins with participants learning skills such as mechanical and electrical engineering, before completing assignments in BP’s oil and gas fields to gain practical, hands-on experience. Up to now, over 70 Omanis have graduated and are working for BP.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 202-2 Proportion of senior management hired from the local community
Disclosure 202-2 Proportion of senior management hired from the local community corresponds to:
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Employment
Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs does not correspond to any SDG.
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References:
1) This case study is based on published information by BP, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
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