BP Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Thu, 23 Feb 2023 08:37:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Case study: How BP protects human rights across its operations https://sustaincase.com/case-study-how-bp-protects-human-rights-across-its-operations/ Thu, 16 May 2019 06:21:28 +0000 https://ccprowebs.com/new-sustaincase.com/?p=9445 , including the rights of its workforce and those living in communities affected by BP’s activities. BP’s current focus areas include the recruitment, working and living conditions of contracted workforces at its sites, responsible security, community grievance mechanisms, and channels for workforces to raise concerns.   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 […]

The post Case study: How BP protects human rights across its operations appeared first on SustainCase - Sustainability Magazine.

]]> BP is committed to identifying and addressing human rights risks and impacts directly linked with its operations globally  Tweet This!, including the rights of its workforce and those living in communities affected by BP’s activities. BP’s current focus areas include the recruitment, working and living conditions of contracted workforces at its sites, responsible security, community grievance mechanisms, and channels for workforces to raise concerns.

 

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

In 2013, BP launched a human rights policy which reinforced BP’s responsibility to respect human rights, shaped its approach to human rights protection, and also informed how BP seeks to influence its partners and suppliers. In order to protect human rights across its operations BP took action to:

  • protect labour rights
  • conduct modern slavery risk reviews
  • prevent negative impacts on communities
  • train security forces on human rights

What are the material issues the company has identified?

In its 2017 Sustainability Report BP identified a range of material issues, such as people and ethics, climate change and the energy transition, safety, society (e.g. community engagement), governance and risk. Among these, protecting human rights across its operations 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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 approximately 100 different organisations, from investors to NGOs and business partners, to identify the issues that mattered most to them, and also held sessions with its employees.

What actions were taken by BP to protect human rights across its operations?

In its 2017 Sustainability Report BP reports that it took the following actions for protecting human rights across its operations:

  • Protecting labour rights
  • BP’s code of conduct requires employees to report any human rights abuses in its operations or those of its business partners. BP expects contractors and their employees to act in accordance with its code of conduct, human rights policy and its expectations of suppliers. BP’s standard procurement contracts include requirements for suppliers to respect internationally recognised human rights, including a specific ban on the use of forced, trafficked or child labour. In 2017, in a number of locations, including Brazil, Indonesia, Iraq and the UK, BP held supplier events to communicate its expectations on labour rights and discussed the action it is taking, the need to raise concerns and the importance of its suppliers communicating this to their own employees, suppliers and business partners. In addition, drawing on its work with industry peers, BP developed a human rights due diligence process that can be used to screen suppliers in a consistent manner anywhere in the world, and is using it with suppliers on a risk-prioritised basis, to understand how they manage these risks in their business and supply chain. BP also carries out labour rights audits or assessments when appropriate, focusing on working hours, recruitment processes, freedom of movement, employment contracts, and channels for workers to raise complaints without retaliation.
  • Conducting modern slavery risk reviews
  • As some parts of its supply chain may pose a higher risk of labour rights and modern slavery issues than others, BP takes a risk-based approach to monitoring its contractors and suppliers by considering countries that pose a high degree of risk, activities that rely on manual labour, and factors related to the vulnerability of the workforce, such as poverty levels. Using this approach, in 2017 BP prioritised 17 businesses for modern slavery risk reviews and mapped its supply chain in these cases to identify high risk contractors. In some instances, this initial screening led to further assessment through questionnaires or on-site labour rights assessments, including worker interviews. These assessments focus on key warning signs such as passport retention, recruitment or other fees, wage deductions, employment contracts, working hours, shift patterns and living conditions.
  • Preventing negative impacts on communities
  • BP works hard to prevent and reduce any negative impacts on the livelihoods, land, environment, culture, health and wellbeing of people in communities near its activities, including indigenous peoples. Accordingly, BP screens its major projects to identify and manage any potential impacts, including human rights. If BP does cause or contribute to adverse impacts on the human rights of communities near its operations, it is firmly committed to providing for, or co-operating in, making it right.
  • Training security forces on human rights
  • BP works with security forces who protect its facilities around the world to reinforce the importance of respecting human rights. BP supports the Voluntary Principles on Security and Human Rights, and these principles guide how BP works with the security forces that protect its facilities. The principles emphasise the need to understand and respect the human rights of BP’s workforce, and people living in communities near its operations. BP provides training on the principles for its employees accountable for managing security, and carries out assessments to identify areas for improvement.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

2) Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor

3) Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

4) Disclosure 410-1 Security personnel trained in human rights policies or procedures

5) Disclosure 411-1 Incidents of violations involving rights of indigenous peoples

6) Disclosure 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

7) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk 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: Freedom of association and collective bargaining

Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor 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: Abolition of child labor
  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Abolition of child labor

Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 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: Elimination of forced or compulsory labor

Disclosure 410-1 Security personnel trained in human rights policies or procedures corresponds to:

  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Security

Disclosure 411-1 Incidents of violations involving rights of indigenous peoples corresponds to:

Disclosure 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening does not correspond to any SDG.

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

  • Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
  • Business theme: Workplace violence and harassment
  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Labor practices in the supply chain
  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Workplace violence and harassment

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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/

Note to BP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How BP protects human rights across its operations appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How BP supports local workers and suppliers https://sustaincase.com/case-study-how-bp-supports-local-workers-and-suppliers/ Mon, 11 Feb 2019 07:17:35 +0000 https://ccprowebs.com/new-sustaincase.com/?p=8795 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 post Case study: How BP supports local workers and suppliers appeared first on SustainCase - Sustainability Magazine.

]]>

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

Layout 1

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

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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

2) Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs

 

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.

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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/

Note to BP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How BP supports local workers and suppliers appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How BP is expanding its renewables business https://sustaincase.com/case-study-how-bp-is-expanding-its-renewables-business/ Wed, 02 Jan 2019 08:52:03 +0000 https://ccprowebs.com/new-sustaincase.com/?p=8524 Renewables have become the fastest-growing energy source in today’s world, expected to provide at least 14 per cent of the global energy mix by 2040. , constantly expanding and exploring new business models. 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 […]

The post Case study: How BP is expanding its renewables business appeared first on SustainCase - Sustainability Magazine.

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Renewables have become the fastest-growing energy source in today’s world, expected to provide at least 14 per cent of the global energy mix by 2040. BP has been in the renewables business for over 20 years and is, today, one of the largest operators among its peers  Tweet This!, constantly expanding and exploring new business models.

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

Layout 1

Abstract

BP sees the global transition to a low carbon economy as a key opportunity to expand its business while reducing operational emissions and investing in low carbon technologies. In order to expand its renewables business BP took action to:

  • use biofuels to reduce transport emissions
  • generate biopower
  • invest in solar power
  • produce wind energy

What are the material issues the company has identified?

In its 2017 Sustainability Report BP identified a range of material issues, such as safety, human rights, governance and risk, people and ethics. Among these, expanding its renewables business 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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 approximately 100 different organisations, from investors to NGOs and business partners, and also held sessions with its employees.

What actions were taken by BP to expand its renewables business?

In its 2017 Sustainability Report BP reports that it took the following actions for expanding its renewables business:

  • Using biofuels to reduce transport emissions
  • To reduce emissions from transportation, BP produces ethanol from sugar cane in Brazil, as it has life cycle greenhouse gas (GHG) emissions that are 70 per cent lower than conventional transport fuels. In 2017, BP’s three sites produced 776 million litres of ethanol equivalent. In addition, to better connect its ethanol production with Brazil’s main fuels markets, BP partnered with the world’s leading ethanol and sugar trader, Copersucar, to operate a major ethanol storage terminal, located near key transport networks and pipelines. BP’s ethanol production avoided emissions equal to 260,000 fewer European cars on the road in a year.
  • Generating biopower
  • BP creates biopower by burning bagasse, the fibre that remains after crushing sugar cane stalks, and exports approximately 70 per cent of the biopower it generates to the local electricity grid. This is a low carbon power source, as the CO2 emitted from burning bagasse is offset by the CO2 absorbed by sugar cane during its growth. 
  • Investing in solar power
  • BP invested $200m over three years in Lightsource, Europe’s largest solar development company. Lightsource focuses on the acquisition, development and long-term management of large-scale solar projects. Accordingly, BP partnered with Lightsource to lead the solar revolution, driving the further growth of solar energy.
  • Producing wind energy
  • BP is one of the largest wind energy producers in the US, operating 13 sites in seven states and holding an interest in one more facility, in Hawaii. Together, they have a net generating capacity of 1,432MW. The net generating capacity from BP’s portfolio, is enough to power almost 400,000 homes.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 302-1 Energy consumption within the organization

2) Disclosure 302-3 Energy intensity

 

Disclosure 302-1 Energy consumption within the organization corresponds to:

Disclosure 302-3 Energy intensity corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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/

Note to BP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How BP is expanding its renewables business appeared first on SustainCase - Sustainability Magazine.

]]> Case study: BP’s policies and measures for preventing and managing accidents and oil spills https://sustaincase.com/case-study-bps-policies-and-measures-for-preventing-and-managing-accidents-and-oil-spills/ Tue, 24 Jan 2017 21:18:06 +0000 http://sustaincase.com/?p=579 The BP oil disaster of 2010 began on April 20 of that year in the Gulf of Mexico: following the explosion and sinking of the Deepwater Horizon oil rig, a sea-floor oil gusher flowed for 87 days until it was capped on July 15, 2010. Eleven people went missing and were never found and it is considered the largest accidental marine oil spill in the history of the petroleum industry. The cover of BP’s 2010 GRI- based CSR report has a picture of the oil spill in the Mexican Gulf. In the report, BP emphasizes how it is trying to […]

The post Case study: BP’s policies and measures for preventing and managing accidents and oil spills appeared first on SustainCase - Sustainability Magazine.

]]> The BP oil disaster of 2010 began on April 20 of that year in the Gulf of Mexico: following the explosion and sinking of the Deepwater Horizon oil rig, a sea-floor oil gusher flowed for 87 days until it was capped on July 15, 2010. Eleven people went missing and were never found and it is considered the largest accidental marine oil spill in the history of the petroleum industry. The cover of BP’s 2010 GRI- based CSR report has a picture of the oil spill in the Mexican Gulf. In the report, BP emphasizes how it is trying to earn back the trust that was lost by making substantial changes to the way it works.

This case study is based on the 2012 Sustainability Review 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 that CSR/ sustainability reporting done responsibly is achieved by identifying a company’s most important impacts on the environment and stakeholders and by measuring, managing and changing.

In the aftermath of the Deepwater Horizon oil spill, BP implements a comprehensive programme to strengthen safety, risk management and compliance across the company, working to prevent, mitigate and ensure its preparedness to respond to accidents and spills across its operations. Following the accident, a range of measures were taken by BP to reduce the risk of accidents and oil spills, including, among others, implementing the Bly Report (the company’s internal investigation into the Deepwater Horizon incident), indicators to help BP track its progress in process safety management, monitoring the loss of primary containment and measures for achieving safer drilling and safety in the Downstream business.

What are the material issues the company has identified?

BP has identified – as seen in the company’s Sustainability Reviews – a number of material issues over the last years, such as alternative energy, climate change, BP’s code of conduct, corporate governance and risk, environmental performance, host societies and local communities, human rights. However, since 2010 a recurring material issue for the company, following the Deepwater Horizon oil spill, has been preventing and managing accidents and oil spills.

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:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

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
Academic institutions
Industry peers
Local communities
Non-governmental organizations
Shareholders and analysts
Governments and regulators
Employees
Contractors, suppliers and partners
Customers

How stakeholder engagement was made to identify material issues

Input from its stakeholders is a key part of BP’s reporting process, because it helps the company to identify and report on sustainability topics that really matter. Indeed, CSR reporting done responsibly comes by measuring, setting targets and taking action on what matters where it matters.

BP made decisions about which topics to cover in the company’s Sustainability Review 2012 (the most recent Sustainability Review of the three on which the present case study was based) and on the sustainability section of its website by talking with external stakeholders and by reviewing the year’s developments with its own internal subject matter experts.

In preparing to publish its 2012 report BP surveyed more than 300 sustainability stakeholders for their views on its sustainability reporting, met with socially responsible investors and engaged with stakeholders from more than 40 non-governmental organizations, academic institutions and other types of organizations, including BSR, Center for Corporate Citizenship at Boston College, Environmental Law Institute, European Bank for Reconstruction and Development, Forum for the Future, HSBC, International Chamber of Commerce UK, Jaguar Land Rover, Khazar University, Oxford Policy Management, Pact, ShareAction (formerly FairPensions), Transparency International UK, USAID. Many of these conversations took place in one-to-one meetings held in London, Washington DC and New York. BP also held a one-day sustainability roundtable discussion in Baku, Azerbaijan, focusing on diverse viewpoints from a strategically significant market for the company.

What actions were taken to prevent and manage accidents and oils spills?

In BP’s Sustainability Review 2012 the following targets were set regarding the prevention and management of accidents and oil spills, based on the company’s approach to materiality – on taking action on what matters, where it matters:

  • Tracking process safety performance

[tweetthis]BP tracks progress in process safety management through leading indicators, to prevent incidents.[/tweetthis] These include inspections and tests of equipment critical to process safety. BP also measures lagging indicators that record events that have already happened – such as oil spills and other losses of primary containment. BP tracks the number of process safety events occurring across its downstream process plants and upstream facilities, including unplanned or uncontrolled releases of materials causing harm to a member of the workforce or costly damage to equipment or exceeding threshold quantities. Tier 1 process safety events are those with the greatest consequence. There were 43 tier 1 process safety events reported in BP in 2012, compared with 74 in 2011. BP reported tier 2 process safety events, which are losses of primary containment of lesser consequence, externally for the first time in 2012 – 154 tier 2 events were reported.

  • Monitoring the loss of primary containment

BP monitors the integrity of its operations, tanks, vessels and pipelines used to produce, process and transport oil, hydrocarbons and other energy, with the aim of preventing the loss of material from its primary containment. Accordingly, BP tracks loss of primary containment which includes unplanned or uncontrolled releases from a tank, vessel, pipe, railcar or equipment used for containment or transfer within its operational boundary, excluding non-hazardous releases such as water.

  • Achieving safer drilling

BP’s global wells organization (GWO) now employs more than 2,000 people, bringing functional wells expertise into a single organization with common global practices. BP has committed to establishing a global wells institute and has invested in state-of-the art simulator facilities to support practical learning and testing, which will be made available to all deepwater rig teams, including its contractors. Competence testing is a vital part of safe operating, so BP has developed a competency assurance programme to enhance drilling competency for key operational and leadership positions.

  • Implementing the Bly Report

BP continues to work on implementing the 26 recommendations made by the Bly Report – the company’s internal investigation into the Deepwater Horizon incident. The investigation was led by BP’s head of safety and operational risk, Mark Bly, and drew upon the expertise of more than 50 technical and other specialists from within BP and the industry. Published in September 2010, the resulting Bly Report concluded that no single cause was responsible for the accident. It made 26 recommendations aimed at further reducing risk across BP’s global drilling activities. BP accepted the recommendations of the Bly Report and is implementing them across its worldwide drilling operations. At the end of 2012, 14 of the 26 recommendations had been completed.

  • Independent verification of progress

In June 2012, the board appointed Mr Carl Sandlin to provide the safety, ethics and environment assurance committee (SEEAC) of the board with an objective and independent assessment of BP’s global progress in implementing the Bly Report recommendations and on process safety observations in the Upstream. He had direct access to the chair of SEEAC. Mr Sandlin’s role was to review evidence of the actions being taken and to provide assurance to the board, via SEEAC, that the deliverables and corresponding recommendations had been closed. He had access to all levels of the company’s GWO, including well site leaders and senior management.

  • Capping and containment

Capping and containment, including the ability to both cap the well and collect oil that has escaped, plays a pivotal role in being prepared to respond to any potential incident. BP continues to advance its capability to respond to potential incidents and works with industry to further enhance access to equipment and technologies around the world.

  • Achieving safety in the Downstream business

In its facilities across the Downstream business BP focuses on the safe storage, handling and processing of hydrocarbons through the systematic management of associated operating risks. In seeking to manage these risks, BP takes measures to: a) prevent loss of hydrocarbon containment through well-designed, maintained and operated equipment, b) reduce the likelihood of any hydrocarbon releases and the possibility of ignition that may occur by controlling ignition sources and c) provide safe locations, emergency procedures and other mitigation measures in the event of a release, fire or explosion. Some examples of specific risk reduction work across its refining and petrochemicals portfolio in 2012 include: a) Installation of additional safety instrumentation and equipment to reduce the likelihood of risks occurring. b) Continuing work to improve the safety of site occupied buildings, with a major programme to install safety shelters for personnel, to move people further away from hydrocarbon-containing equipment and to reduce the number of vehicles on site. For example, during 2012 a building hardening programme was completed at the company’s Toledo refinery in the US and at its Bulwer refinery in Australia it constructed new offices to move employees away from higher risk processing areas. The business also continues to train and drill personnel to respond to emergencies. c) Work to reduce explosion and toxic risks through inventory reduction by, for example, reducing ethylene and propylene refrigerants in the company’s petrochemical plants.

  • Appointing a new process safety expert for BP’s Downstream business

Mr Duane Wilson’s five-year board appointment as independent expert to provide an objective assessment of BP’s progress in implementing the recommendations of the BP US Refineries Independent Safety Review Panel came to an end in May 2012. Recognizing the extensive experience he had acquired during his years as independent expert and following the end of his term, SEEAC appointed him as a process safety expert and assigned him to work, in a global capacity, with the Downstream business, having frequent and direct access not only to the board, but also to BP employees from the most senior executives down to the shop floor.

  • Appointing a process safety monitor

Following the settlement with the US government of all federal criminal claims related to the Gulf of Mexico, BP has agreed in 2012 to appoint a process safety monitor in the US for a term of four years to review, evaluate and provide recommendations for the improvement of BP’s process safety and risk management procedures concerning deepwater drilling in the Gulf of Mexico.

Which GRI indicators/Standards have been addressed?

The GRI indicator addressed in this case is: G4-EN24: Total number and volume of significant spills and the updated GRI Standard is: Disclosure 306-3 Significant spills

 

References:

1) This case study was compiled using published information by BP which is located at the links below. For the sake of readability, we did not use brackets or ellipses but 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 following links:

http://www.bp.com/content/dam/bp/pdf/sustainability/group-reports/bp_sustainability_review_2010.pdf (March 2011)

http://www.bp.com/content/dam/bp/pdf/sustainability/group-reports/bp_sustainability_review_2011.pdf (March 2012)

http://www.bp.com/content/dam/bp/pdf/sustainability/group-reports/BP_Sustainability_Review_2012.pdf (March 2013)

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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