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Making Energy More – Sustainability Report 2005

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Making Energy More – Sustainability Report 2005 beyond petroleum® ABOUT THIS REPORT For BP, ‘sustainability’ means the capacity to 1 Group chief executive’s introduction endure as a group: by renewing assets; creating and delivering 3 Achievements and challenges better products and services that meet the evolving needs 4 Industry in context of society; attracting successive generations of employees; 6 BP at a glance contributing to a sustainable environment; and retaining the trust 8 Energy for tomorrow and support of our customers, shareholders and the communities in which we operate. 10 CHAPTER 1 – RESPOnSIBlE OPERATIOnS Each year we aim to improve our sustainability reporting 12 The way we work to reflect the concerns of our readers more closely and the 16 Dialogue and engagement Making energy more BP Sustainability Report 2005 priorities of the business more clearly. This year, we are giving 18 Safety and operational integrity more emphasis to the business case for activities that benefit 22 Environmental management society and promote environmental sustainability. For the second 30 Our people year, we have used in-depth analysis to define the non-financial issues material to our reporting. We have further developed this 36 BP worldwide ‘materiality’ process by categorizing issues according to the level of public exposure and awareness they have received, and by Making energy more taking into account the source of the interest – for example, the 38 CHAPTER 2 – BP And ClImATE CHAngE Sustainability Report 2005 media, regulatory organizations or engagements with NGOs or 40 Climate change socially responsible investors. 42 BP Alternative Energy This year’s report is entitled ‘Making energy more’ because it 45 Sustainable transportation focuses on improvement – whether to the quality of our products, the way we manage environmental issues or the influence we have on the communities around us. The year has brought challenges as well as achievements, but our focus remains to learn and to improve every aspect of our business. 48 CHAPTER 3 – BP And dEvElOPmEnT A message from Ernst & Young 50 Our role in development We have reviewed the contents of BP Sustainability Report 52 Promoting good governance 2005 to provide assurance on the information reported. This 54 Enterprise development work involved testing relevant management information, 56 Education interviewing BP management, reviewing external media 58 Access to energy sources and visiting a sample of locations. Our conclusions, which can be found on pages 64-66, have been prepared against the main principles of the AA1000 Assurance Standard: Materiality, Completeness and Responsiveness. 60 Five-year performance data 61 Trends and interpretation Indicates internet reference. 62 Our approach to reporting 64 Independent assurance statement A glossary of key terms and acronyms used in this report to BP management appears on page 72. 67 UN Global Compact 68 International reporting standards BP p.l.c. is the parent company of the BP group of companies. Unless otherwise stated, 68 GRI and IPIECA/API index the text does not distinguish between the activities and operations of the parent company and those of its subsidiaries. 72 Further information www.bp.com beyond petroleum® ABOUT THIS REPORT For BP, ‘sustainability’ means the capacity to 1 Group chief executive’s introduction endure as a group: by renewing assets; creating and delivering 3 Achievements and challenges better products and services that meet the evolving needs 4 Industry in context of society; attracting successive generations of employees; 6 BP at a glance contributing to a sustainable environment; and retaining the trust 8 Energy for tomorrow and support of our customers, shareholders and the communities in which we operate. 10 Chapter 1 – RESPOnSIBlE OPERATIOnS Each year we aim to improve our sustainability reporting 12 The way we work to reflect the concerns of our readers more closely and the 16 Dialogue and engagement Making energy more BP Sustainability Report 2005 priorities of the business more clearly. This year, we are giving 18 Safety and operational integrity more emphasis to the business case for activities that benefit 22 Environmental management society and promote environmental sustainability. For the second 30 Our people year, we have used in-depth analysis to define the non-financial issues material to our reporting. We have further developed this 36 BP worldwide ‘materiality’ process by categorizing issues according to the level of public exposure and awareness they have received, and by Making energy more taking into account the source of the interest – for example, the 38 Chapter 2 – BP And ClImate changE Sustainability Report 2005 media, regulatory organizations or engagements with NGOs or 40 Climate change socially responsible investors. 42 BP Alternative Energy This year’s report is entitled ‘Making energy more’ because it 45 Sustainable transportation focuses on improvement – whether to the quality of our products, the way we manage environmental issues or the influence we have on the communities around us. The year has brought challenges as well as achievements, but our focus remains to learn and to improve every aspect of our business. 48 Chapter 3 – BP And dEvElopmEnT A message from Ernst & Young 50 Our role in development We have reviewed the contents of BP Sustainability Report 52 Promoting good governance 2005 to provide assurance on the information reported. This 54 Enterprise development work involved testing relevant management information, 56 Education interviewing BP management, reviewing external media 58 Access to energy sources and visiting a sample of locations. Our conclusions, which can be found on pages 64-66, have been prepared against the main principles of the AA1000 Assurance Standard: Materiality, Completeness and Responsiveness. 60 Five-year performance data 61 Trends and interpretation Indicates internet reference. 62 Our approach to reporting 64 Independent assurance statement A glossary of key terms and acronyms used in this report to BP management appears on page 72. 67 UN Global Compact 68 International reporting standards BP p.l.c. is the parent company of the BP group of companies. Unless otherwise stated, 68 GRI and IPIECA/API index the text does not distinguish between the activities and operations of the parent company and those of its subsidiaries. 72 Further information www.bp.com What responsibility means for BP This report reflects the framework we use to describe our view of what responsibility means for BP and why it matters for the long-term sustainability of our business. At the core of this framework are all of the activities that we control. We are accountable for these operations COnTACT dETAIlS And ACknOwlEdgEmEnTS and we must run them responsibly. Only by operating responsibly can Your feedback is important to us. Cert no. SGS-COC-0620 we also legitimately gain recognition for the social benefits we generate You can e-mail the Sustainability Reporting team at [email protected] Paper This Sustainability Report is printed on FSC- through the supply of products and services, tax revenues, jobs and or send us your feedback online at certified Mohawk Options 100% PC White, which is shareholder wealth. We also have a wider role to play in activities we can www.bp.com/sustainabilityfeedback. manufactured entirely with wind energy and contains You can also telephone +44 (0)20 7496 4000 100% post-consumer recycled fibre. influence but do not control, because responsibility is shared with others. or write to Brand and Group Communications, BP p.l.c., 1 St James’s Square, London SW1Y 4PD, UK. Design VSA Partners, Chicago Typesetting Pauffley, London Printing Beacon Press using its environmental Photography Sahahin Abaslaliyev, Domi Alonso, Chris Arend, print technology. The electricity was generated from BP and climate change Mikhail Arrogante, Eric Bakker, Jurgen von Borries, Simon Burt, renewable sources and approximately 85% of the waste David Claus, Vahid Fotuhi, Ben Gibson, Barry halton, associated with this product will be recycled. Beacon RESPOnSIBlE OPERATIOnS Operating responsibly has two levels. At its core it is about Simon Kreitem, Phillip Lee harvey, Ahmad Lie, Marc Morrison, Press is registered to environmental management compliance with the law. This can be difficult enough, especially in jurisdictions where Tom Nagy, Gabriel Ossa, Graham Trott, Lui Weiyong. One system ISO 14001 and EMAS (Eco Management Audit ChAPTER image on page 9 was reproduced from BP Frontiers magazine. Scheme). Beacon Press is a CarbonNeutral© company laws either do not exist or are inconsistently applied. At a second, higher level, a and has planted more than 3,000 trees to offset its company with aspirations to succeed in the long term must have universal standards Sphere of control The emissions produced as a result of the production and carbon emissions. of individual and collective behaviour that are appliedProgre ssivin eevery operat activity,or everywhere distribution of BP Sustainability Report 2005 have been around the world. In a large, diverse organization such as BP, this continues to be offset, in partnership with The CarbonNeutral Company, Date of previous report April 2005 our primary challenge. Chapter 1 reports on our performance during 2005. through an ecological forestry project in Dumfries and Galloway, Scotland, UK. BP And ClImATE CHAngE Climate change represents a significant challenge for our © BP p.l.c. 2006 industry. Our role here goes well beyond minimizing our own emissions. It involves
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