BP cut links with three US trade associations over environmental policy differences

BP Plc (LON:BP) have said that they will cut links with three US trade associations, including the US’s main refining lobby.

The decision to cut ties today came about as the firm faced disagreements over their climate related policies and actives.

BP have made an extra effort to become a more environmentally friendly company, and in a statement a few weeks back they announced their intentions to be a net carbon zero firm.

The oil major’s new Chief Executive, Bernard Looney has told shareholders, investors and global businesses that a change is required by all to ensure that the effects of climate change are reduced and more environmentally friendly policies are advocated.

“Trade associations have long demonstrated how we can make progress through collaboration, particularly in areas such as safety, standards and training. This approach should also be brought to bear on the defining challenge that faces us all, supporting the rapid transition to a low carbon future. By working together, we can achieve so much more,” said BP Chief Executive Bernard Looney.

“BP will pursue opportunities to work with organisations who share our ambitious and progressive approach to the energy transition. And when differences arise we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.”

BP said today that they will cut ties with the American Fuel and Petrochemical Manufacturers (AFPM). Notably, this follows in the same manner as two other oil majors in Shell (LON:RDSB) and French firm Total (EPA:FP).

The multinational also added that they will quit the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA).

BP told the global business scene that they saw differences in its views on carbon pricing, with those stances taken by AFPM and WSPA. Interestingly, they will not renew EA membership because of significant differences around the federal regulation of methane.

“My hope is that in the coming years we can add climate to the long list of areas where, as an industry, we work together for a greater good,” Looney added.

“This is an ongoing process – BP will actively monitor its memberships, participation and alignment with trade associations to which it belongs and will provide periodic updates, internally to the board of directors and to stakeholders as appropriate. BP plans to undertake another review in around two years’ time,” said BP.

BP’s plans to become net carbon zero

A fortnight ago, BP announced their intentions to become a net carbon zero oil major. BP outlined that they want net zero carbon emissions on all operations by 2050, or even sooner.

There was a particular emphasis on oil and prediction assets, as the firm outlined it was a a 50% drop in carbon intensity from all products sold by the same year or sooner.

BP said that they would be installing methane measurement instruments across all major sites by 2023, as part of plans to cut methane intensity by at least 50%.

BP have looked to change the identity of the brand, as many environmental pressure groups and activists have been quick to blame the oil and gas industry on issues such as climate change.

The oil titan said that they currently produce 55 million tonnes of carbon dioxide equivalent per year across all worldwide operations, and they want to make significant ground in improving this.

Looney concluded by saying: “Together we will aim to build a more agile, innovative and efficient BP. A purpose-driven, digitally-enabled, fully-integrated organization. I’m confident that this new leadership team, together with all our people, have the skill and will to turn BP into a thriving sustainable energy business that is a force for good in a net zero world”.

Shares in BP plc trade at 425p (-0.70%). 26/2/20 14:37BST.

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