WEBVTT - BP EVP of Sustainability Giulia Chierchia on Net-Zero Ambitions 0:00:00.400 --> 0:00:03.160 I'm Dana Perkins, and you're listening Switched on the B 0:00:03.279 --> 0:00:06.400 and F podcast. Today we have an external guest on 0:00:06.440 --> 0:00:10.240 the show, Julia Kerkia, and she is the executive vice 0:00:10.240 --> 0:00:13.960 president of Strategy and Sustainability at BP. She talks to 0:00:14.000 --> 0:00:17.760 me today about the energy transition from an energy company perspective. 0:00:18.079 --> 0:00:21.360 Last year, BP announced a net zero target for the company, 0:00:21.400 --> 0:00:25.600 which was organized into five points net zero across BPS 0:00:25.720 --> 0:00:29.120 operations on an absolute basis by twenty fifty or sooner. 0:00:29.560 --> 0:00:32.760 Net zero on carbon in VP's oil and gas production 0:00:32.840 --> 0:00:35.600 on an absolute basis by twenty fifty or sooner. A 0:00:35.720 --> 0:00:38.760 fifty percent cut in the carbon intensity of products VP 0:00:38.880 --> 0:00:43.040 cells by twenty or sooner, installation of methane measurement at 0:00:43.040 --> 0:00:46.000 all of vps major oil and gas processing sites by 0:00:47.000 --> 0:00:51.480 three and to reduce methane intensity of their operations by 0:00:51.600 --> 0:00:55.200 and lastly, to increase the proportion of investment into non 0:00:55.280 --> 0:00:58.640 oil and gas businesses over time. In order to accomplish 0:00:58.720 --> 0:01:01.920 these aims, a few new teams were formed, including a 0:01:02.000 --> 0:01:06.000 strategy and sustainability team that has led by Julia. So 0:01:06.080 --> 0:01:08.880 today we speak with Julia about BP and why she 0:01:08.959 --> 0:01:11.840 thinks they are well positioned to achieve this important target, 0:01:12.200 --> 0:01:14.960 her views on some of the most discussed technologies in 0:01:15.000 --> 0:01:18.080 the energy transition, and a little bit about her and 0:01:18.120 --> 0:01:20.440 how she came to find herself last year in this 0:01:20.520 --> 0:01:22.959 newly formed role. B and e F research on the 0:01:23.040 --> 0:01:26.120 energy transition can be found on the Bloomberg terminal at 0:01:26.160 --> 0:01:28.520 benof go, on b NF dot com or the BENF 0:01:28.600 --> 0:01:31.000 mobile app. As a quick reminder, we do not provide 0:01:31.000 --> 0:01:33.440 investment of strategy advice, and you can hear a more 0:01:33.480 --> 0:01:36.160 complete disclaimer at the end of the show. And now 0:01:36.440 --> 0:01:46.720 let's speak with Julia about the energy transition. Julia, thank 0:01:46.720 --> 0:01:48.080 you so much. It's really good to have you on 0:01:48.080 --> 0:01:50.600 the show today to talk about the future of the 0:01:50.680 --> 0:01:53.840 energy transition and oil and gas industry. Thank you very 0:01:53.880 --> 0:01:56.280 much for having me. It's a pleasure to be here. 0:01:56.640 --> 0:01:59.920 I'd love to start with your story and what original 0:02:00.400 --> 0:02:03.120 drew you into the oil and gas industry, and then 0:02:03.160 --> 0:02:05.960 how you ended up at BP, because you've spent most 0:02:06.000 --> 0:02:09.080 of your career working in the consulting with a number 0:02:09.120 --> 0:02:13.720 of different stakeholders. So let's start maybe by telling you 0:02:13.960 --> 0:02:16.880 a little bit more about myself and how I actually 0:02:17.160 --> 0:02:20.760 ended up joining BP. So I think there's like redefining 0:02:20.919 --> 0:02:23.520 things in my life. I think the first one is 0:02:24.280 --> 0:02:26.520 I'm half a town in half Belgium, grew up from 0:02:26.560 --> 0:02:29.920 London and then we moved to Italy from then Spain 0:02:30.240 --> 0:02:34.720 bustl Spain. So I think change is really something which 0:02:34.760 --> 0:02:37.520 is ingrained in my d NA since I was a child. 0:02:37.639 --> 0:02:39.600 The second thing I would say is, yeah, I had 0:02:39.639 --> 0:02:42.160 a pretty strong role model and my father who always 0:02:42.160 --> 0:02:46.800 told me to not confirm with my comfort zone, and 0:02:46.840 --> 0:02:49.400 so challenge is also something that has always been in 0:02:49.440 --> 0:02:51.720 my DEA. And the fat thing is I have too 0:02:52.320 --> 0:02:55.480 little children thirteen year old natenniar old who are actually 0:02:55.560 --> 0:02:58.960 quite demanding in their questions on the energy transition. And 0:02:59.000 --> 0:03:01.200 I remember this if I moment when I was working 0:03:01.240 --> 0:03:06.120 in McKinsey where we're looking at potential temperature pathways linked 0:03:06.160 --> 0:03:08.239 to a potential energy transition paths and there was this 0:03:08.320 --> 0:03:12.480 businessess usual case which took us to a pathway of 0:03:12.520 --> 0:03:16.600 more than three degrees by and I literally thought, well 0:03:17.080 --> 0:03:20.680 twenty six, my children will be in their fifties. And 0:03:20.760 --> 0:03:23.720 so I think that has actually contributed over time to 0:03:23.760 --> 0:03:28.120 build this significant sense of purpose. And yeah, I spent 0:03:28.240 --> 0:03:31.320 fifteen years in McKinsey. I left the firm as a 0:03:31.360 --> 0:03:34.640 senior partner. I was leading the global downtre more than 0:03:34.720 --> 0:03:39.000 gas practice, working quite extensively with clients to actually shape 0:03:39.040 --> 0:03:41.400 energy transition. And I loved it, and I think I 0:03:41.520 --> 0:03:44.040 learned a lot of around how do you actually structure 0:03:44.400 --> 0:03:48.640 complex topics. But when VP approached me end of twenty 0:03:48.760 --> 0:03:52.080 nineteen and Bernard approached me, I jumped on it, and 0:03:52.160 --> 0:03:55.000 you know, talk about and I I said, I like change. 0:03:55.560 --> 0:03:57.760 There was a brutal change, and there was even more 0:03:57.760 --> 0:04:01.640 of a change because then COVID actually hit immediately after 0:04:01.720 --> 0:04:04.520 me joining, you know, and then I views one of 0:04:04.560 --> 0:04:07.080 the biggest challenges that one can think about in terms 0:04:07.160 --> 0:04:10.240 of our generation and probably the next generation to come. 0:04:11.000 --> 0:04:13.880 And I was a huge privilege in terms of sense 0:04:13.880 --> 0:04:17.800 of purpose to actually have the ability to help contribute 0:04:18.000 --> 0:04:21.440 to shaping the PAS gen journey through the energy transition. 0:04:21.760 --> 0:04:24.080 So yeah, those are the reasons why I decided to 0:04:24.160 --> 0:04:27.800 join the oil and gas industry and then VP very specifically, 0:04:28.200 --> 0:04:33.400 I was immediately bought into the new purpose re imagined 0:04:33.560 --> 0:04:35.919 energy for people on the planet, which was at the 0:04:35.960 --> 0:04:39.240 time being shaped the ambition. And then as I was 0:04:39.279 --> 0:04:43.000 talking to the two the leadership team, just that the 0:04:43.160 --> 0:04:46.359 buying from everybody on the willingness to actually embark on 0:04:46.440 --> 0:04:49.920 this What is it about BP that you think differentiates 0:04:49.960 --> 0:04:53.680 them in this space, and that it's it's quite progressive 0:04:53.800 --> 0:04:56.520 to say that you're that you think that an oil 0:04:56.520 --> 0:04:58.840 and gas firm is the exact right place to be 0:04:59.440 --> 0:05:04.080 in looking at decarbonization and the energy transition. I actually 0:05:04.120 --> 0:05:07.039 think that if we want to play a critical role 0:05:07.320 --> 0:05:12.880 getting to the Paris Alignment and decarbonizing energy systems, we 0:05:12.960 --> 0:05:15.479 need to work with energy companies. I think that's the 0:05:15.520 --> 0:05:19.640 first element, which is you can't just decarbonize energy systems 0:05:19.680 --> 0:05:23.039 by working with green companies. But if we really want 0:05:23.040 --> 0:05:25.600 to get to the Paris Alignment, we need to actually 0:05:26.040 --> 0:05:29.640 support companies such as OURS, which you know, energy plus 0:05:29.680 --> 0:05:33.599 industry plus transport represents so many percent of global emissions. 0:05:33.640 --> 0:05:35.920 So we need to really work with companies such as 0:05:35.960 --> 0:05:39.560 BP and other willing gas companies to actually help them 0:05:39.600 --> 0:05:43.000 decarbonize and go along that journey. So I don't see 0:05:43.400 --> 0:05:46.560 joining your company such as VP and annointing gas company 0:05:46.560 --> 0:05:50.599 which is committed to actually decarbonizing as a progressive journey. 0:05:50.680 --> 0:05:54.080 I think it's actually very much aligned towards the ambition 0:05:54.120 --> 0:05:57.680 and the purpose in terms of what is unique about VP. 0:05:58.480 --> 0:06:02.600 When I actually had my first conversations with Bernard at 0:06:02.600 --> 0:06:06.720 the time when I was actually considering joining, Bernard had 0:06:06.760 --> 0:06:13.159 already embarked on a series of multiple conversations with multiple 0:06:13.400 --> 0:06:18.920 types of stakeholders, from institutional stakeholders e g. Government stakeholders, 0:06:19.040 --> 0:06:22.880 with investors across the world, and with you know less 0:06:22.880 --> 0:06:26.440 hope your stakeholders such as NGOs and some of the 0:06:26.520 --> 0:06:29.560 most challenging in GEO. So there was a whole process 0:06:29.600 --> 0:06:32.840 of listening which was going on, and that process of 0:06:32.880 --> 0:06:36.520 listening actually very much shaped his perspective and also the 0:06:36.680 --> 0:06:39.800 lt S perspective, the leadership team's perspective. So what I 0:06:39.880 --> 0:06:45.200 was actually struck by was the super strong alignment within 0:06:45.320 --> 0:06:49.359 the whole leadership team and within the company itself on 0:06:49.480 --> 0:06:52.520 this ambition to transition. You know, at the end of 0:06:52.600 --> 0:06:54.560 the day, if you're actually working in an oil and 0:06:54.600 --> 0:06:59.040 gas company and you're delivering energy to the world, you 0:06:59.279 --> 0:07:01.680 also want to feel good about what you're doing. And 0:07:02.000 --> 0:07:05.240 in equivocably, we are delivering energy to the world, and 0:07:05.279 --> 0:07:07.120 in the frame of the energy transition, we have the 0:07:07.160 --> 0:07:10.240 capabilities and the skills to continue doing so through the 0:07:10.360 --> 0:07:14.280 energy transition and UH and towards the low Carbonwell, what 0:07:14.440 --> 0:07:16.880 sort of things have been done in order to drive 0:07:16.920 --> 0:07:19.680 a culture shift within the organization and to really rally 0:07:19.880 --> 0:07:22.240 around the net zero target or did it just really 0:07:22.280 --> 0:07:25.720 happen very organically at all levels of the business. Well, 0:07:25.720 --> 0:07:29.240 I think there were several initiatives, right. It all started 0:07:29.480 --> 0:07:33.720 with the announcement when Bernard started on February twelve of 0:07:33.840 --> 0:07:36.800 the new purpose like re imagine energy for people on 0:07:36.840 --> 0:07:39.640 the planet, the ambition and the aims the net the 0:07:39.840 --> 0:07:44.240 reins that was thereafter, if you wish, underpinned by the 0:07:44.360 --> 0:07:47.880 strategy which was actually announced on August fourth and then 0:07:48.120 --> 0:07:52.720 detailed in September. It was also accompanied by a full 0:07:52.840 --> 0:07:57.360 reorganization of BP, which we call reinvent BP, which is 0:07:57.560 --> 0:08:03.040 really targeted towards moving away from the upstream downstream model 0:08:03.480 --> 0:08:06.640 to an organizational model which aligns to the energy transition. 0:08:06.880 --> 0:08:11.000 Right with business lines which are production and operations. Were 0:08:11.000 --> 0:08:15.240 focused on our hydrocarbons businesses. Business line on gas and 0:08:15.280 --> 0:08:18.040 low common which is really the growth engine in terms 0:08:18.040 --> 0:08:21.240 of low carbon customers and products, which is really focusing 0:08:21.240 --> 0:08:25.120 on the growth engine around customers and then you know 0:08:25.400 --> 0:08:28.200 enablers in terms of trading in terms of digital and 0:08:28.280 --> 0:08:31.560 region cities and solutions or integrators as we call them. 0:08:31.720 --> 0:08:36.679 What that did was it really reframe the organization towards 0:08:37.440 --> 0:08:40.840 alignment with the strategy. So it was really all the 0:08:40.920 --> 0:08:43.880 building blocks that came together in terms of ambition, in 0:08:44.000 --> 0:08:47.760 terms of integrated strategy, in terms of organization supporting it, 0:08:48.080 --> 0:08:51.960 and then a lot of communication around cascading the story 0:08:52.080 --> 0:08:55.240 and implications for all of the different people in the organization. 0:08:55.320 --> 0:08:59.600 So if you are in production and operations business, yes 0:08:59.760 --> 0:09:03.120 we might be in the world worth was we are 0:09:03.160 --> 0:09:08.559 reducing production by but you are literally funding the energy transition. 0:09:09.000 --> 0:09:11.160 So it really is a game of and we need 0:09:11.200 --> 0:09:14.120 you to deliver today to be able to actually transition 0:09:14.160 --> 0:09:16.720 the company. So you have a fundamental role to play. 0:09:17.240 --> 0:09:19.640 At the same time, the growth engines need to deliver. 0:09:19.800 --> 0:09:22.959 So we really did an exercise of cascading if that 0:09:23.440 --> 0:09:25.640 strategy into what does it mean for the different parts 0:09:25.640 --> 0:09:30.000 of the organization. So about a decade ago, BP was 0:09:30.400 --> 0:09:33.880 really pushing the limits in terms of a focus on 0:09:33.960 --> 0:09:37.600 sustainability with the Beyond Petroleum kind of ambitions and campaign, 0:09:38.200 --> 0:09:42.120 and since then specifically focusing on kind of the renewable 0:09:42.160 --> 0:09:45.000 assets that PP had. Many of them were sold off 0:09:45.040 --> 0:09:46.880 and we went through this period where that was really 0:09:46.920 --> 0:09:50.680 not a favorable part of the industry for the business 0:09:50.720 --> 0:09:53.440 to be in. Now it seems like there's a look 0:09:53.520 --> 0:09:56.720 at renewables again. And my question in this really is 0:09:57.240 --> 0:09:59.679 do you think that in order for an oil and 0:09:59.720 --> 0:10:03.280 gas for him to transition into an energy company, do 0:10:03.280 --> 0:10:07.280 you think that a large percentage of the revenues can 0:10:07.320 --> 0:10:10.319 actually come from renewables or is that not the right 0:10:10.320 --> 0:10:12.839 way to look at how the company is going to 0:10:12.920 --> 0:10:15.800 look to change and grow and diversify. There is no 0:10:16.280 --> 0:10:19.560 one size, fit soul strategy in terms of oil and 0:10:19.600 --> 0:10:25.280 gas companies decarbonizing. We've seen companies, for example, in the US, 0:10:25.360 --> 0:10:29.760 actually focusing very heavily on carbon capture. We've seen other 0:10:29.880 --> 0:10:34.439 companies actually focusing more heavily on retail power to consumers. 0:10:34.840 --> 0:10:39.280 Our answer is one where we do see low carbon 0:10:39.320 --> 0:10:42.880 technologies altogether having to play a critical role in the 0:10:42.960 --> 0:10:47.559 energy transition. And I'm talking about really multiple technologies coming 0:10:47.600 --> 0:10:51.719 to play. So we have technologies which today, like renewables, 0:10:51.760 --> 0:10:55.960 are proven and are extremely cost competitive, and the challenge 0:10:55.960 --> 0:10:58.160 is one of how do you accelerate the deployment of 0:10:58.200 --> 0:11:01.199 those technologies and rollouts, which talking about moving from one 0:11:01.240 --> 0:11:04.760 hundred and fifty gigawatts of added capacity in the recent 0:11:04.840 --> 0:11:08.040 years to something like three hundred and fifty or five 0:11:08.120 --> 0:11:10.280 hundred and fifty and a well below two debrecent erra 0:11:10.360 --> 0:11:14.480 on one point five degresoner. We have other technologies that 0:11:14.559 --> 0:11:16.720 are proven but need to be scaled up, and this 0:11:16.840 --> 0:11:21.560 is for example, hydrogen or carbon capture. We have technologies 0:11:21.559 --> 0:11:23.720 which are more at a pilot level but might have 0:11:23.840 --> 0:11:26.520 a very critical role to play, for example in the 0:11:26.640 --> 0:11:30.480 carbonizing aviation, such as synthetic fuels or refuels, and then 0:11:30.520 --> 0:11:35.240 they still have fossil fuels of having to actually bridge 0:11:35.280 --> 0:11:38.440 the energy transition and in particular, as an example, gas 0:11:38.480 --> 0:11:41.360 having to provide that firm capacity as renewables come in. 0:11:41.760 --> 0:11:44.360 So we don't see this as do you need to 0:11:44.400 --> 0:11:47.240 invest in renewables to the sake of renewables. I think 0:11:47.240 --> 0:11:52.160 it really is a multi technology strategy where one of 0:11:52.160 --> 0:11:54.640 the critical advantages that are companies such as US can 0:11:54.679 --> 0:11:59.040 actually bring is the integration of all those different technologies 0:11:59.240 --> 0:12:03.120 to provide firm capacity in terms of energy and low 0:12:03.120 --> 0:12:07.600 corbon energy. So I don't think this is a renewables 0:12:07.720 --> 0:12:10.800 only play, but we definitely see in a world where 0:12:10.800 --> 0:12:14.959 renewables actually get to accounts to proximately sixty of power 0:12:15.000 --> 0:12:19.720 generation by renewables have a critical role to play, and 0:12:19.720 --> 0:12:22.400 they can integrate into hydrogen, they can integrate with gas 0:12:22.400 --> 0:12:25.000 to provide that firm capacity. So it's really around that 0:12:25.080 --> 0:12:28.440 integration and which these technologies that are still I mean 0:12:28.480 --> 0:12:31.360 you're mentioning hydrogen and ccs and synthetic fuels, I mean 0:12:31.559 --> 0:12:36.040 very much on the edge in that they're quite expensive 0:12:36.080 --> 0:12:38.600 to deploy at this point in time. Which of these 0:12:38.600 --> 0:12:41.040 did you say you're most excited about and why From 0:12:41.040 --> 0:12:44.800 a technology standpoint, I'm really excited about this notion of 0:12:45.320 --> 0:12:50.720 multiple technologies and the integration across multiple technologies because if 0:12:50.760 --> 0:12:54.520 you think about it, you know, with renewable penetration increasing significantly, 0:12:54.880 --> 0:12:57.240 you have a challenge in terms of how do I 0:12:57.320 --> 0:13:01.360 provide flexibility and stability to assist and batteries can provide 0:13:01.360 --> 0:13:03.960 it intra day, I need gas to back that or 0:13:04.080 --> 0:13:07.760 hydrogen as it actually acceleerates to provide the flexible capacity. 0:13:07.840 --> 0:13:11.199 So it's really the first thing ANCE is really excited 0:13:11.240 --> 0:13:16.400 about the integration of those technologies. We are therefore so 0:13:16.679 --> 0:13:20.840 extremely excited about the renewable acceleration. We are very excited 0:13:20.880 --> 0:13:26.200 about hydrogen as a potential technology. Hydrogen could, as I 0:13:26.280 --> 0:13:30.920 was saying, get to account for approximately of primary energy 0:13:31.760 --> 0:13:35.040 in twenty fifty. We're talking about increasing from seventy million 0:13:35.080 --> 0:13:38.199 tons per annum today in terms of hydrogen production to 0:13:38.280 --> 0:13:42.280 potentially in a one point five degree scenario six hundred 0:13:42.400 --> 0:13:45.839 or north of six hundred and fifty. And that will 0:13:45.880 --> 0:13:48.040 have to be clean, be it blue or be it green. 0:13:48.240 --> 0:13:49.959 So I think that is an area in which we 0:13:50.080 --> 0:13:55.920 are very excited. We see obviously a need to abate 0:13:56.440 --> 0:14:00.720 the cost of hydrogen as we look towards twenty thirties 0:14:00.800 --> 0:14:04.040 in a world where today blue hydrogen is more expensive 0:14:04.080 --> 0:14:07.720 than gray hydrogen and green hydrogen is more expective than blue, 0:14:07.920 --> 0:14:10.720 and we expected to be the case for until probably 0:14:10.760 --> 0:14:15.959 limit the early thirties. So we will require support to 0:14:16.160 --> 0:14:19.120 accelerate hydrogen. But we think hydrogen will be a critical 0:14:19.280 --> 0:14:23.280 element to decarbonize hard to eight sectors. In that same line, 0:14:23.640 --> 0:14:26.680 I think CCS has a critical role to play. We 0:14:26.760 --> 0:14:30.280 see five point five gigatons of c O two emissions 0:14:30.960 --> 0:14:34.560 of c O two to be captured through CCS and 0:14:34.480 --> 0:14:37.080 and at zero scenario d I a just release a 0:14:37.080 --> 0:14:40.440 scenario which talks to seven point six gigatons of c 0:14:40.600 --> 0:14:44.240 O two and then at zero scenario. So CCS we 0:14:44.400 --> 0:14:47.280 think has a critical role to play, and it also 0:14:47.320 --> 0:14:50.720 allows to actually half the cost of the energy transition 0:14:51.080 --> 0:14:53.400 as we try to align with the Paris Agreement. And 0:14:53.440 --> 0:14:55.400 it obviously has a critical role to play in terms 0:14:55.400 --> 0:14:58.560 of blue hydrogen. I think other technologies such as sim 0:14:58.640 --> 0:15:02.560 fuels E fields have a role to play. They are 0:15:02.800 --> 0:15:05.720 less mature and need to be proven if you wish, 0:15:05.720 --> 0:15:07.960 in terms of in terms of adoption, and I think 0:15:07.960 --> 0:15:10.120 they will take a bit longer in terms of adoption. 0:15:10.600 --> 0:15:13.680 So looking at these technologies, you did mention that some 0:15:13.760 --> 0:15:15.840 of them some forms of hydrogen or more expensive than 0:15:15.840 --> 0:15:19.920 others and even more more still, so this requires investment 0:15:19.960 --> 0:15:22.680 and reinvestment into the business and into technologies and R 0:15:22.720 --> 0:15:26.120 and D. What has been the reception by the investment 0:15:26.160 --> 0:15:30.400 community and really those shareholders looking at BP saying you know, 0:15:30.440 --> 0:15:33.200 maybe I'm not getting the same dividend payments that I 0:15:33.240 --> 0:15:35.600 was getting in the past, and you know, yeah, really, 0:15:35.600 --> 0:15:40.440 what has been the response regarding bps net zero future. 0:15:40.840 --> 0:15:44.240 So I think the response has been very positive. It's 0:15:44.320 --> 0:15:48.400 been very positive across eholders, so it's been very positive 0:15:48.440 --> 0:15:51.560 for our own employees who very much embarked on the 0:15:51.560 --> 0:15:55.000 new purpose and the new strategy. It's been very positive 0:15:55.040 --> 0:15:58.360 if you think about external stakeholders and end us, and 0:15:58.440 --> 0:16:01.080 I think in terms of investors, we had a very 0:16:01.120 --> 0:16:05.320 positive response on the strategic direction and at the same 0:16:05.360 --> 0:16:08.600 time and acknowledgements that the focus now is very much 0:16:08.600 --> 0:16:12.200 an execution and I think that's what we've been focused on. 0:16:12.520 --> 0:16:15.440 And the dialogue with investors is very much one of 0:16:16.200 --> 0:16:20.400 ongoing dialogue with individual investors such as well as UM 0:16:20.800 --> 0:16:23.680 you know, Climate Action one hundred plus and yeah, just 0:16:23.760 --> 0:16:27.960 continuing to show those proof points, continuing to drive transparency 0:16:28.120 --> 0:16:31.920 and to some extent help our investors come with us 0:16:31.960 --> 0:16:33.680 on the journey. And this is also the reason why 0:16:34.200 --> 0:16:37.240 this year we've actually changed our disclosures to actually align 0:16:37.320 --> 0:16:41.000 also are disclosures to the new strategy, so that we 0:16:41.040 --> 0:16:45.640 can actually help investors understand the value in the different 0:16:45.680 --> 0:16:48.240 elements of the strategy. Well, and this might be dry 0:16:48.320 --> 0:16:50.280 for many people, but really if you're looking at this, 0:16:50.400 --> 0:16:54.520 the different frameworks are important, and the disclosure element is 0:16:54.680 --> 0:16:57.440 how you communicate with the investment community. I really want 0:16:57.480 --> 0:16:59.840 to know which frameworks you find to be most of 0:17:00.080 --> 0:17:03.040 lable and really give the most accurate view of what's 0:17:03.080 --> 0:17:06.520 actually happening. It is indeed an area in which we 0:17:06.560 --> 0:17:09.760 see quite a multitude of initiatives. So I think when 0:17:09.840 --> 0:17:11.800 when you try to answer that question, the way we 0:17:11.880 --> 0:17:14.080 actually tack on it is what are we trying to 0:17:14.160 --> 0:17:17.200 achieve in terms of in terms of disclosures and metrics 0:17:17.320 --> 0:17:19.200 we try to answer that question. I think the first 0:17:19.200 --> 0:17:22.040 element is very much transparency, so that we can create 0:17:22.840 --> 0:17:26.320 understanding for the investors not only of the risks associated 0:17:26.359 --> 0:17:29.960 with a potential company and its transition strategy, but also 0:17:30.000 --> 0:17:33.239 the opportunities it actually is exposed to, as well as 0:17:33.280 --> 0:17:37.359 comparability across companies. So if those are the two objectives, 0:17:37.400 --> 0:17:40.200 then you get into okay, so what do those disclosures 0:17:40.280 --> 0:17:42.840 actually need to have? And I think they need to 0:17:42.880 --> 0:17:46.360 be simple, yet not too simple, because I do acknowledge 0:17:46.400 --> 0:17:49.080 that only in gas industry has a very complex value 0:17:49.119 --> 0:17:52.600 chain and there is a risk of ultra simplification, and 0:17:52.680 --> 0:17:55.760 they need to be as much as possible standardized. And 0:17:55.840 --> 0:17:59.359 so when we look at disclosures. We very much favor 0:17:59.400 --> 0:18:03.040 disclosures which obviously have a very strong element on in 0:18:03.119 --> 0:18:06.840 terms of carbon and by common we definitely include scope 0:18:06.880 --> 0:18:11.560 PREE because in our industry very specifically it represents eight 0:18:12.600 --> 0:18:16.920 total emissions and forward looking carbon metrics, so not only 0:18:16.960 --> 0:18:19.280 in terms of your own track record and position today, 0:18:19.320 --> 0:18:21.320 but you know what are you actually himing to or 0:18:21.359 --> 0:18:26.640 targeting too. We're looking for disclosures which include financial lead 0:18:26.760 --> 0:18:29.840 indicators which give an indication of how you're actually aiming 0:18:29.880 --> 0:18:32.040 to transition the company, such as, for instance, what's your 0:18:32.080 --> 0:18:37.000 share of topics into low carbon versus Orno gas. And 0:18:37.040 --> 0:18:40.119 we're looking for disclosures which actually also allow us to 0:18:40.160 --> 0:18:47.560 showcase some of the qualitative elements such as governance, board composition, incentives, 0:18:48.000 --> 0:18:51.840 efforts in terms of advocacy, so we're collaborating with many 0:18:51.840 --> 0:18:56.080 different initiatives. I would call out TCFD, I would call 0:18:56.119 --> 0:18:59.360 out obviously SASPY, the I I G C C SO 0:18:59.480 --> 0:19:03.400 nanzero standard for Ordan gas companies, which we've worked very 0:19:03.400 --> 0:19:07.119 extensively with to try and actually shape what those forward 0:19:07.119 --> 0:19:09.679 looking metrics could actually apply for, in particular for the 0:19:09.680 --> 0:19:12.639 oorin gas industry, and this year we will start also 0:19:12.720 --> 0:19:17.240 disclosing along CDP. So disclosure speaks to everyone in the 0:19:17.280 --> 0:19:20.040 community is really looking to better understand what's actually going 0:19:20.080 --> 0:19:22.080 on in terms of how you're going to get there 0:19:22.280 --> 0:19:24.720 and and where you are in the process. And you know, 0:19:24.720 --> 0:19:28.000 when I was asking about the traditional investors who maybe 0:19:28.600 --> 0:19:31.359 aren't keen on reinvestment, there's the other side, there's the 0:19:31.400 --> 0:19:34.440 E s G investors who are or even a step further, 0:19:34.480 --> 0:19:37.760 the activist investors. And we've seen this recently with Excen 0:19:37.880 --> 0:19:41.720 where they ended up giving multiple board seats after substantial 0:19:41.720 --> 0:19:44.359 pressure from activist investors to take it a step further. 0:19:44.600 --> 0:19:47.639 And what areas are you getting pressure from E s 0:19:47.680 --> 0:19:51.320 G investors to do more that you know you think 0:19:51.480 --> 0:19:54.480 might be an interesting place to discover in the future 0:19:54.520 --> 0:19:57.000 that maybe BP is not yet ready for. We are 0:19:57.840 --> 0:20:01.879 very much engaging with s G investors and non E 0:20:02.000 --> 0:20:04.040 s G investors by the way, as we navigate through 0:20:04.040 --> 0:20:07.679 the energy transition, and I would say the dialogue is 0:20:08.480 --> 0:20:12.080 a very rich dialogue which has also allowed us to 0:20:12.760 --> 0:20:17.600 progress and progress together with our investors. So as an example, 0:20:18.000 --> 0:20:21.240 in ten we actually got a joint resolution with Climate 0:20:21.240 --> 0:20:25.000 Action one hundred plus, which was a resolution on precisely 0:20:25.040 --> 0:20:29.440 disclosures and transparency. So I think that engagement is actually 0:20:29.680 --> 0:20:33.639 extremely helpful because we value the challenge, right, We value 0:20:33.680 --> 0:20:37.320 the challenge and the ability to actually, you know, take 0:20:37.359 --> 0:20:39.439 a step back, think through do we have all the 0:20:39.480 --> 0:20:41.600 elements embedded within what we're aiming to do. And it 0:20:41.640 --> 0:20:45.040 was very much at the core towards one the new ambition, 0:20:45.240 --> 0:20:47.840 the net zero aims, as well as a strategy that 0:20:47.880 --> 0:20:51.000 we actually announced. So we're actually very much looking forward 0:20:51.000 --> 0:20:54.239 to continue that engagement with individual investors as well as 0:20:54.280 --> 0:20:57.239 with organizations such as Climate Action one hundred PLUSS as 0:20:57.240 --> 0:21:00.520 we continue to execute on the strategy. Now for a 0:21:00.600 --> 0:21:06.639 very short break, stay with us, So switching tracks a 0:21:06.640 --> 0:21:08.800 little bit. We started off talking about you and then 0:21:08.840 --> 0:21:11.240 we went straight into the business. Let's go back to 0:21:11.320 --> 0:21:14.879 you and your role within the business. And clearly you 0:21:14.920 --> 0:21:16.840 know a lot in regard to you have a lot 0:21:16.880 --> 0:21:18.480 to say, that's the right way to phrase it. You 0:21:18.480 --> 0:21:21.119 have a lot to say in regard to the different 0:21:21.119 --> 0:21:23.479 frameworks the company is looking at in your strategy. And 0:21:23.520 --> 0:21:26.040 you're in a role that is new for VP, is 0:21:26.080 --> 0:21:28.120 it not, And could you talk to us a little 0:21:28.119 --> 0:21:31.960 bit about what that role was designed to accomplish and 0:21:32.200 --> 0:21:35.240 and how you see it fitting within the organization. It 0:21:35.359 --> 0:21:38.240 is indeed a new role and a new organization. It 0:21:38.400 --> 0:21:43.040 was created within the frame of the reorganization of BP 0:21:43.359 --> 0:21:45.840 is one of the integrators and what we did create 0:21:45.840 --> 0:21:49.320 that role. The role is basically the strategy and sustainability 0:21:49.400 --> 0:21:54.520 organization of the group. Is we very much concentrated within 0:21:54.600 --> 0:21:58.760 that organization, the group strategy, so we no longer really 0:21:58.760 --> 0:22:03.000 have beyond operational strategy of strategy teams within the different 0:22:03.000 --> 0:22:06.040 businesses and the same is true for sustainability. So we 0:22:06.040 --> 0:22:08.960 were aiming for two things. I think the first thing 0:22:09.160 --> 0:22:15.160 was really to bring together strategy and sustainability and policy 0:22:15.280 --> 0:22:18.080 living to that. The reason being that as we navigate 0:22:18.119 --> 0:22:20.720 through the energy transition and by the way, even more 0:22:20.800 --> 0:22:24.880 after and the COVID pandemic, the two are very much 0:22:25.280 --> 0:22:29.000 coming together and a sustainable strategy as a strategy which 0:22:29.040 --> 0:22:32.119 is resilient for the future. So the first objective was 0:22:32.160 --> 0:22:35.119 to bring the two together. The second one was very 0:22:35.200 --> 0:22:40.280 much one of actually creating this central BP Strategy and 0:22:40.320 --> 0:22:44.639 Sustainability team which would actually basically help the different businesses 0:22:44.760 --> 0:22:48.720 and organizations to craft the strategy which would actually take 0:22:48.800 --> 0:22:51.200 us through the energy transition and deliver on the aims 0:22:51.200 --> 0:22:56.040 which were announced by Bernard. Really optimizing for the group 0:22:56.400 --> 0:22:59.480 was breaking a little bit of maybe the upstream downstream 0:22:59.560 --> 0:23:02.560 silo that could have been present in the past. So 0:23:02.640 --> 0:23:06.439 it's really an organization which is focused on working with 0:23:06.480 --> 0:23:10.439 all the different businesses and obviously finance and the and 0:23:10.520 --> 0:23:16.439 the functions to actually craft what's the optimal path. And 0:23:16.480 --> 0:23:19.240 that optimal path is really an optimal path in terms 0:23:19.320 --> 0:23:22.600 of delivering on the aims, the purpose and the ambition, 0:23:22.680 --> 0:23:27.040 but also delivering a performance today and our shareholder investor 0:23:27.119 --> 0:23:31.200 value proposition. So you joined, then there was a global pandemic, 0:23:31.440 --> 0:23:36.560