Sustainable Development at British Petroleum

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Case Details:

Case Code : BECG056
Case Length : 18 Pages
Period : -
Pub. Date : 2006
Teaching Note :Not Available
Organization : British Petroleum
Industry : Oil and Chemical
Countries : United Kingdom

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Environmental Initiatives

GHG Emission Targets

In 1996, BP quit the Global Climate Coalition (GCC) which was formed by a group of US-based companies after the report given by the Intergovernmental Panel on Climate Change (IPCC) in 1989.

The panel assessed the scientific reports on climatic changes caused by harmful human activities and stated that the greenhouse gas (GHG) emissions were increasing due to harmful human activities and suggested reduction of such emissions. The GCC was not in favor of taking any action to reduce the GHG emissions. BP was the first company to quit GCC. It also supported the Kyoto Protocol, which was an agreement entered into by the industrialized countries to reduce GHG emissions. In 1998, the company reduced the hydrocarbon emissions into the air by 15% from the 1997 levels. Its water discharges were reduced by 6% and the carbon dioxide emissions remained unchanged. However, it failed to control oil spills, which increased by 20% from the 1997 levels...

Regional Development

BP promoted regional development programs by way of creating employment opportunities and providing training to people in the regions where it operated. In many places, it encouraged the local business communities to become its suppliers.

The company opened an Enterprise Center in Azerbaijan which, by 2004, provided 130 training courses, seminars, and workshops for 3,000 people belonging to the local companies. These courses incorporated many issues including health, safety, and accounting. BP began oil exploration and production in Columbia in 1987. It had oil fields in Cusiana and Cupiagua. Between 1994 and 1996, BP faced protests from the Columbian government and the Human Rights Watch for its operations in that country. It faced accusations of polluting the environment and had to pay a fine of $ 276,000 to the Columbian government in 1994 for destroying the environment. BP also had to face protests from the human rights activists...

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