BP 2013 Annual Report Download - page 48

BP Annual Report and Form 20-F 201344
and practices for working with contractors and our operations are obliged
to plan and execute actions to reach conformance with OMS on
contractor management.
We seek to set clear and consistent expectations of our contractors. In our
Upstream business our standard model contracts include, for example,
health, safety, security and environmental requirements.
Bridging documents are necessary in some cases to define how our
safety management system and that of our contractors co-exist to
manage risk on the work site.
In 2011 we undertook a review of how we manage contractors in our
Upstream business, which examined best practice in BP and other
industries that use contractors to perform potentially high-consequence
activities. As a result of this review, we are focusing on developing
deeper, longer-term relationships with selected contractors in our
Upstream business. We have:
• Established global agreements that help to strengthen our relationships
with strategic contractors and suppliers, manage risks more effectively
and leverage economies of scale.
• Increased the rigour of health and safety qualification and selection
criteria when approving contractor and supplier capabilities.
• Piloted guidance for the operating line on parts of our OMS that relate to
working with contractors.
• Continued working with our strategic contractors and suppliers to create
standardized technical specifications and quality requirements for certain
equipment, initially focused on new projects.
• Worked on incorporating safety and quality key performance metrics
into contracts for potentially high-consequence activities.
Our partners in joint arrangements
We seek to work with companies that share our commitment to ethical,
safe and sustainable working practices. However, we do not control how
our co-venturers and their employees approach these issues.
Typically, our level of influence or control over a joint arrangement is linked
to the size of our financial stake compared with other participants. Our
code of conduct provides that we will do everything we reasonably can to
make sure joint arrangements follow similar principles to those in our
code. In some joint arrangements we act as the operator. Our OMS
provides that where we are the operator, and where legal and contractual
arrangements allow, OMS applies to the operations of that joint
arrangement.
In other cases, one of our joint arrangement partners may be the
designated operator, or the operator may be an incorporated joint
arrangement company owned by BP and other companies. In those cases
our OMS does not apply as the management system to be used by the
operator, but is available to our businesses as a reference point for their
engagement with operators and co-venturers.
We introduced a group policy in 2013 to provide a consistent framework
for identifying and managing BP’s exposure related to safety and
operational risk, as well as bribery and corruption risk, from our
participation in new and existing non-operated joint arrangements.
Environment and society
Throughout the life cycle of our projects and operations,
we aim to manage the environmental and social impacts
of our presence.
• All of our major operating sites, with the exception of recently acquired
operations, were certified to the environmental management system
standard ISO 14001 in 2013.
• All of our businesses that have the potential to spill oil are updating oil
spill planning scenarios and response strategies.
• We are working towards aligning with the United Nations Guiding
Principles on Business and Human Rights.
• We actively monitor and report greenhouse gas emissions to improve
our understanding and management of potential carbon risks.
Managing our impacts
At a group level, we review our management of material issues such as
GHG emissions, water, oil spill response, sensitive and protected areas
and human rights annually. Using our operating management system
(OMS), we seek to identify emerging risks and assess methods to reduce
them across the company.
Our OMS includes environmental and social practices that set out how
our major projects identify and manage environmental and social impacts.
The practices also apply to projects that involve new access, projects that
could affect an international protected area and some BP acquisition
negotiations.
In the early planning stages, these projects complete a screening process
to identify the most significant environmental and social impacts. Projects
are required to identify mitigation measures and implement these in
design, construction and operations. From April 2010 to the end of 2013,
91 projects had completed the screening process, and used outputs from
the process to implement measures to reduce negative impacts.
BP’s environmental expenditure in 2013 totalled $4,288 million (2012
$7,230 million, 2011 $8,491 million). This figure includes a credit of $66
million relating to the Gulf of Mexico oil spill. For reference, expenditure
related to the Gulf of Mexico oil spill was a charge of $919 million in 2012
and $1,838 million in 2011. See page 252 for a breakdown of
environmental expenditure. See Regulation of the group’s business –
Environmental regulation on page 254.
Oil spill preparedness and response
We issued new group-wide requirements for oil spill preparedness and
response planning, and crisis management in July 2012. These
incorporate what we have learned from the Deepwater Horizon accident.
All of our businesses that have the potential to spill oil have been updating
oil spill planning scenarios and response strategies in line with the
requirements.
Meeting the requirements is a substantial piece of work and we believe
this work has already resulted in a significant increase in our oil spill
2012 direct GHG
Acquisitions
Divestments
Operational
changes
Real sustainable
reductions
2013 direct GHG
Greenhouse gas emissions
(Mte CO
2 equivalent)
50.0
54.0
58.0
62.0
+0.1 –11.5
59.8
49.2
–0.2
+1.0