BP Target Neutral Assurance and Advisory Panel Public Statement

March 2013

This statement represents the BP Target Neutral Advisory and Assurance Panel’s (AAP) views on the programme in its advisory capacity in relation to the period from January 2012 through December 2012. The AAP met four times in 2012, and the following summarises the Panel’s views over that time period.

Overview

Now in its 6th year, the AAP believe that Target Neutral is at a crossroads.

It remains a technically-impressive offsetting programme, sourcing inspirational, high-quality offsetting projects. And, by clearly positioning offsetting within a broader framework that stresses the need to ‘reduce and replace’ as well as offset, it also goes beyond the traditional scope of offsetting programmes.

Some strong foundations were laid in 2012.In particular, Target Neutral played a central role in BP’s sponsorship of the London 2012 Olympics, and as a result, reached many more people than in previous years.Target Neutral also built and strengthened a number of business partnerships over the course of the year.

In 2013, BP needs to build on these foundations to bring carbon awareness and action to a much wider audience, starting with BP’s own employees and its day-to-day customers.

This will not only require continued, and enhanced, commitment and investment from BP, but will also require greater strategic alignment between Target Neutral and BP overall. Without a clear vision of the company’s future role in a sustainable energy system – and of how Target Neutral fits within, and helps drive, this vision – Target Neutral will not resonate with either customers or staff.

Progressagainst the Panel’s Recommendations from Last Year

In our previous Panel Statement, we urged BP to:

1)Maximise the opportunity ofTarget Neutral’s prominent role in BP’sLondon 2012 campaign to build significant uptake and enthusiasm – both externally and internally;

BP’s efforts to engage spectators at the Olympics were an undoubted success.The tonnage offset through Target Neutral doubled in 2012 (compared to 2011) – withthe Olympics responsible for 50% of this increase.BP also embraced a number of innovative and creative means of engaging spectators as part of its Olympics efforts:

  • Mobilising spectators around creating a World Record (for offsetting the greatest number of journeys to a specific event)
  • Inserting ‘pop-out tags’ in ticketing envelopes – encouraging spectators to engage with Target Neutral, and offering the opportunity of a ‘periscope photo’of the entire Olympic Stadium for visitors to the Olympic Park
  • Creating a compelling and geographically-diverse (with projects from six continents) project portfolio
  • Embracing a number of social media platforms to create a sense of community, and to engage and inform participants.

The Panel believes that this has created a strong foundation for Target Neutral to build from, but stresses that BP needs to build quickly so as not to lose momentum.

Efforts to engage BP staff around the Olympics were less successful (although BP always intendedto focus first onspectator/public engagement, with new efforts to engage staff flowing from that). The AAP’s fear that the lack of staff – and in particular senior management – support for, and engagement with,Target Neutral might jeopardise public uptake during the Olympics obviously didn’t prevent a considerable number of spectators getting involved, but we remain concerned that low levels of staff uptake remain a risk to the future credibility of Target Neutral.

2)Run a major staff engagement programme (reaching at least 4000 staff), and build the tools to expand this in the future such that BP staff become enthusiastic ambassadors for Target Neutral;

BP focused its internal engagement efforts in 2012 on its ‘Target Neutral @ Sunbury’ Programme –BP’s first Target Neutral Site.Staff take-up has been low and the Panel is concerned that the advice it has repeatedly offered on what constitutes a successful behaviour change programmehas not been embraced at Sunbury.The Panel is also disappointed that BP’s senior management team has not yet collectively embraced Target Neutral.

Improved staff awareness, engagement and uptaketherefore remain key priorities for 2013. The success of spectator engagement around the Olympics, and the strategic relationships that are being created and strengthened by Target Neutral’s corporate partnerships, should provide a springboard for staff engagement moving forward.

3)Roll-out Target Neutral across forecourts in the UK – and provide rewards for participating drivers;

The Panel is pleased that a formal link-up in place between Nectar and Target Neutral (whereby customers that sign-up to Target Neutral earn 500 Nectar Points – and enter a prize draw to potentially win 50,000) is now in place. A similar scheme for BP Plus fuel card customers in the Netherlands also demonstrates that BP is exploring ways to reward its customers for signing up to Target Neutral.

Nevertheless, with the understandable emphasis placed on the Olympics in 2012, broader efforts to engage customers at the forecourt have not been a priority.

The Panel would therefore like to see BP build on its efforts to link Target Neutral with Nectar – and to take advantage of the customers gained and momentum built during the Olympics – to find a way to engage its full customer base around Target Neutral.

4)Demonstrate clear progress towards the ambition of reaching one million tonnes of CO2 savings over the next three years.

BP is confident that the doubling of offset volumes during 2012 puts in on course to be a 1 million tonne programme in 2015. The Panel would agree – provided the momentum built around the Olympics is maintained. Without the ‘hook’ of an event such as the Olympics to drive further uptake during 2013, the Panel feels that BP will have to continue to explore innovative ways of engaging its customer base.

The Panel is encouraged by the business partnerships that Target Neutral built and strengthened during 2012, and supports further effort in this space. We are also pleased that Target Neutral is now being resourced in the US and, after the relaunch of the programme in the Netherlands, looks forward to Target Neutral becoming an internationally-recognised brand.

5)The Panel also stressed thatall of the above will depend on customers – and the public at large – understanding how Target Neutral fits within BP’s broader strategic direction

This remains the key issue for the Panel. Without a clear vision of the company’s future role in a sustainable energy system – and of how Target Neutral fits within, and helps drive, this vision – Target Neutral will not resonate with either customers or staff.

Given the success of spectator engagement around the Olympics, Target Neutral is potentially poised to become something much larger and much more transformative – and could play a central role in repositioning and future-proofing BP for the realities of the 21st Century. Senior Management across BP need to recognise this, and the Panel are keen to work with them to explore the possibilities.

Recommendations for 2013

  • Continue to explore and develop creative ways of engaging with potential and existing customers around the Reduce, Replace and Offset message – including developing a significant Target Neutral presence across forecourts in the UK
  • Significantly improve staff awareness, engagement and uptake of Target Neutral
  • Build Target Neutral as an international brand
  • Articulate how Target Neutral dovetails with, and influences, BP’s overall strategy

SIGNED

Jonathon Porritt, Rita Clifton, Mark Kenber, Charles Secrett, Tim Smit

The members of the Target Neutral Assurance and Advisory Panel act in a personal capacity. The organisational affiliations below are listed for identification purposes only. Members have been invited to sit on the Panel in their individual capacity not as representatives of their respective organisations.

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THE REMIT OF THE PANEL

Our purpose is to provide independent advice and assurance to Target Neutral, including:

  • Advising and providing critical challenge on the strategic direction and on the operational running of the initiative.
  • Monitoring the initiative’s progress.
  • Providing proper overview and coordination of the educational elements of the initiative, notably around improving carbon literacy and stimulating behaviour change.
  • Providing a high-level assurance function to consider whether funds are appropriately distributed.
  • Reporting to stakeholders on the initiative’s policies, systems, processes and performance.