Dominic Emery & David Eyton The energy transition: BP’s approach

The energy transition We believe action on climate is needed Access to affordable and secure energy is fundamental to human prosperity There are multiple actors and actions All fossil fuels are not equal There is a variety of resource holders and users BP will continue to play its part, as described today GHG emissions from fossil fuel reserves

Emissions management Only about 15% of primary energy is converted into useful heat, light and motion The scope for efficiency improvements is significant Our approach: OMS and Solomon EII Reducing fugitives, flaring and venting Product efficiency Carbon price – engineering design

Portfolio resilience Our approach: Development of lower carbon options, in particular growing gas in our portfolio Carbon price – portfolio and project resilience Forecasting energy supply and demand, through the 2035 Outlook Testing investments against a range of oil and gas prices Reviewing the impact of evolving technology 2014 Mid 2020s

Low carbon energy R&D Our approach: Reported R&D spend of $663m in 2014 Leading technologies in: –Upstream – seismic imaging and enhanced oil recovery –Downstream – petrochemicals and formulated products Horizon scanning through: –University relationships and partnerships –Venturing Competitor range BP Reported R&D/capital employed

Strategic KPIs and incentives Our approach: Clear strategy Linkage of strategy to incentives

Public policy Our approach: We seek to inform policy makers by publishing Outlook 2035 and Long-term technology view We recognise that there are multiple actors and we all need to play our part We advocate a global economy-wide price on carbon and market-based mechanisms We expect the immediate impact would be a switch from coal to gas

Dominic Emery & David Eyton The energy transition: BP’s approach