Sample Essay On BP And Sustainability

Addressing the climate change in the way different from the other companies helped the BP to get multiple advantages. First of all, John Browne, the CEO of the company, showed that his company realized the negative impact of the climate change and had the values that were important for the transformation of the global energy industry and BP’s responsible activity in the near future. Secondly, since BP is a multinational company with sufficient resources for investment, the new innovative energy industry could be very profitable. Thirdly, the climate change made the authorities in many countries of the world put more pressure on the companies involved in the energy industry. Therefore, Browne wanted to show that BP was very different from the other companies and in fact it was to some degree a market leader in terms of green technologies.
The case also covers the other important issues such as adjustment of the company and its organizational capital to the new circumstances and what is important for the transformation of the company and at the same time keeping the fossil fuels as the main source of profits. Another important question in the case is what the investors should do when it is not clear how exactly BP’s new approach will lead to the higher profits.
Finally, if BP decides to strive for sustainability and develop its activity in this direction, they might escape the problems in some countries and even negotiate the financial subsidies or cooperation with the governments that are interested in the reformation of the energy industry due to the climate change. One of the ways to gain access to the innovative technologies is to buy smaller companies that specialize in sustainable development and technology. This approach could significantly increase BP’s expertise. At the same time, BP could be criticized for eliminating the competitors and striving for the monopoly.