BP (British Petroleum) in Australia | Green Supply Chain Practices
Supply Chain Network
Diagram
Supply Chain Process Explained
BPs objectives of green supply chain management process is a step by step process, meticulously planned out, detailed in the following points:
- The foremost task is to obtain legal approval and appropriate permissions and rights to search for hydrocarbons.
- Once the hydrocarbons are detected, the company’s field infrastructure works to bring it to the surface.
- Thereafter, various modes of transport and transfer are used (including pipelines) to move the product in the supply chain.
- The raw product is then processed into several products for trade in the world market.
- The traded final products are finally consumed by the consumer for energy, lighting, fuel and various other purposes(Mollenkopf, 2010)
- .Explanation on how BP change from its earlier stage to be ‘green” & Explanation on BP supply chain net works.
Changing to Green Practices
Post the Mexico oil spill, BP earned a bad image. The impact of the spill can be registered to the extent that people in Europe and the USA don’t consider BP as a responsible or ethical organization. A recent survey declared that over 40% people in Germany, France, Italy or UK (where over 45% business of the company is based) do not believe BPs practices to be environmentally sustainable or ethical. However, the oil major enjoys a good repute in India, China and even the Australian market (Mollenkopf, 2010).
The recent change to Green practices in BPs supply chain can be attributed to two major policy changes:
Innovation and new technologies
BP has changed to greener practices by embracing better technologies for its processes. The various technologies involved in exploration and refining have been developed and tested for their environmental impact. Moreover, the company has invested and diversifies in areas of unconventional oil from sand and growing its wind energy wings to popularize the use of alternative non polluting energy(Green, 2012).
The impact of new technologies has been such that BP has been able to cut down heavily on emissions and wastage of resources such as water. For instance the CHG emission in petrochemicals and refining were reduced by 38% and 16% respectively in 2001 as compared to 1997.
Accountability and Leadership
Another major policy change affecting Greening of BPs supply chain involved setting up a central leadership which could serve as a role model for sustainable practices. The leadership being a key promoter in putting in place accountability for right action ensured that the workforce kept in line with the organizational policy of green practices. The BP management set up a system of incentives, rewarding people who adhered to the goal of sustainable practices, inculcating a positive environment in the organization (Mollenkopf, 2010).
Sustainable Practices
The term sustainable practices is a broad generalization comprising of practices, processes and policies that ensure minimization of environmental degradation, rather its conservation by utilization of efficient, less polluting or non polluting technologies or methods. For a company like BP operating in the oil industry it is very essential to embrace sustainable practices to conserve the non renewable resource of energy it deals in; and the potential threat to environment that can be degraded by the process of trade of oil(Dües, 2013)
Sustainable practices require the following key attitudes:
Transparency
The first and foremost requirement of a sustainability program is a total transparency of the various steps and processes and a clear line of communication with the various stakeholders.
The stakeholders of a business are not only its immediate owners or lenders but also the various people who are affected by the general environmental effects caused by the firm’s operation. The job of a committed management is to communicate clearly to the stakeholders about the actions of the company and its likely impact; and gather their opinion about the same.
Total transparency is an exceptional tool for inspiring the confidence of a hostile audience and even garner their support for the success of own action(Cronin, 2011)
Commitment
Another major requirement for the making of a management committed to sustainable development is their total commitment to the belief and significance of the change in practices. For instance BP has expressed its commitment by embracing efficient technologies, reducing wastage, establishing accountability and aligning incentives with the goals. The company has committed sustainability to the extent that it does not works on sites or projects which the management thinks will hinder the following of the sustainability goal.
Laws and Regulations
The transparency and commitment mandated for the success of a sustainable approach are also the key characteristics of a popular global voluntary standard ISO 14000.
The ISO 14000 regulates by way of establishing certain processes and checks, a company following the standard can ensure the following of certain quality standard maintaining the environment, the business exists in.
The ISO 14000 is a standard specially designed for the purpose of protecting the environment, reducing wastage and conserving natural resources; specifically non renewable energy resources.
The importance of the standard lies in the fact that it not only maintains the standard and quality of the environment but also ensures certain minimum legal requirements (in terms of environmental policies) are followed too. For instance, following the ISO14000 is mandated in European Union to meet the Union’s Eco Management and Audit Scheme (EMAS). Thus BP has followed such quality standards to boost its image in the market and improve its processes(Azevedo, 2011).
Hire Expert Writers at
Affordable Price
WhatsApp
Get Assignment Help
