Strategic climate-related policy, business and other relevant non-operational risk is assessed at a Group level. Potential responses are coordinated
with relevant businesses and functions by Group Policy, a line managed Group Function. Its assessments and recommendations are considered by a
formal cross-company entity, the Issues Management Working Group (IMWG), which is chaired by the Executive Vice President, Group Chief of Staff,
and has Group Leadership representation from all relevant functions and businesses. The IMWG would either adopt a recommendation or make
recommendations to the Executive Team and Group Chief Executive (GCE) and, if necessary, the Board. A key tool in assessing mid and long-term risks
and opportunities associated with climate change policy and technology is BP’s Outlook 2030, a twenty year projection of what we consider the most
likely energy pathway that society may follow, globally, regionally and in some cases nationally. This is supplemented by projections testing sensitivities
that include much more far-reaching climate policy developments and regulation than we consider plausible. It is also supplemented by consideration of
a wide range of scenarios and projections by other organisations, including the International Energy Agency. BP’s own projections are broadly in line with
others. We have also sponsored a major international research project, the “Energy Sustainability Challenge,” in conjunction with 13 major universities, to
examine the various links between climate change, water, energy and land use.