Climate-related Financial Disclosures
We report in line with the FCA Listing Rule UKLR 6.6.6(8), which requires us to report on a ‘comply or explain’ basis against the TCFD Recommendations and Recommended Disclosures in respect of the financial year ended 31 December 2025a.
We consider our climate-related financial disclosures to be consistent with all of the TCFD Recommendations and Recommended Disclosures and that they are therefore compliant with the requirements of UKLR 6.6.6R(8).
You can find our disclosures against each TCFD Recommended Disclosure and the related Recommendation covering Governance, Risk Management , Strategy and Metrics and Targets in the bp Annual Report 2025 – pages 41-54.
Testing the resilience of our strategy
We believe our strategy positions bp for success and resilience in a Paris-consistent world – a world that is progressing on one of the many global trajectories considered to be Paris-consistent and ultimately meets the Paris goals.
As in 2024, to help test our view of this, we have assessed the resilience of our strategy to different climate-related scenarios, including 1.5°C consistent scenarios. This analysis is described in more detail on pages 41-54 of the bp Annual Report and Form 20-F 2025. This analysis enabled us to identify any business areas for which the possible consequences of the downside scenario(s) were sufficiently significant to potentially jeopardize group strategic resilience - as in prior years, the only business areas for which this was found to be the case were oil and gas production with respect to their exposure to oil price. For these business areas we assessed the potential implications for bp’s strategic resilience (as defined below) over the period from 2027 to 2030.
This is not intended to represent a ‘definition’ of resilience beyond the purposes of this exercise, and a core assumption of this analysis is necessarily that, aside from any implications of the scenarios being tested, including potential controllable mitigations such as capital or cost management that we might naturally expect to take in response, bp will deliver the assumed underlying strategic and financial priorities out to 2030.
Key insights from our scenario analysis and resilience test
As we stated in our Annual Report and Form 20-F 2025, oil priceb is likely to remain the main source of climate-related transition uncertainty for our strategy through to 2030. Even with the most extreme 1.5°C-consistent low oil price environment in any of the scenariosc over the period from 2027-30, in our analysis we were able to deliver across the three lenses we use to consider strategic resilience for TCFD purposes, described above.
While the results of any such analysis must be treated with caution, this resilience test reinforced our confidence in the continued resilience of our strategy to a wide range of ways in which the energy system could evolve throughout this decade, including in scenarios consistent with limiting temperature rise to 1.5°C.
| TCFD index table Our TCFD disclosures can be found on the following pages of the Annual Report 2025. |
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|---|---|---|
| TCFD recommendation | TCFD recommended disclosure | Where reported |
| Governance Disclose the organization’s governance around climate-related issues and opportunities. |
a Describe the board’s oversight of climate-related risks and opportunities. | Page 44 |
| b Describe management’s role in assessing and managing climate-related risks and opportunities. | Page 45 | |
| Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s business, strategy and financial planning where such information is material. |
a Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. | • TCFD Strategy a, page 46 • Pursuing a strategy that is consistent with the Paris goals, page 10 • Strategy, page 8 • Risk factors, page 67 |
| b Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. | • TCFD Strategy b, page 46 • Risk factors, page 67 – description of principal risks • Strategy, page 8 |
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| c Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | • TCFD Strategy c, page 49 • Strategy, page 8 • Pursuing a strategy that is consistent with the Paris goals, page 10 |
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| Risk management Disclose how the organization identifies, assesses and manages climate-related risks. |
a Describe the organization’s processes for identifying and assessing climate-related risks. | • Risk management, page 44 • How we manage risk, page 60 • Risk factors, page 67 |
| b Describe the organization’s processes for managing climate-related risks. | • Risk management, page 44 • How we manage risk, page 60 |
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| c Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. | • Risk management, page 44 • How we manage risk, page 60 • Risk factors – page 67 |
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| Metrics and targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. |
a Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | • TCFD metrics and targets, page 54 |
| b Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks. | • GHG emissions data, page 38 | |
| c Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. | • Our net zero aims and targets, pages 37-38 | |
Footnotes
a In considering the consistency of our disclosures with the TCFD Recommendations and Recommended Disclosures we have had regard to, among other things, the documents referred to in UKLR 6.6.8G and 6.6.9G, as applicable to the financial year 2025.
b Our multi-year (2027-30) oil price resilience test considered 2030 low oil prices consistent with the most extreme scenario in the Transition Scenario Catalogue – the IEA WEO 2024 Net Zero Emissions by 2050 (NZE) scenario at $42/bbl (2023 $ real – inflated in line with bp’s other planning assumptions). Intervening years are interpolated from 2025 average actual Brent oil price.
c Our 2025 analysis used data from our Transition Scenario Catalogue which is based on the WBCSD Climate Scenario Catalogue version 3.0, published on 16-05-2024 and downloaded on 13-11-2024, with updates made for scenario updates subsequently published by relevant underlying data providers – such as IEA, UN PRI and NGFS. For more details on this see page 54 of bp’s Annual Report and Form 20-F 2025.
