Governance report 2024

The governance report is published as part of the Annual Report and Accounts. You can download the full report or extracts from this page.

Introduction from the chair

Dear fellow shareholder,

The role of a board as custodian of the company’s assets has even greater significance in times of volatility, uncertainty and change. The unpredictable macro environment in 2024 offered both opportunities and challenges for global energy companies. Many of bp’s businesses performed well but there were also challenges in parts of the customers & products business. Overall, it was a year of reshaping the portfolio and laying the foundations for bp’s strategy reset in February 2025. The strategy we have set out provides clarity about direction and priorities, and the board will now focus its attention on overseeing strategic execution and performance management. 

Evolving governance framework 

The board’s corporate governance framework is a robust basis to challenge and guide the leadership team in good times, but also in the tougher times we have experienced. It has been instrumental in helping the board to navigate multiple, rigorous discussions and – ultimately – the decisions we took in 2024, culminating, more recently, in February’s strategy reset. 

Our governance framework is designed to be dynamic, flexible and robust. This meant that when the new UK Corporate Governance Code was published at the start of 2024, we could largely deploy our existing processes to plan for meeting its requirements, adding elements where appropriate while avoiding duplication and minimizing extra work. 

The terms of reference for the board and the board committees were updated in July, with further changes to the board and audit committee terms of reference in January 2025, reflecting the staggered timetable of the changes coming into force under the new code. Considering the new requirement for an internal control effectiveness statement, we intend to make this statement in 2027 in respect of our 2026 annual report, having sought appropriate external assurance. 

Meaningful engagement 

Every year, we seek to engage widely with you, our shareholders, but also with our own people, partners, advisers and governments. 

A highlight of 2024 was the board’s trip to India. This was an invaluable experience for the board in a strategically significant region for bp. We travelled to three cities, meeting partners, suppliers and the government – and bp’s teams working on lubricants, developing technical solutions and helping to run our operations safely.

The board also met many other teams across the world, through our bespoke workforce engagement programme. This is designed to allow our directors to meet our people directly, throughout bp.

Our 2024 workforce engagement agenda was aligned closely with the topics we discussed in reviewing and considering our strategic options at board meetings during the year. The views and feedback obtained played an important part in informing the board’s decisions. This programme of listening to and working with our people will continue through 2025 – especially during an ongoing transformation programme.

Progress on culture

The board places great importance in assessing and monitoring bp’s culture. Whenever necessary, it seeks the leadership team’s assurance that action will be taken should practices or behaviours not align with the company’s culture frame, which sets out ‘Who we are’. The board set up a temporary committee in 2023 to provide direct oversight on culture. It served bp well and its responsibilities have now been assumed by the people, culture and governance committee.

As chair of this committee, I am pleased with the start we have made in 2024 with the committee’s expanded scope on culture and, in particular, with a focus on psychological safety and speaking up. We will seek to make further progress on this area during 2025.

Board composition

The people, culture and governance committee is continuously working to identify potential candidates to join the board. The reset strategy bp announced in February 2025 provides the committee with a clear framework to identify new board members who will bring the additional skills and experience bp needs as it embarks on the next chapter.

Closing thanks 

I am grateful to my fellow board members for everything they have done this year – and everything they continue to do. On behalf of the board, I would also like to thank the leadership team and bp teams across the world for what they achieved in 2024, for their relentless focus on safety and their commitment to bp. And I will close by thanking you, fellow shareholders, for your support and your challenges. Your contributions improve the board’s decision making – and help to improve bp. 

Helge Lund

Chair