Aug 25, 2006 -- Datamonitor

 

BP has introduced 'targetneutral', a CO2 emission reduction scheme in the UK by launching a website where drivers can calculate their CO2 emissions and make financial contributions towards renewable energy and carbon reduction projects. In contrast to the recent troubles in its US upstream business, targetneutral marks a demonstrable stride forward in BP's efforts to prove its green credentials.

On August 23, BP launched 'targetneutral', an audacious attempt to harness UK customers' apathy towards carbon emissions from vehicles into an environmental initiative to promote renewable energy.

BP hopes that drivers will voluntarily visit its targetneutral's website to calculate their annual CO2 vehicle emissions, which in turn will determine the cost of making the vehicle CO2 neutral.

The oil major will contribute money to the scheme for every liter of petrol targetneutral members buy. However the fuel has to be purchased at BP forecourts and a Nectar loyalty card must also be presented. BP will then invest the money in projects in the developing world that prevent or remove an equivalent amount of emissions from the atmosphere.

BP stresses that it makes no profit from the scheme and has funded the operational costs of the projects.

Although an environmentally conscious oil company may be an oxymoron, BP has lately been asserting its environmental credentials. For example, the majority of its refineries are certified according to ISO 14001 environmental management standards. Yet the recent Alaska pipeline fiasco and other accidents have surely dented its creditability and increased public skepticism.

The benefits of enhancing the BP brand and increased traffic at its forecourts cannot be discounted. BP has the largest forecourt volume share in the UK (16%), as well as significant European market penetration, should it choose to expand the scheme it is well positioned to become an industry leader in the nascent carbon emissions offsetting industry. Although other companies, such as British Airways and Land Rover have initiated carbon offsetting schemes, this is the first by a major energy company and one used by a substantial proportion of UK motorists.

The British energy giant is simply being proactive; as environmental awareness increases this is an excellent marketing opportunity to enhance its brand image and increase sales, while laying claim to being innovative and environmentally conscious.

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