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BP Annual Report Disingenuous on Enviro Creds

|Includes: BP p.l.c. (BP)

 I've regularly purchased BP at attractive prices as better than average dividend payor and an early first adopter of alternative energy among the big diversified O&G companies. They've had solar panel manufacturing for a number of years now.

I was a little perturbed at the shenanigans of the former CEO and ongoing generosity to execs but chalked it up to giant egos that go with giant corporations.

The newly issued 2009 Annual Review (British version of Report) gives me pause on a couple fronts: 
1) In a self administered question on the role BP will play in the energy revolution, most of their efforts seem to be in maintaining O&G through making their own operations more efficient (duh) and developing more efficient biofuels (not eliminating or replacing them).

While $4B is substantial in many companies, it is just a drop in the bucket for BP for their entire Alternative Energy efforts but their biggest effort here are advanced biofuels. Next is one whole gigawatt of wind generation in the US.

Last is the piece-de-resistance: "In solar we are repositioning our manufacturing footprint to lower-cost locations, principally India and China". Notice how they used the words "lower" and "footprint" in the same sentence but not to the environment's benefit. They lowered their own costs by "repositioning" manufacturing to cheaper countries - I just don't get it, do you?

2) By page 3 of the Review we get to the critical issues of the corporate board: congratulating themselves. Of course, no proxy vote is complete without reminding shareholders that the executives must be "incentivized and rewarded appropriately" despite the fact that, in their lifetimes and that of several generations down, they will never be able to spend those rewards.

I need to read this Review in a little more detail before I make my decisions about my positions.


Disclosure: Long BP