Ethical Delimas Essay Example | Topics and Well Written Essays - 750 words

Ethical Delimas - Essay Example BP used its own business analysis about the production resources of its reserves worldwide and their depletion through â€Å"peak oil† theories, and determined that it would be innovative in investing current budgetary surplus and profits into future sectors and alternative energy. This can be seen as evidence of a 20 to 30 year future plan for the company aligned with socially progressive â€Å"Green† ideologies, yet rooted in the profit of the status quo and oil-dominated economies globally. Thus, the Green initiative of BP can be critically questioned as to its veracity of motive or construction as a marketing tool and brand, but few other companies globally have invested so much capital in Green technologies and clean, alternative energy sources. Evidence suggests that this is derived from the influence of socially progressive forces inside the publicly traded company as employees and management as the primary cause for the change in business model, though it is bas ed also in a stark view of the changes required in Western societies economically over the next twenty years. This can be seen in a lecture given by Dominic Emery of BP in London in March of 2011, where he shows how BP’s policy on renewable energy was developed out of its own research into global economic trends: â€Å"Renewables, including biofuels, are projected to account for 18% of the growth in energy to 2030 – compared to 5% of the growth since 1990 - and the rate at which renewables penetrate the global energy market is similar to the emergence of nuclear power in the 1970s and 1980s. The projected shift from higher to lower carbon energy is driven in large part by the anticipated trend of increasing policy support. So even in our base case – what we see as the most likely outcome - we see a change in the fuel mix that projects a strong future for renewables, gas and nuclear. Wind, solar, biofuels and other renewables all look set to grow their share in primary energy, from less than 2% now to over 6% by 2030. The same is true of nuclear and hydropower.The use of renewable energy will grow strongly – we believe at around 8.2% per year to 2030 which is almost four times the 2010 level by 2030.† (Emery, 2011) Focusing on cleantech and renewable energy is not simply a marketing ploy or lip-service for BP to mask its environmental destruction in oil drilling or the inordinate profits, salaries, and benefits of its executives & owners. Rather, BP has actually some of the most highly respected market analysts in the oil and gas industry looking at internal production numbers related to peak oil, and sees the development of cleantech in a society as proceeding at an accelerated rate over the next twenty years. In this business analysis, BP management decided to form a venture capital affiliate (AE Ventures) to invest profits from current operations in future business opportunities in cleantech. â€Å"AE Ventures is the strat egic corporate venture capital arm of BP Alternative Energy. The team is focusing on three investment activities: investing in highly innovative cleantech companies and funds; investing in next generation carbon offsets; incubating proprietary cleantech R&D. The team was set-up in 2006 and has since invested around $100m in 20 different cleantech and carbon ventures and funds. The aim is to invest a total of $150-200m by 2013.† (BP, 2011) An excellent example of this is the company’