Chief executive officer’s letter Dear fellow shareholders, Reimagining2020 In 2020 we set a new target of $25 billion of proceeds between the second half of 2020 and reinventing energy Our investor proposition will remain2025, of which we’ve completed or agreed transactions for over half of this target. This includes the agreed sale of a 20% interest in Oman’s Block 61 and proceeds from the divestments of our petrochemicals business and Alaska interests. We have a deep hopper of potential future divestment options. As we publishexecute this report, the world is In February,programme, we announced a new unchanged as we lay out new near-term working through extraordinarily difficult purpose for BP, and a major reorganization plans later this year. This includes our times. Countries around the globe are to deliver our new ambition to be a net commitment to growing sustainable free battling the coronavirus pandemic zero company by 2050 or sooner and help cash flow and returns to shareholders (COVID-19). People’s lives are being the world get to net zero. over the long term. hugely disrupted, with tragic The current market shocks only reaffirm We will continue to maintain a strong consequences for many. The financial the need for this reimagining of energy and financial frame, including a focus on markets are reflecting the disruption and reinvention of BP. Our current upstream- deleveraging our balance sheet and our sector is particularly hard hit, not just downstream structure has served us well staying within a disciplined frame for our by a virus-related shock to demand but by for over a century, but I believe we now capital expenditure. a supply-side shock as well. need a different model for the rapidly And now, more than ever, we will focus At BP, we are taking calm and deliberate changing demands of the future. We need on managing costs, pursuing efficiencies actions for the well-being of our people an agile, highly integrated structure that is and driving waste out of the system. and the health of your company. We do more focused than ever on our core so with a robust balance sheet, strong capabilities in operations, customers, low A force for good and competitive returns liquidity and the flexibility in our portfolio carbon and innovation. The leadership team This new decade is a pivotal time for BP. and financial framework that provide us is working with the board to develop this We will continue to be an energy business,focused on value. Capital expenditure Capital expenditure« for 2020 was $14 billion, around 28% lower than 2019. Organic capital expenditure« for 2020 was $12 billion, in line with options. structure, alongthe guidance given in April. Liquidity Finance debt was $72.7 billion and net debt« was $38.9 billion at the end of 2020. We are actively managing the profile of our debt portfolio. We issued perpetual hybrid bonds with a new strategyUS dollar equivalent value of $11.9 billion in June 2020, and butwe bought back an aggregate US dollar equivalent value of $8 billion of debt in the third quarter of 2020, January 2021 and March 2021. bp had around $44 billion of liquidity, consisting of cash and cash equivalents (net of restricted cash) plus undrawn revolving credit facilities committed credit and bank facilities, at the end of 2020. In April 2020 Moody’s reaffirmed BP p.l.c.’s A1 credit rating and revised its outlook from stable to negative. The short-term P-1 rating was also reaffirmed. In January 2021 S&P revised its outlook on BP p.l.c. from stable to negative and affirmed BP p.l.c.’s long- and short-term corporate credit rating of A-/A-2. From January 2021, Fitch Ratings has provided a very different kindsolicited long-term corporate credit rating to BP p.l.c. of energy business near-term targets, which we intend to in years to come. We may not get A resilient company share with you in September 2020. everything right along the waystable outlook. In February 2021, Fitch Ratings assigned BP p.l.c. a short-term corporate credit rating of F1. bp’s financial performance, including cash flows and net debt, has been and will This resiliencecontinue to be impacted by the extent and duration of the current market conditions and the effectiveness of the actions that it and others take, including its financial interventions. It is a tributedifficult to Bob Dudley’s need to listenpredict when current supply and learn from others, not leadership overdemand imbalances will be resolved and what the past decade. I see huge opportunityultimate impact of COVID-19 will be. See page 22 for BP given our least you, our owners. Following the Deepwater Horizon distinctive combination of reach, accident, Bob’s steady hand has guided resources and relationships. The world will But with your continued support we BP through recovery and back to growth need to invest trillions of dollars in new expect to become leaner, faster-moving, as a safer, stronger and more disciplined energies over the next several decades. lower carbon – and more valuable. company – one that has deliveredinformation on capital allocation. We have addressed our response to COVID-19 in further detail throughout this report: See page 63 Our stakeholders. See page 64 How we manage risk. See page 67 Risk factors. See page 87 Workforce engagement. 1 Protecting our people Our first priority is the skillsafety and health of our people. Our people involved in, or supporting, critical operations continued at their normal workplace during the willpandemic and we put additional processes in place to help the Our destination is a thriving, sustainable consistentlyprotect them. These included operating robust protocols for 12 consecutive quarters world deliver a rapid energy transition. energy business in a net zero world. One on the planhealth and pre-mobilization checks, PPE, travel and workplace access, social distancing and isolation. Employees who were able to work from home were asked not to come into their workplace and we put forwardbusiness travel restrictions in 2017. Performing while transforming that isplace. Many office-based workers continue to work from home at the time of publication and are likely to do so for the foreseeable future as ways of working change. We liaised closely with industry peers and other organizations to regularly test our approach on specific safety issues. And we created a motivatingglobal COVID-19 OneMap, providing our businesses with current local COVID-19 risk profiles including rates of infection, vaccines rates and inspiring placeprocurement. 2 Supporting communities Providing essential support for the communities where our people live and our businesses operate was a priority throughout our response to •COVID-19. We made an underlying profitoffered support to governments and partners, using our expertise and resources to support the relief effort. The bp Foundation donated $2 million to the World Health Organization’s COVID-19 Solidarity Response Fund, which supports medical professionals and patients worldwide by providing critical aid and supplies. The fund also helps track and understand the spread of This may beCOVID-19 and supports efforts to develop tests, treatments and vaccines. 3 Strengthening our most wide-ranging workfinances The economic consequences of COVID-19 for the world remain uncertain at the time of publication. In response to this uncertainty, we took deliberate steps to strengthen our employees. That is wanted $10finances – reinforcing liquidity, rapidly reducing spending and costs, driving our cash balance point lower. Divestment programme We delivered our plans for $15 billion of announced divestments, which commenced at the start of 2019, in 2019. reorganization forJune 2020 – a year earlier than expected. In 2020 we supplied more than 10 million litres of free fuel to emergency service vehicles across the UK. We ran programmes during 2020 and 2021 offering free fuel to UK emergency vehicles – including police, fire, blood transportation, emergency NHS ambulances and NHS Trust non-emergency vehicles. Under the programmes, emergency services vehicles issued with either a century, but as well as needed by society. And one • Operating cash flow was strongbp Plus or Allstar fuel card could fill up without charge at I want to assure youbp’s network of our commitment that is valued by you, our shareholders, as $26 billion1,200 retail sites across the UK, including charging of electric vehicles through bp pulse. Supplying free fuel for the year. to perform as we transform. Among many a force for good as well as a provider of • That gave us the confidence to increase significant changes, however, there will be competitive returns. our dividend, which currently stands at no change to the fundamental principles 10.5c per ordinary share. that have served us well over the last decade and which apply equally in low During 2019, two colleagues sadly lost price environments as well as high. their lives while working at BP. My heart goes out to their families and friends. We Above all, our commitment to safe and must learn from these tragedies and reliable operations remains unchanged. Bernard Looney continue to make BP safer. I believe that Safety will always be a BP core value and Chief executive officer we can build on progress that last year we believe that the new structure we are 18 March 2020 saw our lowest-ever figure for BP people introducing will further strengthen our getting hurt at work (our recordable injury safety performance. frequency measure). Profit attributable to BP shareholders $4.0bn Nearest GAAP equivalent to underlying profit. 4 BPemergency services vehicles

Strategic report This is supported by 10 aims, which when taken collectively, setnet zero too. Together, we believe this sets out a path that we believe is consistent with the Paris goals. Five aimsThere are many different ways in which a company at the heart of the energy sector can make a meaningful contribution – including action on greenhouse gas emissions (GHG) measured by emissions metrics like Scope 1, 2 and 3. Paris consistency also includes consideration of a range of other activities, such as technology development, policy advocacy, low carbon collaboration and investments in low carbon. Our strategy seeks to get BP to net zero Aim 1 is toaddress all of these by reshaping bp’s business around our three focus areas and three sources of differentiation, see page 15. Some ways of contributing are more readily measured by quantitative metrics than others – but all can be net zero Aim 2 is to be net zero on Aim 3 is to cutimportant, whether or not they translate into GHG reductions for the company. To illustrate this, in terms of low carbon Aim 4 is to install methane Aim 5 isinvestment, by 2030 we aim to increase the acrossamount of renewable energy generating capacity we have developed to 50GW, as part of our entire operations an absolute basis across intensity of the products measurement at all our proportion of investmentincreased capital expenditure on an absolute basis by thelow carbon in our upstream we sell by 50% by 2050 or existing major oil and gas we make into our non-oil 2050 or sooner.businesses. This aim oil and gas productionsupports the Paris goals by sooner. Thisincreasing the low carbon options available to energy consumers. However, it does not reduce our Scope 1, 2 or 3 emissions. And it may not result in a decrease in the overall intensity of bp’s marketed products, because that is dependent on the extent to which we market the resulting renewable power, which is a lifecycle processing sitescommercial consideration. Additionally, our strategy is underpinned by 2023, and gas businesses. Over relates to Scope 1 and 2 GHG 2050 or sooner. Thisour aim carbon intensity approach, publish the data, and then time, as investment goes up emissions. relates to Scope 3 emissions, per unit of energy. It covers drive a 50% reduction in in low and no carbon, we see and is on a BP equity share marketing sales of energy methane intensity of our it going down in oil and gas. For more on our basis excluding Rosneft. products and potentially, in operations. And we will work operational emissions, future, certain other products to influence our joint ventures see Sustainability, See Sustainability, e.g. associated with land to set their own methane page 40. page 40. carbon projects. intensity targets of 0.2%. See Sustainability, See Modernizing the page 40. whole group, page 31. Five aims to help the world get to net zero Aim 6 is to more actively Aim 7 is to incentivize our Aim 8 is to set new Aim 9 is to be recognized Aim 10 is to launch a new advocate for policies that global workforce to deliver expectations for our as an industry leader for team to create integrated support net zero, including on our aims and mobilize relationships with trade the transparency of our clean energy and mobility carbon pricing. Helping policy makers to design and put in place low carbon policies can help deliver our strategy and take advantage of the huge opportunities associated with achieving the Paris goals. Well-designed low carbon policies can advance the decarbonization of a whole economy – something potentially of far greater impact than anything a single company can achieve through its own portfolio. 3. Strategic resilience – a Paris-consistent strategy should position the company 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. We will thembelieve this means having a strategy that’s flexible enough to become advocates associations aroundmanage the reporting. On 12 February solutions. The team will stop corporate reputation for net zero. This will include globe.inherent uncertainty in the range of potential global pathways, including those that can achieve the Paris goals. Our new strategy is designed to provide this flexibility. In setting the strategy, the board and management referred to the range of scenarios set out in the bp Energy Outlook 2020, see page 11. We will makesee huge opportunity in the 2020,energy transition, including the Outlook’s ‘Rapid’ and ‘Net Zero’ scenarios, which we declared our support help countries, cities and advertising campaigns and increasing the percentage case for our views onbelieve are two of many possible Paris-consistent pathways for the recommendations of corporations aroundworld. Our strategy also mitigates the re-direct resources to promote of remuneration linked to climate change within the the Task Force on Climate- world decarbonize. well-designed climate policies. emissions reductions for associations we belong to and related Financial Disclosures In future, any corporate leadership and around we will be transparent where (TCFD). We intend to work advertising will be to push 37,000 employees. we differ. And where we can’t constructivelyrisks associated with the TCFD for progressive climate policy; reach alignment, we will be and others –a scenario such as the See Directors’ communicateOutlook’s ‘Delayed and Disorderly’ transition. As a result, our net zero preparedstrategy is designed to leave. Sustainability Accounting remuneration report, ambition; invite ideas; or build Standards Board – to develop page 100. See Sustainability, collaboration. We will continue good practices and standards page 49 and bp.com/ to run recruitment campaigns for transparency. tradeassociations. and advertise our products, See Sustainability, services and partnerships – page 44. although we aim for these to increasingly be low carbon. See bp.com/sustainability. BP Annual Report and Form 20-F 2019 7

Strategic report Scale Performance Advancing low carbon Weresilient across scenarios, including those that are an integrated energy business. We Our 2019 performance has helped us We are committed to advancing a low carbon have operations in Europe, North and South deliver for our shareholders and other future. We will aim to dramatically reduce America, Australasia, Asia and Africa. stakeholders, including energy carbon in our operations and in our production, consumers worldwide. and grow new lower carbon businesses, products and services. 70,100 98 >20 employees tier 1 and 2 process safety events years in renewable businesses (2018 73,000) (2018 72) KPI 79 $4.0bn >$500m countries profit attributable to BP shareholders invested in low carbon activities in 2019 (2018 78) (2018 $9.4bn) 19,341 $10.0bn >7,50 0 million barrels of oil equivalent – underlying RC profit BP Chargemaster charging points in the UK group proved hydrocarbon reservesa (2018 $12.7bn) KPI (2018 19,945mmboe) 18,900 94.9% 13 retail sites downstream refining availability countries where Lightsource BP (2018 18,700) (2018 95.0%) KPIParis consistent, but is active 3.8 million barrels of oil equivalent per day – group hydrocarbon productiona (2018 3.7mmboe/d) a On a combined basis of subsidiaries and equity-accounted entities. KPI See key performance indicators on page 32. BP Annual Report and Form 20-F 2019 9

Global context Many forces and trends are fundamentally changing the business environment, creating uncertainties and influencing the way we operate. We monitor these trends closely and explore the forces shaping the global energy transition. Megatrends BP Energy Outlook 2019 The exact pace and nature of the Our Outlook explores the forces shaping the Scenarios energy transition is unclear, but it global energy transition out to 2040 and the • Evolving transition: assumes that government is clear that the market for our key uncertainties surrounding it. The 2019 policies, technology and social preferences products is changing. Megatrends Outlook considers a range of scenarios. They continue to evolve in a manner and speed seen affecting our industry include: have some common features, such as ongoing over the recent past. • Rapid transition: envisages a more rapid economic growth and a shiftweighted towards a lower Growing global concern over transition to a lower carbon energy system, carbon fuel mix, but differ in terms of policy, climate change through a reduction in emissions stemming from technology and behavioural assumptions. greater energy efficiency, fuel switching and use Rapidly advancing digital of carbon capture, use and storage (CCUS). technology, affecting all For more information see bp.com/energyoutlook. aspects of economic activity The BP Energy Outlook 2020 will be published Increasing prosperity in the later in the year. emerging world driving Global carbon emissions economic growth (GtCO2) Changing societal expectations 50 of corporations 45 Shifting geopolitical trends as 40 trade, economies and 35 relationships change over time 30 25 Growing global concern over 20 climate change is a key driving 15 force among these trends. The 10 way the world responds to this, 5 and the resulting impact on the energy sector, is the most 0 1970 1980 1990 2000 2010 2020 2030 2040 significant uncertainty we face. Evolving transition Rapid transition Source: BP Energy Outlook 2019 10 BP Annual Report and Form 20-F 2019

Strategic report The transition envisaged in the 2019 Outlook The world economy continues to grow, Demand for energy is set to But carbon emissions need to fall sharply driven by increasing prosperity grow significantly • There is a growing commitment around • The global population grows by 1.7 billion, • Global energy demand increases by about the world to move to a pathway consistent reaching close to 9.2 billion people in 2040. 20-35% by 2040 in the different scenarios. with meeting the climate goals of the • The global economy more than doubles over • The vast majority of demand growth comes Paris Agreementa. the next 25 years, with twice as much from developing economies to support their • To help achieve this, the world needs to economic activity in 2040 than we see today. industry and infrastructure and allow living transition to a lower carbon energy system. • The emergence of a large and growing standards to keep improving. middle class, particularly in emerging Asia, is an increasingly important force shaping growth and energy trends. The key dimensions of the energy transition To meet the Paris goals, we believe the world must take strong action on a range of fronts. The pace at which the transition can be achieved and the precise mix of elements Improving energy efficiency, to Switching to lower or zero carbon liquid is uncertain. decouple energy demand growth and gaseous fuels, particularly in areas There are many possible pathways to meeting from growing prosperity. such as heavy transport. the Paris goals and we use different scenarios Rapid growth in renewable energy and Deploying carbon-removal technologies, to explore this uncertainty. When we evaluate other low or zero carbon energy sources. such as CCUS, at scale. therapid transition. Reinventing bp – consistency of our new material capex investments with the Paris goals we Increasing the share of electricity in Promoting natural climate solutions, consider a range of different possible final energy use and decarbonizing including the management and restoration pathways and scenarios, see page 21. power generation. of habitats, and the role of carbon credits. a Paris Agreement: (1)Agreement 1 Article 2.1(a) of the Paris Agreement states the goal of ‘Holding‘Holding the increase in the global average temperature to well below 2°2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change.’ (2)change’. 2 Article 4.1 of the Paris Agreement: In order to achieve the long-term temperature goal set out in Article 2, parties aim to reach global peaking of greenhouse gas emissions as soon as possible, recognizing that peaking will take longer for developing country parties, and to undertake rapid reductions thereafter in accordance with best available science, so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century, on the basis of equity, and in the context of sustainable development and efforts to eradicate poverty. BP

the board recommended that shareholders support a special resolution requisitioned by Climate Action 100+ (CA100+) on climate change disclosures. The changing energy mix Increased demandCA100+ resolution passed with more than 99% of the vote. This is the second year we have included responses throughout the annual report. We have adopted a similar approach to the bp Annual Report and Form 20-F 2019. The CA100+ resolution, which includes safeguards such as protections for energycommercially confidential and competitively sensitive information, is likelyon page 341. Key terms related to this resolution response are indicated with « and defined in the glossary on page 341. These should be reviewed with the following information. Element of the CA100+ resolution Related content Where Strategy that the board considers in good faith to be Primary energy consumption by fuel metconsistent with the Paris goals. Our strategy Pursuing a strategy that is consistent with the Paris goals 15 26 How bp evaluates each new material capex investment« for consistency with the Paris goals and other outcomes relevant to bp strategy. Our investment process 29 Disclosure of bp’s principal metrics and relevant targets or goals over the coming decades throughshort, medium and long term, consistent with the Paris goals. Key performance indicators Sustainability: net zero targets and aims See ‘TCFD metrics and targets’ for an overview 39 49 55 Anticipated levels of investment in: (i) Oil and gas resources and reserves. (ii) Other energy sources and technologies. Our financial frame 22 bp’s targets to promote operational GHG reductions. Sustainability: net zero targets and aims 49 Estimated carbon intensity of bp’s energy products and progress over time. Sustainability: aim 3 50 Any linkage between above targets and executive pay remuneration. Directors’ remuneration report 2020 annual bonus outcome 2021 remuneration policy on page 103 110 124 Portfolio resilience We are managing our portfolio to be resilient to the uncertainties surrounding the energy transition. By 2030 we expect to have a Exajoules (EJ) diverse range of supplies including renewable 85% energy,smaller, more resilient and focused oil and natural gas. 800 2040gas portfolio. This is supported by our evaluation of primary energyeach new material capex investment for Paris consistency and our long-term price assumptions, which were reviewed in June 2020. We lowered our price assumptions and extended them to 2050 so that they are now consistent with our long-term time planning horizon, see page 28. We are building a portfolio that is more robust in a low carbon world. We believe that the diversification of our portfolio and decarbonizing our hydrocarbons business will make bp more resilient to Paris-consistent pathways. And this will allow us to continue to redeploy capital to support our strategy to become an Integrated Energy Company – aiming to deploy an appropriate mix of cash flow from hydrocarbons and capital released by divestments into ambitious plans for growth is from renewables and The energy mix is shifting as the transition to a 700 natural gas in our ‘evolving lowerlow carbon, convenience and mobility businesses, see page 18. Scale and reach Our global footprint and interests in multiple sources of energy system continues,provide resilience through exposure to different price environments, and our presence in over 70 countries enables access to new markets. Our track record of creating mutually beneficial strategic partnerships helps our resilience, and we are building new and deeper relationships with transition’ scenario renewablegovernments, cities and corporate customers at a scale that we believe is difficult for others to replicate. Our presence across the energy value chain and natural gas gainingour ability to provide integrated energy solutions for our customers position us to succeed in 600 importance relativea Paris-consistent world. Targets and aims Our strategy is supported by clear business plans, underpinned by specific short, medium and long-term targets and aims for 2025, 2030 and 2050 or sooner, including: Aiming to be net zero across our entire operations (Scopes 1 and 2). Aiming for the carbon in our upstream oil and coal. 500 Scenarios • Evolving transition:gas production (Scope 3) to be net zero. Aiming to cut the life cycle carbon intensity of our marketed products by 50% (which includes the associated Scope 3 emissions). From a 2019 baseline, we aim to increase our annual low carbon investment ten-fold to around $5 billion a year, building out an integrated portfolio of low carbon technologies, including renewables, bioenergy and natural 400 gas account for almost 85% of the growthearly positions in 300 primary energy by 2040, with their importance increasing relative to all other 200 sources of energy. • Rapid transition: renewable energy grows 100 rapidly, accounting for more than the entire increase in primary energy by 2040 –hydrogen and a 0 2017 Evolving Rapid sharp contraction in the use of coal. The transition transition level of oil consumption falls, but gas Renew* Nuclear Gas continues to grow aided by increasing use Hydro Coal Oil of carbon capture, use and storage (CCUS). * Renewables includes wind, solar, geothermal, biomass and biofuels Source: BP Energy Outlook 2019 What this means forOver the same period, our oil and gas The BP Energy Outlook 2019 considers a range Demand and supplyproduction is expected to reduce by at least 1 million barrels of oil of scenarios for oil demand, with the timing of (Mb/d) the peak in demand varyingequivalent a day, or 40%, from the next few 140 years to beyond 2040. Despite these differences, the scenarios 120 share two common features. First, they each suggest that oil will continue to play a 100 significant role in the global energy system in 2040, with the level of oil demand in 2040 80 ranging from around 80Mb/d to 100Mb/d. Second, significant levels of investment are 60 required for there to be sufficient supplies of oil to meet demand in 2040. 40 Similarly there is a wide range of uncertainty 20 in relation to the role of gas in the energy mix even in scenarios that achieve the Paris goals, 0 with different organizations using significantly 1970 1980 1990 2000 2010 2020 2030 2040 different assumptions. Those with a higher Evolving transition �Supply with no investments in new fields proportion of CCUS see a higher demand for Rapid transition gas, and in the outlook’s ‘rapid transition’ scenario, close to a third of natural gas in Source: BP Energy Outlook 2019 2040 is being used in conjunction with CCUS. 12 BPlevels.

Strategic report Achieving the Paris goals – a multitude of pathways There are many different pathways to Global carbon emissions from energy use achieve the Paris goals, with substantial (GtCO2) variation in the implied energy mix. 40 The Intergovernmental Panel on Climate Change (IPCC) is the United Nations’ body 30 for assessing the science related to climate change. It is the leading source of data that 20 summarises the potential pathways to achieve the Paris goals. The IPCC compiles a database of the published results on 10 mitigation pathways from modelling teams around the world. 0 The chart shows a range of modelled pathways for carbon emissions from energy -10 and industrial use, collected by the IPCC, that meet the long-term temperature goals -20 in the Paris Agreement, together with the 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 paths associated with two of BP’s own scenarios. The ‘rapid transition’ scenario Range of scenarios collected by the IPCC which Energy Outlook ‘evolving transition’ meet the long-term temperature goals of the IEA SDS clearly sits well within the range. Also Paris Agreement Energy Outlook ‘rapid transition’ highlighted is the ‘Sustainable Development Source: Integrated Assessment Modeling Consortium (IAMC) 1.5°C Scenario Explorer and Data hosted Scenario’ from the International Energy by International Institute for Applied Systems Analysis (IIASA), release 2.0. Scenario data has Agency (IEA SDS), which is often cited been rebased to common starting point that matches the BP Energy Outlook history for 2015. as a reference case for a scenario that is consistent with meeting the Paris goals. Global energy markets in 2019 The world economy grew at 2.4% in 2019, Oil Natural gas reflecting slower growth in both advanced and • Dated Brent crude oil prices averaged • Gas spot prices dropped in all three emerging economies, amid weakening trade $64 per barrel in 2019 – a 9% decrease key regional markets in 2019. and investment. This was below the average from 2018 levels but almost 30% above • Global consumptionc growth slowed of around 3% seen over the past 10 years. the 2015-17 average. down in 2019 compared with the Growth in advanced economies was 1.6% in • Global consumptionb increased by exceptional growth in 2018, driven by 2019 while in emerging markets was 3.5%a. 0.9 million barrels per day (mmb/d) to slower growth in both the US and China. 100.1mmb/d for the year (0.9%) – a • Total gas production growth slowed slowdown from growth rates seen in the down in 2019, with the exception of the 2020 volatility prior two years as trade tensions slowed US. Meanwhile, LNG trade increased There has been considerable market global macroeconomic growth. significantly during 2019. volatility in the first quarter, compounded • Global oil production remained flat at by the coronavirus (COVID-19). We 100.5mmb/d, with growth from non-OPEC expect the outlook for the year to remain countries offsetting supply restraint and For more information on prices and margins challenging, see pages 52 and 57. disruptions in OPEC countries. see pages 52 and 58. a World Bank Global Economic Prospects, January 2020. b IEA Oil Market Report, February 2020©. c JODI-Gas World Database, and IHS Markit: China Natural Gas Data Tables: February 2020 for China. BP Annual Report and Form 20-F 2019 13

Strategic report Pursuing a strategy that is and advocating for progressive climate policies 2. We believe that our strategy positions BP to consistent with the Paris goals to advance a low carbon future in support of the remain an attractive investment for current Paris goals. and prospective shareholders throughout the In February 2020 we set out our ambition to be energy transition, including in a world that is In 2019 examples included: a net zero company by 2050 or sooner and to meeting the Paris goals. Our strong and help the world get to net zero. This is supported • Launching a review of our climate-related trade disciplined financial framework supports the by 10 aims which, when taken collectively, set association memberships – read more on page 49. delivery of our strategy. This provides us with out a path that we believe is consistent with the Our aim going forward is to set new expectations a strong platform to deliver our purpose to Paris goals, see page 7. One specific aim relates for trade associations around the globe. reimagine energy, and work towards our new to increasing the proportion of investment in • Establishing a collaboration with DiDi to begin net zero ambition and aims. our non-oil and gas business. Over time, as building an electric-vehicle charging network in China. investment in low or no carbon activity increases, For more information on our investor • Beginning the roll out of ultra-fast chargers across we see investment in oil and gas going down. proposition and financial framework, see BP forecourts in the UK and piloting ultra-fast page 18. Since 2017, when BP reset its five-year strategy, charging at Aral forecourts in Germany, bringing we have pursued a way forward that is flexible charging time closer to the time taken to fill a tank. The role of the board and adaptable to a range of energy and market • Increasing our stake in Lightsource BP to create a The board is responsible for setting the strategy scenarios. These different scenarios are based on 50:50 joint venture. and has oversight of the overall conduct of the a range of assumptions about policy, technology • Expanding our biofuels business in Brazil by more group’s business. During 2019, the board and consumer behaviour, and supply and demand than 50% through a joint venture with Bunge to considered BP’s strategy at every board meeting. changes. We do not know what path the energy create BP Bunge Bioenergia. This took into account the wider operating transition will take, so BP’s strategy is intended to • Installing continuous methane measurement at our environment and discussed strategic themes be effective under a range of scenarios, and not a Khazzan central processing facility in Oman to help relating to BP’s purpose, including in relation to single, deterministic view of the future – in short, quickly identify new leaks and reduce time taken the segments and key functions. The impact of responsive to uncertainty. to respond. the lower carbon energy transition on the group’s • Supporting well-designed carbon pricing, such as business model was also reviewed and discussed We believe that our current strategy is consistent the Washington State cap-and-invest bill. We aim throughout 2019. As a result, the board considers with the Paris goals. This consistency has, at its to advocate more actively for policies that support that the strategy allows us to be flexible to adapt core, two key parts. And these remain relevant as net zero, including carbon pricing. to market changes and scenarios to remain we work towards our net zero ambition and aims. consistent with the Paris goals. For more information on our strategy in action, 1. We are striving to play our part in meeting the see pages 24-31. For more information on the role of the board world’s energy needs in reliable, affordable and in relation to climate governance, see page 42. lower carbon; and we intend to achieve this For the board’s activity in relation to strategy, through collaboration, technology, innovation see Corporate governance on page 84. Measuring our progress Our group-wide principal metrics and relevant targets/goals The CA100+ resolution requires us to disclose the company’s principal metrics and relevant RIC framework Reduce • Zero net growth in operational emissions out to 2025. targets or goals consistent with the Paris goals. Sustainability, page 40. • 3.5Mte sustainable emissions reductions by 2025. We consider this to cover the principal metrics • 0.2% methane intensity. used at group level to help monitor progress on delivery of our strategic consistency with Create the Paris goals – including our near-term • $500 million invested in low carbon activities annually. RIC framework. (>$500 million in 2019). • Collaborate and invest in OGCI’s $1bn+ fund for A number of these metrics and targets are research and technology. relevant to the recommendations of the Task Force on Climate-related Financial Investment process (RCM) • Profitability index. • Average operational carbon intensity. Disclosures (TCFD). Our investment process, page 22. Going forward, we are considering metrics to Greenhouse gas emissions • Scope 1 and 2 emissions. support our ambition to be a net zero company • Emissions from the carbon in our upstream oil and Sustainability, page 40. by 2050 or sooner, and to help the world get to gas production. net zero. We plan to provide more information • For further GHG metrics see bp.com/ESGdata. on our future strategy and near-term plans at our capital markets day in September 2020. Carbon intensity • Average emissions intensity of marketed energy products. • Ratio of Scope 1 and 2 emissions: gross production. For more information on the TCFD, see page 42. Sustainability, page 40. Remuneration • 2020 annual bonus scorecard target related to sustainable emissions reductions. Directors’ remuneration report, page 100. BP Annual Report and Form 20-F 2019 17

Strategic report Our investment process BP’sprice assumptions All investments fall within a governance framework. This seeks to ensure investments align with Price assumptions Resource commitment meeting our strategy, fall within our prevailing financial Investments are evaluated against our long-term price assumptions across a range For capital investments above defined financial framework, and add shareholder value. The of alternative prices (central, upper and lower) thresholds for organic or inorganic spend, the governance framework also provides for for oil, natural gas and refining margins and carbonmargins. In addition, all investment approval is conducted by the investments to be assessed consistently prices. These price ranges do not link to executive-level resource commitment meeting and against a range of other outcomes specific scenarios or outcomes, but instead (RCM), which is chaired by the chief executive relevant to our strategy, including a range try to capture the range of different officer. The RCM reviews the merits of each of environmental and sustainability factors. possibilities surrounding the future path of such investment case against a balanced set Investments follow an integrated stage gate the global energy system. The price ranges of criteria and considers any key issues raised process designed to enable us to choose refer to the long-run level of prices over the in the assurance process. and develop the most attractive investment next 20 years. The nature of the uncertainty The CA100+ resolution requires BP to disclose cases. A balanced set of investment criteria means that these price ranges inevitably how we evaluate the consistency of new are used, see page 20. This allowscases above defined thresholds for the reflect considerable judgement. The ranges material capex investments with (i) the Paris comparison and prioritization of investments are reviewed and updated on ananticipated annual basis goals and (ii) a range of other outcomes across an increasingly diverse range of as our understanding and judgement about relevant to BP’s strategy. BP’s evaluation of business models. the energy transition evolves. consistency of such investments with the Paris The governance framework also specifies Range of prices goals was undertaken by the RCM in 2019. that investments are tested against a range Henry of carbon prices for projected operational Brenta Huba RMMb The role of the boardgreenhouse gas (GHG) emissions from operations must estimate those anticipated GHG emissions and subject to assurance by ($/bbl) ($/mmBtu) ($/bbl) The board assesses the impact of portfolio functions independent of the business before Upper case 90 5.0 17 changes, such as strategic acquisitions and a final investment decision (FID) is taken. Central case 70 4.0 14 the allocation of capital. They also consider For more information on BP’s governance Lower case 50 2.0 11 specific investment cases deemed sufficiently framework, see page 83. material to warrant their attention, which have Carbon prices been approved by the RCM. ($/tonnea) For more information on climate governance, Upper case 80 see page 42. Central case 40 Lower case 0 a 2015 $ real. b Nominal. BP Annual Report and Form 20-F 2019 19

Balanced investment criteria For the purposes of evaluating consistency with a range of other outcomes relevant to BP’s strategy, all group-wide investment cases are required to set outinclude an associated carbon price into the investment Investment merits in a standard format against a set of economics balanced criteria. Investments are considered against a range Safety Cash flow and risks certainty of prices (upper, central and lower).economics. All three price assumptions place some weight on scenarios in which the transition to a low Investment carbon energy system is sufficiently rapid criteria to meet the goals of the Paris Agreement, Capability as well as scenarios in which the transition Optionality and scale is not, or may not be, sufficiently rapid. They also place some weight on a range Environment of other factors, which can drive prices, and and are not related to the goals of the sustainability Paris Agreement. These price ranges do not link to specific scenarios or outcomes, but instead try to capture the range of different possibilities surrounding the future path of the global energy system. The nature of the uncertainty means that these price ranges inevitably reflect considerable judgement. The ranges are reviewed and updated on an annual basis as our understanding and judgement about the energy transition evolves. In addition to consideration of a range of price assumptions, investment cases are asked to present scenarios covering a range of variables, related to the economics of the investment, such as cost, resource, policy Environment and sustainability Investment economics changes and schedule, to highlight the All investment cases are considered We consider investment economics against robustness of investment cases to a range of other factors. Revising long-term price assumptions Our price assumptions are determined for use in our investment appraisal processes. They are also used to inform decisions about internal planning processes and the impairment testing of assets for financial reporting. What the prices are As part of our strategy development we reviewed our portfolio and capital development plans. That work was informed by bp’s views of the long-term price environment and its balanced investment criteria. Together these create a framework that seeks to ensure investments align with our strategy and add shareholder value. Additionally, with the COVID-19 pandemic continuing throughout 2020, we see it having an enduring impact on the global economy, with demand for energy weaker than expected for a sustained period. We attach increasing weight to the possibility that the aftermath of COVID-19 will accelerate the pace of transition to a lower carbon economy and energy system, as countries seek to ‘build back better’ so their economies are more resilient and sustainable. As a result of all the above, we revised down our long-term price assumptions, and also extended them to 2050 to align with the horizon of our ambition. The next few years will likely see periods of market volatility as demand recovers against a backdrop of reduced levels of investment and we believe we are well positioned to benefit from any near-term increase in oil prices. The role of long-term price assumptions is to look through this near-term volatility and help ensure our future projects are resilient to the longer-term trends affecting our industry. Our revised investment appraisal long-term price assumptions are now an average of around $55/bbl for Brent« and $2.90 per mmBtu for Henry Hub« gas (2020 $ real), from 2021- 2050. We consider these lower long-term price assumptions to be broadly in line with a range of transition paths consistent with the Paris goals. However, they do not correspond to any specific Paris-consistent scenario. We also revised our carbon prices for the period to 2050, and these now include a price of $100/teCO2 in 2030 (2020 $ real). Key investment appraisal assumptions 2021 2025 2030 2040 2050 Brent oil ($/bbl) 50 50 60 60 50 Henry Hub gas ($/mmBtu) 3.00 3.00 3.00 3.00 2.75 RMM« 10 12 12 10 10 Carbon price (US$/tCO2e) 2021 2025 2030 2040 2050 Central case real (2020) 50 50 100 200 250 Impairment testing As a result of the revision of long-term price assumptions used for investment appraisal, we also revised the price assumptions we use in value in-use impairment testing. These two price sets are now aligned. See pages 166-167 for more about oil and natural gas price assumptions used for impairment testing and relating sensitivity testing. Our investment process Price assumptions Reinventing bp – our investment process

Strategic report Evaluating new material capex investments for consistency with the Paris goals2020 Evaluation process When evaluating the consistency of our 2019 The 2019 evaluation was done in the context These price assumptions do not2020 new material capex investmentsinvestments« with the of a ‘sustained low-price environment’, which correspond to a single specific ‘Paris- Paris goals, a focus of the evaluation criteria assumes the lower price case for oil ($50/bbla), consistent’ scenario, but instead place was on their competitiveness and financial natural gas ($2/mmBtua) and refining margins weight on a range of possibilities for how robustness as the prices of different forms of ($11/bbl (nominal)) together with the higher the demand for different forms of energy a energy and products adjust in response to the carbon price ($80/teCO2 ). may change in Paris-consistent pathways changing market environment. For new material capex investment decisions taken from September 2020, the evaluation used our revised central price assumptions of around $55/bbl for Brent« and how this may affect future energy pricesb. Sustained low-price environment Oil$2.90 per mmBtu for Henry Hub« gas (2020 $ real), from 2021-2050. It also used our revised central carbon price (Brent): In many ‘Paris-consistent’ scenarios, global oil demand peaks within the next five years or so and falls a between 15-35% by 2040. Such a fall in demand, combined with the abundance of oil resources, would be $50/bbl expected to lead to an increasingly competitive market for oil. But the extent to which these competitive forces feed through into a sustained reduction in global oil prices is expected to be tempered by the dependence of many oil-producing economies on oil revenues to support their wider economies. For example, the IMF estimate that the fiscal break-even prices of the major Middle East and North African oil exporters is close to $80c. We consider that the pace at which the major oil producing economies are able to diversify their economies and so reduce the fiscally sustainable price at which they can produce oil is likely to limit the extent to which oil prices can fall on a sustained basis over the next 20 yearsd. US natural gas price (Henry Hub): The price of US gas (Henry Hub) is used as the main price for evaluating gas-based investments, either a directly for US-based projects or indirectly (via netback pricing relationships) for gas-based projects in other $2/mmBtu parts of the world. The outlook for natural gas in ‘Paris-consistent’ scenarios is more varied across different scenarios: some point to global gas consumption increasing or remaining broadly flat over the next 20 years; others point to gas demand peaking within the next five years and declining by 20-30% by 2040. These differences stem in part from the extent to which natural gas is assumed to be used in conjunction with carbon capture, use and storage (CCUS) projects, either in the power and industrial sectors directly, or to produce decarbonized gas (in the form of ‘blue’ hydrogen). US natural gas prices will also depend on a number of supply-side factors, such as: the extent to which productivity gains within shale gas continue to improve, and how quickly US tight oil production – and hence the associated gas produced as part of that production – peaks. Refining marker margin (RMM): The outlook for refining margins is most relevant when considering investments in refineries or closely $11/ bbl related activities. (nominal) Many ‘Paris-consistent’ scenarios provide less detailed information on the outlook for refined products and refining activity. However, the significant falls in global oil demand envisaged in many of these scenarios are likely to also be reflected in the demand for refined products. Indeed, some scenarios highlight the expected growth in natural gas liquids (NGLs) and biofuels which suggest that refining activity might decline by even more than the overall demand for liquid fuels. To the extent that falling demand for refined products leads to over-capacity in the refining sector, this would be expected to leadassumptions, applied to the least-efficient refineries closing over time, raising the average efficiency of the remaining refineries and so reducing the sustainable level of refining margins. However, the need for some refineries to continue to operate can be expected to limit the extent to which refining margins can fall on a sustained basis. Carbon prices: The outlook for carbon prices has both a direct and indirect effect on the evaluation of new material a investments. The direct effect relates to theanticipated operational greenhouse gas emissions associated with differentthe investment, $80/for the period to 2050. These now include a price of $100/teCO2 projects: the greater the operational emissions, the greater the exposure to increases in carbon prices. The indirect impact relates to the impact of carbon prices on the differential between retail and wholesale prices for oil and natural gas. An increase in carbon prices can be expected to increase the differential between retail and wholesale prices: potentially both dampening demand growth (due to higher retail prices) and reducing the prices received by oil and gas producers (due to lower wholesale prices). The direct effects associated with carbon prices are explicitly assessed within BP’s investment evaluation criteria, whereas the indirect effects are captured within the overall prospects for oil and gas demand and the associated prices. In many ‘Paris-consistent’ scenarios, carbon prices are used as a key policy instrument for accelerating the transition to a low carbon energy system, with carbon prices (on a global basis) increasing to between $100‑200/teCO2 by 2040. But in these scenarios, carbon prices are typically increased only gradually, in part since this mitigates the costs to the economy of prematurely scrapping and replacing productive assets. Hence, the average level of carbon prices in these scenarios over the next 20 years tends to be significantly lower than the level they are projected to reach in 2040 or so. For example, in BP’s rapid transition scenario, carbon prices in developed economies are assumed to reach $200/teCO2 by 2040, but the average level of carbon prices between 2017 and 2040 in that scenario is around $75/teCO2. a 20152030 (2020 $ real. b To aid this analysis, we consider a range of scenarios which claim to be consistent withreal), see page 28. Our resource commitment meeting the Paris goals including: IEA’s ‘Sustainable Development Scenario’, BEIS’ ‘Low Prices’ case, Aurora Energy Research’s ‘Two degrees’ scenario and MIT’s ‘Paris to 2°C’ scenario. c Regional Economic Outlook – Middle East and Central Asia, International Monetary Fund, October 2019. d The Oil and Gas Industry in Energy Transitions | IEA 2020. BP Annual Report and Form 20-F 2019 21

Evaluating new material capex investments for(RCM) evaluates consistency with the Paris goals – continued Evaluation process Quantitative evaluationsby considering them against a balanced set of investment criteria, see page 30. For each of the investment criteria, a qualitative explanation of each business case was considered and presented to the RCM or relevant investment committee, as per the description on page 29. Our new material capital investmentscapex investments are intended to support the delivery of Investment economics Environmentbp’s strategy. In-scope investments are defined as: New: investment in a new project or extension of an existing project/asset, or share of an entity that is new to bp or a substantial increase in bp’s share. Material: more than $250 million capital investment. Capital expenditure: includes organic and sustainability BP’s strategy. Ininorganic. 2020 was an exceptional year, and one aspect of bp’s response was to reduce our planned capital expenditure, see page 9. As a result, there were only three new material capex investments – unusually low, and less than half the number in 2019. So bp decided to voluntarily conduct and disclose Paris-consistency evaluations for the four largest new capex investments which fell below our materiality threshold. We do not expect to disclose such evaluations of non- material investments in future years. To maintain consistency of approach, the conduct of these evaluations was delegated to a subset of the RCM. Quantitative evaluations Two quantitative guide levels were considered to inform the evaluation of Paris consistency. As stated in the bp Annual Report and Form 20-F 2019, we evaluatedcontinue to develop our approach and in 2020 we made a number of improvements, including benchmarking investment economics against our agreed economic investment hurdles; evaluating investments on the revised price assumptions; and setting a lower carbon intensity guide. As our approach matures with experience, we may continue to adjust or supplement these. Investment economics The calculation of profitability index (PI) Where appropriate,internal rate of return (IRR) and discounted payback uses the operational carbon their consistency with the Paris goals using the ‘low-price’‘central-price’ case for commodity intensity of the investment relative to that by considering them against a balanced prices and margins and the ‘high’‘central’ carbon ofprice. Economic indicators are then benchmarked against the portfolio average for the segment or set of investment criteria (seeeconomic hurdles, see page 20). price of $80 per tonne (2015 $ real).30. As a the related business activity (upstream, For each of the investment criteria, a guide, we would normally target a minimum refining, petrochemicals). As a guide, we qualitative explanation of each business threshold of greater than 1.0x on this basis. For clarity, Paris-consistency evaluations for investment decisions made before September 2020 were measured against the previous long-term price assumptions and against the profitability index (PI) measure. For details, see the bp Annual Report and Form 20-F 2019, page 22. Environment and sustainability Where appropriate, we measure the operational carbon intensity« of the investment relative to that of the 2020 portfolio average for the segment or the related business activity (upstream, refining, offshore wind). As a guide, we would normally target a ratio of less than case was considered and presented to 100%, meaning that the investment is the resource commitment meeting (RCM). expected to reduce the average operational They then discussed and addressed key carbon intensity of that portfolio. issues raised, as per the description on The potential impact of new material capex page 19. investments on BP’sbp’s greenhouse gas Two quantitative evaluations were emission targets is a further consideration. considered for Paris consistency. As our approach matures with experience, we may adjust or supplement these. There may be instances when new material capex investments are evaluated as consistent with the Paris goals despite either or both of these guide levels not being met, due to other considerations being taken into account. Evaluation outcomemet.

Strategic report2020 Decisions taken in 2019 Eight new material capex investment decisions were taken2020 Lambert Deep GWF-3 Four-well subsea tieback to the existing Karratha gas plant in 2019, six inAustralia. Herschel development Three-well tie-in to the Upstream and two in the Downstream. Upstream Azeri Central East (ACE) Angola Block 18 – Platina A new offshore platform and facilities in the Azeri-Chirag-Deepwater Four subsea well tiebacks to an existing FPSO vessel, which also support Gunashli field in Azerbaijan. continued production from the main field under the licence extension granted by the Angolan government. India KGD6 – MJ Angola Block 15 The third phase of Block KG D6 gas development, seven subsea wells Further investment, which will extend the production-sharing agreement will tie‑back to a new FPSO vessel to process and separate liquids. for the block through 2032. Thunder Horse South Expansion Phase 2 Block 61 2020 development wells Two new subsea production units with eight wells tied back to existing Further development and drilling of 18 wells at Ghazeer and seven wells atNa Kika infrastructure in the US Gulf of Mexico. Khazzan, bothShafag-Asiman exploration well Gas exploration well in Oman. Downstream Gelsenkirchen steam and water project Reliancethe Shafag-Asiman field in Azerbaijan. Qattameya Shallow Additional spend to bring the Qattameya gas field in Egypt online. Isabela 3 Single-well tie-in to the Na Kika platform in the US Gulf of Mexico. Galapagos Deep West well Exploration well in ‘Cretaceous Thicks’ play in the US Gulf of Mexico. US offshore wind acquisition Entry into the US offshore wind market through a strategic partnership Constructionwith Equinor to develop four assets in existing wind leases. In 2020 three new material capex investment decisions qualified for evaluation of Paris consistency, using our materiality threshold of $250 million. In addition, because there was an unusually low number of new material capex investments in 2020, we also decided to evaluate the Paris consistency of the four boilers and a steam turbine to further the safe and Strategic agreement with Reliance Industries Limited to form a retail and reliable management of fuel gas excess. aviation joint venture in India. BPlargest new capex investments which fell below our materiality threshold.

Strategic report Growing advantaged2020 Resilient and focused hydrocarbons In July 2020, we began production at our major project Atlantis Phase 3 in the US Gulf of Mexico safely and on time, despite the challenges of the COVID-19 pandemic. Since then, we have added a second well and are on schedule to start a third well by April 2021. Why it’s important Atlantis Phase 3 demonstrates our strategic shift towards resilient and focused hydrocarbons for value creation. The project uses world-class existing infrastructure located in the Atlantis field to increase production at higher margin. Drilling completions and offshore construction were executed with zero personal injuries. Harnessing digital and innovation The team used advanced seismic imaging expertise to identify the ‘field within a field’ and designed the new subsea system to access and deliver these barrels. What’s involved? The project includes a subsea production system for eight new wells tied into Atlantis, which is designed to boost the platform’s production. Building on our track record The start-up of this project marks an important milestone for our resilient and focused hydrocarbons businesses under our new strategy. We started up three other major projects« during 2020: Ghazeer in Oman, Vorlich in the UK North Sea and KG D6 R Cluster in India. We’re on track to deliver on our target since 2016 of 900mboe/d from new major projects by the end of 2021, with 700mboe/d of production capacity online by the end of 2020. 400,000 hours worked offshore Zero injuries Atlantis Phase 3 is a great example of how oil and gas projects support bp’s strategy by focusing our efforts in the Upstream What this strategic priority means We aim to invest in oil and gas, producing both with increasing efficiency. This means lower cost, higher marginbasins we know best and close to markets, with a focus on carbon. Almost halfexisting infrastructure. Starlee Sykes SVP, Gulf of BP’s upstream portfolio is natural gas,Mexico and severalCanada See pages 20 and 24 for more gas projects are planned to come onstreamexamples of our strategy in the next few years. As the world moves towards net zero  emissions, we think natural gas can play an important role in getting us there. When burned for power, natural gas has, on average on a lifecycle basis, about half the GHG emissions of coal, with fewer air pollutants, so expanding its use globally to displace coal Energy with purpose will help to reduce carbon emissions. In fact, switching from coal to gas has avoided more than 500 million tonnes of CO2 from the power Gas in Oman sector globally since 2010. BP successfully brought the Khazzan major project into production in 2017, Progress in 2019 and since then we’ve continued to build We’ve started up 24 of the 35 planned successful partnerships and reinforce major projects since 2016 and are on track our commitment to the country. to deliver 900,000 barrels of oil equivalent Exploration opportunity per day of new major project production by Together with Eni, we signed an the end of 2021. exploration and production-sharing agreement for Block 77 in central Oman • Sanctioned $6 billion Azeri Central East with the Ministry of Oil and Gas of the development with partners. Sultanate of Oman. • Agreed to sell our Alaska assets to Hilcorp. • The block covers a total area of • Sanctioned the third project in block more than 2,700 square kilometres. KG D6, offshore India with our • It is located 30 kilometres east of partner Reliance. Block 61, where the Khazzan gas field is already producing around 1 billion cubic feet of gas a day. • BP and Eni will each hold a 50% interest, subject to royal decree, with Eni acting as operator during 5 $100m exploration. major project fund for projects that will start ups. help reduce greenhouse Khazzan phase two gas emissions. Ghazeer, the second development phase of the gas field, is expected to come online in 2021. Advantaged gas We used expertise and technology from our US onshore business to help access tight gas locked in the Khazzan field and bring it commercially to market. Detecting methane We installed and tested continuous measurement of methane emissions at our Khazzan central processing facility. The technology uses instruments such as a gas cloud imaging camera to continuously monitor our facilities, quickly identify new leaks and reduce time taken to respond. We now aim to install methane measurement at all our existing major oil and gas processing sites by 2023. For more information see Upstream on page 50. BPaction.

Strategic report Market-led growth2020 Leadership culture We are transforming the culture of bp. It’s all about people and that begins with leadership. In 2020 we undertook a fundamental review of our organization and selected new leaders from the executive level down. These top 120 leaders were selected because they reflected a number of key attributes required to drive bp’s transformation. A track record of delivery. Curious and open-minded. Purpose-driven. Lead through our values – especially safety. Empathetic. From left to right: Emma Delaney EVP, customers & products Dev Sanyal EVP, gas & low carbon energy David Eyton EVP, innovation & engineering Gordon Birrell EVP, production & operations William Lin EVP, regions, cities & solutions Carol Howle EVP, trading & shipping Giulia Chierchia EVP, strategy & sustainability Bernard Looney Chief executive officer Geoff Morrell EVP, communications & advocacy Kerry Dryburgh EVP, people & culture Eric Nitcher EVP, legal Murray Auchincloss Chief financial officer Regions, cities & solutions brings together the best of bp to build enduring relationships with regions, countries, cities and corporations around the world to provide innovative, integrated and decarbonized energy solutions at scale to help the world reach net zero and improve people’s lives. Trading & shipping harnesses the deep expertise of our existing supply, trading and shipping businesses. bp already has world-leading expertise in the Downstream Whatintegration of businesses, customers and markets. Communications & advocacy helps translate bp’s strategy into a coherent narrative for staff and society, manages corporate reputation and leads policy, advocacy and campaigns. working with three integrators, to facilitate collaboration and unlock value... and four teams who serve as enablers of business delivery. Strategy & sustainability embeds sustainability at the top of the organization and forms a single group-wide approach to strategy and capital allocation. Finance stewards bp’s financial frame, maintains financial integrity and manages procurement activities. Legal delivers legal support to bp, focused on material risk, value and growth. People & culture helps bp recruit world-class talent, develops them, and supports them to do their best work. And of this strategic priority means We aim to innovate with advanced productsteam, 38% are women and strategic partnerships, building competitively advantaged businesses that deliver profitable marketing growth. We aim to invest in higher-returning fuels marketing28% identify as racial and lubricants businesses with growth potential and reliable cash flows. Andethnic minorities. This is good progress, but still not good enough. As a leadership, we are continuing to expand into Energy with purpose fast-growing emerging markets. We are also delivering and developing new products, offers and business models Electrifying China that supportnot yet fully reflective of bp as a whole or the transition to a lower BP has joined forces with DiDi, the carbon and digitally enabled future over world’s leading mobile transportation the longer term. platform, to build an electric vehicle (EV) charging networkcommunities in China. Progress in 2019 Why it matters We have continued to make strategic China is the largest and fastest- developing EV market. progress in fuels marketing, with our convenience partnership model now in • 50% of the world’s battery EVs around 1,600 sites across the network. are in China. • DiDi offers a full range of app-based • Agreed to expand our partnership with services across Asia, Latin America Reliance Industries Ltd to include a retail and Australia, including ride-hailing, service station network and aviation fuels automobile solutions and other offers. business across India. • The platform has 550 million users, • Continued to expand in other material tens of millions of drivers and serves markets – most notably in Mexico wherewhich we around 1 million EVs. now have more than 520 BP-branded retail What’s involved sites. We also continued to grow our The joint venture plans to develop network in Indonesia and expanded our high-quality EV charging hubsoperate. See page 57 for China network into Shandong and Hebei DiDi users and other drivers. provinces through our joint venture with • The partners intend to add loyalty, Dongming. convenience and fleet services • Announced the development of BP Infinia, in the future. an enhanced recycling technology, capable Why we’re doing it of processing currently unrecyclable PET As the world’s largest EV market, China plastic waste. offers extraordinary opportunities to develop innovative new businesses at scale and we see this as the perfect partnership for such a fast-evolving environment. The lessons we learn here will help further expand BP’s advanced >1,20 0 ~1,600 mobility business worldwide, helping retail sites in new convenience drive the energy transition and develop markets of China, partnership sites. solutions for a low carbon world. Mexico and Indonesia. And elsewhere BP Chargemaster is powering around 1.5 million electric miles a week, making this the most-used public charging infrastructure operator in the UK. We have also begun rolling out 150kW ultra-fast chargers on BP forecourts across the UK with plans to build a national network of high-power charging – one which will closely replicate the current fuelling experience. This is helping to accelerate the adoption of EVs, by making EV charging fast, convenient and For more information see Downstream on hassle-free.diversity and inclusion in bp. See page 56. BP38 for more information on our financial reporting segments. See page 78 for our leadership team biographies.

Venturing and2020 Changing how we report Gas & low carbon energya comprises regions with upstream businesses that predominantly produce natural gas, gas trading activities and the group’s renewables businesses, including biofuels, solar and wind. Gas-producing regions were previously reported in the Upstream segment, and our renewables businesses were previously reported as part of Other businesses and corporate. Oil production & operationsa comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. These were previously reported in the Upstream segment. Customers & products comprises the group’s customer-focused businesses, spanning convenience and mobility, which includes fuels retail and next-gen offers such as electrification, as well as aviation, midstream, and Castrol lubricants. It also includes our oil products businesses, refining & trading. The petrochemicals business will also be reported in restated comparative information as part of customers & products up to its sale in December 2020. This segment is unchanged from the former Downstream segment with the exception of the disposal of our petrochemicals business. The Rosneft segment is unchanged and continues to include equity-accounted earnings from our strategic investment in Rosneft. Other businesses & corporate comprises our innovation & engineering business including bp ventures and Launchpad, regions, cities & solutions; and our corporate activities & functions. a The AGT and Middle East regions have been further subdivided by asset. See page 36 for our organizational model. Our new financial reporting model functions across multiple fronts What this strategic priority means “Pairing Calysta’s exciting We aimthe organization to pursue new opportunities to technology and meet evolving technology, consumer and entrepreneurial drive with policy trends. BP’s global scale and gas We are building upmaximize commercial value along integrated value chains. Reinventing bp – our renewable energy market expertise offers the portfolio – with activities spanning renewable opportunity to improve food fuels and products, wind and solar energy security and sustainability.” and biopower. We work across multiple fronts through our investments infinancial reporting segments Gas & low carbon Dominic Emeryenergy Oil production & operations Customers & productsd Rosneft Other businesses & corporate Gas Gas regionsc Gas marketing & trading Integrated gas & power Low carbon energy Low carbon electricity Bioenergy CCUS Hydrogen Oil regionsc Customers: convenience & mobility Convenience Mobility: fuels retail Mobility: next-gen Castrol Aviation, B2B, midstream Products: refining & trading Refining Oil & oil products trading bp ventures Launchpad Corporate activities Rosneft Upstream Rosneft Other businesses & corporate Downstream Mapping our 2020 segment reporting to our 2021 financial reporting segmentsb As set out in our organization model on page 36, operationally, our hydrocarbon businesses, including refining, will be managed together. However, the financial results of our oil, gas and refining operations will be reported separately, acknowledging opportunities for commercial integration. Gas will be reported together with joint ventures, collaborations Group chief of staff and new business models. Through BP Ventures we have invested more than $650 million in around 40 companies since it was set up in 2007. Our investments support technologies and innovations that we believe could benefit BP and global energy systems. Progress in 2019 We increased our stake in Lightsource BP to create a 50:50 joint venture and expanded Energy with purpose our biofuels business in Brazil by more than 50%, through a joint venture with Bunge to create BP Bunge Bioenergia. We also made a Using gas to create number of other investments spanning a range sustainable fish food of strategic focus areas. BP Ventures has invested $30 million • Started BP Launchpad, our scale-up factory, o help create new marketslow carbon businesses. This recognizes the potential for our designed to help quickly grow disruptive natural gas in the fish-farming industry. technologies and business models which could become future BP business units. What we’re doing We’re extending the ideaincreasing integration of gas • Expandedvalue chains with our digital energy portfolio bylow carbon businesses. Refining will be reported as a source of energy beyond its investing in Grid Edge, which has developed conventional applications, through an artificial intelligence-based energy our investment in California start-up, management platform that helps customers Calysta, to create Feedkind® – protein predict, control and optimize their buildings’ food for fish, livestock and pets. energy profile. Why it matters • Invested $5 million in Belmont Technology Finding sustainable ways to feed to further strengthen BP’s artificial a growing global population within intelligence and digital capabilities. planetary boundaries is a pressing issue and Calysta can be part of the solution: • Feedkind® is produced with fewer resources, such as water and land, >50% 7 than current alternatives. increase in biofuels new investments • Existing protein sources, including business in Brazil, through BP Ventures fishmeal and soya bean protein, are through BP Bunge in 2019. either at full capacity or connected to Bioenergia. other issues such as deforestation. • The global aquaculture market is expected to grow by around 25% by 2025 and Feedkind® offers a way to support this increase sustainably. How it works Naturally occurring bacteria is fermented using methane from gas as its energy source. The protein created is harvested, dried and sold in pellet form. Why we’re doing it The investment supports BP’s strategycustomers & products segment, recognizing the importance of creating new markets in which gas can deliver a more sustainable future.maintaining our integrated fuels value chains. For more information see page 63. 28 BPon how our hydrocarbon operations are split between the oil production & operations, gas & low carbon energy, and customers & products segments visit bp.com. b Not a comprehensive list of businesses reported in each segment. c Regions disclosed on bp.com under segment financial disclosure framework. d Includes respective low carbon results, such as bio co-processing.

“This programme reflects2020 Key performance indicators Changes to KPIs We have removed proved reserves replacement ratio from our commitment to beKPIs, as it no longer serves as a leader in advancing the energy transition by maximizing the benefits of natural gas.” Gordon Birrell Chief operating officer– production, transformation and carbon 30 BP Annual Report and Form 20-F 2019

Strategic report Modernizing the whole group What this strategic priority means We aim to simplify our processes and enhance our productivity through digital solutions. We achieve this through three pillars: • Agility – improving and simplifying the way we operate. • Mindset change – accepting the reality and adopting the right attitude for a business that is increasingly competitive and margin-dependent. • Digital transformation – digitizing and automating our work. Progress in 2019 We’ve introduced a range of technologies and improved ways of working across BP to support our modernization priority. Our mentors and coaches deliver a programme of training for employees to share agile practices and support changing mindsets, which are key to generating ideas to improve how we work Energy with purpose across the whole business. • Launched ‘Connected BP’ in partnership with data technology pioneer Palantir. Managing methane The programme connects different BP is introducing a programme of new systems and business areas into one and complementary technologies to platform where users can connect, continuously detect,useful measure and transform and share data. help reduce methane emissions at • Developed a holistic process for leak our BP-operated upstream assets. detection and intervention using infrared Why it matters cameras, lasers and drone technology at Methane is the primary component our US onshore BPX Energy operations. of natural gas. If it escapes into the • Performed a concept trial of Spot, a robot atmosphere unburnt, it can be a from Boston Dynamics, at our US Whiting potent greenhouse gas. refinery. Spot can gather data, detect What we’re doing abnormalities and perform tasks, such We aim to install methane as detecting gas emissions and helping measurement, such as gas cloud remove people from hazardous spaces. imaging, at all BP’s major oil and gas processing sites by 2023 and then reduce methane intensity of our operations by 50%. What else? We’re also planning to deploy a new >1,000 ~$1.5bn generationstrategic performance. Remuneration To help align the focus of drones, hand-held devices transformation projects invested every yearour board and multi-spectral flare combustion running in the Upstream. in maintaining BP’s cameras – drawing upon scientific infrastructure. breakthroughs made in diverse fields, spanning healthcare, space exploration and defence. Collaboration with stakeholders We have agreed to work in collaborationexecutive management with the Environmental Defense Fund, a New York-based non-profit environmental advocacy group. The three-year commitment aims to advance technologies and practices to reduce methane emissions from the global oil and gas supply chain. BP Annual Report and Form 20-F 2019 31

interests of our shareholders, certain measures are used for executive remuneration. Key REM Used for 2020 remuneration policy See page 103 for more information. Measuring our progress We assess our performance across a wide range of measures and indicators that are consistent with our strategy and investor proposition. Our key performance indicators (KPIs) provide Changes to KPIs Remuneration a balanced set of metrics that give emphasis • Added sustainable GHG emission To help align the focus of our board and to both financial and non-financial measures. reductions and methane intensity, in line executive management with the interests of These help the board and executive with our ‘reduce, improve, create’ our shareholders, certain measures are used managementleadership team assess performance against our framework. for executive remuneration. strategic priorities and business plans. BP • Removed production as a volume measure Key managementOur leadership team uses these measures to evaluate as it doesn’t reflect our value over volume New/amended operating performance and make financial, approach, and is not used to assess New or amended in 2019 strategic and operating decisions. executive remuneration. The metric is REM reported on At a glance, page 9. Used for the remuneration policy • Combined tier 1 and tier 2 process safety events, giving investors a wider view of For more information see Directors’ process safety events. remuneration report on page 100. • As reported in 2018, we have now revised our refining availability metric to BP‑operated refining availability, to more closely match our upstream plant reliability measure. SafetySustainable operations Tier 1 and 2 process safety eventsa We track tier 1 and tier 2 events and report the 2019 26 72 98 2019 performance aggregated outcome. Tier 1 events are losses of The total number of tier 1 and tier 2 process primary containment from a process of greatest 2018 16 56 72 safety events increased in 2019, mainly consequence, –or causing harm to a member of the reflecting performance in assets acquired over 2017 18 61 79 workforce, damage to equipment from a fire or the past 18 months. Underlying performance explosion, a community impact or exceeding 2016 16 84 100 across the group improved slightly from 2018. defined quantities. Tier 2 events are those of We are implementing BP procedures and lesser consequence. 2015 20 83 103 processes to help bring newly acquired assets Tier 1 Tier 2 in line with BP assets.Safety Reported recordable injury frequencya Reported recordable injury frequency (RIF) 2019 0.166 2019 performance measures the number of reported work-related employee and contractor incidents that result in a fatality or injury per 200,000 hours worked. 2020 performance We had fewer tier 1 and tier 2 process safety events compared with 2019. This may in part be a consequence of decreased activity during the COVID-19 pandemic, but we believe that other, more intentional, factors are also involved, such as our deepening focus on safety leadership, human performance, and the effectiveness of core safety processes, such as permit-to-work. 2020 performance We have seen a decrease in RIF compared with employee and contractor incidents that result in a 2018 0.198 2018;2019 and maintain our focus to drive toward zero fatality or injury per 200,000 hours worked. incidents. 2017 0.218 2016 0.211Since 2015, 0.243RIF rates have decreased around 46%. a This represents reported incidents occurring within BP’sbp’s operational HSSE reporting boundary. That boundary includes BP’sbp’s own operated facilities and certain other locations or situations. 32 BP Annual Report and Form 20-F 2019

Sustainable operations Greenhouse gas emissions (MtCO2e) We provide data on greenhouse gas (GHG) 2019 46.0 2019 performance emissions material to our business on a Our Scope 1 (direct) equity share emissions carbon dioxide-equivalent basis. This particular 2018 46.5 decreased by 0.5MtCO2e to 46.0MtCO2e in 2019 KPI comprises Scope 1 (direct) emissions of (46.5MtCO2e in 2018). Emissions resulting from 2017 49.4 CO2 and methane, for 100% emissions from the BHP acquisitions were balanced out by subsidiaries« and the percentage of emissions 2016 50.1 sustainable emissions reductions and the impact equivalent to our share of joint arrangements of divestments.arrangements« and associatesassociates«, other than BP’sbp’s share 2015 49.0 of Rosneft. Sustainable GHG emissions reductionreductions (MtCO2e) This measure includes actions taken by our 2019 1.4 2019 performance businesses to improve energy efficiency and We delivered 1.4Mte of sustainable emissions reduce methane emissions and flaring –– all leading 2018 1.3 reductions (SERs), and this meant we exceeded to ongoing, quantifiable GHG reductions. These our target of 3.5Mte of SERs for the period 2016 2017 0.5 refer to the GHG emissions on an operational control basisb that would have to 2025, six years ahead of schedule. occurred had we not made the change i.e. they 2016 0.7 could be absolute in nature or underlying. Since 2019, progress against this target is used as a 2015 0.2 factor in determining bonuses for eligible employeesc, including executives. 2020 performance Our Scope 1 (direct) equity share emissions decreased by 4.7MtCO2e to 41.3MtCO2e in 2020 (46.0MtCO2e in 2019). The reduction was associated with a number of factors such as divestments, including of our Alaska operations, sustainable emissions reductions, turnarounds, and the impact of COVID-19 on demand. 2020 performance We delivered 1.0Mte of sustainable emissions reductions (SERs) from reduction projects such as flaring in Angola, reduction in water pump fuel gas usage in AGT and in lower emissions from power import at our Gelsenkirchen refinery. b Operational control data comprises 100% of emissions from activities that are operated by bp. c This figure was around 37,000 employees, including executives.in February 2020. It is now around 28,600 (as at 10 March 2021) and has been revised in line with restructuring as part of reinvent bp and reflects a lower headcount overall.

Strategic report Financial performance Underlying replacement cost profit ($ billion) Underlying RC profitprofit« is a useful measure for 4.0 2019 performance 2019 investors because it is one of the profitability 10.0 2019 underlying RC profit was lower, largely measures BPbp management uses to assess reflecting the impact of the weaker price performance. It assists management in 9.4 environment. Profit for the year was significantly 2018 understanding the underlying trends in operational 12.7 lower, due to the above factor, divestment-related performance on a comparable year-on-yearyear- on-year basis. impairment charges and reclassification of past 3.4 foreign exchange losses on the formation of the It reflects the replacement cost of inventories sold 2017 6.2 BP Bunge Bioenergia joint venture. in the period and is arrived at by excluding inventory holding gains and losseslosses« from profit or 0.1 2016 loss. Adjustments are also made for non‑non- operating 2.6 itemsitems« and fair value accounting effectseffects«. (6.5) 2015 5.9 Profit (loss) for the year attributable to BP shareholders Underlying RC profit for the year (non-GAAP) Operating cash flow ($ billion) Operating cash flow is net cash flow provided 2019 25.8 2019 performance by operating activities, as reported in the group Operating cash flow was higher than 2018, cash flow statement. Operating activities are the 201� 22�9 reflecting lower Gulf of Mexico oil spill payments principal revenue-generating activities of the and the favourable impact of lease payments 201� 1��9 group and other activities that are not investing that are now classified as financing cash flows or financing activities. 201� 10�� under IFRS 16. 201� 19�1Financial performance Return on average capital employed (%) Return on average capital employedemployed« (non-GAAP) 2019 8.9 2019 performance gives an indication of a company’scompany’s capital The decrease reflects lower profit due to the efficiency, dividing the underlying RC profit after 201� 11�2 impact of lower oil and gas prices and weaker adding back net interest by average capital refining environment. 201� ��� employed, excluding cash and goodwill. See page 345349 for more information including the nearest 201� 2�� equivalent GAAP data. 201� ��� Total shareholder return (%) Total shareholder return (TSR) represents the 5.8 2019 performance 2019 change in value of a BPbp shareholding over a 1.1 Improvement in TSR reflects increased dividends calendar year. It assumes that dividends are in 2019. reinvested to purchase additional shares at the ����� 201� closing price on the ex-dividend date. 0�� We are committed2020 performance 2020 underlying RC loss was driven by lower oil and gas prices, significant exploration write-offs and refining margins and depressed demand. Loss for the year attributable to maintainingbp shareholders included significant impairments and exploration write-offs. See Financial statements – Notes 4 and 8 for more information. 2020 performance Operating cash flow was lower than 2019, reflecting lower oil and gas realizations, lower refining margins and fuels volumes partly offset by lower tax payments and lower working capital« build. 2020 performance The decrease reflects loss due to the impact of lower oil and gas prices and significant weaker refining margin and depressed demand. 2020 performance Reduced TSR reflects a progressive 20�0 201�reduction in the share price and sustainablelower dividend policy. 9�� 29�0 201� ���� �12��� 201� ����� A�S �a�i� �rdinar� ��are �a�i� BPin 2020.

2020 Group performance “DespiteGroup performance In the challenging environmentface of many challenges in 2019,2020, we continued to deliver operating cash flow growth, which together with continued capital discipline has underpinned growth in free cash flow. Furthermore, we have made significantstrengthened our finances and drove progress towards our $10$35 billion divestmentnet debt target. Together this supportedA resilient balance sheet, a coherent approach to capital allocation and a disciplined approach to investment are the principles which underpin our decisionfinancial frame. Our strategy and financial frame are expected to increasedrive strong growth, improved returns and a sustainable reallocation of our capital employed toward the dividend with the fourth-quarter results.” Dr Brian Gilvaryenergy transition, all in support of creating long-term value for shareholders. Murray Auchincloss Group chief financial officer $10.0bn Underlying replacement cost (RC) profit (2018 $12.7bn) $4.0bn $25.8bn Profit attributable to BP shareholders Operating cash flow (2018 $9.4bn) (2018 $22.9bn) Financial and operating performance $ million except per share amounts 2020 2019 2018 2017 Segment RC profitSales and other operating revenues 180,366 278,397 298,756 Profit (loss) before Profit before interest and taxation (21,740) 11,706 19,378 9,474 interest and tax Finance costs and net finance expense relating to pensions and (3,552) (2,655) (2,294) ($ billion) other post-retirement benefits (3,148) (3,552) (2,655) Taxation 4,159 (3,964) (7,145) (3,712) 2019 Non-controlling interests 424 (164) (195) (79) 2018 ProfitProfit (loss) for the yearayear attributable to bp shareholders (20,305) 4,026 9,383 3,389 2017 Inventory holding (gains) losseslosses«, before tax 2,868 (667) 801 (853) (5) 0 5 10 15 20 25 Taxation charge (credit) on inventory holding gains and losses (667) 156 (198) 225 ● Upstream ● Downstream ● Rosneft RC profitprofit (loss)« for the year attributable to bp shareholders (18,104) 3,515 9,986 2,761 ● Other businesses and corporate (includes Net (favourable) adverse impact of non-operating items 8,263 3,380 3,730 costs related to the Gulf of Mexico oil spill) ● Consolidation adjustment – UPll★items« and fair value accounting effectseffects«, before tax ❙ Group RC profit before interest and tax16,649 8,263 3,380 Taxation charge (credit) on non-operating items (1,788) (643) (325) and fair value accounting effects, and certain foreign exchange impacts on the group’s tax charge for the period (4,235) (1,788) (643) Underlying RC profitprofit (loss)« for the year attributable to bp shareholders (5,690) 9,990 12,723 6,166 Dividends paid per share –– cents 31.5 41.0 40.5 40.0 –– pence 24.458 31.977 30.568 30.979 a Profit (loss) attributable to BP shareholders. More information Upstream, see page 50. Downstream, see page 56. Rosneft, see page 61. Other businesses and corporate, see page 63. Oil and gas disclosures for the group, see page 308. For a discussion of BP’s financial and operating performanceResults The loss for the year endingended 31 December 2017, see BP Annual Report and Form 20-F 2018, pages 19-39 and BP Annual Report and Form 20-F 2017, pages 21-43. 36 BP Annual Report and Form 20-F 2019

Strategic report Results Cash flow2020 attributable to bp shareholders was $20.3 billion, compared with a profit of $4.0 billion in 2019. Adjusting for inventory holding losses, replacement cost (RC) loss was $18.1 billion, compared with a profit of $3.5 billion in 2019. After adjusting RC loss for a net charge for non-operating items of $12.2 billion and net debt information Profitadverse fair value accounting effects of $0.2 billion (both on a post-tax basis), underlying RC loss for the year ended 31 December 2020 was $5.7 billion. The result reflected lower oil and gas prices, significant exploration write-offs and lower refining margins and depressed demand. The profit for the year ended 31 December 2019 attributable to BP $ millionbp shareholders was $4.0 billion, compared with $9.4 billion in 2018. 2019 2018 2017 Excludingexcluding inventory holding gains, replacement cost (RC)RC profit was Operating cash flow 25,770 22,873 18,931 $3.5 billion, compared with $10.0 billion in 2018. Net cash used in investing activities (16,974) (21,571) (14,077)billion. After adjusting RC profit for a net charge for non-operating items Net cash used in financing activities (8,817) (4,079) (3,296) of $7.2 billion and net favourable fair value accounting effects of Cash and cash equivalents at end of year 22,472 22,468 25,586 $0.7 billion (both on a post-tax basis), underlying RC profit for the year Capital expenditure ended 31 December 2019 was $10.0 billion, a decrease of $2.7 billion Organic capital expenditure (15,238) (15,140) (16,501) compared with 2018. The decrease was predominantly due to lower  oil and gas prices in the Upstream segment and a significantly weaker Inorganic capital expenditure (4,183) (9,948) (1,339) environment in the Downstream segment. (19,421) (25,088) (17,840) Finance debt 67,724 65,132 62,574 Profit for the year ended 31 December 2018 attributable to BP  shareholders was $9.4 billion, including inventory holding losses, Net debt 45,442 43,477 37,819 RC profit was $10.0 billion. After adjusting RC profit for a net charge Finance debt ratio (%) 40.2% 39.3% 38.6% for non-operating items of $2.8 billion and net favourable fair value Gearing (%) 31.1% 30.0% 27.0% accounting effects of $68 million (both on a post-tax basis), underlying RC profit for the year ended 31 December 2019 was $10.0 billion, a decrease of $2.7 billion compared with 2018. The decrease was predominantly due to lower oil and gas prices in the Upstream segment and a significantly weaker environment in the Downstream segment. Non-operating items In 2020 the net charge for non-operating items was $12.2 billion, mainly related to impairment charges, a gain on the disposal of our petrochemicals business, certain exploration write-offs (reported within the ‘other’ category), and restructuring costs associated with the reinvent bp programme. The impairment charges mainly relate to producing assets and principally arose as a result of changes to the group’s oil and gas price assumptions. Impairment charges also include amounts relating to the disposal of the group’s interests in its Alaska business. For more information For a discussion of bp’s financial and operating performance for the year ending 31 December 2018, see bp Annual Report and Form 20-F 2019, pages 36-38 and 50-65 and bp Annual Report and Form 20-F 2018, pages 19-39.

Operating cash flow 12,162 25,770 22,873 Net cash used in investing activities (7,858) (16,974) (21,571) Net cash provided by (used in) financing activities 3,956 (8,817) (4,079) Cash and cash equivalents at end of year 31,111 22,472 22,468 Capital expenditure« Organic capital expenditure« (12,034) (15,238) (15,140) Inorganic capital expenditure« (2,021) (4,183) (9,948) (14,055) (19,421) (25,088) Divestment and other proceeds Divestment proceeds« 5,480 2,201 2,851 Other proceeds 1,106 566 666 6,586 2,767 3,517 Debt Finance debt 72,664 67,724 65,132 Net debt« 38,941 45,442 43,477 Finance debt ratio« (%) 45.9% 40.2% 39.1% Gearing« (%) 31.3% 31.1% 30.0% Gearing including leases« (%) 36.0% 35.3% NA Group reservesperformance continued

Strategic report2020 Our approach to sustainability Sustainability Operating sustainably, safelyRequirement Relevant policies and responsiblystandards Information related to policies, any due diligence process and the outcome (a-e) a. Environmental matters Net zero aims TCFD (governance and risk) Sustainability frame Biodiversity position (online) Climate change and the environment – pages 53-57. Managing our environmental impacts – page 56. Our operating management system« (OMS) – page 60. Decision making by the board – page 82. b. Employees Reinvent bp guidelines bp values and code of conduct (online) People and society – pages 57-58. Safety – pages 59-60. Our values and code of conduct – page 61. How we engage with our stakeholders (Pulse survey) – page 63. How the board engaged with stakeholders (Workforce) – page 86. c. Social matters Sustainability frame Managing our environmental impacts – page 56. Our operating management system – page 60. Value to society – page 58. Decision making by the board – page 82. d. Respect for human rights Business and human rights policy (online) Modern slavery statement (online) Labour rights and modern slavery principles (online) Code of conduct (online) Human rights – page 58. How we engage with our stakeholders (Our human rights policy) – page 63. Our values and code of conduct – page 61. e. Anti-corruption and anti-bribery Anti-bribery and corruption policy Code of conduct (online) Business ethics and accountability – page 61. Our partners in joint arrangements – page 60. Description of principal risks relating to matters (a-e above) – How we manage risk – pages 64-66. Risk factors – pages 67-70. TCFD (climate-related risk management), pages 55-56. Relevant information Business model description Business model – pages 16-17. Description of non-financial KPIs Key performance indicators – pages 39-41. bp non-financial reporting information statement Produced in compliance with Sections 414CA and 414CB of the Companies Act. Information incorporated by cross reference. Sustainability frame Sustainability is corea critical foundation of our strategy. Our new sustainability frame links our strategy to our ability to create long-term value for our stakeholders, deliver our net zero ambition and aims, and realize our purpose – to reimagine energy for people and our planet. Our sustainabilityframe focuses on three areas where we believe we can make the biggest difference, with aims and objectives linked to the UN Sustainable Development Goals. Getting to net zero. Caring for our planet. Improving people’s lives. You can read more about our focus areas, Environment •sustainability foundations, our work to make sustainability more integral to our thinking and how we’re expanding our engagement with stakeholders at bp.com/sustainability Reporting on sustainability We updated our sustainability materiality assessment process in 2020 to take into account our new sustainability frame. You can read more about this process in the bp Sustainability Report 2020. For the purposes of this section we have covered material issues, along with additional non-financial information in the following areas: Net zero aims, see pages 49-51. Climate change and • Accreditingthe environment, see pages 52-55. Safety, see pages 59-60. People and value to society, see pages 57-58. Business ethics and accountability, see page 61.

Environment Greenhousesome data improvements related to the reported 2019 figures for aims 2 and 3 were identified. Although these are not considered to be material, for each of aims 2 and 3 the 2019 figure has been adjusted. c The 2020 methane intensity is calculated using existing methodology and, while it reflects progress in reducing methane emissions, will not directly correlate with progress towards delivering the 2025 target under aim 4. d We aim to have this in place by end of 2023. e Aim 5 non-oil and gas activities included a partial acquisition payment for the US offshore wind partnership with Equinor, our investments in electrification and advanced mobility, and investment into activities through bp ventures and Launchpad. f Article 4.1 of the Paris Agreement: In order to achieve the long-term temperature goal set out in Article 2, Parties aim to reach global peaking of greenhouse gas emissions from our operations We report Scope 1 (direct) and Scope 2 (indirect) GHG emissions on Climate change and the energy transition a carbon dioxide equivalent (CO2e) basis. Direct emissions include CO2 The world needs more energy to fuel prosperity and improve standards and methane from the combustion of fuel and the operation of facilities, of livingas soon as possible, recognizing that peaking will take longer for a growing global population. This energy must be delivered and indirect emissions include those resulting from the purchase of in affordable and reliable ways, but it must also be lower carbon. BP’s electricity and steam we import into our operations. purpose is to reimagine energy for people and our planet. To deliver Our overall emissions, on an operational control basis, increased in this, we have set out a new ambition to become a net zero company 2019, mainly due to major acquisitions. But the SERs we achieved by 2050 or sooner,developing country parties, and to helpundertake rapid reductions thereafter in accordance with best available science, so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the world reach net zero. came closesecond half of this century, on the basis of equity, and in the context of sustainable development and efforts to countering this increase. We achieved zero net growth in our operational emissions with no offsets required against our Net zero aims adjusted 2015 baseline. Aim 1: Net zero operations a Greenhouse gas emissions (MteCO2e) Weeradicate poverty. g See ghgprotocol.org for the full list of categories. Our aim 1 is to be net zero across our entire operations on an absolute basis by 2050 or sooner. This aim relates to our Scope 1 (direct)(from running the assets within our operational control boundary) and Scope 2 Operational controlb (indirect) greenhouse gas (GHG)(associated with producing the electricity, heating and cooling that is bought in to run those operations) GHG emissions. Our performance in 2020 Our combined Scope 1 and Scope 2 emissions, covered by aim 1, decreased by 16% from 54.4MteCO2e in 2019 2018 2017 Aim 2: Net zero oil and gasto 45.5MteCO2e in 2020. Scope 1 (direct) emissions 49.2 48.8 50.5 Wecovered by aim 1 decreased by 15% to 41.7MteCO2e in 2020, from 49.2MteCO2e in 2019. Of those Scope 1 emissions, 39.8MteCO2e were from CO2 and 1.9MteCO2e from methane. Scope 2 (indirect) emissions decreased by 1.4MteCO2e, to 3.8Mte CO2e, a 27% reduction compared to 2019. Decreases resulted from SERs, reduced energy requirement following COVID-19 demand reduction and also include a 1MteCO2e reduction in reported emissions from our Whiting refinery, which in 2020 put an agreement in place to purchase electricity from our Whiting clean energy facility. Our aim 2 is to be net zero on an absolute basis across the carbon in our Scope 2 (indirect) emissions 5.2 5.4 6.1 upstream oil and gas production« by 2050 or sooner. This is our Scope 3 Total 54.4 54.2 56.6 aim and is on a BPbp equity share basis excluding Rosneft. This carbon a wasEmissions are broadly equivalent to 360MteCO2ethe GHG Protocol, Scope 3, category 11g, with the specific scope of upstream production volumes. Our performance in 2020 The estimated emissions from the carbon in our Upstream oil and gas production were equivalent to 328MteCO2e in 2020, a reduction of approximately 9% compared to 361MteCO2eb in 2019. BP equity sharec

Strategic report2020 Our ‘reduce, improve, create’ frameworkaim 4 is to install methane measurement at all our existing major oil and gas processing sites by 2023, publish the data, and then drive a 50% reduction in methane intensity« of our operations. And we will work to influence our joint ventures« to set their own methane intensity targets of 0.2%. In 20182020 we set outan intensity target of 0.20% by 2025, using a measurement approach. To reduce our methane intensity, we will focus on achieving reductions across our key methane sources. Our performance in 2020 Our methane intensity in 2020 was 0.12%, an improvement from 0.14% in 2019. In 2020 methane emissions from upstream operations, used to calculate our intensity, decreased by 22% to 71.6kt in 2020, down from 92.2kt in 2019. Marketed gas was 3,075bcf in 2020. This reduction in methane intensity was due to the Alaska and bpx energy divestments in 2020 and from SER projects and flaring reductions, the largest reductions being delivered in bpx energy and Angola. Our aim 5 is to increase the proportion of investment we make into our non-oil and gas businesses. Over time, as investment goes up in low and no carbon, we see it going down in oil and gas. We are aiming for up to an eight-fold scaling up of our investment in low carbon ambitionenergy by 2025 and targetsa ten-fold scaling up by 2030, to around $5 billion a year. In 2020 we invested $750 million, compared to more than $500 million in 2019. See page 22 for more on our investment in line with aim 5. Five aims to help the world get to net zero Our aim 6 is to more actively advocate for policies that support net zero, including carbon pricing. We have stopped corporate reputation advertising campaigns and this is enabling us to re-direct resources to promote climate policies. In future, any corporate advertising will be to push for well-designed climate policy; communicate our net zero ambition; invite ideas; or build collaborations. We will continue to run recruitment campaigns and advertise our products, services and partnerships – although we aim for these to be increasingly low carbon. We are involved in advocacy activities related to well-designed policies, primarily carbon pricing in the US, through our support for regional initiatives. bp.com/policyandadvocacy Our aim 7 is to incentivize our global workforce to deliver on our aims and mobilize them to become advocates for net zero. We want to help our employees understand what net zero means and the part they can play – through education and training programmes. We want to incentivize employees, which is why in 2019 we announced plans to linklinked our annual cash bonus for eligible employees, including the bp leadership team, to our our ‘reduce, improve, create’ (RIC) framework: sustainable emissions reduction (SER) target. This means around 37,000 employees, including executives, are now incentivizedreductions (SERs). We have exceeded targeted delivery of SERs in both 2019 and • Reducing GHG emissions2020, though in our own operations. rewarded2020, bp decided not to pay an annual bonus due to the prevailing economic and financial environment. In 2020 for their contribution to reducing carbon emissions in BP. • Improving products to help our customers and consumers lower their emissions. We’ve met our SER target six years ahead of schedule and this has • Creatingsenior leaders we increased emphasis on low carbon, businesses. motivated usmoving from 5% to start work30% of senior leaders’ equity awards linked to low carbon. And for the bp leadership team, 25% of performance- based pay was linked to delivery of our purpose. The measures for the 2021 annual bonus for the wider workforce are aligned to bp’s strategy and net zero ambition and tied to a balanced scorecard consisting of safety and sustainability, operations and financial measures. In February 2021, we introduced the reinvent bp share award to incentivize our employees in meeting our aims. All employees will receive a one-off grant of either shares or share options that will become available to keep, sell or transfer in the first quarter of 2025. See the Directors’ remuneration report on pages 103-126 for more detail. Our aim 8 is to set new targets.expectations for our relationships with trade associations around the globe. We planbelong to provide more detailassociations that offer opportunities to share good practices and collaborate on issues of importance to our sector. We aim for alignment between our policies and those of trade associations that we are a member of but understand that associations’ positions reflect a compromise of the assorted views of the membership. We will make the case for our views on climate change and we will be transparent where we differ. And where we can’t reach alignment, we will be prepared to leave. We published our first trade associations review in September 2020. Reducing Improving Creating emissions inearly 2020, and left three associations where we assessed climate positions as not aligned. Since then, we have made interventions where our operations our products low carbon businesses 2019 progress 2019 progress 2019 progress • Achieved zero net growth in • Continued to scale up our • Began rolling out BP Chargemaster operational emissions. Our total co-processing business, growing ultra-fast charging across BP forecourts GHG emissions (operated) increased the volume of lower carbon bio-views have not aligned – these occurred in the UK and piloted ultra-fast charging slightly in 2019, largely due to the feedstock processed at our refineries. at Aral forecourts in Germany. major acquisitions at the end of 2018. • Established more than 30 carbon • Increased our stake in Lightsource BP, This was countered by other neutral BP retail sites, offering a to create a 50:50 joint venture, see emissions reductions. Total emissions rangearea of carbon neutral products page 73. were still belowpricing with the adjusted 2015 and services. • Took a leading role in the OGCI’s Net baseline so no offsets were required. • Increased the supplyCanadian Association of BP biojet, our Zero Teesside project in the UK. Using • 1.4Mte of SERs delivered in 2019 sustainable aviation fuel, to 11 locations integrated carbon capture, use and and 3.9Mte since 2016. And we linked worldwide – including in Sweden, storage, the project aims to store the this target to the annual cash bonus FrancePetroleum Producers and the US. carbon dioxide emissionsNetherlands Employer Association, VNO-NCV. In 2021 we intend to publish an update on our relationships with trade associations which will focus on our engagement with five partially aligned associations. bp.com/tradeassociations Our aim 9 is to be recognized as an industry leader for the transparency of our reporting. On 12 February 2020, we declared our support for the recommendations of the of around 37,000 eligible employees carbon-intensive industries situated in 2019. within the Teesside industrial cluster. • Methane intensity of 0.14%, below our target of 0.2%. More information Our strategyTask Force on page 16. Directors’ remuneration report on page 100. bp.com/sustainability. Accrediting our lower carbon activities Calling for more progressive climate policies Our advancing low carbon (ALC) accreditation programme aims to We plan to allocate more resources to advocate for well-designed inspire every part of BP to identify lower carbon opportunities. Since its policies, including carbon pricing. We believe carbon pricing is the launch, the programme has motivated people across BP to do more to most efficient way to reduce GHG emissions and incentivize everyone, advance low carbon, with 76 activities being accredited in 2019. Each including energy producers and consumers, to play their part. In our activity supports one of our low carbon ambitions. Deloitte conducts view, pricing can be as effective as a tax or a cap-and-trade system. independent assurance on ALC activities. We estimate that 64MteCO2e While we support well-designed carbon pricing, we’re prepared to have been saved or offset through activities delivered by BP, and oppose poorly designed proposals. For example, we opposed the 5.4Mte through activities delivered by BP partners since the ballot initiative to introduce a carbon fee in Washington State, US in programme began in 2017a. November 2018. We believed that the policy was badly designed and See bp.com/advancinglowcarbon for details on the programme and would have harmed Washington’s economy without significantly Deloitte’s assurance statement. reducing carbon emissions. The ballot was not passed. a The total emissions saved or offset from the accredited activities are estimated using a We continued to work with legislative leaders in the state and in 2019 variety of methodologies and baselines. The figures aim only to illustrate the impact of the activities within the programme, and delivered by BP or a BP partner only refers to the supported a cap-and-invest bill, which we believe will be more effective. organization leading on delivering the activity. Savings or offsets may be claimed by orClimate-related Financial Disclosures (TCFD). We intend to continue workingwork constructively with the Washington legislature during its attributedTCFD and others – such as the Sustainability Accounting Standards Board – to other parties. The scope of accredited activitiesdevelop good practices and standards for transparency. See pages 52-55 for our expanded TCFD disclosures. Our aim 10 is wider than, and does not 2020 session to see iflaunch a new carbon bill can be advanced. seekteam to aligncreate integrated clean energy and mobility solutions. We launched our regions, cities and solutions team in 2020. It will help countries, cities and corporations around the world decarbonize. We have announced our aim to partner with our GHG reporting boundaries. Therefore,10-15 cities globally over the figures are not directly comparablenext decade to BP’s reported emissions. BPhelp them achieve their climate goals. And we will work with three industrial sectors – high tech and consumer products, heavy transport and heavy industries – as they shape their energy transition journeys. In 2020 we’ve formed strategic partnerships with Aberdeen, Houston and Microsoft. We’ve also agreed to provide additional renewable energy to Amazon, helping them toward their ambition to decarbonize. bp.com/RCS

2020 Sustainability continued The world needs more energy to fuel prosperity and improve standards of living for a growing global population. This energy must be delivered in affordable and reliable ways, but it must also be lower carbon. Climate-related financial disclosures and the preparation and consideration of corporate reporting documents and AGM materials. The board has reviewed the consistency of our We support the recommendations of the Task Force on Climate-related current strategy with the Paris goals, see page 17. Financial Disclosures (TCFD), which was established by the Financial Stability Board with the aim of improving the reporting of climate- The executive relatedclimate-related risks and opportunities. We announced in 2020 that we intend to work constructively with The assessment and management of climate-related matters is the TCFD, and others, to develop good practices and standards for embedded across BP at various levels and delegated authority flows transparency. This will be a multi-year journey, but we have already down from the board, see page 83. started, and ourOur latest reporting provides information supporting the Climate-related matters were discussed at eachTCFD’s recommended disclosures. We responded to the FCA consultation on climate-related financial disclosures and welcome the new listing rule. Governance Recommended disclosure: a. Describe the board’s oversight of climate- related risks and opportunities. The role of the 11 executive TCFD’s recommended disclosures. team meetings in 2019 includingboard is to promote bp’s sustainable success for the developmentbenefit of BP’s net zero Governance ambitionits members, generating value for shareholders while having regard to the interests of our other stakeholders, the impact of our operations on the communities where we operate and aims ahead of discussion with the board. Recommendation: Discloseenvironment. In performing this role, the organization’s governance around The executive team is supported by BP’s senior-level leadership and climate-related issues and opportunities. their respective teams, with dedicated business and functional The board expertise focused on climate-related matters. This includes our carbon The board is responsible for oversight of the overall conduct of the group’sgroup’s business, management, safety and operational risk, group policy and our which extends to setting our strategy and approach to the energy economics teams. transition. The board and its associated committees, including the safety and sustainability, audit, people and governance and remuneration committees, where appropriate, have oversight of climate-related matters, which include climate risks and opportunities. They are updated on these matters frequently, a process which is managed by our company secretary’s office, which works closely with teams in bp to develop materials that assist the board or committee to discharge its responsibilities, including those related to climate. In 2020 these processes included formal analysis of bp’s net zero ambition and aims, briefings with subject matter experts, reviews of regulatory correspondence regarding prior year climate disclosures, virtual site visits and the preparation and consideration of corporate reporting documents and AGM materials. During 2020, climate matters were included on the agenda at every board meeting. Agendas are now structured along four distinct pillars: strategy, performance, people and governance. The safety and sustainability committee’s remit was extended from the beginning of 2020 to provide oversight of the effectiveness of the implementation of bp’s sustainability frame. This includes reviewing that appropriate progress is being made against our net zero, people and planet aims. The committee will continue to cover existing sustainability-related activities, including the oversight of operational sustainability risks. The role of the audit committee is to monitor the effectiveness of bp’s financial reporting, systems of internal control and risk management, and the integrity of bp’s external and internal audit processes. In fulfilling this purpose, the committee has oversight of financial disclosure, including TCFD reporting. The role of the remuneration committee is to recommend to the board the remuneration policy for executive directors and the leadership team. It also reviews workforce remuneration and monitors related policies, satisfying itself that incentives and rewards are aligned to bp’s strategy, culture and long-term sustainable success. This includes climate- related matters. The role of the people and governance committee (formerly the nomination and governance committee) is to oversee a diverse succession pipeline and to review workforce policies and practices, monitoring their consistency with bp’s purpose, strategy and values. This helps ensure that we have the right people to deliver our strategy and net zero ambition. Climate change and the environment Pursuing a strategy consistent with the Paris goals Strategy has been the core focus of every board meeting since the beginning of 2019. Throughout 2020 the board worked closely with the leadership team in developing our new strategy. In August 2020 the chairman outlined the key judgements the board had applied to their decision making regarding bp’s strategy, financial frame and investor proposition. As a result, the board considers that the strategy allows us to be flexible to adapt to market changes and scenarios to remain consistent with the Paris goals. The role of the board in evaluating material capex consistency with Paris The board assesses the impact of portfolio changes, such as strategic acquisitions and the allocation of capital. It also considers specific investment cases which have been approved by the resource commitment meeting, see page 29. TCFD recommendation: Disclose the organization’s governance around climate- related issues and opportunities. From 1 January 2021, bp implemented a new, simplified system of sustainability governance encompassing the board, its associated committees and the leadership team. This structure will enhance oversight of bp’s new sustainability frame, which focuses on three areas: net zero, people and planet. The remit of the board and its committees under our new governance framework is set out on page 88. Terms of reference for the board and its committees are available at bp.com/governance.

2020 Sustainability continued Strategy Strategic report Strategyimplications of climate change In the bp Energy Outlook 2020 we describe the potential implications of climate change and the energy transition on both primary energy demand and the energy system, through three long-term scenarios: Rapid, Net Zero and Business-as-usual. These are summarized on page 11 and further analysis by country and region, energy sector and fuel type can be found in the bp Energy Outlook, available at bp.com/energyoutlook. The transition to a lower carbon economy presents both risks and significant business opportunities for bp. Climate-related physical and transition risks are managed and reported as part of our group-wide risk management process described on pages 64-66. Climate-related risks and opportunities associated with the energy transition were taken into consideration alongside other inputs in developing our new ambition, aims and strategy. For more information about how our new organizational model and financial reporting segments see pages 36-38. For more on our new financial frame see page 22. Strategic resilience We believe our strategy is resilient to the first time we have publishedrange of energy transition pathways and scenarios including Paris, see page 11. For more information on our financial resilience, including our revised long-term price assumptions and impairment testing, see page 28. For information on the estimated lifecycle carbon Recommendation:resilience of our individual investments, including our governance structure and investment process, see page 29. Our strategy is validated annually by the board to ensure it remains relevant and resilient, as part of our standard governance processes. Elements of the strategy may be refreshed earlier if there are significant changes in external or internal environment. TCFD recommendation: Disclose the actual and potential impacts of intensity of our marketed energy products, see page 40. climate-related risks and opportunities on the organization’s We recognize that climate-related risks include both:organization’s business, strategy and financial planning where such information is material. •Recommended disclosure: a. Describe the climate-related risk and opportunities that the organization has identified over the short, medium, and long term. b. The impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. c. The resilience of the organization’s strategy, taking into consideration different climate- related scenarios, including a 2°C or lower scenario. Our strategy to become an Integrated Energy Company, and our net zero ambition and aims are set out on pages 2-3, 15 and 49. In developing this strategy, the board and leadership team consider a wide range of opportunities and risks across three discrete time horizons: Short term (to 2025): the next five years are defined by detailed business and financial plans, which are performance managed in delivery of our 2025 targets. Medium term (to 2030): looking out 10 years enables us to think beyond the short-term to consider signposts and milestones towards the longer-term scenarios, enabling us to adjust course if required. Long term (to 2050): recognizing the wide range of uncertainties, we use a scenario planning approach to help us explore possible pathways for the energy transition over the next 30 years, as the world moves towards net zero. This includes consideration of changes in policy, societal preferences, economic growth and technological progress. For more detail on our approach and how it informs our strategy, see page 11. TCFD recommendation: Disclose how the organization identifies, assesses and manages climate-related risks. Risk management Recommended disclosure: a. Describe the organization’s processes for identifying and assessing climate-related risks. bp’s risk management system, described on page 64, is designed to address all types of risks including our principal risks and uncertainties described in Risk factors on page 67. As part of this system our operating businesses, integrators and enablers (see page 36) are responsible for identifying, assessing, managing, and monitoring risks associated with their business area. Risks are assessed in line with bp’s risk management policy and this includes an impact and likelihood assessment which supports relative prioritization. Climate-related risks are classified in alignment with TCFD’s description of physical and transition risks: Physical risks –– risks related to the physical impacts of climate change including eventevent- driven risks such as changes in the severity We recognize the significance of the energy transition and the risks and/or frequency of extreme weather events. and opportunities it presents. As part of their consideration of BP’s • Transition risks –– risks related to the transition to a lower carbon strategy, the board and executive team consider risks and opportunities economy including policy and legal, technology, markets and associated with climate change and the energy transition informed by reputational risks. a range of external inputs, including the International Panel on Climate Change (IPCC), academic research and emerging regulatory The potential material impacts of such climate-relatedclimate- related risks are described in Risk requirements, and BP materials such as the different scenarios factors, see pages 70-71. We place importance on pursuing a flexible described inpage 67. Recommended disclosure: b. Describe the BP Energy Outlook 2019. strategy which gives us optionality where there is uncertainty about the pathways to achieve the Paris goals. This positions us to deliver our We believe that the transition to a lower carbon economy presents strategic priorities, and net zero ambition and aims. significant business opportunitiesorganization’s processes for BP. One of our strategic priorities is to pursue new opportunities to meet evolving technology, consumer When developing our strategy, we draw on expertise from across the and policy trends through venturing and low carbon, see page 28. organization. This includes our group economics team and their work Some of the opportunities we see are set out in our RIC framework – on the scenarios described in the BP Energy Outlook 2019. The Energy to improve our products, to help customers lower their emissions and to Outlook, together with other scenarios, informs our price assumptions create new, lower carbon businesses, see page 41. which are part of our investment governance processes. The evaluation of new material capex investment in 2019 for consistency with the Paris We have set out 10 aims to support our ambition to be a net zero goals is discussed on page 21. company by 2050 or sooner and to help the world reach net zero. We believe that collectively, these 10 aims set out a path that is consistent with the Paris goals. One of our specific aims relates to halving the carbon intensity of our marketed products by 2050 or sooner. See page 6 for more information on our net zero ambition and aims. Climate governance: management of climate-related matters in 2019 Chief executive and the executive team Senior leadership Carbon steering group Accountability Focuses on strategy, policy, performance oversight and collaboration relating to carbon management activities across the group. Chaired by our vice president of carbon management. Delegation Upstream carbon steering committee Downstream advancing the energy transition committee Focuses on the delivery of lower carbon plans in the Upstream. Develops and drives the implementation of advancing the Chaired by our chief operating officer of production, energy transition in the Downstream. Chaired by our head transformation and carbon, Upstream. of technology, Downstream and chief scientist. Underpinned by systems, processes and risk management. Executive-level committee. Cross-functional committee. Senior-leadership level. Business and segment committee. BP Annual Report and Form 20-F 2019 43

Our group strategic planning team is responsible for using data from Metrics and targets the BP Energy Outlook and implementing the insights in our strategic Recommendation: Disclose the metrics and targets used to assess frameworks, including our net zero ambition and mid-term RIC targets. and manage relevant climate-related risks and opportunities where We recognize that climate-related risks are an important consideration such information is material. in developing our strategy. Climate-related risks are incorporated into We present the principal group-wide metrics and targets used to assess BP’s governance process, see How we manage risk on page 69. and manage climate-related risks and opportunities on page 17. This Risk management includes the targets we set out in 2018 in our RIC framework. Recommendation: Disclose how the organization identifies, In addition, in 2019 BP announced that sustainable GHG emissions assesses and managesmanaging climate-related risks. reductions would be included as a factor in the reward of around Ourc. Describe how processes for identifying, assessing and managing climate-related risks are 37,000 eligible employees across the group and around the world, integrated into BP’sthe organization’s overall risk management policy and the associated risk including executive directors. This target was 10% of the group’s annual management procedures. BP’s risk management system is designed cash bonus scorecard and we exceeded the target set of 1.0Mte to address all types of risks and as part of this system our operating (1.4Mte). In 2020 we plan to increase the percentage of remuneration businesses are responsible for identifying and managing their risks. which is linked to emissions reductions for our leadership and eligiblemanagement. Risks which may be identified include potential effects on operations employees. Our aim is to mobilize our workforce to become advocates at asset level, performance at business level and developments at for our net zero ambition. regional level from extreme weather or the transition to a lower For information on our 2020 remuneration policy, see page 110. carbon economy.

Strategic report Working with others Safety2020 Sustainability continued Our health, safety, security and security We work with peers, non-governmental organizations and Safety remains our number one priority and one of our core values. academic institutions to support the energy transition. Our aim is to haveenvironmental (HSSE) goals are: no accidents, no harm to people and no damage to the environment. The Oil and Gas Climate Initiative (OGCI) brings together 13 oil and gas companies to increase the ambition, speed and scale of the initiatives We are working to continue to improve personal and process safety and undertaken by its individual companies to help reduce manmade GHG operational risk management across BP and to strengthen our safety emissions. OGCI announced a collective methane intensity target for management. Our approach builds on our experience, including learning member companies in 2018. from incidents, operations audits, annual risk reviews and sharing For more information on BP’s methane intensity, see page 34. lessons learned with our industry peers. BP is working with OGCI Climate Investments and certain other OGCI Process safety events Recordable injury frequency member companies to help progress the UK’s first commercial (number of incidents) (workforce incidents per 200,000 hours worked) full-chain carbon capture, use and storage project. Net Zero Teesside 100 0.4 83 84 plans to capture CO2 from new, efficient gas-fired power generation and 72 transport it by pipeline to be stored in a formation under the southern 75 0.3 61 North Sea. The infrastructure would also allow other industries in 56 Teesside to store CO2 captured from their processes. The project, 50 0.2 which is currently undergoing a feasibility study, could be in operation by the mid-2020s. 25 0.1 26 20 16 18 16 Managing our impacts 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 We work hard to avoid, mitigate and manage our environmental Tier 1 Tier 2 Workforce 0.243 0.211 0.218 0.198 0.166 and social impacts over the life of our operations. Employee 0.203 0.194 0.202 0.152 0.128 Contractor 0.279 0.222 0.229 0.233 0.193 The way our businesses around the world are expected to understand American Petroleum Institute US benchmark* and manage their environmental and social impacts is set out in our International Association of Oil & Gas operating management systemsystem« (OMS). This includes requirements on Producers benchmark* engaging with stakeholders who may be affected by our activities. * API and IOGP 2019 data reports are not available until May 2020. In planning our projects, we identify potential impacts from our activities in areas such as land rights, water use and protected areas. We use the Keeping people safe results of this analysis to identify actions and mitigation measures and All our employees and contractors have the responsibility and the look to implement these in project design, construction and operations. authority to stop unsafe work. Our safety rules guide our workers on For example, in Mauritania and Senegal we are working with national staying safe while performing tasks with the potential to cause most and international scientists on the biodiversity action plan for the harm. The rules are aligned with our OMS and focus on areas such as Greater Tortue Ahmeyim development. working at heights, lifting operations and driving safety. Our OMS requires each of BP’sbp’s operating businesses and functions to We monitor and report on key workforce personal safety metrics in line create and maintain its own OMS handbook, describing how it will carry with industry standards. We include both employees and contractors in out its local operating activities. Through self-verification, local business our data. processes are reviewed and areas for improvement are prioritized, allowing focus on delivering safe, reliable and compliant operations. TragicallyAir emissions We monitor our air emissions and put measures in place to reduce the potential impact of our activities on local communities. As part of our aim 19 we suffered two fatalitiesplan to evaluate the air emissions from our global operating facilities to better understand how they may be affected while advancing our net zero aims for GHG emissions. For more on air emissions, see the bp Sustainability Report 2020. Caring for our planet Our sustainability frame includes a focus on making a positive difference to the environment in 2019. In July a fire-fighting assistantwhich we operate. The scope of our care for our planet aims covers biodiversity, water management, nature-based solutions including those that reduce or remove carbon, circularity and sustainable purchasing. Water We actively manage our freshwater demands in our biofuels business in Brazil was fatally injured following a For informationareas of stress and scarcity. Based on our oil spill performance see page 46. fire truck accident while attending to an agricultural fire. In October a Water contractor at our Whiting refinery in the US was fatally injured when he We review water risks every year, taking into account availability, fell from a scaffold ladder. quantity, quality and regulatory requirements. We also use a range of tools, including the Global Environmental Management Initiative Local 2019 2018 2017 a Water Tool andanalysis using the World Resources Institute Aqueduct Global Water Risk Atlas, four of our 24 major operating sites were located in regions with high or extremely high water stress in 2020, with another four in areas of medium to high water stress. This number reduces to three in regions with high or extremely high water and three in regions of medium to high water stress, if our bp petrochemicals and other 2020 divestments are excluded. In 2020 we saw a 2% fall in freshwater withdrawals and a 17% fall in freshwater consumption compared to 2019. This was largely due to the divestment of our Alaskan operation in 2020, the formation of the bp Bunge non- operated joint venture from bp operated biofuels and biopower businesses at the end of 2019 and a reduction in freshwater use in our bpx energy operations during 2020. We have set an aim to be water positive by 2035. We aim to replenish more freshwater than we consume in our operations. We will do this by being more efficient in operational freshwater use and effluent management, and by collaborating with others to replenish freshwater in stressed and scarce catchment areas where we operate. Biodiversity We have set an aim to enhance biodiversity, focusing on making a positive impact through our actions to restore, maintain and enhance biodiversity where we work. We expect that from 2022 all new bp projects in scope will have plans in place aiming to achieve net positive impact (NPI), with a target for 90% of actions to be delivered within five years of project approvala. We also aim to enhance biodiversity at our major operating sites and support biodiversity restoration and sustainable use of natural resource projects in the countries where we have current or growing investments. In 2020 we launched our new biodiversity position and focused on sharing it with our stakeholders and putting in place the resources to deliver it. We also started work on defining our NPI methodology with Fauna & Flora International, which we expect to complete at the end of 2021. bp.com/biodiversity Our aims to care for our planet: Aim 16: enhance biodiversity. Aim 17: water positive. Aim 18: championing nature-based solutions. Aim 19: unlock circularity. Aim 20: sustainable purchasing. bp.com/planet a Applicable projects that have the potential for significant direct impacts on biodiversity. Only actions that are intended to be delivered within five years in accordance with the NPI methodology are included. The 30% and 90% targets apply in aggregate across all applicable projects that meet the relevant timeframes from the final project approval (and are not targets for individual projects). Managing our environmental impacts

2020 Sustainability continued Managing safety Cyber threats BP-operatedbp-operated businesses are responsible for identifying and managing The severity, sophistication and scale of cyber attacks continues to operating risks and bringing together people with the right skills and evolve. The increasing digitalization and reliance on IT systems makes competencies to address them. Our safety and operational risk assurance team managing cyber risk an even greater priority for many industries, works alongside BP-operatedbp-operated businesses to provide oversight and including our own. technical guidance, while our group audit team visits sites on a The risk comes from a variety of cyber-threat actors, including nation risk-prioritized basis to check how they are managing risks. states, criminals, terrorists, hacktivists and insiders. As with previous Our operating management system years, we’ve experienced threats to the security of our digital infrastructure, but none of these had a significant impact on our Our OMS is a group-wide framework designed to help us manage risks business in 2019. We have a range of measures to manage this risk, in our operating activities and drive performance improvements. It brings including the use of cyber-security policies and procedures, security together BPbp requirements on health, safety, security, the environment, protection tools, continuous threat monitoring and event detection social responsibility and operational reliability, as well as related issues, capabilities, and incident response plans. We also conduct exercises such as maintenance, contractor relations and organizational learning, to test our response to and recovery from cyber attacks. To encourage into a common management system. vigilance among our staff, our cyber-security training and awareness programme covers topics such as phishing and the correct classification Our OMS also helps us improve the quality of our activities by setting a and handling of our information. We collaborate closely with governments, common framework that our operations must work to. We review and law enforcement and industry peers to understand and respond to new amend these requirements from time to time to reflect our priorities. and emerging threats. Any variations in the application of our OMS, in order to meet local regulations or circumstances, are subject to a governance process. Security Recently acquired operations need to transition to our OMS. Preventing incidents We carefully plan our operations, with the aim of identifying potential hazards and having rigorous operating and maintenance practices applied by capable people to manage risks at every stage. We design our new facilities in line with process safety, good design and engineering principles. We track our safety performance using industry metrics such as the American Petroleum Institute recommended practice 754 and the International Association of Oil & Gas Producers recommended practice 45. Our process safety performance improved from 2019 and was roughly comparable to 2018 and 2017. There were 35% fewer tier 1 process safety events in 2020 compared to 2019, but our performance was broadly in line with the previous three years. We also recorded 26% fewer tier 2 process safety events compared to 2019, lower than the previous 10 years. The combined tier 1 and tier 2 process safety events were down 29% in 2020 compared to 2019. We investigate incidents including near misses. And we use leading indicators, such as inspections and equipment tests, to monitor the strength of controls to prevent incidents. 2020 2019 2018 Tier 1 and tier 2 process safety eventsa 70 98 72 Oil spills – numberb 121 152 124 Oil spills contained 70 90 63 Oil spills reaching land and water 46 58 57 Oil spilled – volume (thousand litres) 784 710 538 Oil unrecovered (thousand litres) 494 300 131 a Tier 1 process safety events are losses of primary containment of greatest consequence – such as causing harm to a member of the workforce, costly damage to equipment or exceeding defined quantities. Tier 2 events are those of lesser consequence. b Number of spills greater than or equal to one barrel (159 litres, 42 US gallons). Emergency preparedness The scale and spread of bp’s operations means we must be prepared to respond to a range of possible disruptions and emergency events, such as the COVID-19 pandemic. We maintain disaster recovery, crisis and business continuity management plans and work to build day-to- day response capabilities to support local management of incidents. Security We monitor for hostile actions that could harm our people or disrupt Preventing incidents our operations. These actions might be connected to political or social unrest, terrorism, armed conflict or criminal activity. We take these We carefully plan our operations, with the aim of identifying potential potential threats seriously and assess them continuously. hazards and having rigorous operating and maintenance practices applied by capable people to manage risks at every stage. We design Our 24-hour response information centre in the UK uses state-of-the-art our new facilities in line with process safety, good design and technology to monitor evolving high-risk situations in real-time.real time. It helps engineering principles. us to assess the safety of our people and provide them with practical advice if there is an emergency. Cyber security The severity, sophistication and scale of cyber attacks continues to evolve. The increasing digitalization and reliance on IT systems makes managing cyber risk an even greater priority for many industries, including our own. The risk comes from a variety of cyber-threat actors, including nation states, criminals, terrorists, hacktivists and insiders. As with previous years, we’ve experienced threats to the security of our digital infrastructure, but none of these had a significant impact on our business in 2020. We trackhave a range of measures to manage this risk, including the use of cyber-security policies and procedures, security protection tools, continuous threat monitoring and event detection capabilities, and incident response plans. We also conduct exercises to test our safety performance using industry metricsresponse to and recovery from cyber attacks. To encourage vigilance among our staff, our cyber-security training and awareness programme covers topics such as the American Petroleum Institute recommended practice 754phishing and the This year, we faced a numbercorrect classification and handling of protests.our information. We workedcollaborate closely with local police, International Association of Oil & Gas Producers recommended including marine authorities,governments, law enforcement and industry peers to minimize any disruption from theseunderstand and respond to practice 456. our operations. 2019 2018 2017new and emerging threats. Working with contractors Tier 1 and tier 2 process safety eventsa 98 72 79 Through documents that help bridge between our policies and those Oil spills – numberb 152 124 139 of our contractors, we define the way our safety management system Oil spills contained 90 63 81 co-exists with those of our contractors to manage risk on a site. For our Oil spills reaching land and water 58 57 58 contractors facing the most serious risks, we conduct quality, technical, Oil spilled – volume (thousand litres) 710 538 886 health, safety and security audits before awarding contracts. Once they Oil unrecovered (thousand litres) 300 131 265 start work, we continue to monitor their safety performance. a Tier 1 process safety events are losses of primary containment of greatest consequence Our OMS includes requirements and practices for working with – such as causing harm to a member of the workforce, costly damage to equipment or contractors. Our standard model contracts include health, safety and exceeding defined quantities. Tier 2 events are those of lesser consequence. security requirements. We expect and encourage our contractors and b Number of spills greater than or equal to one barrel (159 litres, 42 US gallons). their employees to act in a way that is consistent with our code of The total number of tier 1 and tier 2 process safety events increased conduct and take appropriate action if those expectations, or their in 2019, mainly reflecting performance in assets recently acquired. contractual obligations, are not met. Underlying performance across the group improved slightly from 2018. We are implementing BP procedures and processes to help bring newly Our partners in joint arrangements acquired assets in line with BP assets.« In joint arrangements where we are the operator, our OMS, code of We investigate incidents including near misses. And we use leading conduct and other policies apply. We aim to report on aspects of our indicators, such as inspections and equipment tests, to monitor the business where we are the operator –– as we directly manage the strength of controls to prevent incidents. We also use techniques that performance of these operations. We monitor performance and how risk is help teams to analyse and redesign tasks to reduce the chance of managed in our joint arrangements, whether we are the operator or not. mistakes occurring. Where we are not the operator, our OMS is available as a reference point for BPbp businesses when engaging with operators and co- Emergency preparedness venturers.co-venturers. We have a group framework to assess and manage BP’s The scale and spread of BP’s operations means we must be preparedbp’s exposure related to safety, operational and bribery and corruption risk to respond to a range of possible disruptions and emergency events. from our participation in these types of arrangements. Where We maintain disaster recovery, crisis and business continuity appropriate, we may seek to influence how risk is managed in management plans and work to build day-to-day response capabilities arrangements where we are not the operator. to support local management of incidents. 46 BP

Strategic report2020 Our people At the end of 2019 we had five female directors (2018 5) on our board. Our nomination committee remains mindful of diversity when considering BP’s success depends on having a talentedvalues and diverse workforce that potential candidates. For more information on the composition of our represents the communities we serve. board, see page 74. In the UK we report the gender pay gap for five BP entities. Our 2019 Number of employees at 31 Decembera 2019 2018 2017 report shows small improvements since 2018, including improvements Upstream 16,600 16,900 17,700 in our highest pay gap entities – BP p.l.c. and BP Exploration Operating Downstream 44,300 42,700 42,100 Company Limited. Six of the 10 gaps have narrowed. Our challenge is Other businesses and corporate 9,200 13,400 14,200 to maintain and, if possible, accelerate this trend. We are working to Total 70,100 73,000 74,000 address the differences but recognize that this is a long-term challenge. a Reported to the nearest 100. For more information see Financial statements – Note 35. See bp.com/ukgenderpaygap for data and more information on our gender pay gap in the UK. Our people are the most important element of our success. We need a motivated, engaged, and diverse workforce to deliver our purpose Inclusion and strategy. We aim to build a culture that generates the diversity of thought, approach and ideas needed to play a leading role in the To promote an inclusive culture we provide leadership training and energy transition, a culture in which people’s wellbeing is valued and support employee-run advocacy groups in areas such as gender, differences are respected. ethnicity, sexual orientation and disability. As well as bringing employees together, these groups support our recruitment programmes and The group people committee helps facilitate the group chief executive’s provide feedback on the potential impact of policy changes. Each oversight of policies relating to employees. In 2019 the committee group is sponsored by a senior executive. discussed people policies, including our remuneration policy, progress in our diversity and inclusion programme, modernizing and strengthening In 2019 we built closer ties between our central diversity and our attractiveness as an employer, our talent and learning programmes inclusion team and local business resource groups (BRGs). We also and long-term people priorities. held a number of events for employees from our BRGs, including an ‘economics of diversity’ webcast, a roadshow and a diversity and Attraction and retention inclusion week. We aim to recruit talented people from diverse backgrounds, and We aim to ensure equal opportunity in recruitment, career development, invest in training, development and competitive rewards for all our promotion, training and reward for all employees – regardless of ethnicity, people. We invest in employee development – with a focus on driving national origin, religion, gender, age, sexual orientation, marital status, safe, reliable and compliant operations, and on building technical, disability, or any other characteristic protected by applicable laws. functional and leadership capability. This includes a range of Where existing employees become disabled, our policy is to engage development opportunities for our people through a mix of on-the-job and use occupational assistance where needed, and to use reasonable learning, developmental relationships with mentors, managers and accommodations or adjustments to enable continued employment. peers, and training delivered face-to-face, virtually and through We have been recognized by a number of external awards in 2019, simulation or e-learning. including The Times newspaper’s Top 50 Employers for Women, Stonewall Global Leader and the FT’s Inclusive Companies recognition. Diversity We set out our current diversity and inclusion ambition in 2012. It is Employee engagement based on our core values of safety, respect, excellence, courage and Our managers hold regular team and one-to-one meetings with their one team. team members, complemented by formal processes through works We aim to attract, develop and retain the best talent and to create a councils in parts of Europe. We regularly communicate with employees diverse and inclusive working environment, where everyone is on factors that affect BP’s performance, and seek to maintain accepted, valued and treated equally without discrimination. constructive relationships with labour unions formally representing our employees. A total of 25% of our group leaders came from countries other than the UK and the US in 2019 (2018 24%). To understand what our employees think and feel about BP, we run an annual ‘Pulse’ survey and in 2019 we introduced ‘Pulse Live’, which Workforce by gender enables us to monitor changes in employee sentiment on a weekly As at 31 December 2019 Male Female Female % basis. The overall employee engagement score in our 2019 survey was Board directors 7 5 42 65% (2018 66%). Pride in working for BP was 75% (2018 76%). In the Executive team 11 2 15 2019 survey, participating employees told us we should focus more attention in several areas, including: sharing our strategy, reinforcing the Group leaders 285 93 25 need for an open speak-up culture, explaining how BP is taking action to Subsidiary directors 1,202 247 17 help create a low carbon future and providing updates on safety All employees 43,762 26,280 38 improvements and other priorities. The gender balance across BP as a whole is improving, with women Share ownership representing 38% of BP’s total population (2018 35%). We are working to improve these numbers further by, for example, developing We encourage employee share ownership and have a number of mentoring, sponsorship and coaching programmes to help more employee share plans in place. For example, we operate a ShareMatch women advance. But we still have work to do at the executive and plan in more than 50 countries, matching BP shares purchased by our senior levels. employees. We also operate a group-wide discretionary share plan, which allows employee participation at different levels globally and is linked to the company’s performance. BP Annual Report and Form 20-F 2019 47

Communities Value to society We aim to have a positive and enduring impact on the communities in which we operate. In supplying energy, we contribute to economies around the world by employing local staff, helping to develop national and local suppliers, and through the funds we pay to governments from taxes and other agreements. Additionally, our social investments support community efforts to increase incomes and improve standards of living. We committed $84 million in social investment in 2019 (2018 $114.2 million). We aim to recruit our workforce from the community or country in which we operate. We also run programmes to build the skills of businesses and develop the local supply chain in a number of locations. For example, in the West Nile Delta, we provided training on vocational skills and health and safety standards for local people. We reached more than 2,000 people by the end of 2019. Nationals employed 2019 2018 Angola 88% 87% Azerbaijan 92% 91% Egypt 81% 78% Indonesia 97% 96% Oman 80% 77% Trinidad & Tobago 96% 96% See bp.com/society for more information on how we generate value to society. Human rights We are committed to respecting the rights and dignity of all people when conducting our business. We respect internationally recognized human rights as set out in the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. These include the rights of our workforce and those living in BP Target Neutral communities potentially affected by our activities. By buying carbon offsets, Target Neutral is supporting finance in projects that not only reduce We set out our commitments in our business and human rights policy carbon but make a critical difference to the health and our code of conduct. Our OMS contains guidance on respecting the of low-income families. rights of workers and community members. The ONIL cookstove project has equipped 25,000 We are incorporating the UN Guiding Principles on Business and Human rural homes in Mexico with cookstoves that burn Rights, which set out how companies should prevent, address and more efficiently, using up to 58% less firewood remedy human rights impacts, into our business processes. Our focus than a traditional open fire, and are equipped with areas include ethical recruitment and working conditions, responsible chimneys to take harmful cooking fumes outside the household. security and community health and livelihoods. See bp.com/humanrights for more information about our approach to human rights. 48 BP Annual Report and Form 20-F 2019

Strategic report Governance and business ethics Lobbying and political donations Our aim is to more actively advocate for policies that support net zero, Our values including carbon pricing, see page 41.conduct Our values of safety, respect, excellence, courage and one team We work with governments on a range of issues that are relevant to represent the qualities and actions we wish to see in BP.bp. They inform our business, from regulatory compliance, to understanding our tax the wayhow we do business and the decisions we make. We use these liabilities, to collaborating on community initiatives. The way in which values as part of our recruitment, promotion and individual performance we interact with those governments depends on the legal and management processes. regulatory framework in each country. See bp.com/values for more information. We prohibit the use of BP funds or resources to support any political The BP code of conduct candidate or party. We recognize the rights of our employees to participate in the political Our code of conduct is based on our values and sets clear expectations process and these rights are governed by the applicable laws in the for how we work at BP.bp. It applies to all BPbp employees including countries in which we operate. For example, in the US we provideand members of the board. administrative support for the BP employee political action committee Employees, contractors or other third parties who have a question (PAC), which is a non-partisan committee that encourages voluntary about our code of conduct or see something that they feel is unethical employee participation in the political process. All BP employee PAC or unsafe can discuss this with their managers, supporting teams, contributions are reviewed for compliance with federal and state law works councils (where relevant) or through OpenTalk, a confidential and are publicly reported in accordance with US election laws. and anonymous helpline operated by an independent company. Trade associations We received more than 1,8001,600 concerns or enquiries through these channels in 2019 (2018 1,712)2020 (2019 1,800). The most commonly raised concerns We aim to set new expectations for our relationships with trade were related to the ‘Our people’‘Our people’ section of our code.code of conduct. The section associations around the world. BP is a member of many industry addresses issues such as harassment, equal opportunity, and diversity associations that offer opportunities to share good practices and and inclusion. collaborate on issues of importance to our sector. In 2019 we began an in-depth review assessing the alignment of the climate-related We take steps to identify and correct areas of non-conformance and policies and activities of 30 key trade associations to which we take disciplinary action where appropriate. In 20192020 our businesses belong with BP’s position. As a result of this process we will be dismissed 74approximately 50 bp employees for non-conformance with our code of conduct leaving three associations due to misalignment on climate policy. or unethical behaviour (2018 50)(2019 82a). This excludes dismissals of staff For more information on the review processcontractors and outcomes seevendors, and staff employed at our retail service stations. bp.com/tradeassociations. See bp.com/codeofconduct for more information. Tax and transparency Anti-bribery and corruption We are committed to complying with tax laws in a responsible manner We operate in parts of the world where bribery and corruption present and having open and constructive relationships with tax authorities. a high risk. We have a responsibility to our employees, our shareholders We paid $6.9 billion in income and production taxes to governments and to the countries and communities in which we do business to be in 2019 (2018 $7.5 billion). ethical and lawful in all our work. Our code of conduct explicitly prohibits engaging in bribery or corruption in any form. We disclose information on payments to governments for our upstream activities on a country-by-country and project basis under national Our group-wide anti-bribery and corruption policy and procedures reporting regulations such as those in effect in the UK. We also make include measures and guidance to assess risks, understand relevant payments to governments in connection with other parts of our laws and report concerns. They apply to all BP-operatedbp-operated businesses. Tax transparency We comply with tax laws in a responsible manner, pay and report our taxes on time and have open and constructive conversations with stakeholders, including governments and tax authorities. And we contribute to initiatives that simplify and improve tax regimes to encourage investment and sustainable growth and support the energy transition. We are committed to being transparent about our tax principles and the taxes we pay. We paid $3.3 billion in corporate income and production taxes to governments (2019 $6.9 billion). In 2020 we endorsed the B Team Responsible Tax Principles and we published Our tax report 2019. The report provides more detailed information on how we approach tax matters and the tax payments we make. New disclosures in our tax report include the total tax contribution for our global operations. This covers: all our business – such asactivities and details the transporting, trading, manufacturingtaxes we pay directly to governments on our own behalf, along with taxes we collect and pay to governments on behalf of others; financial and tax data from our OECD country-by-country report, summary activities of bp subsidiaries by country and details of bp companies located in countries considered to be low tax jurisdictions. bp is a founding member of the Extractive Industries Transparency Initiative (EITI), which supports the disclosure of payments made to and received by governments in relation to oil, gas and mining. Through EITI we work with governments, NGOs and international agencies to improve transparency. bp.com/tax We provide training to employees appropriate to the nature or location marketing of oil and gas. of their role. Around 11,0007,700 employees completed anti-bribery and corruption training in 2019 (2018 10,957)2020 (2019 ~11,000). We are a founding member of the Extractive Industries Transparency Initiative (EITI), which requires disclosure of payments made to and We assess any exposure to bribery and corruption risk when working received by governments in relation to oil, gas and mining activity. with suppliers and business partners. Where appropriate, we put in place a risk mitigation plan or we reject them if we conclude that risks Through EITI we work with governments, NGOs and international are too high. We also conduct anti-bribery compliance audits on agencies to improve transparency. For example, in 2019 we enacted selected suppliers when contracts are in place. For example,Many of our our global commitment through membership of the international board, upstream business conductsproduction & operations projects conduct supplier audits for a number of suppliers in including supporting decision making on the new global EITI standard, higher-risk regions to assess their conformance with our anti-bribery which represents a further evolution in transparency. The focus is on and corruption contractual requirements. We take corrective action making disclosure and open data a routine part of government and with suppliers and business partners that fail to meet our expectations, corporate reporting, providing information to stakeholders in a way which may include terminating contracts. In 20192020 we issued 2535 audit reports (2019 25). While our audit process was disrupted in 2020 due to the COVID-19 pandemic, we continued to engage suppliers and communicate our expectations for managing bribery and corruption risk on behalf of bp. For example, our customers & products business delivered a regional annual contractor forum digitally, to provide awareness of bribery and corruption risks. Political donations and activity We prohibit the use of bp funds or resources to support any political candidate or party. We recognize the rights of our employees to participate in the political process and these rights are governed by the applicable laws in the countries where we operate. The way in which we interact with those governments depends on the legal and regulatory framework in each country. Our stance on political activity is defined in our code of conduct. In the US we provide administrative support for the bp employee political action committee (PAC), which is a non-partisan committee that supportsencourages voluntary employee participation in the political process. All bp employee PAC contributions are reviewed for compliance with federal and state law and are publicly reported in accordance with US election laws. The PAC paused all contributions for six months beginning in January 2021. During this time the PAC will re-evaluate its widespread usecriteria for candidate support. Business ethics and accountability a 2019 figure differs from the 2019 figure (74) reported in analysis and decision making. It reports (2018 27). now requires contract transparency for new contracts from 2021, as well as new requirements on environmental reporting and gender. See bp.com/tax for our approach to tax and our payments to governments report. BPthe bp Annual Report and Form 20-F 2019 49

Strategic report2020 Sustainability continued TCFD index table Our expanded TCFD disclosures can be found on the following pages. 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 52. b. Describe the management’s role in assessing and managing climate related risks and opportunities. Page 53. Strategy In 2016 weDisclose 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. Pursuing a future growth targetstrategy that is consistent with the Paris goals, pages 26-27. Strategy – page 54. Risk factors, pages 67-70. b. Describe the impact of 900,000 barrelsclimate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. Risk factors, pages 67-70 – description of oil equivalent per dayprincipal risks. Strategy – page 54. c. Describe the resilience of production from new major projects by 2021 andthe organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Our strategy, has three partspage 15. Pursuing a strategy that is consistent with the Paris goals, pages 26-27. Strategy – page 54. 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 – pages 54-55. How we manage risk, pages 64-66. Risk factors – page 67. b. Describe the organization’s processes for managing climate-related risks. Risk management, pages 54-55. How we manage risk, pages 64-66. c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. Risk management, pages 54-55. How we manage risk, pages 64-66. Risk factors – pages 67-70. Metrics and targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is enabled by: we remain on track to deliver that, having started up 24 ofmaterial. a. Disclose the 35 major Quality execution projects needed to reach this targetmetrics used by the end of 2019. We wantorganization to be the best at what we do – everywhere we work. We see our scaleassess climate-related risks and long historyopportunities in many of the great basins in the This startsline with executing our activity safely. In every basin, we will world as a differentiator for BP and believe in the strength of our benchmark against the competition and aim to be the best – whether incumbent positions. We believe we are balanced and flexible – in it be operating facilities reliably and cost effectively, with a focus on terms of geography, hydrocarbon type and geology – and rather than emissions, drilling wells, managing our reservoirs, exploring, building being restricted by a traditional way of working, we have and will projects, or deploying technology. Through the quality of our execution, continue to use creative business models to generate value. scale and infrastructure, we aim to be competitive in every basin, and as a business, get more from a unit of capital than our peers. This describes ourits strategy and organizational model in 2019. Growing advantaged oilrisk management process. Our strategic focus areas and gas Following BP’s new ambitionmetrics, pages 18 and 19. Our group-wide principal metrics and relevant targets – page 55. b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks. GHG emissions data – pages 49-50. c. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. Our net zero targets and aims set out in February 2020, We manage our portfolio through disciplined investment in the world’s we are transforming our business. We plan to provide more great oil and gas basins.at a glance – pages 49-51. More information on our future strategysustainability performance bp.com/sustainability Sustainability at bp More information on our sustainability reporting. Key environmental, social and near-term plans atgovernance dataa bp.com/ESGdata For our We intendmapping to make longer-term investments in natural gas askey sustainability frameworks and standards, including SASB and GRI, see bp.com/reportingcentre a lower capital markets day in September 2020. carbon fuel which can complement renewables and provide stable cash flows while contributing to the energy transition to a lower carbon future. We see our gas portfolio being complemented by oil assets that we consider to be advantagedSelected sustainability information in the energy transition; this is oil we can produce at a lower cost and higher margin, with faster payback Financial performance times and ready accessESG datasheet was subject to markets, and maintaining a rigorous focus $ million on carbon. 2019 2018 2017 Sales and other operating revenuesa 54,501 56,399 45,440 We aim to maintain a strong financial frame, allocating capital to build resilience to withstand uncertainty and changelimited assurance by Deloitte LLP in the external RC profit before interest and tax 4,917 14,328 5,221 environment. Ensuring sustainability of our business model and Net (favourable) adverse impact of products will be key to maintaining competitiveness. non-operating items and fair value accounting effects 6,241 222 644 Returns-led growth Underlying RC profit (loss) before We want to grow returns and value, and believe this will come from interest and tax 11,158 14,550 5,865 many sources – expanding and managing our margins, operational Organic capital expenditureb 11,904 12,027 13,763 efficiency, unit cost reduction, and capital efficiency with disciplined BP average realizationsc $ per barrel levels of capital reinvestment. Crude oild 61.56 67.81 51.71 Our major projects are selected and evaluated on a balanced set of Natural gas liquids 18.23 29.42 26.00 investment criteria, which allow for comparison and prioritization, and to Liquids 57.73 64.98 49.92 evaluate for consistency with Paris goals within an appropriate portfolio context. In the Upstream this evaluation includes confirming whether $ per thousand cubic feet we expect them to generate positive returns within a price and demand Natural gas 3.39 3.92 3.19 environment we consider to be consistent with those goals, with a bias US natural gas 1.93 2.43 2.36 towards shorter payback times and a comparisonaccordance with the operational $ per barrel of oil equivalent emissions profile of our wider Upstream portfolio. Total hydrocarbons 38.00 43.47 35.38 Underpinning our business model and strategy is our transformation $ per barrel of oil equivalent agenda. In 2019 we had more than 1,000 projects across the Upstream Average oil marker pricese $ per barrel aimed at sustainably improving both performance and ways of working Brent 64.21 71.31 54.19 in the Upstream. Since the inception of our transformation programme in 2016, projects are estimated to have delivered an additional West Texas Intermediate 57.03 65.20 50.79 $1.5 billion of cash flow to the business. Average natural gas marker prices $ per million British thermal units Average Henry Hub gas pricef 2.63 3.09 3.11 In addition to our core upstream exploration, development and production activities, the segment is responsibleInternational Standard for the midstream pence per therm transportation, storage and processing that support its operations. We Average UK National Balancing e also market and trade natural gas, including liquefied natural gas (LNG), Point gas price 34.70 60.38 44.95 power and natural gas liquids. In 2019 our activities took place in 34 a Includes sales to other segments. countries. b A reconciliation to GAAP information at the group level is provided on page 299. c Realizations are based on sales by consolidated subsidiaries only, which excludes BPX Energy, our onshore oil and gas business in the US Lower 48 equity-accounted entities. states, continues to operate as a separate, asset-focused, onshore d Includes condensate. business. Integration of the BHP assets acquired in 2018 has gone e All traded days average. well, with realized savings from synergies more than double our f Henry Hub First of Month Index. original target for 2019. We optimize and integrate the delivery of our activities across 12 regions, with support provided by global functions in specialist areas of expertise: technology, finance, procurement and supply chain, human resources, information technology and legal. BPAssurance Engagements (“ISAE”) 3000 (Revised).

Market prices Financial results Brent remains an integral marker to2020 Our stakeholders Section 172 statement In accordance with the production portfolio, from which Sales and other operating revenues for 2019 decreased comparedrequirements of section 172 of the Companies Act 2006 (‘the Act’), the directors consider that, during the financial year ended 31 December 2020, they have acted in a significant proportionway that they consider, in good faith, would most likely promote the success of production is priced directly or indirectly. with 2018, primarily reflecting lower liquids and gas realizations partially offset by higher production and strong gas marketing and trading revenues. Brent ($/bbl) Replacement cost profit before interest and taxthe company for the segment 120120 included a net non-operating chargebenefit of $6,947 million. This primarily relates to impairments arising from disposal transactions. 90 See Financial statements – Note 5 for further information. Fair value accounting effects had a favourable impact of $706 million relative to 60 management’s view of performance. 30 The 2018 result included a net non-operating charge of $183 million, primarily related to impairment charges associated with a number of 0 0 assets, following changes in reserves estimates, the decision to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec dispose of certain assets and the decision to relinquish a number of 2019 2018 2017 Five-year range leases expiring in the near future, partially offset by reversals of prior year impairment charges. Fair value accounting effects had an adverse Dated Brent prices averaged $64.21 per barrel in 2019 – a 9% decrease impact of $39 million relative to management’s view of performance. from 2018 levels but almost 30% above the 2015-17 average. Prices After adjusting for non-operating items and fair value accounting fluctuated during the year reaching a peak of $71 in April on OPEC+ effects, the underlying replacement cost result before interest and tax supply restraints and the decline in Venezuelan and Iranian output. In was lower in 2019 compared with 2018. This primarily reflected lower the second half of the year, prices fluctuated between $59 in August liquids and gas realizations and higher depreciation, depletion and to $67 in December as OPEC+ restrained supply amid trade tensions. amortization partly offset by strong gas marketing and trading results Global consumption increased by 0.9 million barrels per day (mmb/d) to and higher production. 100.1mmb/d for the year (0.9%) – a slowdown from growth rates seen in the prior two years as trade tensions slowed global macroeconomic Organic capital expenditure was $11.9 billion (2018 $12.0 billion). growth. Global oil production remained flat at 100.5mmb/d, with growth In total, disposal transactions generated $2 billion in proceeds in 2019, from non-OPEC countries offsetting supply restraint and disruptions with a corresponding reduction in net proved reserves of 134mmboe in OPEC countries. The fall in output in Venezuela and Iran due to within our subsidiaries. The major disposal transaction during 2019 was sanctions significantly contributed to the 1.9mmb/d decline in the disposal of our interests in Gulf of Suez oil concessions in Egypt. OPEC output in 2019. At year end, a number of balances associated with assets awaiting the completion of announced disposals were held within the Assets Henry Hub ($/mmBtu) held for sale category in the balance sheet. These related to assets in Alaska and US Lower 48. Impairment charges totalling $6.0 billion were 9 9 recognized in connection with these planned disposals. See Financial statements – Notes 2 and 4 for further information. 6 More information on disposals is provided in Upstream analysis by region on page 303. 3 Outlook for 2020 At the current time the global spread of the coronavirus (COVID-19) 0 0 is causing considerable uncertainty in the market, lowering demand Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec forecasts. This, and the changing dynamic among OPEC+its members has put downward pressure on prices. Aside from these factors, 2019 2018 2017 Five-year range we had expected price volatility in the near term. Taking these factors into account, we expect the outlook for the year as a whole, Henry Hub prices decreasedhaving regard to $2.63/mmBtuthe likely consequences of any decision in the long term and the broader interests of other stakeholders, as required by the Act. See table on pages 82-83 for more information in support of this statement, including a description of the board’s activities during 2020. Employees Monitoring employee sentiment We use our ‘Pulse’ survey and weekly ‘Pulse Live’ surveys to gather feedback from employees, including their perceptions of work demands and leadership support. The employee engagement score is a key performance indicator for bp, see page 41. Investors Developing our new strategy, financial frame and investor proposition Our decision to introduce a new strategy, financial frame and investor proposition, including a new distribution policy, benefited from extensive dialogue with our major shareholders. ESG engagement We engage frequently with our investors on environmental, social and governance (ESG) issues. This includes one-to-one conversations, participation at external events and group meetings, including with Climate Action 100+ representatives. bp week In response to feedback from investors and others, CEO Bernard Looney and his leadership team offered further insight into bp’s new strategy and sustainability frame during bp week – three consecutive virtual capital markets days held in September 2020. Keeping connected through webcasts CEO Bernard Looney hosted regular ‘Keeping Connected’ webcasts to discuss important topics with members of the leadership team and subject matter experts such as our partner Equinor’s EVP, New Energy Solutions, and our vice president health and wellbeing, Dr Richard Heron. The sessions included a live Q&A section where employees could ask questions, anonymously if desired, of the CEO and webcast guests. See page 86 for more on how the board and senior management team engaged with stakeholders throughout the year. Society Our biodiversity position We developed our updated position with input and constructive challenge from international nature and conservation organizations and experts including Conservation International, Fauna & Flora International (FFI), UNESCO and IUCN. The position sets out new measures to help restore, maintain and enhance nature. In September we announced a five-year collaboration with FFI to help support the delivery of our new position, including our aim to achieve a net positive impact. Our human rights policy We updated our business and human rights policy in 2020 to address emerging human rights issues relevant to our industry, clarify our human rights commitments and communicate how bp’s approach to managing human rights impacts has advanced. The update was supported by consultations with a wide range of NGOs, subject matter experts and investors. Responding to feedback When our ‘Pulse Live’ and Employee Assistance platforms showed increased anxiety in employees, our CEO Bernard Looney led a series of live webcasts, including one focused on reducing mental health stigma and encouraging employees to ask for help. We also increased the frequency of mental health awareness training for managers. Examples of engagement with other stakeholder groups Customers Collaboration with original equipment manufacturers such as Ford, Renault, JLR and Volvo on future technologies. Global customer brand tracking. Government and regulators Publication of Our tax report 2019 from– see bp.com/tax. Government lobbying – we actively advocated for regional carbon pricing schemes in the US, provided input to remain challenging. $3.09/mmBtuthe EU methane strategy and supported the UK government’s planned phase out of internal combustion engines. Partners and suppliers Supplier workshops, including sessions focused on net zero, people and planet. University collaborations, including the Carbon Mitigation Initiative (CMI), an independent academic research programme based at Princeton University. Throughout bp we engage with a wide variety of stakeholders on a regular basis. This engagement informs our thinking and decision making. Some examples of our engagement in 2018 as US associated gas production continued to grow strongly while US gas consumption growth slowed down. The UK National Balancing Point hub price was almost halved from 60.38 pence per therm in 2018, down to 34.70 in 2019, due to a significant increase in European LNG imports and record high storage levels. Asian spot prices declined from $9.76/mmBtu in 2018, down to $5.49/mmBtu on the back of global LNG oversupply, declining LNG demand in Japan and Korea and a slow-down of Chinese LNG imports. 52 BP2020 are set out below. How we engage with our stakeholders

Downstream The Downstream segment has global marketing and manufacturing operations. It is the product and service-led arm of BP and is made up of three businesses. Business model Fuels Lubricants Petrochemicals Includes refineries, logistic Manufactures and markets Manufactures and markets networks and fuels marketing lubricants and related products products that are produced businesses, which together with and services to the automotive, using industry-leading proprietary global oil supply and trading industrial, marine and energy BP technology, and are then used activities make up our integrated markets globally. We add value by others to make consumer fuels value chains (FVCs). We sell through brand, technology and products such as food packaging, refined petroleum products relationships, such as collaboration textiles and building materials. including gasoline, diesel and with original equipment Through our new BP Infinia aviation fuel, and have a significant manufacturing partners. technology, we are working to Downstream profitability presence in the convenience retail reduce plastic waste, helping ($ billion) sector. We also have a growing to enable a stronger circular presence in electric vehicle economy. 6.5 charging with a focused strategy to 2019 6.4 build the fastest, most convenient networks for our customers. 6.9 2018 7.6 Performance in 2019 7.2 2017 7.0 $2.7bn ~1,600 49% 5.2 2016 fuels marketing earnings convenience of lubricant sales 5.6 +2.5% vs 2018 partnership sites were premium grade 7.1 (2018 $2.6bn) (2018 ~1,400) (2018 46%) 2015 7.5 RC profit before interest and tax 94.9% 1.7 12.1 Underlying RC profit before interest and tax★ refining availability million barrels of oil million tonnes of (2018 95.0%) refined per day petrochemicals produced (2018 1.7mmb/d) (2018 11.9mmte) Strategy We aim to run safe and reliable Safe and reliable operations potential, making the businesses This describes our strategy and operations across all our This remains our core value and more resilient to margin volatility. organizational model in 2019. businesses, supported by leading first priority and we continue to Simplification and efficiency Following BP’s new ambition brands and technologies, to drive improvements in personal This remains central to what and aims set out in February deliver high-quality products and and process safety performance. we do to support performance 2020 we are transforming our services that meet our customers’ Profitable marketing growth improvement and make our business. We plan to provide needs. Our strategy is to deliver We invest in higher-returning businesses even more underlying earnings growth and more information on our future fuels marketing and lubricants competitive. build resilient, competitively strategy and near-term plans businesses with growth potential advantaged businesses, and we Transition to a lower carbon at our capital markets day in and reliable cash flows. are working at pace to create low September 2020. and digitally enabled future carbon businesses that can Advantaged manufacturing We are delivering and developing advance the energy transition. We aim to have a competitively new products, offers and business advantaged refining and models that support the transition The execution of our strategy in petrochemicals portfolio to a lower carbon and digitally 2019 has continued to deliver, underpinned by operational enabled future. with underlying replacement cost excellence and to grow earnings profit of $6.4 billion in the year. 56 BP Annual Report and Form 20-F 2019

How we manage risk BPHow we manage risk bp manages, monitors and reports on the principal risks and Risk oversight and governance uncertainties that can impact our ability to deliver our strategy. Key risk oversight and governance committees include the following: These risks are described in the Risk factors on page 70.67. Our management systems, organizational structures, processes, Executive committees standards, code of conduct and behaviours together form a system of • Executive team meeting – for strategic and commercial risks. internal control that governs how we conduct the business of BPbp and • Group operations risk committee – for health, safety, security, manage associated risks. environment and operations integrity risks. • Group financial risk committee – for finance, treasury, trading BP’sbp’s risk management system and cyber risks. BP’sbp’s risk management system and policy is designed to be a consistent • Group disclosure committee – for financial reporting risks. and clear framework for managing and reporting risks from the group’s • Group people committee – for employee risks.group’s operations to management and to the board. The system seeks to avoid • Group ethics and compliance committee – for legal and incidents and maximizeenhance business outcomes by allowing us to: regulatory compliance and ethics risks. • Resource commitment meeting – for investment decision risks. • Understand the risk environment, identify the specific risks and • Renewal committee – for strategic, commercial and investment assess the potential exposure for BP. decision risks related to new lines of business. •bp. Determine how best to deal with these risks to manage overall potential exposure. Board and its committees • Manage the identified risks in appropriate ways. • BP board. • Monitor and seek assurance of the effectiveness of the management • Audit committee. of these risks and intervene for improvement where necessary. • Safety, environment and security assurance committee. • Report up the management chain and to the board on a periodic basis • Geopolitical committee. on how significant risks are being managed, monitored, assured and See BP governance framework on page 83, Board activity in 2019 the improvements that are being made. on page 84Business and committee reports on pages 90-99strategic risk management – our businesses, integrators and 101.enablers integrate risk management into key business processes such as strategy, planning, performance management, resource and capital allocation, and project appraisal. We do this by using a standard framework for collating risk data, assessing risk management activities, making further improvements and in connection with planning new activities. Oversight and governance – throughout the year management, the leadership team, the board and relevant committees provide oversight of how significant risks to bp are identified, assessed and managed. They help to ensure that risks are governed by relevant policies and are managed appropriately. Such oversight may include reviews of the outcomes of business processes including strategy, planning and resource and capital allocation. bp’s group risk team analyses the group’s risk profile and maintains the group’s risk management system. Our internal audit team provides independent assurance to the chief executive and board as to whether the group’s system of internal control is adequately designed and operating effectively to respond appropriately to the risks that are significant to bp. Risk oversight and governance Key risk oversight and governance committees include the following: Our risk management activities Day-to-day risk management – management and staff at our facilities, assets, and within our businesses, integrators and enablers seek to identify and manage risk, promoting safe, compliant and reliable operations. bp requirements, which take into account applicable laws and regulations, underpin the practical plans developed to help reduce risk and deliver safe, compliant and reliable operations as well as greater efficiency and sustainable financial results. Day-to-day risk management Identify, manage and report risks Business and strategic risk management Plan, manage performance and assure Oversight and governance Set policy and monitor principal risks Facilities, assets and operations Businesses, integrators and enablers Leadership team and enablers The board Leadership team and its committees Leadership team meeting – for oversight and for strategic and commercial risks. Group operations risk committee – for health, safety, security, environment and operations integrity risks. Group financial risk committee – for finance, treasury, trading and cyber risks. Group disclosure committee – for financial reporting risks. Group people and culture committee – for employee risks. Group ethics and compliance committee – for legal and regulatory compliance and ethics risks. Resource commitment meeting – for investment decision risks. bp quarterly audit meeting – for assurance on the oversight of bp’s principal risks. Board and its committees bp board. Audit committee. Safety and sustainability committee. Remuneration committee. People and governance committee. For bp governance framework see page 88, Board activities see page 80, and committee reports see pages 92-102 and 105.

Strategic report67. Risks for particular oversight by the board and its We seek to manage this risk through development and maintenance of committees in 2020 relationships with governments and stakeholders and by becoming trusted partners in each country and region. In addition, we closely2021 The risks for particular oversight by the board and its committees in monitor events and implement risk mitigation plans where appropriate. 20202021 have been reviewed.reviewed and are listed in this section. These may be updated throughout the year in response to changes in internal and external circumstances. The oversight and management of other risks is undertaken in the normal course of business. In addition to the risks reviewed in 2019,2020, climate-related risks have been added asremain a longer-term strategic risk. The impact of COVID-19 The spread of COVID-19 has caused a significant drop in the UK’s exit fromoil and gas prices and refining margins. bp’s future financial performance will be impacted by the EUextent and duration of the current market conditions and the effectiveness of the actions that it and others take, including its financial interventions. Our financial frame is designed to be robust to periods of low price, with flexibility to reduce cost and capital expenditure if required. We continue to assess the impact of COVID-19 on our staff and operations and have instigated appropriate mitigation plans. Climate-related risks We have been assessing the potential impact on BP of Brexit and the UK’s future global relationships and have considered Risks associated with climate change and the transition to a lower carbon different outcomes but do not believe any of these outcomes economy impact many elements of our strategy and, as such, these risks are pose a significant risk to our business. The board’s geopolitical considered through key business processes including the strategy, annual committee continues to monitor these developments. plan, capital allocation and investment decisions. The outputs of these key business processes are reviewed in line with the cadence of these activities. Further details are described in EnvironmentClimate change and the environment on page 4052. Strategic and Climatecommercial risks Financial liquidity External market conditions can impact our financial performance. Supply and demand and the prices achieved for our products can be affected by a wide range of factors including political developments, consumer preferences for low carbon energy, global economic conditions and the influence of OPEC. We seek to manage this risk through bp’s diversified portfolio, our financial framework, liquidity stress testing, maintaining a significant cash buffer, regular reviews of market conditions and our planning and investment processes. See Prices and markets and Liquidity, financial capacity and financial, including credit, exposure on page 67. Cyber security The targeted and indiscriminate threats to the security of our digital infrastructure and those of third parties continue to evolve rapidly and are increasingly prevalent across industries worldwide. In addition, the COVID-19 pandemic changed ways of working and introduced new phishing campaigns. We seek to manage this risk through a range of measures, which include cyber security standards, security protection tools, ongoing detection and monitoring of threats and testing of cyber response and recovery procedures. We collaborate closely with governments, law enforcement agencies and industry peers to understand and respond to new and emerging cyber threats. We build awareness with our staff, share information on incidents with leadership for continuous learning and conduct regular exercises including with the leadership team to test response and recovery procedures.

Risk factors2020 The risks discussed below, separately or in combination, could have Failure to accurately forecast or work within our financial framework could impact a material adverse effect on the implementation of our strategy, our our ability to operate and result in financial loss. Trade and other receivables, including business, financial performance, results of operations, cash flows, overdue receivables, may not be recovered, divestments may not be successfully liquidity, prospects, shareholder value and returns and reputation. completed and a substantial and unexpected cash call or funding request could disrupt our financial framework or overwhelm our ability to meet our obligations. Strategic and commercial risks An event such as a significant operational incident, legal proceedings or a geopolitical event in an area where we have significant activities, could reduce our Prices and markets –– our financial performance is impacted by financial liquidity and our credit ratings. Credit ratings downgrades could potentially fluctuating prices of oil, gas and refined products, technological change, increase financing costs and limit access to financing or engagement in our trading exchange rate fluctuations, and the general macroeconomic outlook. activities on acceptable terms, which could put pressure on the group’s liquidity. Oil, gas and product prices are subject to international supply and demand and Credit rating downgrades could also trigger a requirement for the company to margins can be volatile. Political developments, increased supply from new oil review its funding arrangements with the BP pension trustees and may cause and gas or alternative low carbon energy sources, technological change, global other impacts on financial performance. In the event of extended constraints on economic conditions, public health situations (including the continued impact of the COVID-19 pandemic or any future epidemic or pandemic) and the influence of OPEC can our ability to obtain financing, we could be required to reduce capital expenditure impact supply and demand and prices for our products. Decreases in oil, gas or or increase asset disposals in order to provide additional liquidity. See Liquidity product prices could have an adverse effect on revenue, margins, profitability and and capital resources on page 301 and Financial statements – Note 29. cash flows. If significant or for a prolonged period, we may have to write down assets and re-assess the viability of certain projects, which may impact future Joint arrangements and contractors – varying levels of control over the cash flows, profit, capital expenditure andexpenditure, the ability to work within our financial frame and maintain our long-term standards, operations and compliance of our partners, contractors and investment programme. Conversely, an increase in oil, gas and product prices sub-contractors could result in legal liability and reputational damage. may not improve margin performance as there could be increased fiscal take, We conduct many of our activities through joint arrangements, associates or cost inflation and more onerous terms for access to resources. The profitability of our refining activities can be volatile, with periodic over-supply or supply tightness in regional markets and fluctuations in demand. Exchange rate fluctuations can create currency exposures and impact underlying costs and revenues. Crude oil prices are generally set in US dollars, while products vary in currency. Many of our major project« development costs are denominated in local currencies, which may be subject to fluctuations against the US dollar. Access, renewal and reserves progression – inability to access, renew and progress upstream resources in a timely manner could adversely affect our long-term replacement of reserves. Focused renewal of our reserve base in line with our strategy depends on our ability to progress upstream resources from our existing portfolio and access new resource in our core areas, generating future opportunities for oil and natural gas production. Competition for access to investment opportunities, heightened political and economic risks where we operate, unsuccessful exploration activity, technical challenges and capital commitments may adversely affect our reserve replacement. This, and our ability to progress upstream resources at a level in line with our strategic outlook for hydrocarbon production, could impact our future production and financial performance. Major project delivery – failure to invest in the best opportunities or deliver major projects successfully could adversely affect our financial performance. We face challenges in developing major projects, particularly in geographically and technically challenging areas. Poor investment choice, efficiency or delivery, or operational challenges at any major project that underpins production or production growth could adversely affect our financial performance. Geopolitical – exposure to a range of political developments and consequent changes to the operating and regulatory environment could cause business disruption. We operate and may seek new opportunities in countries, regions and cities where political, economic and social transition may take place. Political instability, changes to the regulatory environment or taxation, international trade disputes and barriers to free trade, international sanctions, expropriation or nationalization of property, civil strife, strikes, insurrections, acts of terrorism, acts of war and public health situations (including the continued impact of the COVID-19 pandemic or any future epidemic or pandemic) may disrupt or curtail our operations or development activities. These may in turn cause production to decline, limit our ability to pursue new opportunities, affect the recoverability of our assets or cause us to incur additional costs, particularly due to the long-term nature of many of our projects and significant capital expenditure required. Events in or relating to Russia, including trade restrictions and other sanctions, could adversely impact our income and investment in or relating to Russia. Our ability to pursue business objectives and to recognize production and reserves relating to these investments could also be adversely impacted. Liquidity, financial capacity and financial, including credit, exposure – failure to work within our financial framework could impact our ability to operate and result in financial loss. Failure to accurately forecast or work within our financial framework could impact our ability to operate and result in financial loss. Trade and other receivables, including overdue receivables, may not be recovered, divestments may not be successfully completed and a substantial and unexpected cash call or funding request could disrupt our financial framework or overwhelm our ability to meet our obligations. Risk factors

Strategic report2020 Competition –– inability to remain efficient, maintain a high-quality Drilling and production – challenging operational environments and portfolio of assets, innovate and retain an appropriately skilled other uncertainties could impact drilling and production activities. workforce could negatively impact delivery of our strategy in a highly Our activities require high levels of investment and are sometimes conducted in competitive market. challenging environments such as those prone to natural disasters and extreme Our strategic progress and performance could be impeded if we are unable to control weather, which heightens the risks of technical integrity failure. The physical our development and operating costs and margins, if we fail to scale our businesses at pace, or to sustain, develop and operate characteristics of an oil or natural gas field, and cost of drilling, completing or a high-qualityhigh- quality portfolio of assets efficiently. Furthermore, as we transition from an International Oil Company to an Integrated Energy Company, we face an expanded and rapidly evolving range of competitors in the sectors in which we operate. We could be adversely affected if operating wells is often uncertain. We may be required to curtail, delay or cancel competitors offer superior terms for access rights or licences, or if our innovation in drilling operations or stop production because of a variety of factors, including areas such as new low carbon technologies, digital, customer offer, exploration, production, refining, manufacturing or renewable energy new unexpected drilling conditions, pressure or irregularities in geological formations, technologies or customer offer that lags the industry.those of our competitors. Our performance could also be equipment failures or accidents, adverse weather conditions and compliance with negatively impacted if we fail to protect our intellectual property. Our industry faces governmental requirements. increasing challengechallenges to recruit and retain diverse, skilled and experienced people in the fields of science, technology, engineering and mathematics.talent. Successful recruitment, Compliance and control risks development and retention of specialist staff is essential to our plans. Ethical misconduct and non-compliance – ethical misconduct or Crisis management and business continuity –– failure to address an breaches of applicable laws by our businesses or our employees could incident effectively could potentially disrupt our business. be damaging to our reputation, and could result in litigation, regulatory Our business activities could be disrupted if we do not respond, or are perceived action and penalties. not to respond, in an appropriate manner to any major crisis or if we are not able Incidents of ethical misconduct or non-compliance with applicable laws and to restore or replace critical operational capacity. regulations, including anti-bribery and corruption and anti-fraud laws, trade Insurance –– our insurance strategy could expose the group to material restrictions or other sanctions, could damage our reputation, and result in uninsured losses. litigation, regulatory action and penalties. BPbp generally purchases insurance only in situations where this is legally and Regulation – changes in the regulatory and legislative environment contractually required. Some risks are insured with third parties and reinsured by could increase the cost of compliance, affect our provisions and limit group insurance companies. Uninsured losses could have a material adverse our access to new growth opportunities. effect on our financial position, particularly if they arise at a time when we are Governments that award exploration and production interests may impose facing material costs as a result of a significant operational event which could put specific drilling obligations, environmental, health and safety controls, pressure on our liquidity and cash flows. controls over the development and decommissioning of a field and possibly, Security – hostile acts against our staff and activities could cause harm nationalization, expropriation, cancellation or non-renewal of contract rights. to people and disrupt our operations. Royalties and taxes tend to be high compared with those imposed on similar commercial activities, and in certain jurisdictions there is a degree of uncertainty Acts of terrorism, piracy, sabotage and similar activities directed against our relating to tax law interpretation and changes. Governments may change their operations and facilities, pipelines, transportation or digital infrastructure could fiscal and regulatory frameworks in response to public pressure on finances, cause harm to people and severely disrupt operations. Our activities could also be resulting in increased amounts payable to them or their agencies. severely affected by conflict, civil strife or political unrest. Such factors could increase the cost of compliance, reduce our profitability in Product quality – supplying customers with off-specification products certain jurisdictions, limit our opportunities for new access, require us to divest could damage our reputation, lead to regulatory action and legal liability, or write down certain assets or curtail or cease certain operations, or affect the and impact our financial performance. adequacy of our provisions for pensions, tax, decommissioning, environmental and legal liabilities. Potential changes to pension or financial market regulation Failure to meet product quality specifications could cause harm to people and the could also impact funding requirements of the group. Following the Gulf of environment, damage our reputation, result in regulatory action and legal liability, Mexico oil spill, we may be subjected to a higher level of fines or penalties and impact financial performance. imposed in relation to any alleged breaches of laws or regulations, which could Safety and operational risks result in increased costs. Treasury and trading activities – ineffective oversight of treasury Process safety, personal safety, and environmental risks – and trading activities could lead to business disruption, financial loss,– exposure to a wide range of health, safety, security and environmental regulatory intervention or damage to our reputation. risks could cause harm to people, the environment and our assets and We are subject to operational risk around our treasury and trading activities in result in regulatory action, legal liability, business interruption, increased financial and commodity markets, some of which are regulated. Failure to costs, damage to our reputation and potentially denial of our licence process, manage and monitor a large number of complex transactions across to operate. many markets and currencies while complying with all regulatory requirements Technical integrity failure, natural disasters, extreme weather or a change in its could hinder profitable trading opportunities. There is a risk that a single trader or frequency or severity, human error and other adverse events or conditions, including a group of traders could act outside of our delegations and controls, leading to breach of digital security, could lead to loss of containment of hydrocarbons or other regulatory intervention and resulting in financial loss, fines and potentially hazardous materials. This could also lead to constrained availability of resources damaging our reputation. See Financial statements – Note 29. used in our operating activities, as well as fires, explosions or other personal and Reporting – failure to accurately report our data could lead to process safety incidents, including when drilling wells, operating facilities and those associated with transportation by road, sea or pipeline. There can be no certainty regulatory action, legal liability and reputational damage. that our operating management system systemor other policies and procedures will External reporting of financial and non-financial data, including reserves adequately identify all process safety, personal safety and environmental risks or estimates, relies on the integrity of systems and people. Failure to report data that all our operating activities, including acquired businesses, will be conducted in accurately and in compliance with applicable standards could result in regulatory conformance with these systems. See Safety and security on page 45. action, legal liability and damage to our reputation.59. Such events or conditions, including a marine incident, or inability to provide safe The Strategic report was approved by the board and signed on its behalf environments for our workforce and the public while at our facilities, premises or by Ben J. S. Mathews, company secretary on 18 March 2020. during transportation, could lead to injuries, loss of life or environmental damage. As a result we could face regulatory action and legal liability, including penalties and remediation obligations, increased costs and potentially denial of our licence to operate. Our activities are sometimes conducted in hazardous, remote or environmentally sensitive locations, where the consequences of such events or conditions could be greater than in other locations. BPDrilling and production – challenging operational environments and other uncertainties could impact drilling and production activities. Our activities require high levels of investment and are sometimes conducted in challenging environments such as those prone to natural disasters and extreme weather, which heightens the risks of technical integrity failure. The physical characteristics of an oil or natural gas field, and cost of drilling, completing or operating wells is often uncertain. We may be required to curtail, delay or cancel drilling operations or stop production because of a variety of factors, including unexpected drilling conditions, pressure or irregularities in geological formations, equipment failures or accidents, adverse weather conditions and compliance with governmental requirements. Security – hostile acts against our staff and activities could cause harm to people and disrupt our operations. Acts of terrorism, piracy, sabotage and similar activities directed against our operations and facilities, pipelines, transportation or digital infrastructure could cause harm to people and severely disrupt operations. Our activities could also be severely affected by conflict, civil strife or political unrest. Product quality – supplying customers with off-specification products could damage our reputation, lead to regulatory action and legal liability, and impact our financial performance. Failure to meet product quality specifications could cause harm to people and the environment, damage our reputation, result in regulatory action and legal liability, and impact financial performance.

2020 Corporate governance Corporate governanceIntroduction from the chairman 72 Board of directors 74 ExecutiveLeadership team 78 The leadership team 80 Introduction from the chairman 82 Board activities in 2019 8480 Decision making by the board 82 How the board has engaged with shareholders, 88 the workforce and other stakeholders Nomination86 Governance framework 88 Learning, development and induction 90 Board evaluation 91 People and governance committee 9092 Audit committee 9194 Safety environment and security 96 assurancesustainability committee 100 Geopolitical committee 98 Chairman’s committee 99 Directors’102 Directors’ remuneration report 100103 Remuneration committee 101 Energy105 Since 2017 when the partnership with purpose Expanding solarbp began, Lightsource BP is helping shape the future ofbp has more than doubled its global energy delivery by developing solar capacity around the world. • We increased our stake in Lightsource BPpresence, from five to create a 50:50 joint venture in 2019. Lightsource BP highlights in 2019 • Entered the Spanish solar market with the purchase of a 300MW portfolio of solar14 countries. It’s also grown its development projects across six sites. • Signed a long-term agreementpipeline from 1.6 to build a 240MW facility, supplying EVRAZ, a US steel company. • Established a presence in Brazil with the purchase of 1.9GW of solar projects in various stages of development. BP17GW.

Corporate governance Brian Gilvary Dame Alison Carnwath2020 Pamela Daley Chief financial officer Independent non-executive director Independent non-executive director Appointed 1 January 2012 Appointed 21 May 2018 Appointed 26 July 2018 Brian will retire on 30 June 2020.Nationality American Outside interests: Outside interests: Member of Supervisory Board of BASF SE, Directorinterests Director of BlackRock, Inc,Inc.; Director of SecureWorks, Inc Outside interests: of Zurich Insurance Group, Independent director of Non-executive director of Air Liquide SA, Non- Age: 67 PACCAR Inc, Member of UK Panel on Takeovers and executive director of Barclays PLC, Non-executive Mergers, Trustee of The Economist Group Nationality: American director of Royal Navy Board, Senior independent director of The Francis Crick Institute, Chairman of Age: 67Inc. Career summary: The Hundred Group of Financial Directors (The 100 Pamsummary Pamela Daley joined General Electric Company (GE) in 1989 as tax Nationality: British Group), Fellow of the Energy Institute; Great Britain counsel and held a number of senior executive roles Age Group Triathlete Career summary: in the company, overseeing a wide range of Dame Alison is a qualified chartered accountant with corporate transactions and serving as senior vice Age: 58 a wealth of financial industry experience obtained president and senior advisor to the chairman in 2013, Nationality: British during an expansive career in London and New York. before retiring from GE. PamPamela has served as a director In addition to her current appointments, she was of BlackRock since 2014 and of SecureWorks since Career summary: previously Chairman of Land Securities Group plc 2016. She was a director of BG Group plc from 2014 Brian joined BP in 1986 after obtaining a PhD in from September 2004 until July 2018 and served as to 2016 until its acquisition by Shell,Shell. She was a director of mathematics from the University of Manchester. a non-executive director of Barclays PLC from 2010 Patheon N.V. from 2016 to 2017 until its acquisition Following a broad range of roles across the group in to 2012 and Man Group plc from November 2012 to by Thermo Fisher and, prior to that, she was previously a partner at upstream, downstream and trading in Europe and the May 2013. In 2014, Dame Alison was appointed to Morgan, Lewis && Bockius, a major US law firm, US, he became downstream’s commercial director in the order of Dame Commander of the Most Excellent where she specialized in domestic and cross-border 2002. From 2005 until 2009 he was chief executive Order of the British Empire for her services to tax-oriented financings and commercial transactions. of BP’s commodity trading armSkills and in 2010, he was business and diversity. appointed deputy group chief financial officer. Brian Relevant skills and experience: was a director of TNK-BP over two separate periods, Relevant skills and experience: Pamexperience Pamela is a qualified lawyer with significant from 2003 to 2005 and from 2010 until the sale of Dame Alison has extensive financial experience both management insight obtained from previous senior the business and BP’s acquisition of Rosneft equity as an executive and non-executive director. Dame positions held at companies that operate in highly in 2013. He served on the HM Treasury Financial Alison has chaired significant boards and has deep regulated industries. PamPamela has a wealth of experience Management Review Board from 2014 to 2017. experience of the workings of investors and the in global business and strategy gained from over 20 finance industry in the City of London. She has years in an executive role at GE. She also has Relevant skills and experience: worked with global organizations and brings this experience in the UK oil and gas industry from her Brian’s broad experience of working across the broad range of skills to the BP board and to the time served on the BG Group plc board. Pam group has provided him with deep insight into BP’s audit committee.Pamela contributes important insight to the audit committee assets and businesses. He has been key during from her previous executive experience. In 2019, she BP’s strategy implementation to transform into a joined the remuneration committee, where her ‘value over volume’ business where trading is a key understanding of employee and investor creator of value. His deep understanding of finance perspectives brings value. and trading has been vital in adjusting capital structures and operational costs while ensuring the group continues to be capable of meeting new opportunities. Brian played a major role in overseeing financial aspects of the Gulf of Mexico oil spill, and leading settlement negotiations to resolve outstanding federal and state claims. He also played a lead role in the negotiations around the exit of TNK-BP and investment into Rosneft and led the 2018 acquisition of the BHP onshore Lower 48 assets. BP Annual Report and Form 20-F 2019 75

Sir Ian DavisA R Professor Dame Ann Dowling Melody Meyer Senior independent director Independent non-executive director Independent non-executive director Appointed 2 April 2010 Appointed 3 February 2012 Appointed 17 May 2017Nationality British Outside interests: Outside interests: Outside interests: Chairman of Rolls-Royce Holdings plc, Non-executiveinterests Deputy vice-chancellor and emeritus professor President of Melody Meyer Energy LLC, Director director of Majid Al Futtaim Holding LLC, of Mechanical Engineering at the University of of the National Bureau of Asian Research, Trustee Non-executive director of Johnson & Johnson, Inc. Cambridge,Cambridge; Non-executive director of Smiths of Trinity University, Non-executive director of Group plc AbbVie Inc., Non-executive director of National Age: 68 Oilwell Varco, Inc. Age: 67 Nationality: British Age: 62 Nationality: British Career summary: Nationality: American Sir Ian began his career at The Bowater Corporation Career summary: Limited, a paper manufacturing company, beforesummary Professor Dame Ann Dowling is a deputy vice-chancellor and Career summary: joining McKinsey & Company in 1979. He was a emeritus professor of Mechanical Engineeringmechanical engineering at the Melody started her career in 1979 with Gulf Oil partner at McKinsey & Company for 31 years until his University of Cambridge where her research includes which later merged with Chevron Corporation, where retirement in 2010 and also served as chairman and fluid mechanics, acoustics and combustion. She has she remained until her retirement in 2016. During her managing director between 2003 and 2009. Sir Ian held visiting posts at MIT and at Caltech. Dame Ann career with Chevron, Melody held several key has remained as a senior partner emeritus of is a fellow of the Royal Society and the Royal leadership roles in global exploration and production, McKinsey & Company since his retirement. He also Academy of Engineering and a foreign associate of working on a number of international projects and served as a lead non-executive board member for the the US National Academy of Engineering, the operational assignments. Melody was the executive Cabinet Office from 2015 to 2016. Sir Ian was given Chinese Academy of Engineering and the French sponsor of the Chevron Women’s Network and the honour of knighthood in the 2019 Birthday Academy of Sciences. She was an advisor at continues as a mentor and advocate for the Honours for services to business. Rolls-Royce until 2015. Dame Ann was President of advancement of women in the industry. Melody has the Royal Academy of Engineering from September received several awards and accolades throughout Relevant skills and experience: 2014 to 2019. In December 2015 she was appointed to the Order of Merit. Skills and experience Professor Dame Ann is an internationally respected leader in engineering research and the practical application of new technology in industry. Her contribution in these fields has been widely recognized by universities around the world. Her academic background provides valuable balance to the board and brings a different perspective to the safety and sustainability committee of which she is a member, particularly as developments in technology continue to accelerate. Her work in this area is supplemented by her chairing the company’s technology advisory council. S Melody Meyer Independent non-executive director Appointed 17 May 2017 Nationality American Outside interests President of Melody Meyer Energy LLC; Director of the National Bureau of Asian Research; Trustee of Trinity University; Non-executive director of AbbVie Inc.; Non-executive director of NOV, Inc. Career summary Melody Meyer started her career in 1979 with Gulf Oil which later merged with Chevron Corporation, where she remained until her retirement in 2016. During her career with Chevron, Melody held several key leadership roles in global exploration and production, working on a number of international projects and operational assignments. Melody was the executive sponsor of the Chevron Women’s Network and continues as a mentor and advocate for the advancement of women in the industry. Melody is a C200 member, and has received several awards and accolades throughout her career including being recognized as a 2009 Sir Ian brings global financial and strategic experience to the Order of Merit. Trinity Distinguished Alumni, with the BioHouston to the board. He has worked with and advised global Women in Science Award and she was most recently organizations and companies in a wide variety of Relevant skills and experience: recognized by Hart Energy as an Influential Woman sectors including oil and gas and the public sector. Dame Ann is an internationally respected leader in in Energy in 2018. He is able to draw2018, by Women Inc as 2018 Most Influential Corporate Board Directors, and Outstanding Director by 2020 Women on knowledge of diverse issues engineering researchBoards. She serves on McKinsey Women in Energy Advisory Board and the practical application ofco-leads Women Corporate Directors in Houston. Skills and outcomes to assist the board and its new technology in industry. Her contribution, Relevant skills and experience: committees. research and academic leadership in these fields are Melody has spent her entire career in the oil and gas admired internationally. Her academic background industry. The breadth, variety and geographic scope Sir Ian’s previous experience as a non-executive provides balance to the board and brings a different of her experience is distinctive. Her career has been director for the Cabinet Office gives him an important perspective to the safety, environment and security marked by a focus on excellence, safety and perspective on government affairs which is an asset assurance committee, particularly as developments performance improvement. She has expertise in the to both the board and the geopolitical committee. in technology accelerate. Her work in this area is execution of major capital projects, creation of supplemented by her chairing the company’s businesses in new countries, strategic and business technology advisory council. planning, merger integration and safe and reliable operations. Melody brings a world-class operational perspective to the board, with a deep understanding of the factors influencing safe, efficient and commercially high-performing projects in a global organization. Her long and illustrious career in the oil and gas industry is predicated on a dedication to excellence, safety and performance improvements. She has expertise in the execution of major capital projects, technology, R&D, creation of businesses in new countries, strategic and business planning, merger integration and safe and reliable operations. S R

Corporate governance Brendan Nelson Paula Rosput Reynolds Sir John Sawers2020 Tushar Morzaria Independent non-executive director Independent non-executive directorAppointed 1 September 2020 Nationality British Outside interests Group Finance Director of Barclays PLC; Member of The 100 Group Main Committee; Chair of the Sterling Risk Free Reference Rates Working Group Career summary Tushar Morzaria is a chartered accountant with over 25 years of strategic financial management, investment banking, operational and regulatory relations experience. He is currently Group Finance Director of Barclays PLC, the British universal banking and financial services company, where he is a member of the Barclays board and executive committee. Tushar joined Barclays from JP Morgan in 2013, where he held various senior roles including the CFO of its Corporate & Investment Bank at the time of the merger of the investment bank and the wholesale treasury/security services business. Skills and experience Tushar’s position as Group Finance Director of Barclays PLC gives him a breadth of knowledge and insight into financial, tax, treasury, investor relations and strategic matters which will benefit bp as Tushar assumes the role of audit committee chair at the conclusion of bp’s annual general meeting on 12 May 2021. He has strong experience in delivering corporate change programmes while maintaining a focus on performance. Brendan Nelson Independent non-executive director Appointed 8 November 2010 Appointed 14 May 2015 Appointed 14 May 2015Nationality British Outside interests: Outside interests: Outside interests:interests Non-executive director of NatWest Markets plc Non-executiveCareer summary Brendan Nelson is a qualified chartered accountant. He was made a partner of KPMG in 1984. He served as a member of the UK board of KPMG from 2000 to 2006, subsequently being appointed vice chairman until his retirement in 2010. At KPMG International he held a number of senior positions including global chairman, banking and global chairman, financial services. Brendan has extensive financial experience, having been a non-executive director of BAE Systems plc, Visiting professor at King’s College London, Governor MemberThe Royal Bank of Scotland Group p.l.c, where he also served as chairman of the group audit committee, until April 2019 and National Westminster Bank p.l.c. until December 2018. Brendan previously served as a member of the Financial Services Practitioner Panel for six years and was chairman of the audit committee of the Institute of Chartered Accountants of Scotland from 2005 to 2008 and later became President of the Institute of Chartered Accountants of Scotland from 2013 to 2014. Skills and experience Brendan has completed a wide variety of audit, regulatory and due-diligence engagements over the course of his career. He played a significant role in the development of the profession’s approach to the audit of banks in the UK, with particular emphasis on establishing auditing standards. His role as a member of the Financial Reporting Review Panel Non-executiveenabled him to further contribute to the profession. This wide experience makes him ideally suited to chair the audit committee and to act as its financial expert. He brings related input from his role as the chair of the audit committee of a major bank. His specialism in the financial services industry allows him to contribute insight into the challenges faced by global businesses by regulatory frameworks. As previously announced, Brendan will retire from the board at the conclusion of bp’s annual general meeting on 12 May 2021. A P R Board of directors continued As at 22 March 2021 Karen Richardson Independent non-executive director Appointed 1 January 2021 Nationality American Outside interests Director of Artius Acquisition Inc.; Director of Exponent Inc. Career summary Karen Richardson was Vice President of Sales at Netscape Communications Corporation from 1995 to 1998 before embarking on several senior executive roles at E.piphany from 1998 to 2003 and was Chief Executive Officer between 2003 and 2006. In 2011 she became a non-executive director of General ElectricBT plc where she served for seven years and between 2016 and 2019 Karen was a director of Worldpay Inc. (Worldpay Group plc). Karen is currently a director of Artius Acquisition Inc., a special purpose acquisition company, and, since 2013, Exponent Inc., the engineering and scientific consulting company. Karen has a Bachelor of Science degree in Industrial Engineering from Stanford University and was awarded distinctions from the Stanford Industrial Engineering Department and the American Institute of Industrial Engineers. Skills and experience Karen has over 30 years’ experience in the technology industry. She brings exceptional knowledge of digital, technology, cyber and IT security matters from her career working with innovative companies in Silicon Valley. As bp works to transform into an Integrated Energy Company, Karen has the skills, experience and diversity to further enhance the board’s ability to support and oversee the delivery of bp’s strategy. From the conclusion of the 2021 annual general meeting, Karen will become a member of the audit committee. A R

Corporate governance Lamar McKaytransition. Eric Nitcher Dev Sanyal Chief transition officer GroupEVP, legal Leadership team tenure Appointed 1 July 2020 Eric previously served on bp’s executive team starting on 1 January 2017. Nationality American Other board memberships None Career Eric sat on the executive team as group general counsel Chief executive, alternative energyfrom 2017. He played a key role in forming the Russian joint venture TNK-BP and Appointed 16 June 2008 Appointed 1 January 2017 executive vice president, regions Appointed 1 January 2012 Lamar’s current portfolio will be redistributed on Eric will continuesettling Deepwater Horizon claims. He began his career as part of the new leadership team. 1 Julya litigation and he will continueregulatory lawyer in his capacity as chief Dev will continue as part of the new leadership team. Outside interests: transition officer. No external appointments Outside interests: Outside interests: Independent non-executive director of Man Group plc; Age: 57  Nationality: American No external appointments Member of the International Advisory Board on Energy, Career summary: Government of India; Advisory Board of the Centre for Age: 61  Nationality: American Eric is responsible for legal matters across the BP European Reform; Board of Advisors of The Fletcher Career summary: group.Wichita, Kansas. He joined Amoco in 1990 and over the years School of Law and Diplomacy, Tufts University; Fellow Lamar took on a new role as chief transition officer in has held a wide variety of roles. ofroles, both in the Energy Institute. 2019. He is responsible for supporting the chairman Eric moved to London in 2000, to join the mergers Age: 54  Nationality:US and elsewhere. Dev Sanyal EVP, gas & low carbon energy Leadership team tenure Appointed 1 July 2020 Dev previously served on bp’s executive team starting on 1 January 2012. Nationality British and Indian Other board memberships Dev is a non-executive director of Man Group plc, a member of the board of overseers of The Fletcher School of Law and new groupDiplomacy at Tufts University and a member of the energy advisory board of the Government of India. Career Dev has been a member of the executive team since 2011, firstly as executive vice president, strategy and regions, and since 2016, as chief executive in achieving a full and and acquisitions legal team. He returned to Houston orderly transfer of leadership. In addition, he Career summary: in 2007 to serve as special counsel and chief of staff continues to hold responsibility for leading BP’s Dev is responsible for BP’s global alternative energy to BP America’s chairman and president. strategy work for the energy transition. business and for the group’s interests in the Europe Most recently he played a leading role in the and Asiaexecutive vice president, regions. He was appointed to the BP Group Lamar started his career in 1980 with Amoco and settlement of the Deepwater Horizon US executive committee in 2011. has since held a number of senior roles including government claims and resolution of many of the most recently group deputy CEO. Dev joined BPbp in 1989 and has held a variety of remaining private claims. international rolesworked in London, Athens, Istanbul, Vienna and Dubai. Dev was previously appointedDubai across various segments. Previous senior roles include CEO of bp Eastern Mediterranean, CEO of Air bp and group treasurertreasurer. He played a key role in 2007 and was also chairman of BP Investment Management. Until April 2016, Dev was executive vice president, strategy and regions. Dame Angela Strank Helmut Schuster BP chief scientist and head of technology, Executive vice president, group human downstream resources director Appointed 1 September 2018 Appointed 1 March 2011 Angela will retire frombp navigating its way through the company at the end of 2020. Helmut will step down from his current role on 1 July and continue working with BP as an advisor. Outside interests: Non-executive director of Severn Trent plc, Fellow of Outside interests: the Royal Society, Fellowaftermath of the Royal Academy of Non-executive director of Ivoclar Vivadent AG, Germany Engineering. Age: 59  Nationality: Austrian and British Age: 67  Nationality: British Career summary: Career summary: Helmut became group human resources (HR) Dame Angela is responsible for technology across a director in March 2011. Since joining BP in 1989, number of BP’s businesses. As BP’s chief scientist Helmut has held a number of leadership roles. He she is accountable for developing strategic insights has worked for BP in the US, UK and continental from advances in science and managing technology Europe and within most parts of refining, marketing, capability in BP. trading and gas and power. She joined BP in 1982 as a geologist in exploration and Before taking on his current role, his portfolio of has held various leadership roles across the business. responsibilities as vice president, HR, included She was recognized for her services to the oil industry leading the people agenda for roughly 60,000 people and women in science, technology, engineering and across the globe. mathematics in 2017 and awarded a DBE. BP2010 Deepwater Horizon incident.

2020 Corporate governance Board activities Role of the board bp’s success is dependent upon effective and entrepreneurial leadership by the board, establishing its purpose, strategy and values and doing so within a framework of prudent and effective controls, which enable risks to be assessed and managed. The board is responsible to bp’s owners for promoting the long-term sustainable success of the company, generating value for its shareholders, while having regard to its other stakeholders, the impact of its operations on the communities within which it operates, and the environment. Primary tasks of the board in 2020 included Defining and establishing a new purpose and strategy, while assessing and monitoring whether they were consistent with bp’s culture and values. In light of the significant operational challenges presented by the COVID-19 pandemic, establishing a rhythm of board meetings to ensure that the leadership team was supported, providing guidance to the CEO to ensure that shareholder and other stakeholder interests were taken into account, while maintaining safe and reliable operations. Monitoring the activities and performance of bp’s leadership team, obtaining assurance about the delivery of 2025 and 2030 targets and aims and the sustainability frame within which they operate. Designing and establishing the board’s new corporate governance framework, including the delegations of authority under which it operates. Assessing and monitoring the principal risks and emerging risks of bp, having considered feedback from 1 Julythe committees of the board. Ways of working New ways of working were put in place during 2020 Murray Auchincloss Giulia Chierchia Emma Delaney Kerry Dryburgh Executive vice president, Executive vice president, Executive vice president, Executive vice president, financealongside the changes to the design of the board’s corporate governance framework. Meeting agendas were structured along four distinct pillars: strategy, and sustainability customers and productsperformance, people, and culture From 2015 untilgovernance, with the overarching focus being announcedon the development of bp’s new strategy in support of its transition to Giulia joins BP from McKinsey, where Emma has spent 25 years working in Kerry was previously head of HR for his new position, Murray was chief she was a senior partner. She ledan Integrated Energy Company. The board and its committees met regularly during the BP, bothyear, as well as on an ad hoc basis, as required by business needs. Attendance is shown in the Upstreamtable on page 84. Although the board and the the Upstream and has held a series of financial officer for BP Upstream. He global downstream oil and gas practice Downstream, most recently as regional senior HR positions. She was a key has held other senior rolesits committees were able to hold physical meetings in the and was a key memberearly part of the president, West Africa. Prioryear, once COVID-19-related restrictions and controls were introduced, most meetings took place virtually. Throughout the year, the board and its committees continued to this driver behindengage effectively through the Upstream people segment and spent three years as chemicals and electricity, power and role she held a varietyuse of senior roles: transformationtechnology. Key areas covered during 2015-2017. Kerry head2020 under each of these pillars are set out on the group chief executive’s natural gas practices. She begins this CFO (chief financial officer) for Asia previously ran HR in BP’s shipping, office. He spent his early career in role with more than 10 years’ Pacific, head of business development integrated supply and trading (IST) North America and qualified as a experience in the energy sector, for Upstream gas value chains and and corporate functions teams. She Chartered Financial Analyst. including helping companies shape commercial director for Iraq. She brings experience from other sectors their strategies for the energy was the vice president for integrated in Europe and Asia, having worked at transition. social and economic programmes in both BT and Honeywell before joining Indonesia. In Downstream she held a BP. She currently sits as a non- number of roles in marketing and executive director for the United planning. Kingdom Strategic Command. Carol Howle William Lin Geoff Morell Biographies for the Executive vice president, Executive vice president, Executive vice president, other members of the trading and shipping regions, cities and solutions communications and advocacy leadership team Before taking on her current role, Carol William served as chief operating Geoff has run group communications Bernard Looney, chief executive ran BP shipping and was the chief officer, upstream regions before joining and external affairs (C&EA) since 2017, officer, page 74. operating officer for IST oil. She has the leadership team. Previous senior after six years leading BP America’s more than 20 years’ experience in the roles include vice president – gas communications and government Gordon Birrell, executive energy industry, many in IST. Previous development and operations for Egypt, relations teams. He was instrumental vice-president, production and roles, include chief operating officer regional president for Asia Pacific and in rebuilding BP’s reputation in the operations, page 78. for natural gas liquids, regional leader head of the group chief executive’s years following Deepwater Horizon. of global oil Europe and finance. Carol office. William managed the Prior to BP, Geoff spent four years at David Eyton, executive vice also served as the head of the group successful start-up of the Tangguh the Pentagon, serving as the chief president, innovation and chief executive’s office. LNG facility during his time in spokesperson for the military under engineering, page 78. Indonesia. He is a non-executive presidents Bush and Obama. He Eric Nitcher, executive vice director for Pan American previously worked in television, president, legal, page 79. Energy Group that operates in including as White House Argentina. correspondent for ABC News. Dev Sanyal, executive vice president, gas and low carbon energy, page 79. 80 BPnext page.

Corporate governance Introduction from2020 Strategy During 2020 the chairman “Ourboard worked closely with the incoming chief executive officer (CEO) and his leadership team, establishing a new purpose is the result of a period of careful development and wide debate with the management team and also reflects the valuable feedback we have received from a number of our stakeholders, both inside and outside of BP.” Helge Lund Chairman It has been a privilege to lead BP’s boardstrategy for the past year, New ways of working especially given the important decisions we have taken The board itselfbp. bp’s purpose is an important component of BP’s leadership. together. BP now begins the new decade with a new direction. The most effective boards – and the most effective board Our new purpose, to reimagine energy for people and our meetings – are inclusive, collaborative, open and transparent. planet, is supported bywith an ambition to become a new ambition - for BP to get to net During 2019, I was pleased with the support I received from zero company by 2050 or sooner, and to help the world get to net zero my colleagueszero. This new purpose recognizes: The world is on an unsustainable path – its carbon budget is running out. Energy markets have begun to shift towards low carbon and renewables. Oil and gas produced safely and efficiently will continue to perform a vital role for the board as we fostered an atmosphere too. And we have appointed a new chief executive officer, withworld and our business, but over the management team in which those standards are Bernard Looney, who under the board’s oversight,longer term, demand for both oil and gas will lead clearly exhibited. BP in achieving both its purpose and its ambition. These improvements have gone in-hand with improvements BP’s board has been deeply involved in each of thesebe challenged. bp can contribute to the board’s efficiencyenergy transition the world wants and productivity. We have strengthened changes. It isneeds and create value in doing so. The delivery and execution of the board’s responsibility to define and set how we manage the board’s meeting agenda, the materials the company’s purpose, its values and its strategy and to developed for the board and the division of labour between the be assured that these are aligned with BP’s culture. Our committees and the board. I believe that these changes have strategy and evolving portfolio have been discussed with enabled us to effectively manage both the leadership succession the management team at every board meeting in 2019. Our and develop our new purpose and ambition.supports this new purpose is made possible through a resilient financial framework, including a new approach to capital allocation. In 2020 the result ofboard determined a period of careful development Evolvingnew distribution policy, which will support us in facing an increasingly uncertain world, allow us to strengthen the balance sheet, invest in our resilient and valuable hydrocarbons business, and invest adequately into the energy transition. A new distribution policy was approved by the board, compositioncomprising a reset and wide debateresilient dividend and a firm share buyback commitment, see page 22. Associated with the management team and also reflects The make-up ofnew strategy, the board has also evolved, and I expect that the valuable feedback we have received fromagreed a number of tactical divestments, including the disposal of its petrochemicals business. Alongside this, new business opportunities were progressed, for example the formation of a strategic partnership with Equinor, to continuedevelop offshore wind energy in futurethe US, see page 21. Against the backdrop of the board’s activities during 2020 described in this section, the table on pages 82 and 83 sets out some examples of board decision making in 2020 and how the directors have performed their duty under Section 172. Performance The board reviewed project, operational and safety performance throughout the year, as we seek to ensure we havewell as the right our stakeholders, both insidelatest view on full-year delivery against plan and outsidethe implications for the group’s scorecard measures. Equally, in light of BP. balance of skills, experiencethe challenging macro-economic environment facing the sector, the company’s financial performance, liquidity, credit position and diversity.associated financial risks were closely and regularly monitored by the board. In November last BP’s new leadership year, Nils Andersen was appointed Chairman of Unilever,this way and Duringthrough the regular interactions that were taking place during the year, the board was able to satisfy itself that bp was performing while transforming. Reports supplementing the role played by the board included: CEO and chief financial officer (CFO) reports. Group financial outlook. The annual effectiveness of investment review. Quarterly and full-year results. Shareholder distributions. The annual plan and associated capital allocation commitments. On risk oversight, the board, assisted by its committees, also regularly reviewed its principal and emerging risks, including the process through which they are identified, evaluated and managed. Linked to this, the high-priority risks were reviewed in 2020, giving the directors the chance to seek assurance as to how those risks were prioritized and being managed. On internal controls, the board also assessed the effectiveness of the group’s system of internal control and risk management as part of the process through which it reviews and, ultimately, approves the bp Annual Report and Form 20-F. No specific areas of significant deterioration were identified in this assessment. The board concluded that the group’s system of internal control continued to be resilient. The board also concluded that the overall design of the group’s system of internal control generally meets external expectations of components to be included in internal control frameworks. In arriving at these conclusions, the board took into account reports from group risk and internal audit, as well as reviews undertaken by the board and its committees during the year. In conducting reviews during the year, the board and its committees considered the impact of remote working on the control environment, among other key factors. For more information on bp’s system of risk management see How we manage risk on page 64. People The board, through the former nomination and therefore stepped down from BP’s board on 18 March after a governance committee, took equal care incontinued to focus on reviewing its executive period of transition. On behalfown composition, skills, experience and diversity, as well as that of the bp leadership team. Ultimately, new board I thank Nilsappointments were made during the year, most notably with the retirement of the CEO, Bob Dudley, and CFO, Brian Gilvary, succeeded by Bernard Looney and Murray Auchincloss, respectively. Tushar Morzaria was appointed to the board and its audit committee with effect from September 2020. Karen Richardson and Dr Johannes Teyssen were appointed to the board with effect from 1 January 2021. Johannes was also appointed to the safety and sustainability committee with effect from the same date. A new leadership team under the CEO came into being on 1 July 2020. Through the new people and governance committee, the process for hisexecutive succession planning, including in our appointmenttalent management and development is being redesigned. People insights – particularly the reinvention of a servicebp and its impact on the organization – were presented to BP. In Nils’ place, Melody Meyer agreed to chair the successor to Bob Dudley. When we began that planning in safety, environment and security assurance committee (SESAC), earnest in autumn 2018, we knew that Bob’s many recognizing her strong operational and safety experience. achievements in the role set a high bar for his eventual Separately, the board has assumed direct oversightand this committee by the CEO and EVP, people & culture, providing information on matters relating to people strategy, employee engagement, diversity and people processes and policies. To help inform board discussions and decisions, board members also engaged directly with the workforce in structured events, see page 87. Governance The board established a new corporate governance framework, which is more closely aligned with bp’s new purpose and also reinforces the effectiveness of ethics successor. That was reflected in the time we took to define and compliance matters, previously the responsibility of SESAC. the qualities we were looking for ininternal control framework. For more information on the new leadership of BP One of the chairman’s responsibilities is to ensure cohesion at a time of considerable change. A year on, we were delighted of the board over time, especially during times of transition. to welcome Bernard Looney to the role. He is both capable, To provide continuity, Sir Ian Davis and Brendan Nelson have performance oriented and deeply aware of the importance that kindly agreed to stand for re-election at the 2020 AGM for up to we attach to working in close dialogue with BPs stakeholders. a further year. Because they have now each exceeded nine years BPcorporate governance framework see page 88.

in the role, in putting them forward for re-election this year2020 Corporate governance continued Decision making by the board Our stakeholders carefully considered whether, they still demonstrateAs part of the necessary This year also marks the first year in whichwider board corporate governance redesign, the board reviewed the delegation of authority, in part reflecting the need to ensure that it remained appropriate in light of bp’s new strategy, and the 2025 and 2030 targets and aims. The board’s new ways of working are explained on page 80 including certain matters that under the new corporate governance framework are reserved for the board as set out in its new terms of reference. The execution of company strategy is requiredundertaken by the CEO’s leadership team, under the day-to-day authority for the management of the company delegated to qualities of independence. I am pleased to confirmthe CEO. Reflecting its governance responsibilities, the board satisfies itself that the board is report on how it has fulfilled its duties under section 172 of the satisfied that they do, and I am grateful for the support and wisdom that Companies Act, which requires directors to promote the success of the Sir Ian and Brendan bring to the board. Our nomination and governance company for the benefit of its members, and in doing so to have regard committee has, as you would expect, begun a process to identify to our stakeholders, including employees, suppliers and customers, the successors to these important roles. impact of our operations on communitiesCEO and the environment, andleadership team’s actions are in keeping with the direction it sets through receipt of management reports at each board meeting. Section 172 factor Key examples Page The likely consequences of any decision in the long term. While continuity is important, BP’s new direction gives reason to examine whetherReinventing bp: Our strategy 15 Interests of employees. How the board’s composition is optimally aligned to Regard for a wider group of stakeholders is not new. Indeed, it has been BP’s new direction. We’ll always need a core cadre of members with incorporated into the board’s working for some time. But new reporting global executive experience from similar industries, but different requirements are an opportunity to explain the processes we have specialist skills may also be valuable. These include skills relevant to followed, and how dialogue with stakeholders has shaped decisions. BP’s ambition, individuals with strong digital and transformational skills Details can be found on page 66, and information about how the board and those with broader energy and sustainability experience. has engaged with BP’sshareholders, the workforce is on page 88. In light ofand other stakeholders Sustainability: People and society 86 57 Fostering the changes ahead of us, but also as a consequence of natural Closing thanks succession, I anticipate thatcompany's business relationships with suppliers, customers and others. How we will add new competences and Finally, I want to express my gratitude to Bob Dudley, Bernard Looney, experiences to the board during 2020. the executive team, our employees and my board colleagues for their hard work, their commitment, and their contribution to BP’s new direction. Evolving remuneration structure The year 2019 also marked a transition for executive remuneration. In I look forward to workingengage with our teams to compete effectively in a order to develop a new remuneration policy, which will be proposed at changing energy market. the 2020 AGM, the remuneration committee sought candid feedback from some of our largest shareholders. Consequently, while we will retain our current structure, which is simple and well understood, we will strengthen the elements relating to our energy transition ambition. More details of our new policy are set out in the Directors’ remuneration report on page 100. Helge Lund Chairman 82 BP Annual Report and Form 20-F 2019

Corporate governance Governance framework Shareholders BP board Audit committee Safety, Geopolitical Remuneration Nomination and Chairman’s HPGR* monitored environment and committee committee governance committee • Financial liquidity. security assurance HPGR monitored Responsibilities committee Responsibilities • Cyber security. committee • Geopolitical. • Recommend Responsibilities • Evaluate • Compliance remuneration • Review performance and HPGR monitored Responsibilities with business principles and composition effectiveness • Monitor marine, • Monitor social, regulations. policy. of board. of chief executive well and pipeline economic and • Trading • Maintain dialogue • Review outside officer. incidents. political events compliance with shareholders commitments • Review the • Oversee effective around the world. and control. and workforce of the NEDs. structure and controls around • Identify major and on remuneration • Maintain strong effectiveness Responsibilities releases at correlated issues. pipeline. of the business • Reviewing facilities and/or geopolitical risks. • Monitor alignment • Review organization. financial explosion. • Consider broader of remuneration developments in • Review system disclosures. • Review and advise political policy and incentives corporate of executive • Monitoring on major security developments. for all employees. development Accountability compliance. incident. governance, • Report on and succession. • Reviewing audit • Cyber security. See page 98. law and ESG. implementation effectiveness, See page 99. Responsibilities of remuneration See page 90. including internal • Review safety and policy. Delegation controls and risk operational risk. management. • Monitor security See page 101. • Advice on external developments. auditor. • Review See page 91. environmental matters. See page 96. Chief executive officer Executive committee Group Group Group Group people Group Resource Technical operations risk financial risk disclosure committeestakeholders Sustainability: Business ethics and commitment advisory committee committee committee compliance meeting council committee Framework changes in 2020 As partaccountability 63 61 Impact of operations on the governance framework review,community and the board committees and their responsibilities will be reviewed. * HPGR – highest priority group risks. BP Annual Report and Form 20-F 2019 83

Board activities in 2019environment. Managing our environmental impacts Sustainability: Safety 57 59-60 Maintaining a reputation for high standards of business conduct. Role of the board Strategy PerformanceSustainability: Business ethics and monitoringaccountability 80 61 Acting fairly between members of the company. How the board has engaged with shareholders, the workforce and other stakeholders 86 More information on how the board had regard to the Section 172 factors Issue faced and decision taken Section 172(1)a) to (f) matters considered, including stakeholder group(s) affected and feedback received How the board had regard to the feedback in its decision making Establishing a new purpose and strategy for bp The board approved a new purpose for bp – reimagining energy for people and our planet – and a strategy to transition to an Integrated Energy Company and to meet the net zero ambition set out alongside bp’s purpose. Workforce In town halls and leadership meetings employees wanted to know how bp could do more to step up to the climate challenge and help society deal with these issues. It became clear that employees were seeking even stronger commitments to the climate change agenda by the company. Community and environment We consulted with communities, NGOs, academics and industry associations – even bringing some of bp’s harshest critics into discussions about the future of the company, about environment, social and governance matters and the issues facing the world, drawing on their external expertise, input and challenge. Investors We talked with investors about their expectations of bp and heard of their desire for bp to continue to deliver operational excellence, to drive higher returns but also to set out a clear medium to long-term vision for a sustainable bp business in light of the energy transition. Fostering business relationships We received feedback from customers via the bp leadership team, conveying the importance of being able to react rapidly to changing demand. All the elements highlighted in Section 172 were central to the discussions as the board evaluated the purpose and strategy options – what are bp’s beliefs and what does bp want to be? The discussions encompassed bp’s role with respect to its shareholders, employees and society. It considered the value creation opportunities and the importance of leaning into the changing needs of customer demand for convenience and society’s demand for renewables and lower carbon energy. The change in purpose and strategy reflects bp’s people’s belief that we can create long-term value by helping solve one of society’s biggest problems – climate change. The decision was made with the long-term future and sustainability of bp in mind with clear 2025 targets, 2030 aims and a 2050 goal. Reinvent bp The board approved a reorganization of bp, retiring the existing model and replacing it with one that is responsiblemore focused, more integrated and faces the energy transition head on. The reorganization will ultimately see around 10,000 employees leave bp. The board considered the importance of skills evaluation to the delivery of cost reduction and the wider long-term strategic delivery of bp’s aims. They heard feedback from the CEO’s ‘Keeping Connected’ webcasts with the workforce together with responses to bp’s ‘Pulse’ surveys. Considerations The wider society context following the impact of COVID-19 and the wider oil industry job losses. The importance of putting the safety of employees first. Companies should try to provide job assurance and consider the mental health impact of job insecurity. bp’s reputation for high standards of conduct and the overall During 2019importance of honesty, fairness, and respect in the process. The board supported the reinvention of bp, with the associated headcount reduction that this implied. Given the feedback received, although the board considered it was the BP strategyright decision to go ahead, they sought assurances from the executive that: The redundancy process was fair, transparent and objective with an environment of honesty, trust and co-operation that put the care and wellbeing of our people at the heart of the process. The reduction in the workforce was conducted in a manner which protected bp’s safe and reliable operations. Support for the life transition that redundancy brings is offered to the relevant employees. Discretionary enhanced redundancy terms could be offered. Financial frame and distribution policy The board reviewsapproved a new and resilient financial operationalframework, including a coherent approach to capital allocation and safety conduct ofa new distribution policy. In considering the group’s business. Directors every board meetingproposed financial frame and held a two-day strategy performance throughout the year, as well as the have duties under the both UK company law discussion in September. The board also received a latest view on expected full-year delivery against and BP’s Articles of Association. The primary number of technical briefings to expand the directors’ external scorecard measures. During the year there tasks ofdistribution policy, the board had regard to: The resilience of bp’s balance sheet for the long term. Delivering sustainable value to shareholders. The need for bp to invest adequately in 2019 included: knowledgethe energy transition and low carbon, to support the new ambition and strategy. In approving the new distribution policy the directors reflected that there may be some change in particular areas, suchbp’s investor base as Scope 3 were a number of business and regional reviews, emissions,some investors focus more on the BP Energy Outlook and including North Sea, Russia,short-term direct return that the lubricants business • Active consideration and establishment of environmental, social and corporate governance and BPX Energy. long-term strategy and approval ofdividend provides. After considering all the (ESG) matters, to best equipvarious factors, the board concluded that a resilient dividend intended to consider Updates are also given on various components of and debate strategic themes relating to BP’s annual plan. value delivery for BP’s business. Regular reports segments, key functions and the impact of the lower • Monitoring of BP’s performance against presentedremain fixed at 5.25 cents per ordinary share per quarter (subject to the board include: the strategy’s decision each quarter), with a commitment to return at least 60% of surplus cash« to shareholders through share buybacks (having reached $35 billion net debt« and plan including ethics and carbon transition on the group’s business model. This included looking at long-term energy trends and compliance. • Chief executive’s report. projections for world energy markets. • Group performance report. • Ensuring that the principal and emerging • Group financial outlook. The board monitored the company’s performance risks and uncertaintiessubject to BP are identified • Effectiveness ofmaintaining a strong investment review. against the annual plan for 2019 and approved the and that systems of risk management and • Quarterly and full-year results. annual plan for 2020 after taking into account control are in place. • Shareholder distributions. management’s revised assumptions and outlook for • Board and executive management the year. They received regular reports on the In 2019 the board re-assumed primary responsibility succession. progress and implementation of the strategy from for ethics and compliance (E&C)grade credit rating), having previously the group chief executive (GCE) and chief financial managed oversight jointly through the SESAC and officer (CFO) by means of a strategic performance the audit committee. The group head of E&C scorecard, which is discussed at each board attended the board meeting four times in 2019, meeting. providing an update on E&C matters, and how the importance of such was embedded within the BP The board undertook portfolio reviews of various culture throughout the business. The board was also parts of the BP group, including upstream, provided ethics and compliance training. The NEDs downstream and renewables. It assessed the held private sessions with the head of E&C. potential impact changes to the portfolio might have on the financial framework and discussed allocation The board reviews the quarterly and full-year results, of capital. The board looked at circular and including shareholder and capital distributions. The “The board is responsible sustainable solutions and business development 2019 annual report was assessed in terms of the opportunities in a low carbon future, through the lens directors’ obligations and reflects the briefings on for establishing the of what was in the best interest of long-term success updated corporate governance requirementsthe company, its shareholders as a whole and company’s purpose, its ofother stakeholder groups, as it enabled bp to offer sustainable value with increased investment in low carbon and non-oil and gas ventures. Matters reserved for the company. best practice. In a year that saw BP face significant transition, bothboard and section 172 The board monitors employee opinion via an annual values and strategy, and internally withdelegates authority for the announcementexecutive management of Bob Dudley’s ‘Pulse’ survey which includes measurement of how retirement and more widely asbp to the company looks the BP values are incorporated into culture around satisfying itself that thesechief executive officer, subject to play an important role in the world’s energy our global operations. transition,defined limits. Ultimately, the board discussed BP’s purposeretains responsibility for – and and its culture are aligned.” ambitions and their alignment with strategy andregularly monitors – the Feedback from other stakeholders is also considered BP culture. by the boardexecution of this delegation of authority, taking action to update it as part of its monitoring of performance, as outlined in the BP Section 172 statement and on Helge Lund pages 88-89. Chairman 84 BPrequired.

Corporate governance Risk Succession Looking forward,2020 Issue faced and decision taken Section 172(1)a) to (f) matters considered, including stakeholder group(s) affected and feedback received How the board is implementing changeshad regard to the feedback in its decision making Establishing a new purpose and strategy for bp The board approved a new purpose for bp – reimagining energy for people and our planet – and a strategy to transition to an Integrated Energy Company and to meet the net zero ambition set out alongside bp’s purpose. Workforce In town halls and leadership meetings employees wanted to know how bp could do more to step up to the climate challenge and help society deal with these issues. It became clear that employees were seeking even stronger commitments to the climate change agenda by the company. Community and environment We consulted with communities, NGOs, academics and industry associations – even bringing some of bp’s harshest critics into discussions about the future of the company, about environment, social and governance matters and the issues facing the world, drawing on their external expertise, input and challenge. Investors We talked with investors about their expectations of bp and heard of their desire for bp to continue to deliver operational excellence, to drive higher returns but also to set out a clear medium to long-term vision for a sustainable bp business in light of the energy transition. Fostering business relationships We received feedback from customers via the bp leadership team, conveying the importance of being able to react rapidly to changing demand. All the elements highlighted in Section 172 were central to the discussions as the board evaluated the purpose and strategy options – what are bp’s beliefs and what does bp want to be? The discussions encompassed bp’s role with respect to its waysshareholders, employees and society. It considered the value creation opportunities and the importance of workingleaning into the changing needs of customer demand for convenience and redefiningsociety’s demand for renewables and lower carbon energy. The change in purpose and strategy reflects bp’s people’s belief that we can create long-term value by helping solve one of society’s biggest problems – climate change. The decision was made with the long-term future and sustainability of bp in mind with clear 2025 targets, 2030 aims and a 2050 goal. Reinvent bp The board either directly or through its committees,approved a reorganization of bp, retiring the existing model and replacing it with one that is more focused, more integrated and faces the energy transition head on. The reorganization will ultimately see around 10,000 employees leave bp. The board in conjunctionconsidered the importance of skills evaluation to the delivery of cost reduction and the wider long-term strategic delivery of bp’s aims. They heard feedback from the CEO’s ‘Keeping Connected’ webcasts with the nominationworkforce together with responses to bp’s ‘Pulse’ surveys. Considerations The wider society context following the impact of COVID-19 and its primary responsibilities. As outlined on regularly reviews the processes whereby principalwider oil industry job losses. The importance of putting the safety of employees first. Companies should try to provide job assurance and governanceconsider the mental health impact of job insecurity. bp’s reputation for high standards of conduct and chairman’s committees, reviews page 66,the importance of honesty, fairness, and respect in the process. The board supported the reinvention of bp, with the associated headcount reduction that this implied. Given the feedback received, although the board considered it was the right decision to go ahead, they sought assurances from 2020, board agendas will be emerging risks are identified, evaluatedthe executive that: The redundancy process was fair, transparent and managed. succession plans for executiveobjective with an environment of honesty, trust and non-executive structured alongco-operation that put the following four distinct directorscare and senior executives on a regular basis. Eachwellbeing of our people at the heart of the highest priority group risks were pillars – strategy, performance, peopleprocess. The reduction in the workforce was conducted in a manner which protected bp’s safe and reliable operations. Support for the life transition that redundancy brings is offered to the relevant employees. Discretionary enhanced redundancy terms could be offered. Financial frame and distribution policy The board ensuresapproved a new and resilient financial framework, including a coherent approach to capital allocation and a new distribution policy. In considering the proposed financial frame and distribution policy, the board had regard to: The resilience of bp’s balance sheet for the long term. Delivering sustainable value to shareholders. The need for bp to invest adequately in the energy transition and low carbon, to support the new ambition and strategy. In approving the new distribution policy the directors reflected that potential candidates are reviewedthere may be some change in 2019. Thebp’s investor base as some investors focus more on the short-term direct return that the dividend provides. After considering all the various factors, the board hasconcluded that a focus on emerging governance. Within those areasresilient dividend intended to remain fixed at 5.25 cents per ordinary share per quarter (subject to the key areas identifiedboard’s decision each quarter), with a commitment to return at least 60% of surplus cash« to shareholders through share buybacks (having reached $35 billion net debt« and evaluated against objective criteriasubject to maintaining a strong investment grade credit rating), was in the best interest of the company, its shareholders as a whole and risksother stakeholder groups, as it enabled bp to offer sustainable value with increased investment in low carbon and non-oil and gas ventures. In the context of the board’s activities during 2020, the table below sets out some examples of board decision making in 2020 and how these are being managed and of focus will be: on merit, with due regards to the benefits of diversity mitigated. The board undertook its annual review of of thought, gender, social and ethnic backgrounds Strategy: the board will consider and help cyber security risk in particular in December 2019. and cognitive and personal strengths, through a establish the strategy of BP alongside the Each year the board assesses the effectiveness of formal and rigorous procedure. BP operated board new CEO and leadership team to achieve the group’s system of internal control and risk and senior executive succession planning across the purpose, ambition and aims set out on management as part of the review and sign off of the three horizons. 12 February 2020, see page 6. In doing so, BPdirectors have performed their duty under Section 172.

Board and committee attendance Nomination and Audit Remuneration Geopolitical governance Chairman’s Non-executive director Board committee SESAC committee committee committee committee Helge Lund 9 (9)  6 (6)  7 (7)  Nils Andersen* 8 (9) 6 (6) 4 (6) 3 (4) 6 (7) Alan Boeckmann 3 (3) 2 (2) 3 (3) 2 (2) 2 (2) Admiral Frank Bowman 3 (3) 2 (2) 2 (2) 2 (2) Dame Alison Carnwath 9 (9) 8 (8) 7 (7) Pamela Daley 9 (9) 7 (8) 8 (8) 6 (7) Sir Ian Davis 9 (9) 8 (9) 4 (4) 6 (6) 7 (7) Professor Dame Ann Dowling 9 (9) 6 (6) 6 (7) Melody Meyer 9 (9) 6 (6)  4 (4) 7 (7) Brendan Nelson 9 (9) 8 (8)  9 (9) 6 (6) 7 (7) Paula Rosput Reynolds 9 (9) 8 (8) 9 (9) 6 (6) 7 (7) Sir John Sawers 9 (9) 6 (6) 4 (4)  6 (6) 7 (7) Executive directors Bob Dudley* 9 (9) Brian Gilvary 9 (9) Chairman of board/committee * Bob Dudley stepped down from the board 4 February; Nils Andersen stepped down from the board 18 March 2020 Background Non-executive director Background and experience Operational Global business People leadership excellence and risk leadership and and organizational Technology, digital Society, politics Finance, risk, Energy markets management governance transformation and innovation and geopolitics trading, etc Dame Alison Carnwath Pamela Daley Sir Ian Davis Professor Dame Ann Dowling Helge Lund Melody Meyer Brendan Nelson Paula Rosput Reynolds Sir John Sawers Diversity At the end of 2019 the board comprised five female directors (2018 5, 2017 3) representing 42% of a 12-person board (46% of an 11 person board at the time BP believes diversity and inclusion is vital to our values, the group strategy and of publication). Our senior management, as defined by the Corporate Governance the success of the company. We understand that better decisions and outcomes Code 2018, and their direct reports comprise 38% female and 18% black, Asian are achieved when we have different people, with differences of opinions from and minority ethnic (BAME) individuals. For details of BP workforce diversity and different backgrounds. inclusion, see Our people on page 47. The board looked at diversity across the We recognize the importance of diversity, whether that be gender, social or group as part of its annual review of HR, capability and talent management. ethnic backgrounds, personal identities, age, religion, physical abilities and more. BP continues to take action to address the broader issue of diversity within These all promote diversity of thought and reduce the risk of groupthink. This the group. approach is followed by the board, senior executives and their direct reports and throughout the BP group.continued Independence We are committed to attracting the best talent to BP and feel an inclusive and Non-executive directors (NEDs) are expected to beexercise independent in characterjudgement and respectful work environment, where people are valued as individuals, is key. judgement andto be free from any business or other relationship that could materially When reviewing the composition of the board, the nomination and governance interfere with exercising that judgement. Itit. This independence is crucial in bringing constructive challenge to the board’s view that all BP NEDs committee reviews not onlyCEO and the skillsleadership team at board meetings, while providing support and experience of existing board members, are independent. but also their backgroundguidance to promote meaningful discussion and, diversity. Equally, when seeking to identify candidates to join the board, the committee gives consideration to merits ofultimately, informed and effective decision making. The board is satisfied that there is no compromise toregularly reviews the independence of its NEDs, as advised by the company secretary, and diversity, including gender, in helpingtakes action to bring greater balance to the board’s nothing to give rise toidentify and manage conflicts of interest for,interests, including those directors who serve together discussion and debates on strategy and associated matters. as directors on other company’s boardsthat may arise from significant shareholdings. This process helps to ensure that the influence of third parties does not compromise or who hold other external appointments.override independent judgement. Directors are required to provide the board with sufficient information to allow the board to evaluate Diversity is considered as an integral part of succession planning. Executive gender their independence prior to and following their appointment. As a consequence of regular reviews throughout the year, the board keepshas satisfied itself that there were no matters giving rise to any conflict of interests or which compromised the other interestsindependence of the NEDs. It has therefore concluded that all bp NEDs under and ethnicity were taken into consideration as part ofare independent. Professor Dame Ann Dowling continues to serve on the board’s wider executive review and regularly reviews the conflicts of interest register. succession review in 2019, while diversity of thought, deriving from a robust combination of gender, social or ethnic backgrounds, was a prominent factor in the Sir Ian Davis and Brendan Nelson are proposed for re-electionboard notwithstanding selection process, ensuring that BPshe has a diverse executive pipeline. that they have both served beyond nine years as non-executive directors. 86 BP Annual Report and Form 20-F 2019

Corporate governancea NED. Following careful consideration, the board believes that both Sir Ian and Brendan Learning, development and inductions continueAnn continues to provide constructive challenge and robust scrutiny of matters that The board held a number of developmental briefing sessions during the year, in which come before the board and the committeescommittee on which they serve. Neither director field expertsshe serves. She has only served with the current executive directors for a range of academic and practical knowledge were invited to provide has served simultaneously with an executive director for over nine yearsyear and the bespoke training sessions, updating them on latest intelligence in their particular area. overall average tenure of the board is similar to that ofbelow the average FTSE 100 This develops and optimizes the skill set within the board on evolving technical topics directors’ tenure.average. In addition, in 2018 the board undertook significant refreshment of its and aids conversation around strategic planning. composition with a number of new non-executives and a new chairman. Since assuming the chairmanship of the board at the beginning of the year, Helge Lund The board continued to build its knowledge of the BP business through briefings has led the process to identify and, in October 2019, to announce the and site visits as part of its learning programme, see examples on page 89. appointment of a new group CEO. This was supplemented by a process to identify and, in January 2020, announce the appointment of a new group CFO. No new directors were appointed during 2019. In October 2019, BP announced that Sir Ian and Brendan will play crucial roles in the transition period as these new Bob Dudley would be retiring in 2020, succeeded by Bernard Looney. Bernard’s appointments come into effect, so that BP’s culture and values are not adversely functional and operational knowledge of BP meant that an in-depth induction impacted and that the integrity of its financial reporting is maintained. After programme was not necessary. Nonetheless, Bernard attended a number of town careful consideration,composition. Accordingly, the board is satisfied that Sir Ian and Brendan continue halls with Helge Lund in 2019 to engage with BP people.Ann continues to demonstrate the qualities of independence in carrying out theirher duties. Board evaluation Appointment and time commitment Each year, BP completes a review of the board, its committees and of the The chairman, senior independent director and other NEDs each have letters of appointment.appointment and do not serve, nor are they employed, in any executive capacity. There is no fixed term limit individual directors. It is generally recommended that such reviews are externally on a director’s service, as BPdirector’s service; however, in line with good governance practice, bp proposes all directors for annual re-election by led once every three years. Having undertaken an externally facilitated review in shareholders in line with best governance practice. 2018,shareholders. Unlike the 2019 evaluation was facilitated by the incoming company secretary. The process involved interviews with each member of the board based around a The chairman’schairman’s letter of appointment, sets out the time commitment expected of number of themes, including strategy formulation and portfolio development, the him. The NEDs’NEDs’ letters of appointment do not set out a fixed time commitment. role of the new chairman and boardroom dynamics, the evolution of BP’s purpose The time required of directors fluctuates depending on the demands of BP and wider stakeholder engagement and the processes in place for managing business and other events. TheyNEDs are expected to allocate appropriate time to BP succession across the organization. Positive feedback was receivedeffectively discharge their duties. The time required of NEDs fluctuates depending on the newdemands of bp business and other events. The COVID-19 pandemic, as well as the oversight by the board of the energy transition and associated workload, required the NEDs to performspend considerably more time fulfilling their duties effectivelyresponsibilities towards bp during 2020, than in previous years. This included NEDs dedicating additional time through regular calls with the leadership team to remain informed and make themselves available for all regular chairman’s stylehelp guide the executive through unprecedented times. The NEDs’ external time commitments are regularly reviewed, ensuring that, even in the exceptional circumstances of a global pandemic, the NEDs are able to allocate appropriate time to bp. The review process is managed by the company secretary, considering NEDs’ outside appointments and the benefits his inclusive leadership approach had brought tocommitments, including relevant factors such as complexity of company and ad hoc meetings.industry, in particular highly regulated sectors, and issues impacting these other companies. The board believeshas concluded that, notwithstanding the NEDs’NEDs’ other the board during the year. The outputs of this review highlighted three areas of appointments, they haveare each able to dedicate sufficient time to fulfil their BPbp duties. future focus and attention: Executive directors are normally permitted to take up one board appointment at • Reviewing the composition, skills, experience and diversity of the board and an external listed company, subject to the agreement of the chairman and after the process for executive succession planning talent management and consultation with the company secretary. In FebruaryBernard Looney and Murray Auchincloss each hold one non-executive directorship, shown on page 74. Prior to retiring from the board in June 2020, Brian Gilvary was development. appointedundertook a role as a non-executive directorNED of Barclays PLC. An announcementPLC, in • Ensuring every member of the board has a deep understanding of the board’s respect of Brian’s plansaddition to retire as CFO of BP was made in January 2020. He willhis NED role in determining BP’s capital allocation process and enabling effective stay in the role until June 2020 to work with his successor, Murray Auchincloss, decision making. in order to ensure an orderly transition. Given these circumstances and after • Re-shaping the BP corporate governance framework and how this it shouldL’Air Liquide S.A.. Following consideration, by the chairman and company secretary, it was concluded that reinforce the effectiveness of the internal control framework and be more Brian’s role at Barclays PLC wasBrian’s two external appointments were unlikely to be detrimental to his ability to perform his duties as closely aligned with BP’s new purpose and ambition. outgoing CFO. Fees receivedDiversity At a time of significant change across the sector, and with bp transitioning to become an Integrated Energy Company, diversity of thought is as important as ever. Our purpose, to reimagine energy for an external appointment maypeople and our planet, can only be retainedachieved through collaboration, innovation and constructive challenge that derives from having a diverse and inclusive workplace. The board understands and advocates that better decisions and outcomes are achieved when different people, with differences of opinions, from different backgrounds, come together with a common ambition. We recognize that diversity can take many forms, whether it be gender, social or ethnic backgrounds, personal identities, age, religion, physical abilities and more. All of which promote diversity of thought and reduce the risk of group think. The board has, and continues to have, regard to all these forms of diversity in respect of its processes including both its appointments and succession plans. The board and leadership team believe in leading by the executive directorexample and are reported inpleased to have met the Directors’ remuneration report (see A new corporate governance framework is in development, supported byHampton-Alexander and Parker review targets for 2021. At the page 100). Neitherend of 2020 the chairman nor the senior independent director are outputs from this year’s board review process, with the aim of ensuring that this employed as an executivecomprised five female directors, representing 45% of the group. new framework is in place byboard (2019 42%, 2018 35%). Karen Richardson and Johannes Teyssen joined the time thatboard on 1 January 2021. Dame Alison Carnwath stepped down from the new organizational structure and reporting arrangements take effect.board on 14 January 2021. As previously announced, Brendan Nelson will be stepping down from the board at the conclusion of the 2021 AGM. The board also considers all NED external appointments and considersis pleased that Tushar Morzaria, a Ugandan-born British national, joined in September 2020. He will succeed Brendan Nelson as audit committee chair following the impact those requiring significant commitment might have on2021 AGM. Our senior management, as defined by the director’s ability to UK Corporate Governance Code compliance dedicate sufficient capacity in times of increased demand. In November 2019, the board acknowledged the appointment of Nils Andersen as Chairman of BP complied throughout 2019 with the principles2018, and provisions of the 2018 UK Unilever NV/PLCtheir direct reports comprise 43% women (2019 38%) and accepted his resignation25% Black, Asian and minority ethnic (BAME) individuals (2019 18%). While bp continues to benefit from the BPwide array of perspective and vision in decision-making processes and the company culture continues to strengthen through mitigation of group think, bp will continue to strive for increased diversity across its workforce, leadership team and board. Nils remainedFor more information on our workforce diversity and inclusion see page 57.

Corporate governance As an example of how engagement has directly contributed to shaping scheme to more employees across the group. The boardselected small team sessions will dedicate policy, in 2019 we launched a new global commitment to minimum time to specifically review the outputs from the various channels of parental leave for new parents. This policy was established through workforce engagement at board sessions. engagement with our employee-led business resource groups andcontinue. The board believes the existing approaches and mechanisms described employee forums, including the working parents’ forum. above enable comprehensive two-way engagement opportunities BP invests in its workforce through a number of employee share with BP’sbp’s workforce, and as such, is satisfied that these are effective ownership schemes and plans. For example, we operate ‘ShareMatch’ alternatives to the proposed workforce engagement methods set out in more than 50 countries. The plan matches BP shares purchased by in Provision 5 of the Code. GivenLooking beyond 2021 the current periodboard will continue to assess the effectiveness of transitionits engagement with the workforce and how ultimately this informs the decisions that it takes, including the options provided for in the Code, for example appointing a director from the workforce. CEO ‘Keeping Connected’ webcasts During 2020 restrictions associated with COVID-19 disrupted planned opportunities for the board to engage with the bp workforce in person. As a result, most engagements were conducted virtually. Virtual engagements Our CEO Bernard Looney hosted a series of webcasts featuring guests from across the organization to discuss a range of topics throughout the year, including bp’s new purpose, safety, mental health, and reinventing bp. Helge Lund, chairman of the board, joined the CEO as a speaker on two of these webcasts and non-executive directors were also invited to listen in. >12,500 average viewers per webcast Business resource groups and focus groups Non-executive directors engaged virtually with employees in BRGs and focus groups throughout the year, including virtual events organized by the Women in Wells, Future Talent and One Young World alumni forums. Through these engagements the directors heard directly from employees on a range of topics, including bp’s new purpose and strategy, employee sentiment – particularly during the reorganization of bp – the impact of COVID-19 on operations and wellbeing, diversity and career progression. Virtual site visits The audit committee conducted a virtual visit and tour of bp’s trading floors in London and Houston and a majority of our non-executive directors attended a virtual visit of bpx energy’s Permian assets, led by the safety, environment and security assurance committee. During these visits, directors heard directly from the workforce regarding their perceptions of bp’s new strategy and how these businesses planned to implement it, as well as deepening their understanding of businesses and functions within bp.

Nomination2020 The developmental needs of the board as a whole and for individual directors are regularly reviewed, so as to ensure that the board and individual effectiveness to board discussion and decision making are maximized. A formal and comprehensive induction is provided to all directors following their appointment. This includes meetings with management, technical briefings and site visits. Learning, development and induction Corporate governance continued Tushar Morzaria, appointed on 1 September 2020, undertook a tailored and robust induction against the challenging backdrop of COVID-19. The programme was adapted to accommodate the inability to participate in physical meetings and site visits. Digital solutions were therefore deployed to facilitate Tushar’s induction. Tushar looks forward to continuing his introduction to bp’s operations and learning more about the business and its people. The programme included meetings with a wide range of senior management within bp, the external auditor and other key advisors. A selection of these and the areas of focus are outlined below. Board induction programme I am delighted to join the bp board and to contribute my expertise in support of bp’s new strategy. Tushar Morzaria Independent non-executive director Area Provided by Key topics covered Board and governance Helge Lund, chairman Ben Mathews, group company secretary Overview of board and committee matters. Priority areas for the board. Governance framework. Corporate structure. Audit committee Brendan Nelson, chair of the audit committee Jayne Hodgson, SVP, accounting, reporting, control David Jardine, SVP internal audit Doug King, Deloitte (external audit partner) Priority areas for the committee, including committee chair succession. bp’s financial position. Financial reporting framework and quarterly results close cycle. Internal audit reports. External audit and quarterly review reports. Strategy and sustainability Giulia Chierchia, EVP strategy & sustainability bp’s new strategy and sustainability focus. Legal Eric Nitcher, EVP legal Overview of legal matters, including material litigation. Treasury Kate Thomson, SVP treasury Overview of treasury matters and liquidity risk management.

2020 Corporate governance continued Audit committee The committee was particularly focused on the impacts of bp’s reorganization and the COVID-19 pandemic on financial performance, the financial control environment and resilience. Brendan Nelson Committee chair Committee overview Role of the committee The committee monitors the effectiveness of the group’sgroup’s financial reporting (including reporting on the financial aspects of climate matters), systems of internal control and risk management and the integrity of the group’sgroup’s external and internal audit processes. Key responsibilities •during 2020 Monitoring and obtaining assurance that the process to identify, manage and mitigate principal and emerging financial risks are appropriately addressed by the chief executive officerCEO and that the system of internal control is designed and implemented effectively in support of the limits imposed by the board (‘(‘executive limitations’limitations’), as set out in the BP board governance principles. • Reviewing financial statements and other financial disclosures and monitoring compliance with relevant legal and listing requirements. “The committee robustly challenges • Reviewing the effectiveness of the group audit function, BP’s internal financial controls and reports...enabling it to determine systems of internal control and risk management. whether BP’s financial reporting is •. Overseeing the appointment, remuneration, fair, balanced and understandable.” independence and performance of the external auditor and the integrity of the audit process as a whole, including the engagement of the external Brendan Nelson auditor to supply non-audit services to BP. Committee chair •bp. Reviewing the effectiveness of the internal audit function, bp’s internal financial controls and systems of internal control and risk management. Reviewing financial statements and other financial disclosures and monitoring compliance with relevant legal and listing requirements. Reviewing the systems in place to enable those who work for BPbp to raise concerns about possible improprieties in financial reporting or other issues and for those matters to be investigated. Chairman’s introduction Membership During 2019,Meetings and attendance There were 10 committee meetings in keeping2020. All members attended each meeting with the new UK Corporate Governance Codeexception of Pamela Daley who was absent from the March meeting owing to prior commitments. Regular attendees at the meetings include the chief financial officer, SVP accounting reporting control, SVP internal audit, EVP legal and external auditor. Membership Brendan Nelson Member since November 2010 2018, the committee continued its focus on monitoring the integrity of and chair since April 2011 the group’s financial reporting and risk management systems. Each Dame Alison Carnwath Member quarter(resigned from the committee robustly challenges the reports from management Carnwath and the external auditor highlighting significant accounting issues andboard in January 2021) Pamela Daley Member judgements, enabling it to determine whether BP’s financial reporting is Paula Reynolds Member ‘fair, balanced and understandable’. Throughout the year, the committeeTushar Morzaria Member since September 2020 (chair-designate) Brendan Nelson is chair of the audit committee. He reviewed the group’s principal and emerging risks, including scenarios was formerly vice chairman of KPMG and president of which could impact the company’s long-term viability which also helped the Institute of Chartered Accountants of Scotland. to inform the committee’s debates on what would constitute significant Currently he is chairman of the group audit committee failings and weaknesses in our system of internal control. of NatWest Markets plc and a member of the Financial Reporting Review Panel.See page 76 for his biography. The board is satisfied that he In 2019 the committee focused on the effectiveness of a number of is the audit committee member with recent and group functions including integrated supply and trading, treasury, tax, relevant financial experience as outlined in the UK information technology and security. We also received presentations Corporate Governance Code and competence in regarding, and reviewed performance of, both the Upstream and accounting and auditing as required by the FCA’s Downstream segments and regularly considered climate change riskFCA’s Corporate Governance Rules in DTR7. It considers that affecting the whole business. These reviews helped inform the the committee as a whole has an appropriate and committee of the work and future plans of those functions and experienced blend of commercial, financial and audit expertise to assess the issues it is required to address, businesses and enabled the committee to understand the key risks and as well as competence in the oil and gas sector. The challenges (and associated mitigations and lessons learned) faced by board also determined that the audit committee meets each of them. In addition, the committee carried out reviews into the the independence criteria provisions of Rule 10A-3 of group risks of financial liquidity, cyber security and compliance with the US Securities Exchange Act of 1934 and that business regulations. Brendan may be regarded as an audit committee financial expert as defined in Item 16A of Form 20-F. There were no changes to the committee membership during the year and the skills and experience of our committee members remain strong, Meetings and attendance enabling the committee to continue to perform effectively. There were eight committee meetings in 2019. All members attended each meeting with the exception of Brendan Nelson Pamela Daley who was absent from the September Committee chair meeting owing to prior commitments. Regular attendees at the meetings include the chief financial officer, group controller, chief accounting officer, group head of audit, group general counsel and external auditor. BP

2020 Chair’s introduction I am pleased to introduce the report on the audit committee’s activities during the year. During the year, the committee has continued to assist the board in fulfilling its oversight responsibilities, by monitoring the integrity of the group’s financial reporting and risk management systems, and also by challenging management and external auditors across a number of key areas of focus, including key accounting judgements and control issues. In addition to the routine committee agenda for the year, the committee was particularly focused on the impacts of bp’s reorganization and the COVID-19 pandemic on financial performance, the financial control environment and resilience. I welcome the addition of Tushar Morzaria to the committee from September 2020. His broad financial experience is immensely beneficial to the committee and bp. Following year end, Dame Alison Carnwath stepped down from the committee and the board. I would like to thank her for her diligent contribution to the committee over the years. This is my last report as chair of the audit committee. I would like to thank my board and committee colleagues, as well as management, for the open, challenging and constructive nature of discussions we have conducted during my tenure. As I hand over the committee chair to Tushar in May 2021, I remain confident that bp is well-positioned for continued resilience and success. Brendan Nelson Committee chair Activities during the year How the committee reviewed financial disclosure The committee reviewed the group’squarterly, half-year and annual financial statements with management, focusing on the: Integrity of the group’s financial reporting process. Clarity of disclosure. Compliance with relevant legal and financial reporting standards. Application of accounting policies and judgements. As part of its review, the committee received regular updates from management and the external auditor in relation to accounting judgements and estimates, including those relating to recoverability of asset carrying values. The committee keeps under review the frequency of results reporting during the year. In considering the bp Annual Report and Form 20-F, the committee assessed whether the report was fair, balanced and understandable and also whether it provided the information necessary for shareholders to assess the group’s position and performance, business model and strategy. In making this assessment, the committee examined disclosures during the year, discussed the requirement with senior management, confirmed that representations to the external auditors had been evidenced and reviewed reports relating to internal control over financial reporting. The committee made a recommendation to the board, who in turn reviewed the report as a whole, confirmed the assessment and approved the report’s publication. How accounting judgements and estimates were considered and addressed The committee was briefed on a quarterly basis in 2020 on the group’s key accounting judgements and estimates. The primary areas of judgement and estimation which were considered by the committee are set out below. These areas were discussed with management and the external auditor throughout the year and during the preparation of these financial statements. The committee is satisfied that the financial statements appropriately address the key accounting judgements and estimates both in respect of the amounts reported and disclosures made. During the year, the committee also considered and approved a change to bp’s accounting policy relating to physically settled commodity contracts, with effect from 1 January 2021. The committee’s process for considering key accounting judgements and estimates included an assessment of matters at various stages during the year. This primarily included the key accounting judgements and estimates set out on pages 98 and 99. The committee also considered and addressed key accounting estimates and judgements relating to provisions, pensions and other post-retirement benefits, and supplier financing arrangements via briefings and review of the group’s assumptions. See Notes 23, 24 and 29 respectively for further information.

Corporate governancerisk management. The committee met privately with the group head ofSVP, internal audit and key members of his leadership team. The committee continued to monitor and review the effectiveness and capabilities of internal audit during the year. During the year, the committee received a report on the findings of an assessment conducted by internal audit of its conformance with the Internal Audit Code of Practice which was published in January 2020. The committee noted that internal audit conforms with the vast majority of recommendations set out in the code. Actions to achieve full conformance with the code were also noted. Training and briefings The committee considered market updates and developments throughout the year. This included technical accounting updates from the SVP accounting reporting control on developments in financial reporting and accounting policy, as well as on accounting and disclosure changes that would be introduced as a result of the reorganization of the group. The committee also received briefings on specific topics, including non-operated joint ventures, and data analytics used by the external auditor. Site visit during the year In October 2020, the committee conducted a virtual visit of the trading & shipping function, including virtual presentations from the trading floor, covering low carbon trading, global power and global crude. Key areas of discussion during this site visit included the impacts of oil price volatility, COVID-19 and the reinvent bp programme on the business and its operations during 2020.

How2020 Corporate governance continued Examples of how accounting judgements and estimates were considered and addressed Key judgements and estimates Audit committee activity Conclusions/outcomes in financial reportingreport Exploration and appraisal intangible assets BPRecoverability of asset carrying values Impact of climate change and the energy transition Audit committee activity Conclusions/outcomes bp uses technical and commercial judgements when • Reviewed exploration write-offs as part of the • Exploration write-offs totalling $0.6 billion were accounting for oil and gas exploration, appraisal and group’s quarterly due diligence process. recognized during the year. development expenditure and in determining the • Received the output of management’s annual • Exploration intangibles totalled $14.1 billion at group’s estimated oil and gas reserves. intangible asset certification process used to 31 December 2019. ensure accounting criteria to continue to carry the • BP believes it is appropriate to continue toexpenditure. Judgement is required to determine whether it is exploration intangible balance are met. capitalize the costs relating to intangible assets, on appropriate to continue to carry intangible assets • Received briefings on the status of upstream the ‘watch-list’. related to exploration costs on the balance sheet. intangible assets, including the status of items on the intangible assets ‘watch-list’. Recoverability of asset carrying values Determination as to whether and how much an • Held an in-depth review of BP’s policy and • The group’s long-term price assumption for Brent asset, cash generating unit (CGU) or group of CGUs guidelines for compliance with oil and gas oil, was reduced by $5 from 2018 assumptions containing goodwill is impaired involves management reserves disclosure regulation, including the and was unchanged for Henry Hub gas. judgement and estimates on uncertain matters such group’s reserves governance framework • The period over which the group’s price as future commodity prices, discount rates, and controls. assumptions transition from recent market prices production profiles, reserves and the impact of • Reviewed the group’s oil and gas price to the long-term assumption was unchanged at inflation on operating expenses. assumptions. five years for Brent oil and increased from 5 to 12 • Reviewed the group’s discount rates for years for Henry Hub gas from 2018. Reserves estimates based on management’s impairment testing purposes. • A sensitivity analysis estimating the effect ofmanagement’s assumptions for future commodity prices have a • Upstream impairment charges, reversals and reductions in the price assumptions has been direct impact on the assessment of the recoverability ‘watch-list’ items were reviewed as part of the disclosed in Note 1. of asset carrying values reported in the financial statements. Climate change and the transition to a lower carbon economy may have significant impacts on the currently reported amounts of the group’s assets and liabilities and on similar assets and liabilities that may be recognized in the future. Judgemental aspects of oil and gas accounting are reviewed routinely in bp’s quarterly due diligence process. • The methodologyReceived the output of management’s annual intangible asset certification process used to verify that accounting criteria to continue to carry the exploration intangible balance are met. Reviewed policy and guidelines for determiningcompliance with oil and gas reserves disclosure regulation, including the group’s statements.group’s reserves governance framework and controls. Reviewed the group’s oil and gas price assumptions. Reviewed the group’s discount rates used for impairment testing was enhanced, resultingpurposes. Upstream impairment charges, reversals and ‘watch-list’ items were reviewed as part of the quarterly due diligence process. Reviewed management’s best estimate of oil and natural gas price assumptions for value-in-use impairment testing. Reviewed management’s assessment of recoverability of exploration intangibles. Received briefings on decommissioning provisions. Significant exploration write-offs were recognized during the year (as disclosed in country-specific rates being applied. • ImpairmentsNote 8). Exploration intangibles totalled $4.1 billion at 31 December 2020. The group’s price assumption for Brent« oil and for Henry Hub«gas were revised downward and the period covered extended to 2050 as set out on page 28 and Note 1. Sensitivity analyses estimating the effect of $6.6 billionchanges in revenue and discount rate assumptions have been disclosed in Note 1. Significant impairments were recorded in the year netas a result of impairment reversals, primarily relatingthe lower price assumptions as disclosed in Note 4. Headroom on goodwill balances was reduced (see Note 14 for further information). Management’s revised best estimate of oil and natural gas prices are broadly in line with a range of transition paths consistent with the goals of the Paris climate change agreement. Exploration write-offs were recognized as a result of revised expectations to decisions to disposeextract value from certain exploration prospects (see Note 8 for further information). Reasonable changes in the expected timing of certain assets.decommissioning do not have a significant impact on the associated provisions.

Corporate governance Key judgements and estimates Audit committee activity Conclusions/outcomes in financial reporting Derivative financial instruments For its level 3 derivative financial instruments, BP • Received a briefing on the group’s trading risks • BP considers that longer-term contracts to buy orbp estimates their fair values using internal models due to the absence of quoted market pricing or other observable, market- corroborated data. Judgement may be required to determine whether contracts to buy or sell commodities meet the definition of a derivative, in particular LNG« contracts. Received briefings on COVID-19 impacts as part of the quarterly due diligence process. Reviewed liquidity forecast assessments. performed to support the going concern assertion. Reviewed discount rates used for impairment testing and provisions. Reviewed management’s best estimate of oil and natural gas price assumptions for value-in-use impairment testing. Reviewed the judgement on whether the group continues to have significant influence over Rosneft. Considered IFRS guidance on evidence of participation in policy-making processes. Received reports from management which assessed the extent of significant influence, including bp’s participation in decision making. Received regular reports on derivative accounting judgements. Received a briefing on the group’s trading risks and reviewed the system of risk management and controls in place. Reviewed the control process and risks relating to the trading business. bp continues to be resilient despite current economic conditions. The committee is satisfied with management’s assessment that the group will continue to operate as a going concern for at least 12 months from the date of approval of the financial statements. Material impairment charges and exploration write-offs were recognized in the Upstream segment as a consequence of price assumption changes. See Note 1 for further information. bp’s CEO, Bernard Looney, was appointed to the Rosneft board of directors in June 2020. bp has retained significant influence over Rosneft throughout 2020 as defined by IFRS. See Note 1 for further information. bp considers that contracts to buy or sell LNG do not meet the definition of a derivative to the absence of quoted market pricing or other controls in place. under IFRS. BPbp has assets and liabilities of $5.5 observable, market-corroborated data. Judgement • The committee annually reviews the control$6.4 and $4.4$5.3 billion respectively, recognized on the may be required to determine whether contracts to process and risks relating to the trading business. balance sheet for level 3 derivative financial buy or sell commodities meet the definition of a instruments at 31 December 2019,2020 mainly relating derivative, in particular longer-term LNG contracts. to the activities of the integrated supplytrading and trading function (IST). • BP’sshipping function. bp’s use of internal models to value certain of these contracts has been disclosed in Note 30. Provisions BP’s most significant provisions relate to • Received briefings on decommissioning, • Decommissioning provisions of $15.1 billion decommissioning, environmental remediation environmental, asbestos and litigation provisions, were recognized on the balance sheet at and litigation. including those related to the Gulf of Mexico oil 31 December 2019. spill. These included the requirements, • The discount rate used by BP to determine the The group holds provisions for the future governance and controls for the development balance sheet obligation at the end of 2019 was decommissioning of oil and natural gas production and approval of cost estimates and provisions a nominal rate of 2.5% – based on long-dated facilities and pipelines at the end of their economic in the financial statements. US government bonds – a reduction of 0.5% lives. Most of these decommissioning events are • Reviewed the group’s discount rates for from 2018. many years in the future and the exact requirements calculating provisions. • The impact of applying the revised rate has that will have to be met when a removal event occurs been disclosed. are uncertain. Assumptions are made by BP in relation to settlement dates, technology, legal requirements and discount rates. The timing and amounts of future cash flows are subject to significant uncertainty and estimation is required in determining the amounts of provisions to be recognized. Pensions and other post-retirement benefits Accounting for pensions and other post-retirement • Reviewed the group’s assumptions used to • The method for determining the group’s benefits involves making estimates when measuring determine the projected benefit obligation at assumptions remained largely unchanged from the group’s pension plan surpluses and deficits. the year end, including the discount rate, rate 2018. The values of these assumptions and a These estimates require assumptions to be made of inflation, salary growth and mortality levels. sensitivity analysis of the impact of possible about uncertain events, including discount rates, changes on the benefit expense and obligation inflation and life expectancy. are provided in Note 24. • At 31 December 2019, surpluses of $7.1 billion and deficits of $8.6 billion were recognized on the balance sheet in relation to pensions and other post-retirement benefits. BP

2020 Safety environment and security assurancesustainability committee (SESAC)The committee continued to work with the bp leadership team to promote safe and reliable operations. Melody Meyer Committee chair Committee overview Role of the committee The role of the SESACsafety and sustainability committee (SASC) (previously called the safety, environment and security assurance committee, until 31 December 2020) is to look at the processes adopted by BP’sbp’s executive management to identify and mitigate significant non-financial risk. This includes monitoring the management of personal and process safety risk, security and environment risks and receiving assurance that processes to identify and mitigate such non-financial risks are appropriate in their design and effective in their implementation. Key responsibilities during 2020 The committee receives specific reports from the business segments and functions, which include, but are not limited to, the safety and operational risk function, shipping, groupinternal audit and group security. The SESACSASC can access any other independent advice and counsel it requires on an unrestricted basis. “The committee has continued to The SESACSASC and audit committee worked together, focus on working with executive through their chairs and secretaries, to ensure that management to drive safe and agendas did not overlap or omit coverage of any key risks during the year. reliable operations.” Meetings and attendance Melody Meyer There were six committee meetings in 2019.2020. All Committee chair directors attended every meeting for which they were eligible. In addition to the committee members, all SESACSASC meetings were attended by the group chief executive,CEO, the executive vice presidentSVP for safety Chairman’s introduction and operational risk (S&OR)&OR) and the head of group At the end of 2019 I took the role of chair for the committee. AlanSVP internal audit and/or his delegate. The external auditor has access to the chair and secretary to the committee as Boeckmann retired from the board in April 2019 and Nils Andersen required. The group general counselEVP legal also attended replaced him as the committee chair. In November last year, Nils some of the meetings. At the conclusion of each announced his intention to step down from the board in March 2020 meeting the committee scheduled private sessions and I replaced Nils as SESAC chair with immediate effect. for the committee members only, without the presence of executive management, to discuss any During 2019 the committee has continued to focus on working with issues arising and the quality of the meeting. The executive management to drive safe and reliable operations. As part of group chief executiveCEO receives invitations to join the the committee’s review of the executives’ management of the highest private meetings on an ad hoc basis and at least once priority non-financial group risks assigned to SESAC we provide a year the head of groupSVP internal audit is invited to a private constructive challenge and oversight. The risks under our remit remained meeting with the committee. the same as for 2018: marine, wells, pipelines, explosion or release at Membership facilities, major security incidents and cyber security in the process control network. The committee receives reports on each of these risks Melody Meyer Member since May 2017 and and monitors their management and mitigation. chair since November 2019 Nils Andersen Member In 2019 the committee reviewed the BP Sustainability Report 2018. It (resigned March 2020) also reviewed work practices in BP in relation to and following publication Alan Boeckmann Member of the company’s Modern Slavery Act (MSA) statement in 2019. The (retired April 2019) committee will continue to review progress in developing and embedding Admiral Frank Member practices to mitigate the risk of modern slavery and related human rights. Bowman (retired May 2019) Professor Dame Member In March, members of the committee visited the shipping function as one Ann Dowling of the new LNG vessels went into service from the building yard inMember Sir John Sawers Member Busan, South Korea. This affordedChair’s introduction I am pleased to present my second report as chair of the SASC. During 2020, the committee timecontinued to work with the crew on boardbp leadership team to promote safe and reliable operations within the vessel, employees inorganization. Operational risk management remained a key area of focus during 2020, against the office and with contractors inchallenging backdrop of the shipyard. See page 89 for more details. The level of access into the operations on such visits gives the directors first-hand, direct insight. This framework provides an opportunity for meaningful and open dialogueCOVID-19 pandemic with the local site teams, allowingresult that bp maintained a good safety record during the year despite these challenges. The committee (together with other non-executive directors) conducted a virtual visit of bpx energy Permian assets in December 2020. We were very impressed with the safety culture and performance demonstrated by the bpx energy colleagues with whom we interacted during this virtual visit, and we look forward to being able to conduct a physical visit in due course. As part of the review by the board of its governance framework, the committee was renamed as the safety and sustainability committee with effect from 1 January 2021. The committee’s remit has also been expanded to better fulfil its obligations.include monitoring the effectiveness of the implementation of bp’s sustainability frame. This is an important step in light of bp’s new purpose and ambition and I look forward to continuing to work with the bp leadership team in furtherance of the new purpose, underpinned by safety and sustainability. Nils Andersen stepped down from the committee and the board in March 2020. I would like to thank him for his valuable contribution and commitment to the committee and I welcome Johannes Teyssen as a new member of the committee from the beginning of 2021. Melody Meyer Committee chair 96 BPCorporate governance continued

Corporate governance2020 Activities during the year The board also undertook a site visit. This was not a SESAC site visit but, nevertheless, safety and non-financial risk matters were covered System of internal control and risk management during the visit to Clair Ridge in May 2019. Corporate reporting The review of operational risk and performance forms a large part of the committee��committee’s agenda. GroupInternal audit provided quarterly reports on its The committee oversaw the BP Sustainability Report 2018. The assurance work and its annual review of the system of internal control committee reviewed the content and worked with the external auditor and risk management. with respect to its assurance of the report. The committee also received regular reports from the group chief executiveCEO and vice president forSVP S&OR&OR on operational risk, including regular reports prepared on the group’sgroup’s health, safety, security and environmental performance and operational integrity. These included meeting-by-meeting measures of personal and process safety, environmental and regulatory compliance, security and cyber risk analysis, as well as quarterly reports from groupinternal audit. In addition, the group auditorSVP, internal audit regularly met in private with the chairmanchair and other members of the committee over the course of the year. During the year the committee received separate reports on the company’sbp’s management of risks relating to: • Marine. • Wells. • Pipelines. •Marine Wells Pipelines Explosion or release at our facilities. •facilities Major security incidents. •incidents Cyber security (process control networks). The committee reviewed these risks and their management and mitigation in depth with relevant executive management. The committee reviewed the 20192020 forward programme for the groupinternal audit function. Site visitsThe committee supported the remuneration committee in relation to remuneration policy. Virtual site visit In MarchDecember 2020 the members of the committee (together with the non-executive directors of the board) made a physicalvirtual visit to the shipping functionbpx energy Permian site. Discussions during this visit covered a broad range of bpx energy health, safety and environment matters and provided an opportunity for the first time. While the committee has regular access to senior leaders in the function, attempting to visit the vessels needed careful planning. With the launch of six new LNG vessels between October 2018 and April 2019, the committee took the opportunity to visit, and arrived as the fifth LNG vessel was in its period of ‘shakedown’ – a period post-launch and pre-service, when checks are made onboard the ship. The visit, hosted by the chief operating officer of shipping, was made to The British Mentor while it was at sea, just off the coast of South Korea. Committee members went on board and were met by the ship’s crew, undertook a thorough tour, and later meteffective virtual engagement with various seafarers, without the captain present, to get a sense of the culture on board.bpx energy staff. Corporate reporting The committee also spent time atoversaw the office and held an informal town hall and lunch to hear from employees. The following day the committee was also able to visit the shipyard which had built the LNG vessels, and meet with management.bp Sustainability Report 2019. The committee members were able to take a tour of a LNG vessel inreviewed the building phasecontent and see the technology used in the construction of the vessel at various stages of completion. The committee spent timeworked with the shipyard owners, important stakeholders in the programmeexternal auditor with respect to its limited assurance of delivery. In respect of the visit, committee members and other directors received briefings on operations, the status of conformance with BP’s operating management system, key business and operational risks and risk management and mitigation. Committee members reported back in detail about the visit to the committee and subsequently to the board. See page 89 for further details. BPselected sustainability KPIs.

2020 Geopolitical committee The committee’s agenda developed and evolved during the year, reflecting a year with a significant number of geopolitical developments globally. Sir John Sawers Committee chair Chair’s introduction I am pleased to report on the work of the geopolitical committee in 2020. The committee’s agenda developed and evolved during the year, reflecting a year with a significant number of geopolitical developments globally. Following changes to the board governance framework that took effect on 1 January 2021, the committee was replaced by a geopolitical advisory council. Although the council is not a formal committee of the board, its membership includes other directors, certain members of the bp leadership team and three external advisors, with myself as chair. The geopolitical highest priority risk is now overseen by the board as a whole, informed by feedback from the council. Sir John Sawers Committee chair Activities during the year Early in the year, the committee considered the potential impact on bp of policies and plans of the new EU Commission and new UK government elected in December 2019. Later in the year, the committee considered the geopolitics of the COVID-19 pandemic and its impact on businesses and policies. The impacts of different potential outcomes of the November US election were discussed by the committee at its meeting in September 2020. The committee also received periodic geopolitical updates on a number of territories in which bp has significant interests throughout the year. Committee overview Role of the committee The committee monitors the company’scompany’s identification and management of geopolitical risk. Key responsibilities • Monitor the company’scompany’s identification and management of major and correlated geopolitical risk and consider reputational as well as financial consequences. • Review BP’sbp’s activities in the context of political and economic developments on a regional basis and advise the board on these elements in its consideration of BP’sbp’s strategy and the annual plan. • Major geopolitical risks are those brought about by social, economic or political events that occur in countries where BPbp has material investments. • Correlated geopolitical risks are those brought about by social, economic or political events that occur in “The committee continued to address countries where BPbp may or may not have a presence but that can lead to global political key geopolitical matters and their instability. potential impact on BP.” Membership Sir John Sawers Sir John Sawers Member since September 2015 Committee chair and chair since April 2016 Nils Andersen Member (resigned March 2020) Admiral Frank Member Bowman (resigned May 2019) Sir Ian Davis Member Melody Meyer Member Meetings and attendance Chairman’s introduction The chairman and group chief executiveCEO regularly attend committee meetings. The chief executive of The work of the geopolitical committee in 2019 continued to address key Alternative Energy and executive vice president, geopolitical matters and their potential impact on BP and how these regions and the head of government and political evolved during the year. As chair of this committee I also attended all of affairs attend meetings as required. The committee the international advisory board (IAB) meetings in 2019. Now that the IAB met fourthree times during the year. All directors attended has been disbanded, this committee will look to take some of the IAB’s each meeting that they were eligible to attend, with the exception of Nils AndersenSir Ian Davis who missed one remit and we will report next year on how that evolves. In May 2019, meeting due to a prior commitment. Admiral Frank Bowman stood down from the committee. Nils Andersen left the committee upon his resignation from the board in March 2020. I would like to thank Frank and Nils, both of whose contributions were much valued. Other board members joined our meetings from time to time.Membership Sir John Sawers CommitteeMember since September 2015 and chair Activities during the year The committee discussed BP’s involvement in the key countries where it has existing investments or is considering investment. These included the EU, Mexico, Brazil, Algeria, Libya, Egypt, Iraq, Oman and The Gambia. The committee also discussed the potential impact of Brexit on BP, and the negotiations between the UK and the EU on their future relationship. It reviewed the geopolitical background to BP’s global investments, the global politics of climate change, the geopolitics of gas, Russian energy exports, OPEC, the USA-China trade war, and developments in the Persian Gulf. 98 BPsince April 2016 Nils Andersen Member (resigned March 2020) Sir Ian Davis Member (resigned December 2020) Melody Meyer Member Corporate governance continued

Corporate governance Chairman’s2020 Directors’ remuneration report Chair’s letter The committee Rolewishes to place on record our gratitude for all that bp’s people achieved last year, and our acknowledgment of the committee To provide a forum for matterschallenging environment they faced. We look forward to be discussed by the non-executive directors. Key responsibilities • Evaluate thebetter days ahead. Paula Rosput Reynolds Committee chair Contents Alignment with strategy 108 2020 performance and pay summary 110 2018-20 performance share plan outcome 111 Executive directors’ pay for 2020 113 Wider workforce in 2020 115 Stewardship and executive director interests 118 Non-executive director outcomes and interests 121 Other disclosures 123 Policy implementation for 2021 124 Dear shareholder, Last year was enormously challenging – for the effectivenessworld and for bp. Yet the bp team operated safely and reliably, ran the business as well as could possibly be expected, and launched a strategic transformation of the chief executive officer. • Reviewcompany. That bp achieved so much last year is a credit to everyone in the structurecompany – from the leadership to the front lines. Together, they delivered the energy the world needs, and effectivenesspositioned the company for the future. Nevertheless, as COVID-19 took its toll around the globe, there were consequences for bp’s financial outcomes in 2020. The remuneration committee always seeks to align employee reward with shareholder experience. Thus, despite extraordinary efforts on the part of the business organization. • Revieworganization, we decided that there should be no 2020 pay-out for all those who normally participate in our broadly-applicable annual bonus plan. We know that this decision was painful for bp’s people, many of whom count on earning a cash bonus as part of their personal and family financial planning. While words cannot substitute for remuneration not received, the systemscommittee wishes to place on record our gratitude for senior executive developmentall that bp people achieved amidst the environment they faced. We look forward to better days ahead. Shareholder engagement Throughout this challenging period when we had many decisions to make regarding metrics and determine succession plans forreward, the chief executive officer, executive directorscommittee has benefited from engagement with our shareholders. The remuneration policy under which we now operate was directly shaped by a meeting we held with bp’s top 25 shareholders and other senior members of executive management. • Determine any other matter that is appropriate to be considered by non-executive directors. • Opine on any matter referred to it by the chairman of any committees comprised solely of non- executive directors. “The committee spent significant time Membership discussing the development and The committee is made up solely of non-executive progression of BP’s purpose, directors, each of whom is appointed to the committee upon their appointment to the board. expanding upon what the purpose Meetings and attendance actually means for the company and The committee met seven timesproxy representatives in 2019. Nils how it impacts BP’s stakeholders.” Andersen, Pamela Daley and Professor Dame Ann Dowling each missed one meeting during the year, all Helge Lund other directors attended every meeting for which they Committee chair were eligible. Chairman’s introduction The chairman’s committee worked closely with the nomination and governance committee on the selection processWe appreciated shareholders’ overwhelming support (96.58% approval) of the new group CEOpolicy at our AGM last May. Throughout 2020, we have continued to meet (virtually) with our largest shareholders to discuss a range of performance and CFO, receiving regular updatesincentive topics in detail. We are grateful for your counsel and providing feedback onhope you will see your advice reflected in the succession planning. The committee also spent significant time discussing the development and progressiondecisions which we have reached. We ask for your support of BP’s purpose, expanding upon what the purpose actually means for the company and how it impacts BP’s stakeholders. We discussed the updated UK Corporate Governance Code 2018this directors’ remuneration report, and the implications fordecisions described herein, at the business. In May 2019, Alan Boeckmann and Frank Bowman stood down from the board and the chairman’s committee. I would like to pay tribute to their exceptional service and thank them for their dedication to the committee and BP as a whole. Helge Lund Committee chair Activities during the year • Evaluated the performance of the group chief executive. • Reviewed the composition of and the succession plans for the executive team. • Discussed the company’s purpose and what it meant for the business. • Considered updates to the UK Corporate Governance Code 2018. BPforthcoming annual general meeting.

Directors’2020 Directors’ remuneration report Contents 2019continued In this report, the committee continues its practice of scrutinizing both one- and three-year performance. Even in the absence of paying annual bonuses for 2020, we have included some discussion on results to give a balanced view of what worked well and what disappointed. This report covers our decisions for 2020 and the details regarding our implementation of the 2020 remuneration policy for 2021 and beyond. The highlights are provided immediately below. Key remuneration outcomes for 2020 No pay-out under our 2020 annual bonus plan. There was no pay-out under the annual bonus plan for any of the participating employees Lower vesting for the 2018-2020 equity plan. The vesting outcome for our 2018-20 performance shares cycle is 32.5% of maximum, down from 71.2% in the previous cycle, and from an average of over 66% over the last six cycles. It is worth noting that the committee made no alterations to the performance measures or targets on which these awards were based, nor any discretionary adjustment to the vesting outcome. This vesting outcome applies equally to our former executive directors, and to our new CEO and CFO in respect to their pre- appointment performance share awards. Key remuneration decisions for 2021 and beyond To recognize the efforts of the wider workforce, virtually all employees will receive an above-market pay increase in 2021. Large numbers of our employees received no pay adjustment in 2020 or had their increase deferred for six months. Given the large reduction in headcount and all the responsibility this action places on those who remain, we agreed with management’s plan to increase salaries across-the-board, and ahead of market. Any time salaries rise, the cost of other remuneration that hinges off salary rises as well. At the same time, we are obligated to monitor disparate impacts and overall welfare of the workforce. We will, therefore, continue to monitor and balance the costs of the programme with wider workforce pay issues. We considered the approach to salary for our executive directors apart from the wider workforce. We embrace restraint as a guiding principle, but restraint must be balanced with fair reward for contribution. The board has been gratified by the immediacy of Bernard Looney’s impact in leading the organisation, and in refreshing bp’s purpose, strategy and organisation. We propose to recognize his efforts with an increase of 2.75% salary with effect from the annual general meeting. This increase is significantly lower than the increase that our UK professional workforce will receive on their pay review date in 2021. Murray Auchincloss has likewise made an immediate impact since his appointment. He fully assumed the challenges of the CFO role and has forged a strong partnership alongside Bernard. We set his initial salary in 2020 at a level below comparable rates for finance directors in the FTSE 30, until we could be certain of the contribution he would bring to the role. Shareholders will recall our policy is to keep executive increases within the boundary of wider workforce increases, except in specific circumstances. We find that Murray is already contributing beyond our expectations of even a seasoned CFO. Given his criticality to the execution of our strategy, we conclude that adjusting his below-market salary is such a specific circumstance. We therefore intend to increase his salary by 8% to £750,500, following the annual general meeting, placing him in line with the median rate for FTSE 30 CFOs. It is our intention, subject to the committee’s view of Murray’s continued development and success in role, to bring his salary in line with that of his predecessor and other CFOs in similarly challenging roles. We anticipate that this may require increases somewhat above the wider workforce average in the future. In 2021 we have made an all-employee share award to allow employees to participate in the success that a reinvented bp can deliver. The majority of employees will receive restricted shares vesting in 2025, while more senior employees will receive share options to be exercised from 2025 onward and with a ten-year term. We are bringing our metrics and targets for both the 2021 annual bonus and the 2021-23 performance share into line with bp’s new strategy and the refreshed commitments to financial performance. The changes are described in detail in this report and we hope you will see how closely we have sought to align these targets to the commitments that management have articulated to investors. The 2021-23 awards will be in line with approved policy and the grant size is unchanged from prior years. All share awards will be granted after the annual meeting and pricing will be based on the preceding 90 days. Overview of financial performance, operating achievements, and strategic progress Our 2020 annual bonus plan consisted of measures associated with financial performance and pay outcomes 104 2019 annualoperations. Our long-term share plan consisted of financial measures and strategic progress. Each area of performance is summarized below to provide a sense of how we evaluated overall performance. Financial performance for bonus outcome purposes was measured in terms of underlying replacement cost profit and free cash flow. For performance shares, we measured return on average capital employed (ROACE) and relative total shareholder return (rTSR). In neither the short nor the long-term plan did actual financial performance meet targets. Over the three-year performance period, however, bp ranked third out of the five super- majors for rTSR purposes which accounted for a modest 12.5% vesting of the 2018-20 performance share grant. To offer some perspective, we note that during 2020 the company reduced net debt by $6.5 billion to $39 billion. In announcing the sale of a share of bp’s interest in Oman’s Block 61, we continue making good progress towards the 2025 target of $25 billion of proceeds from divestments. Importantly, too, management initiated the review of bp’s portfolio of assets in 2020 and recommended significant impairments and exploration write- offs. Thus, management took the necessary steps to address the value of our assets given the energy transition, in full knowledge that they would forego near-term benefit because of these actions. We think this reflects well on the system of reward – not paying when performance is below expectations – but also on the integrity of the leadership which is nonetheless doing the right thing to create a sustainable future.

Corporate governance10%). These changes Remuneration committee Role of the committee • Approve the principles of any equity plan that Meetings and attendance The role of the committee is to determine and requires shareholder approval. The chairman and the group chief executive attend recommend to the board the remuneration policy for • Ensure termination terms and payments to meetings of the committee except for matters the chairmanset chair, executive director and executive directors.leadership team remuneration. It reviews workforce remuneration and monitors related policies, satisfying itself that incentives and rewards are aligned with bp’s culture. In determining executive directors and the executive team are fair. relating to their own remuneration. The group chief the policy, the committee takes into account various • Receive and consider regular updates on executive is consulted on the remuneration of the factors, including structuringworkforce remuneration, and structures the policy to promote workforce views and engagement initiatives chief financial officer, the executive team and more the long-term success of the company and linking related to remuneration, insight from data sources broadly on remuneration across the wider employee reward to business performance. The committee on pay ratio, gender pay gap and other workforce population. Both the group chief executive and chief recognizes the remuneration principles applicable remuneration outcomes as appropriate. financial officer are consulted on matters relating to to all employees below board level. • Maintain appropriate dialogue with shareholders the group’s performance. on remuneration matters. Key responsibilities The group human resources director attends • Recommend to the board the remuneration Membership meetings and other executives may attend where principles and policypolicies for the chairman and the necessary. The committee consults other board Paula Rosput Member since September 2017 executive directors while considering policies committees on the group’s performanceremuneration and on Reynolds and chair since May 2018related policies for employees below the board and the issues relating to the exercise of judgement or executive team. Nils Andersen Member (resigned March 2020) discretion as necessary. • DetermineSet and approve the terms of engagement, Pamela Daley Member The committee met nine times during the year. remuneration, benefits and termination of Sir Ian Davis Member All directors attended each meeting that they were employment for the chairman and the executive Melody Meyer Member eligible to attend, except Nils Andersen who was directors, executiveleadership team and the company Brendan Nelson Member not able to attend two meetings. Pamela Daley and secretary in accordance with the policy. Sir Ian Davis each missed one committee meeting. • Prepare the annual remuneration report to shareholders to show how the policy has been implemented. We understandApprove the principles of any equity plan that requires shareholder approval. Ensure termination terms and payments to executive directors and leadership team are fair. Receive and consider regular updates on workforce views and engagement initiatives related to remuneration, insight from data sources on pay ratio, gender pay gap and other workforce remuneration outcomes as appropriate. Maintain appropriate dialogue with shareholders on remuneration matters. Membership Paula Rosput Reynolds Member since September 2017 and chair since May 2018 Nils Andersen Member (resigned March 2020) Pamela Daley Member Sir Ian Davis Member (resigned 30 December 2020) Melody Meyer Member since March 2020 Brendan Nelson Member Meetings and attendance The chairman and the CEO attend meetings of the committee except for matters relating to their own remuneration. The CEO is consulted on the remuneration of the CFO, the leadership team and more broadly on remuneration across the wider employee population. Both the CEO and CFO are consulted on matters relating to the group’s performance. bp’s EVP people and culture, SVP reward and wellbeing and advisors attend meetings and other executives may attend where necessary. The committee consults other board committees on the group’s performance and on issues relating to the exercise of judgement or discretion as necessary. The committee met nine times during the year. All directors attended each meeting that they were eligible to attend, except Sir Ian Davis who was not able to attend two meetings, and Pamela Daley and Brendan Nelson who each missed one committee meeting. represent the committee’s best judgment for fine-tuning measures to the new strategy. While we are adding two new measures, we will continue to measure annual performance of our operations, of cash generation, of sustainable emissions reductions and of safety. For the 2021-23 performance share awards, we will introduce an earnings per share growth (EBIDA CAGR) measure alongside the existing ROACE measure (each weighted at 20%), and will reduce the weighting on rTSR (from 40% to 20%). Many of you will recall that the relevance of rTSR and the selection of an appropriate peer group were widely, but inconclusively discussed, during our September 2019 stakeholder engagement session. Against that backdrop, our judgment is that if the bp team can achieve the multi-year financial results to which it committed in July 2020, then the team should be rewarded, with only a modest calibration to what other energy companies accomplish over these three years.

Directors’ remuneration report With all of thisForm 20-F 2020 Aligning performance measures and strategy 2020 annual bonus 2021 annual bonus 2020-22 performance shares 2021-23 performance shares Safety, our core value 20% 15% Underpin Underpin Low carbon – – Convenience and mobility – 10% Resilient hydrocarbons 10% 10% Integrating energy – – – – Partnering – – – – Digital – – – Sustainability 20% 15% – – Financial frame 25% cash flow 25% profit 25% cash flow 25% cumulative cash cost reduction 40% rTSR 30% ROACE 20% rTSR 20% ROACE 20% EBIDA CAGR Looking forward, strategic progress for the 2020-22 and 2021-23 performance shares will be a largely qualitative assessment by the committee, supported by key performance indicators that will enable us to add a quantitative overlay in mind, we have established a policy proposal which As UK remuneration committees now have the regulatory obligation to we believe reflects our strategic imperatives and allows for competitive review remuneration of the wider workforce, our committee has sought remuneration outcomes aligned to the shareholder experience. The to understand how pay practices vary across the globeassessments and to examine proposal makes modest but appropriate adjustmentsallow reporting on progress through the concurrent cycles of each award. These indicators are as follows: Resilient and focused hydrocarbons Production costs per barrel: track improvement in unit production cost per barrel to our 2017 issueshelp deliver margin efficiency. Plant reliability: measure the reliability of fundamental fairness. We examinedupstream production assets as an indicator of operational efficiency. Refining availability: measure the availability of downstream refining assets, also as an indicator of operational efficiency. Demonstrate track record, scale and value in low carbon electricity and energy Gigawatts of developed renewables energy: confirm the growth and value added from new renewable energy projects. Clear decisions on other energy platforms: demonstrate strategic progress in the selection of energy platforms for future growth. Renewables pipeline: build a renewable pipeline in alignment with 2025 and 2030 goals while consistent with targeted returns. Accelerate growth in convenience and mobility Castrol performance: demonstrate growth momentum in Castrol. Strategic convenience sites: confirm the number of strategic convenience sites. Margin share from convenience and electrification: demonstrate the capture of growth from the energy transition through the retail network via measuring the ratio of convenience and electrification gross margin to total consumer energy (retail fuels and electrification) and convenience gross margin. 30%{ 40%{

Corporate governance Remuneration at a glance Purpose and Outcomes for 2019 Implementation in 2020 (2020 policy Key features linkpayments $6.4bn Total dividends paid to strategy (2017 policy) proposal unless stated otherwise) Salary and • Salary is reviewed annually • Fixed remuneration • Bob Dudley’s salary • Bob Dudley’s salary to remain at benefits and, if appropriate, increased reflecting the scale and unchanged at $1,854,000. $1,854,000 until he ceases employment following the AGM. complexity of our • Brian Gilvary’s salary on 31 March. • Benchmarked to market at business, enabling us to increased by 2% to • Bernard Looney’s salary is set at inception with increases attract and keep the £790,500. £1,300,000. reflective of those of our highest calibre global • Benefits remain • Brian Gilvary’s salary to remain at wider workforce. talent. unchanged. £790,500 until he ceases employment. • Murray Auchincloss’s salary to be set at £695,000. • Bernard’s benefits remain unchanged. Murray will be eligible for standard UK benefits from his appointment on 1 July. Retirement • Bob is a member of both US • To recognize competitive • Bob’s defined benefit • Arrangements for Bob will continue benefits pension (defined benefit) and practice in home country. pension did not increase in unchanged until he ceases employment on retirement savings (defined 2019. His actual and 31 March. contribution) plans. notional company • Bernard’s cash allowance reduces to 15% • Brian is a member of a UK contributions, together of salary from the date of his appointment. final salary defined benefit with investment returns Accrued service for his deferred pension is pension plan and receives a within his retirement already capped, and the pension cash allowance in lieu of savings plans, amounted calculation will be based on his pre- further service accrual. to $543,661. appointment salary. • Brian’s accrued defined • Brian’s cash allowance is subject to a benefit pension increase previously agreed schedule of reductions was below inflation. He and will terminate when he ceases received a cash allowance employment on 30 June. at 35% of salary to 31 • Murray’s cash allowance will be set at 15% May, and at 30% of salary of salary from his appointment on 1 July. from 1 June 2019, which is He retains a deferred pension arrangement included in the single from his US service, which will be based figure table. on his pre-appointment salary. Annual • 112.5% of salary at target, • To incentivize delivery • Against our scorecard of • Bob has waived any entitlement to an bonus and 225% at maximum. of our annual and safety (20%), environment annual bonus for 2020. • 50% of the bonus is paid in strategic goals. (10%), reliable operations • Brian will qualify for a pro-rated bonus for cash and 50% is mandatorily • The 50% deferral (20%) and financial his service in 2020. deferred and held in BP reinforces the long-term performance (50%), our • Proposed scorecard with four measures shares for three years. nature of our business performance score is across safety (20%), environment (20%), • To continue under 2020 and the importance of 135% of target (67.5% of operational (10%) and financial (50%) policy. sustainability. maximum). performance. Performance • Annual grant of performance • To link the largest part of • Against our balanced • Awards granted in 2018, under our 2017 shares shares, representing the remuneration opportunity scorecard of financial policy, at 500% (Bob Dudley) and 450% maximum outcome. 500% with the long-term measures (80%), and (Brian Gilvary) of salary will vest in of salary for group chief performance of the strategic progress (20%), proportion to success against the executive and 450% of salary business. Theshareholders 32.5% Formulaic outcome our 2017-19 performance measures of our 2018-20 scorecard, on a for chief financial officer. varies with performance score is 71.2% of pro-rata basis for time in service. • Shares only vest to the against measures linked maximum. • For our 2020-23 cycle, grant levels will extent performance directly to financial remain unchanged for our incoming chief conditions are met. returns and strategic executive and chief financial officer at • To continue under 2020 priorities. 500% and 450% of salary respectively, policy. with weightings of 40% for relative total shareholder return (rTSR), 30% for return on average capital employed (ROACE) and 30% for energy transition measures. Shareholding • Executive directors are • To ensure sustained • Both Bob Dudley and Brian • From 2020, executive directors are requirement required to maintain a alignment between the Gilvary materially exceed required to maintain their full minimum shareholding equivalent to at interests of executive the share ownership shareholding requirement for two years least five times their salary. directors and our requirements. post employment. • Additionally, they have been shareholders. • The minimum shareholding requirement expected to maintain remains five times salary for the group shareholdings of at least two chief executive and is four and a half times and a half times salary for two salary for other executive directors. years post employment. BP Annual Report and Form-20F 2019 103

Directors’ remuneration report 2019 performance and pay outcomes Business A strong year of operational performance, set against challenging external conditions. Improvement across safety metrics, and significant growth in our retail business. Strong underlying profits for 2019, with a 29% return to performance shareholders over the three-year cycle. Key strategic highlights • $10 billion underlying replacement cost profit 2nd (29%) $28.2bn $8.3bn • Dividend increased to 10.5 cents per share Among peers for Operating Dividends paid, • Expansion of our convenience partnership sites total shareholder cash flow including scrip to around 1,600 globally return 2017-19 (excluding Gulf of • Created BP Bunge Bioenergia, a world-class Mexico oil spill bioenergy company payments) Performance Strong results for the year, beating targets on five out of six measurement categories in our scorecards. outcomes 2019 Annual bonus 2017-19 Performance shares 71.5% -4.0% 67.5% 71.2% 0% 71.2% Formulaic Committee Final outcome Formulaic Committee Final outcome outcome judgement, (% of maximum) 0% Committee judgement, no adjustment 32.5% Final outcome judgement, (% of maximum) No bonus Formulaic outcome (% of maximum) discretionaryn/a Committee judgement n/a Final outcome (% of maximum) no adjustment reductionPerformance dimensions (% weighting) Annual bonus outcome (% of maximum) Bernard Looney Nil Murray Auchincloss Nil Bob Dudley Nil Brian Gilvary Nil Performance dimensions (% weighting) Performance dimensions (% weighting) Safety (20%) KPI 15.5/20 Financial (80%) KPI 57/80 Environment (10%) KPI 7/10 Strategic progress (20%) KPI 14/20 Reliability (20%) KPI 8.5/20 Financial (50%) KPI 40/50a Annual bonusshares outcome (67.5%(32.5% of maximum) Performance shares outcome (71.2% of maximum)Bernard Looney £0.35m Murray Auchincloss £0.22m Bob Dudley $2,815,763 Bob Dudley $7,936,660$1.57m Brian Gilvary £1,200,572 Brian Gilvary £2,752,815 KPI This legend denotes remuneration measures that directly relate£0.62m Key strategic highlights Completed the Southern Gas Corridor pipeline system, with the Trans Adriatic pipeline beginning gas deliveries. Agreed to BP’s key performance indicators. See page 32. Bob Dudley 18.7% fixed Brian Gilvary 16.7% fixed Total Group chief executive 81.3% variable Chief financial officer 83.3% variable remuneration Salarysell our petrochemicals business to INEOS. Added ~300 strategic convenience sites across our retail network, bringing the total to 1,900. An exceptional year of challenge and benefits, (14.6)% Salaryinternal reinvention Robust safety and benefits, (12.9)% 2019 Retirement benefits, (4.1)% Retirement benefits, (3.8)% Annual bonus, (21.3)% Annual bonus, (18.3)% Performance shares, (60.0)% $13.23m Performance shares, (42.0)% £6.56m 2018: $15.25m Discontinued plans, (23.0)% 2018: £8.22m Shareoperating outcomes, but plan unaffordable. Strong strategic progress, weak financials. Shareholding is a key means by which the interests of executive directors are aligned with those of shareholders. AsThe CEO and CFO shareholdings are shown below, as at 32 March 2021. Both these new executive directors are building towards the policy requirement, which is mandatory within five years of appointment. 2018-20 performance shares No bonus for 2020 both directors had holdings in BP which significantly exceeded our shareholding policy ownership requirement of five times salary. Bob Dudley, Group chief executive 15.18 times salary, 5,290,446 sharesb. Brian Gilvary, Chief financial officer 16.20 times salary, 3,086,437 shares. Policy requirements (5x) Actual a DueSafety (20%) Environment (20%) Operational (10%) Financial (50%) Financial (80%) Strategic progress (20%) KPI KPI KPI This legend denotes remuneration measures that directly relate to rounding, these figures do not precisely equal the overall outcome, 71.5% b Held as American depository shares (ADSs) 104 BPbp’s key performance indicators. See page 39. 2020 annual bonus 20/20 12.5/80 Directors’ remuneration report continued

Corporate governance 2019 annual bonusForm 20-F 2020 2018-20 performance share plan outcome For 2019Vesting under our performance share plans is assessed using the committee established a bonusgroup performance scorecard of eight As noteworthy asshown on page 112, and subject to any discretionary adjustment by the committee. Bernard and Murray were granted 2018-20 performance share awards under the Group Share Value Plan (GSVP) for bp group leaders, rather than under the Executive Director Incentive Plan (EDIP). The GSVP and EDIP both use the same scorecard, therefore the comments in this result is, we still regard any accident as one too measures across four areas of focus: safety and operational risk, the many, and it is a matter of great regret that two of our colleagues suffered environment, reliable operations and financial performance. These fatal injuries in 2019. To underscore our determination to eliminate these measures align with our strategy and investor proposition and, in tragic incidents, we reflect any fatality in the performance assessment of particular, reflect the annual plan. Seven of the eight measures align the relevant business, thereby causing a material reduction in bonus for with our 2018 scorecard. The eighth measure, sustainable emissions every individual in that business. In reaching our final conclusion, we rely reduction, was new and marked an acceleration of our intent to gear on the judgement of the safety, environment and security assurance elements of financial rewardsection apply equally to our progress in navigatingformer and new executive directors, as well as our group leaders, even though they relate to performance shares awarded under different plans. The financial outcomes for the low committee (SESAC)three-year period were disappointing. Return on the evaluationaverage capital employed averaged 2.6% over 2019 and 2020 (the ROACE measurement period for this cycle), below our threshold level for vesting on this measure. Total shareholder returns turned negative for bp, alongside all our constituent peer companies. bp placed third among our competitor group, however, which yielded formulaic vesting of safety outcomes. carbon transition. Similarly, we sought the input of the audit committee to ensure our In order to build on the strong results of 2018, the committee again set conclusions are robust and properly reflect underlying financial notably stretching targets for each measure. For instance, our 2019 performance relative to markets. This included12.5% (of a review of the threshold outcome for recordable injury frequency was set at the level of adjustments we make in our financial targets to reflect any pricing our 2018 outcome, meaning we had to exceed that 2018 result to achieve impacts, and thereby avoid windfall outcomes in our financial measures. even a minimum contribution to the 2019 bonus. Overall, our focus on For 2019, this led to a proportional reduction in our profit and cash flow safety delivered a year with both the fewest process safety incidents on targets, reflecting the weaker oil price environment. Over the eight years record (excludingpotential 50%). To counter the impact of recent Mexico retailshare price volatility in TSR measures, bp has continued its standard practice of averaging US market prices over the fourth quarter immediately before, and BHP onshore to 2019, we have increased targets four times, and reduced them four aquisitions), andat the lowest recordable injury frequency on record. times, consistently stripping out the impactend of, the price environment. 2019 annual bonus scorecard Thesethree-year performance cycle. Peers in our competitor group may use different pricing methods, leading them to report different ranking outcomes from bp. As reported last year, we introduced four strategic progress measures were set under the terms ofin our 2017 policy, KPI See key performance indicatorsand this is now the second cycle for which we have made an assessment on page 32. Safety Environment Reliable Financial Formulaic 0.31 + 0.14 + operations + performance = score 1.43a 0.17 0.80 out of 2.0 Measures Weighting Threshold (0) Target (1) Maximum (2) Outcome Safety Process safety tier 1 KPI 10% 80 events 72 events 56 events 70 eventsstrategic progress. These were the measures that then positioned bp for the future, and tier 2 eventsb 0 0.1 0.2 0.11 (20% weight) Recordable injury KPI 10% 0.198/200k hrs 0.188/200k hrs 0.168/200k hrs 0.159/200k hrs frequency 0 0.1 0.2 0.20 Outcome 0.31 Environment Sustainable emissions KPI 10% 0.49 mte 1.0 mte 2.0 mte 1.4 mte reductions 0 0.1 0.2 0.14 (10% weight) Reliable BP-operated refining KPI 10% 94.5% 95.0% 95.5% 94.9% availabilityc 0 0.1 0.2 0.08 operations (20% weight) BP-operated upstream KPI 10% 92.6% 94.6% 96.6% 94.4% plant reliability 0 0.1 0.2 0.09 Outcome 0.17 Financial Operating cash flow KPI 20% $24.0 bn $26.5 bn $29.0 bn $28.2 bn (excluding Gulf of Mexico 0 0.2 0.4 0.33 performance oil spill payments) (50% weight) Underlying replacement KPI 20% $8.1 bn $8.9 bn $9.7 bn $10.0 bn cost profit 0 0.2 0.4 0.40 Upstream unit KPI 10% $7.12/bbl $6.72/bbl $6.32/bbl $6.84/bbl production costs 0 0.1 0.2 0.07 Outcome 0.80 Formulaic score 1.4 3 a out of 2.0 Formulaic Input audit Remuneration Final 67.5% scorecardthe committee committee scorecard of outcome and SESAC judgement outcome maximum 1.43 out of 2 No adjustment Minus 0.08 1.35 out of 2 a Due to rounding,found that in all four strategic areas the total does not equal the sumbusiness has delivered fully against intended outcomes. Thus vesting on this element of the parts. b Measure excludes datascorecard is determined to be 20%. The key factors that formed our scoring decision were: Growing gas and advantaged oil in the upstream. Gas production grew from Mexico retail1.11mmboed in 2017 to 1.15mmboed by 2020, with eight major gas projects started up in the period. In the same period bp started up seven major oil projects and have a further eight major oil projects under construction. We purchased BHP tight oil assets, accessing some of the best basins onshore operations for two years fromin the date of their acquisition by BP. c Solomon Associates’ operational availability. BP Annual Report and Form-20F 2019 105

Directors’ remuneration report While we continue to believe these adjustments are appropriate,US. Market-led growth in the downstream. BPWe have continued strategic progress with our convenience partnership model now in around 1,900 sites across the network, with 800 opened since 2017. The growth has materially entered they potentially create some tension betweenbeen driven by the relative basisroll-out of REWE to Go in Germany, our theThorntons business in North America, and new partnerships launched in South Africa, Australia, New Zealand and Portugal. Retail store gross margin has grown 6% per annum since 2017 to over $1bn and is showing resilience despite COVID-19. In growth markets, we doubled our retail marketssites to 2,700 in 2020, expanded our network to over 500 bp-branded retail sites« in Mexico, and Indonesiaopened over 1,400 sites in India with our Reliance joint venture. In our sustainable aviation fuel business, we added 13 new locations to Air bp’s supply network and expanded our overall financial measurement, and shareholders’ experiencehave struck an innovative collaboration with Neste for supply of cash flow and retail network with 850 sites openedsustainable aviation fuel. We have made a further $40 million investment in Fulcrum since 2016. Marketing of premium profit. With this context, we decided to reduce the formulaic bonus fuels has seen compound growth of 7% per annum in these higher scorecard outcome to reflect our judgement that strong cash receipts value sales. at year end would potentially impact receipts in 2020.2017. Venturing and low carbon across multiple fronts. BPLightsource bp now has made Our bonus outcome for 2019 is therefore 135% of target and 67.5% of signature investmentsa presence in BP Chargemaster, our DiDi fast-charging joint maximum. This compares with 81% of target and 40.5% of maximum venture14 countries, up from five in China and Lightsource BP, all of which underpin growth in in 2018. With the rigour of our process and discussions, and the support electric vehicle charging and solar. We merged our biofuels business we have received from the SESAC and audit committee, we believe the with another operator to create BP Bunge Bioenergia thereby creating 2019 annual bonuses fairly reflect and reward 2019 performance for the synergies and scale for growth in biofuels. We have created a ‘scale-up’ executive directorsdifferentiated strategy in electric vehicle charging through bp pulse and senior leadershipStoredot, which has demonstrated five-minute charging capability. Our focus on reducing emissions has progressed well, with a reduction from 48.8Mte in 2018 to 41.7Mte in 2020, aligning with our net zero ambition. Our 2020 methane intensity is estimated at 0.12%, well below our target of BP. factory known as BP Launchpad, to enhance our access to investment in new ventures, and have increased the portfolio over the last three As shown below, half of the bonus is paid in cash after year end, and years. The committee will be monitoring and measuring the progress half is deferred into shares that will vest in three years, according to of these ventures over time. 2017 policy terms. The full value of the 2019 bonus, including the deferred shares, is included in the 2019 single figure table. This differs0.2% Gas power and renewables trading and marketing growth. We from reporting in respect ofremain the 2014 policy, under which deferred noted robust early progress with BP’s new integratedlargest US gas and power shares relatedmarketing company. In 2018 and 2019 we added six advanced liquified natural gas (LNG) tankers to the 2016 bonus are includedbp-operated fleet; our Tangguh LNG expansion started drilling in the 2019 single figure, organization, mainly through a growing presence as a merchant2019; and Train 2 of our Freeport LNG began commercial operations in the i.e. the year in which they vest. global LNG trade, although financial results remain volatile. We also Adjusted Paid Deferred into noted the development of infrastructure to undertake renewables outcome in cash BP shares trading, which has included building diverse counter-party relationships, Bob Dudley $2,815,763a $1,407,881 $1,407,881 such as2020, with renewable energy source producers and owners of forests Brian Gilvary £1,200,572 £600,286 £600,286 for the purposes of creating a market for natural climate solutions (NCS).first gas deliveries from bp under our 20-year tolling agreement. Along with the combination of financial and strategic measures, that a Due to rounding the total does not match the sum of the parts. shareholders approved in the 2017 policy, the provision for ‘underpin’ The annual bonus outcome is unrelated to the BP share price, and decision by the committee was instituted. Namely,considers an ‘underpin’ decision before deciding on therefore no part of the bonus is attributable to share price appreciation. the final result, the committee takestaking a broader view of performance to ensure that the reward outcomes alignoutcome aligns with absolute shareholder returns, 2017-19 performance share plan outcome safety and environmental factors, and progress in low carbon and climate change matters. Our conclusion isconsiderations. The committee has been mindful of the need to take an even broader perspective, and thus consider executive outcomes in relation to societal matters in general and our wider workforce in particular. While absolute returns disappoint, we find that returnsall aspects of the underpin support at least 32.5% vesting, which from the 2017-19 Vesting levelsa participant’s perspective reflects a poor return for the 2017-19efforts expended. Therefore, our overall judgement is to leave the vesting outcome unadjusted. As mentioned above, this scorecard outcome applies to all participants in both the EDIP (for executive directors) and the GSVP (for group leaders). With time pro-ration for Bob and Brian to reflect their periods of service during the three-year performance period, this vesting delivers the outcomes detailed below. For Bernard and Murray these values are included in the single figure table on page 113, whereas for Bob and Brian they are reported in the payments for past directors section at page 122. 2018-20 performance share awards are performance shares cycle are proportional and appropriate. Therefore, determined under the terms of the 2017 policy, in line with the we have made no further adjustment to the scorecard outcome. Vesting performance measures andplan outcomes shown on the scorecard on therefore has been set at 71.2% of maximum, delivering the outcomes page 107, and the committee’s broader deliberations in line with the detailed below. ‘underpin’ established in that policy. The scorecard for this period included relative total shareholder return (50%), return on average(audited) Shares awarded Shares vesting including dividends Value of capital employed (30%) and four strategic progress measures (20%) Shares awarded dividends vested shares, that are assessed both quantitatively and qualitatively.Feb/ Mar 2021 Impact of share price changea Bernard Looney 158,690b 126,134 £350,652 -£228,991 Murray Auchinclossc 77,958b 62,124 $275,934 -$111,497 Bob Dudleya 1,571,628 1,319,478 $7,936,660 Assessed against the two financial scorecard measures, the group’sDudleyc 1,395,600 410,922 $1,566,298 -$962,923 Brian Gilvary 722,093 606,347 £2,752,815 performance696,705 227,337 £618,357 -£430,217 a These values reflect the impact of the reduction in share price since grant related to the number of shares that vest, excluding dividend equivalents. b Share grants under the GSVP are made at 50% of maximum, not at 100% of maximum as for the three years from 2017 to 2019 is strong. We placed second on relative total shareholder return (with a 29% total return) aEDIP. c Bob Dudley’s award isDudley and Murray Auchincloss’s awards were granted in respect of American depositary shares (ADSs). The which measures us against our super-major peers, Chevron, numbers in this table reflect calculated equivalents in ordinary shares. One ADS equates to ExxonMobil, Shell and Total. Return on average capital employed six ordinary shares. (ROACE) was 8.9%, comfortably ahead of the 8.1% target. The value of vested shares reflects the share price changes all We introduced the four strategic progress measures in our 2017 policy. shareholders have experienced over the three-year period. For this 2017-19 Hence this is the first cycle for which we have made an assessment on2018-20 award cycle, the original grant was calculated based on ordinary share strategic progress. We find that a rating of 13.8% out of 20% maximum and ADSAmerican depositary share (ADS) prices of £4.73£5.00 and $35.39$39.85 respectively, while the equivalent opportunity is appropriate. Below arevalues at vesting were £2.78/£2.72 (on 16 and 19 February respectively), and $22.87/$26.65 (on 19 February and 10 March respectively). Consequently, the four strategic pillars and a short prices on 18 February 2020, the vesting date, were £4.54 and $36.09. description of some of the factors that influenced our scoring decision: Consequently, share price appreciation in this cycle accounts for $130,549 (1.6%) offall has reduced the initial face value of Bob’s vestedthese awards by approximately 45% for ordinary shares, by 33% for Murray Auchincloss’s ADSs, and none of the Shiftby 43% for Bob Dudley’s ADSs. The committee has made no discretionary adjustment to gas and advantaged oil in the upstream. Gas production value of Brian’s vested shares. has grown 35% (comparing 2019 with 2016), and 75% of all pre-2022 start-ups planned during the 2017-19 cycle are in gas. Pre-2022 start-ups in oil are lower-cost or adjacentvesting outcomes related to existing basins, creating additional value and lowering carbon intensity relative to BP’s legacy portfolio. 106 BPthese share price changes.

Corporate governance 2017-19Form 20-F 2020 2018-20 performance shares scorecard (audited) Relative total shareholder return 12.5% Return on average capital employed 0% Strategic process 20.0% Formulaic vesting 32.5% Financial 12.5% 5.0% 0% 5.0% 5.0% These measures were set under the terms of our 2017 policy KPIMeasures Outcome Weighting at maximum Threshold performance Maximum performance See page 39 for more on our key performance indicators on page 32. Financial Strategic progress Formulaic 57.4%indicators. + 13.8%+ = vesting 71.2% Weighting Threshold Maximum Measures at maximum performance performance Outcome Financial Relative total KPI 50% Third First Second shareholder return 40.0% Return on average KPI 30% 7.25% 11.0% 8.9% capital employed 17.4% Outcome 57.4% Strategic Shift to gas and advantaged 5% oil in the upstream 3.75% progress Market-led growth 5% in the downstream Qualitative and quantitative assessment 3.0% Venturing and low carbon 5% by the committee. No numeric scale for across multiple fronts vesting outcome – see page 106. 4.25% Gas power and 5% renewables trading 2.75% and marketing growth Outcome 13.8% Total formulaic 71.2% scoreRelative total shareholder return Formulaic vesting 32.5% Underpin: Committee review of absolute shareholder returns, long-term safety 71.2% vesting and environmental performance, low carbon and climate change considerations. finalconsiderations: No adjustment Final vesting 71.2% after committee judgement 32.5% Venturing and low carbon across multiple fronts Third 7.375% 50% 5% 30% 5% 5% First 11.5% Outcome Outcome 12.5% 20.0% Third Formulaic 32.5% 2.6% Strategic progress 5.0% Growing gas and advantaged oil in the upstream 5% Qualitative and quantitative assessment by the committee. No adjustment judgement BPnumeric scale for vesting outcome. See page 111 Directors’ remuneration report continued

Directors’ remuneration reportForm 20-F 2020 Executive directors’directors’ pay for 20192020 Single figure table –– executive directors (audited) Remuneration is reported in the currencyBernard Looney CEO since 5 Feb 2020 (thousand) Murray Auchincloss CFO since 1 July 2020 (thousand) Bob Dudley CEO to 4 Feb (thousand) Brian Gilvary in which the individual is paidCFO to 30 June (thousand) (thousand)2020 2020 2020 2019 20182020 2019 2018 Salary and Salary£1,181 £348 $170 $1,854 $1,854 £785 £769£395 £785 Benefits £26 £8 $18 $84 £41 £59 Retirement benefits Benefits $84 $79 £59 £67 Retirement Pension and retirement saving – value increasea– – $0 $544 $0 £0 £0 benefits£0 £0 Cash in lieu of future accrual – – £252 £269retirement benefits £177 £52 – – £115 £252 Annual Cash bonus, cash – – – $1,408 $845 £600 £353– £600 Annual bonus, Shares – deferred for three years(as detailed on page 107) – – – $1,408 $845 £600 £353 Performance– £600 Performance shares $7,937b $11,630 c £2,753b £4,295c shares Discontinued Deferred share awards from prior-year bonuses –d –d £1,510e £2,113 e plans Total remunerationf $13,234 $15,253 £6,558 £8,219 Value attributed to share price appreciationg $131 $2,033 – £1,753 a For Bob Dudley this represents the aggregate value of the company match and investment gains on the accumulating unfunded BP Excess Compensation (Savings) Plan (ECSP) account under Bob’s US retirement savings arrangements. Full details are set out(as detailed on page 109. For Brian Gilvary this represents107) £351 £215 – $8,039a – £2,787a Discontinued plans – – – – – £1,529a Total remunerationb £1,735 £623 $188 $13,336 £552 £6,612 Total fixed remuneration £1,384 £408 $188 $2,481 £552 £1,095 Total variable remuneration £351 £215 $0 $10,855 £0 £5,517 Please refer to the annual increase in accrued pension, net of inflation, multiplied by 20. Inoverview section below for additional detail, except where noted otherwise. a The amounts reported for 2019 Brian’s salary increased by less than inflation, hence there is no net increase in accrued pension, and zero is reported as per regulations. Full details are set out on page 109. b Representshave been adjusted to include the vesting of shares on 18 February 2020 following the end of the 2017-19 performance period, based on the assessment of performance achieved under the rules of the plan and includes accruedadditional dividends on shares vested. The value5 November 2020 at the market price of shares at vesting was $36.09 for ADSs and £4.54£2.03 for ordinary shares. c In accordance with UK regulations, in the 2018 single figure table, the performance outcome values were based on fourth quarter average prices of $41.48shares and $15.83 for ADSs and £5.33 for ordinary shares. In May 2019, after the external data became available, the committee reviewed the relative reserves replacement ratio position, and this resulted in no adjustment to the final vesting of 80%. On 3 May 2019, 269,974 ADSs for Bob Dudley and 776,611 ordinary shares for Brian Gilvary vested at prices of $43.08 and £5.53. The 2018 values for the total vesting have increased by $587,301 for Bob Dudley and £211,889 for Brian Gilvary because of the higher share prices and additional accrued dividends. d In line with previous practice Bob Dudley has voluntarily agreed to defer performance assessment and vesting of the awards related to his 2016 annual bonus until at least one year after retirement, therefore the performance period will exceed the minimum term of three years. As stated in the 2017 and 2018 directors’ remuneration reports, Bob voluntarily deferred performance assessment and vesting of the 2014 and 2015 deferred and matching awards until at least one year after retirement.ADSs. See the Deferredperformance shares table on page 115111, and the deferred shares table on page 120, for further details on these awards. e The amounts reported for 2019 relate to the matching element of the 2014 annual bonus deferral, which Brian had voluntarily deferred for an additional two years, and the deferred element of the 2016 annual bonus. These awards vested on 18 February 2020 at the market price of £4.54 for ordinary shares and include accrued dividends on shares vested. The amounts reported for 2018 relate to the 2015 annual bonus, comprising the underlying award that vested on 19 February 2019 at a market price of £5.38 (as disclosed in our 2018 report), and the additional vesting of accrued dividends on 3 May 2019 at the market price of £5.53. See the Deferred shares table on page 115 for further details on these awards. fb Due to rounding, the totals do not agree exactly with the sum of their component parts. g The values shown for performance shares and deferred share awards include the share price appreciation, if any, experienced over the applicable three-year vesting periods. This additional line shows the value of those awards that is directly attributable to share price appreciation, being the number of shares vesting multiplied by the increase in share price from grant date to vesting date. The 2018 values have been restated from the 2018 reported values to exclude share price growth relating to accrued dividends. 108 BP Annual Report and Form-20F 2019

Corporate governance Overview of single figure outcomes (audited) Bernard Looney and Murray Auchincloss started in their roles as CEO and CFO on 5 February and 1 July 2020 respectively. Accordingly, the values shown in the single figure table represent remuneration outcomes from the time of their appointment to the board only. Similarly, because Bob Dudley and Brian Gilvary stepped down on 4 February and 30 June respectively, their 2020 remuneration values relate only to their part-years of service as executive directors. Payments received after they stepped down from their position are included in the payments to past directors section on page 122. Salary and benefits Bernard Looney’s salary was £1,300,000 from appointment. The amount reported above is before his 20% mental health charitable contribution. Murray Auchincloss’s salary was £695,000 from appointment. Bob Dudley’s salary remained at $1,854,000 until his exit on 31 March 2020. Brian Gilvary’s salary was unchanged at £790,500 until his exit on 30 June 2020. All executive directors received car-related benefits, assistance with tax return preparation, security assistance, insurance and medical benefits. 2020 annual bonus The committee concluded that there should be no bonus for 2020 as the plan was unaffordable. There were no other contributing factors leading us to this decision. 2018-20 performance shares Please refer to page 112 for details of the performance measures, targets and outcomes for these performance shares. Retirement benefits From their appointment as executive directors, Bernard Looney and Murray Auchincloss ceased to receive any retirement benefits for their service, but receive a cash allowance fixed at 15% of salary in line with the majority of similarly situated employees. They may choose to direct these allowances into retirement plans at their sole discretion, and the amounts are therefore identified as cash in lieu of retirement benefits on the single figure table. Bob Dudley iswas provided with pension benefits and retirement savings The single figures of total remuneration for Bob Dudley and Brian through a combination of tax-qualified and non-qualified benefit plans. Gilvary are $13.234 million and £6.558 million respectively. This is a His normal retirement age is 60. 13% decrease for Bob, and a 20% decrease for Brian. The BP Supplemental Executive Retirement Benefit Plan (SERB) is a Salary and benefits non-qualified defined benefit pension plan which provides a proportion Bob Dudley’s salary remained at $1,854,000 throughout 2019. Brian of earnings for each year of service. In 20192020 his accrued defined benefit Gilvary’s salary was increased by 2% to £790,500 with effect from pension did not increase, and in accordance with the requirements of UK 21 May 2019. Both executive directors received car-related benefits, regulations, the amount included in the single figure table on page 108 assistance with tax return preparation, security assistance, insurance is therefore zero. and medical benefits. The BP Employee Savings Plan (ESP) is a US tax-qualified defined 2019 annual bonus and 2017-19 performance shares contribution plan to which both Bob and BP contribute.bp contributed. The BP Excess Please refer to pages 105-107 for details of the performance measures, Compensation (Savings) Plan (ECSP) is a non-qualified, unfunded, targets, results and the related reward outcomes for annual bonus and retirement savings plan to which BPbp notionally contributescontributed 7% of base performance shares. salary above the annual IRS limit. In 20192020 Bob made contributions to the Discontinued plans: deferral of 2014 and 2016 bonus ESP totalling $28,000$28,500 and BPbp made matching contributions to the ESP, In accordance with 2014 policy, Bob Dudley and Brian Gilvary and notional contributions to the ECSP, totalling $129,780. In addition to compulsorily deferred one third of their 2016 annual bonus and these contributions, Bob realised$32,445. However, investment gains of $413,881losses in his each received an equivalent value matching award of BP shares. unfunded ECSP account (aggregating the unfunded arrangements Both the deferred and matching awards were subject to a three-year relating to his overall service with BPbp and TNK-BP), exceeded these contributions, hence the amount performance period which ended on 31 December 2019. included in the single figure table is $543,661. Bob has requested that the committee delay the performancezero.

Directors’ remuneration reportForm 20-F 2020 remuneration: Policy on a page Approach: We will retain the structure that has served well since 2017, reserving increased flexibility to adapt as BP pursues its ambition to become a net zero company by 2050 or sooner, and help the world get to net zero. Salary and Salary will be reviewed annually. Increases are measured against Benefits are unchanged and include car-related provisions (or cash benefits external pay relativity, and will not exceed the increase for our in lieu), security assistance, insurance and medical cover. wider workforce. Retirement New appointees from within the BP group retain previously accrued This is a material reduction from our 2017 policy. benefits benefits. For their service as a director, retirement benefits will be no more than the median provision offered to the widerWider workforce in the UK. Annual bonus Bonus is measured against an annual scorecard. Measures will The committee will set appropriately stretching targets for each include financial (50%), operational (10%), safety (20%) and measure. environmental (20%) goals. Target bonus is 112.5%, and maximum bonus is 225% of salary. The committee holds discretion to choose the specific measures to Half of the bonus for each year is paid in cash, and half is delivered be adopted within each of these categories and the relative as a deferred share award vesting in three years. weightings to assign to them to reflect the annual plan as agreed with the board. Numeric scales are set for each measure, to score outcomes relative to targets. Performance Performance shares are granted with a three-year performance At the outset of each award the committee will review the shares period. Awards to be granted under this policy will vest in 2023, measures that are to govern the award, along with weightings and 2024 and 2025, and shares held until 2026, 2027 and 2028. targets, to ensure they remain focused on delivering the strategy and are in the interests of shareholders. Measures will include rTSR (40%), assessed against a broader peer group, ROACE (30%) and an assessment related to the low carbon Annual grants will be at 500% of salary for the chief executive transition (30%). officer, and 450% of salary for any other executive director. These awards will vest in three years and in proportion to the For 2020 the rTSR peer group will include additional energy outcomes measured through the performance scorecard, with a companies in our sector, but ones who also have low carbon holding period that requires the shares to be retained for a further businesses or material commitments, such as Equinor, ENI and three years. Repsol. BeyondWorkforce experience During 2020 the committee will consider additional companies whose programmes provide meaningful challenge to The committee will assess safety outcomes over the perfomance BP regarding its own lower carbon ambitions. cycle as an underpin in determining the final vesting percentage. Shareholding Chief executive officer to build a shareholding of at least five times Executive directors are required to maintain that level for at least requirement salary, and other executive directors four and a half times salary, two years post employment. within five years of appointment. Malus and Malus provisions may apply where there is: a material safety or Clawback provisions may apply where there is: an incorrect clawback environmental failure; an incorrect award outcome due to outcome due to miscalculation or incorrect information; a miscalculation or incorrect information; a restatement due to restatement due to financial reporting failure or misstatement of financial reporting failure or misstatement of audited results; audited results; or material misconduct. material misconduct; or other exceptional circumstances that the committee considers similar in nature. Committee Under this policy, the committee will hold flexibility to choose the The committee reserves discretion in determining the outcomes flexibility measures and weightings to be adopted for each annual bonus and for annual bonus and performance shares, allowing it to take broad performance shares scorecard, and to adjust the peer group for the views on alignment with shareholder experience, environmental, rTSR measure, at the start of each performance cycle. societal and other inputs. This will allow appropriate re-alignment, over the policy term, to the anticipated evolution of the low carbon competitor market. The table above shows an at-a-glance summary of our proposed 2020 executive director remuneration policy. For the full remuneration policy, which will be proposed for shareholder approval at our 2020 AGM, please see pages 119 to 127. 110 BP Annual Report and Form-20F 2019

Corporate governance Alignment with strategy Bernard Looney recently announced a bold new purpose and ambition The strategic shift that BP signalled in February, and which will be for BP, reaching out to 2050. This reframes a crucial part of our investor further detailed during our capital markets presentation in September, proposition with an explicit commitment to the energy transition that sharply increases the need for the remuneration policy to reflect low investors and wider society rightly expect. It also recommits us to carbon ambitions and the energy transition. For this reason, the delivering competitive financial returns, through our ‘performing while environmental measure in annual bonus will increase from 10% to 20% transforming’ programme. weighting, and the strategic measures for performance share vesting are now explicitly tied to low carbon/energy transition, and carry a 30% While the specifics of our strategic milestones are yet to be defined, weighting. As BP’s leadership continues to develop specific strategic our direction is clear. For alignment of remuneration policy to corporate goals in this space, we are reserving committee discretion to define and strategy, we will broadly retain our policy structure, while reserving communicate the precise measures and weighting that will apply for the specific flexibility to allow an evolution of performance measures and performance share awards, and to adjust from cycle to cycle. their weightings over the three-year policy term. Our 2017 policy structure, driven by an annual bonus and three-year performance shares, has allowed us to harness the energy and commitment of our executive directors and senior leadership through a set of clearly articulated and ambitious goals. By retaining flexibility to adjust performance measures and weightings, we have been able to maintain alignment between shareholders and executives even as BP’s strategy has developed over time. We therefore believe that this combination of structure and flexibility, that has served us well through the last policy cycle, is equally well suited to the transition years ahead. The annual bonus is determined in line with performance relative to annual targets for safety, environmental, operational and financial measures. Performance shares vest in line with performance relative to three-year targets for rTSR, ROACE and a set of low carbon/energy transition measures. This suite of measures allows for an end-to-end alignment between our strategic direction, our executive focus and our remuneration outcomes, always with the underpin of committee discretion to adjust outcomes as appropriate to match shareholders’ own experience. Safety is and will remain a core value, hence continues to drive a material part of the bonus outcome, as well as forming part of the committee’s ‘underpin’ consideration in the finalvesting of performance shares. Likewise, BP has made clear strategic commitment to maintain focus on financial returns to shareholders, which therefore remain well-represented in the performance measures for annual bonus (50% weighting) and performance shares (40% weighting on rTSR and 30% weighting on ROACE). Reflecting the views of our shareholders, we have reduced the rTSR weighting (from 50%) and also started to widen the comparator group. For the first performance share cycle under the new 2020 policy, the comparator group is expanded from the four super majors to include ENI, Equinor and Repsol, all of whom have some lower carbon elements in their strategies. We have studied opportunities to expand the peer group further. But we conclude that other low carbon operators and indices have yet to reach sufficient maturity for inclusion at this time. Nevertheless it is possible that this will change during the policy cycle and hence we retain the discretion to introduce other companies or an index of low carbon companies in the coming equity cycles within the life of this policy. BP Annual Report and Form-20F 2019 111

Corporate governance Group chief executive-to-employeeForm 20-F 2020 Chief executive officer to employee pay ratio EqualThis is our second year reporting the CEO pay and UK gender pay gap reporting Since 2016ratio following the requirements introduced in 2018. As last year, we have disclosed the ratio between our group chief As well as looking at pay structures, the committee has spent time executive’s total remuneration and the median remuneration of a understanding how effectively current pay policies and processes comparator group of our UK and US professional and managerial maintain fairness and avoid bias in pay outcomes. We noted BP’s 2019 workforce (representing 38% of our global professional workforce). UK gender pay gap reporting, published in March 2020, for the five legal This calculation highlights pay differentials across the concentrated entities covered by the regulations, and the explanations provided in the portion of our workforce and thus we have retained this voluntary narrative that accompanied BP’s reporting. measure for the purpose of comparison over time. Overall the committee feels assured that the anti-discrimination For 2019, however, we also report the pay ratio based on the new controls written into pay policies, and the quality of processes behind requirements set out in the 2018 regulations. Given the markedly individual pay decision making, are effective in delivering an equal pay different comparator groups, the voluntary and required pay ratios environment (like pay for like work) for the wider workforce. While the are not directly comparable. The different ratios arise because of two UK gender pay gap reporting showed pay gaps in favour of men for four key differences: the required method includes BP hourly paid retail out of the five entities, we understand that these gaps result largely workforce in its fuels and convenience stations who are employed in from the relative under-representation of women in senior roles, and roles which attract relatively lower market rates of pay; and the required that the group’s primary focus should therefore be on improving method excludes the majority of our professional workforce, namely representation of women, rather than adjusting pay practices. We are those outside the UK, suchselected option A as our Houston, Texas campus. encouraged by the various initiatives taken by management to address these representation concerns and will continue to monitor progress. 25th 50th 50th 75th The illustration below, from our 2019 UK gender pay gap reporting (the percentile percentile percentile percentile most recent available), highlights the representation issue and how it pay ratio pay ratio total pay pay ratio Year Method relates to the gender pay gap for each entity. For instance, our larger 2018 BP voluntary – 106:1 $136,865 – median gender pay gaps relate to BP Exploration and BP p.l.c. where $147,612/ we have the largest differential between representation of women in a a 2019 BP voluntary – 89:1 £115,683 – the top and bottom pay quartiles. By contrast, we reported a negative 2019 Option Ab 543:1c 188:1df £55,071 82:1e median pay gap in BP Chemicals (-12.4%), where male to female representation is more balanced. a Remuneration converted from $ to £ at an exchange rate of 1.276. b Option A has been selected as it isbasis, being the most accurate approach. Payapproach available. The employees included in these calculations were employed by the group on 31 December 2020 and pay and benefits have been calculated using values forwere determined with reference to the financial year endedending 31 December 2019 and2020. We confirm that no broadly applicable components of pay or benefits have been omitted. Full-timeomitted and, where necessary, full-time equivalent remunerationpay has been calculated by mathematical engrossment. BP Exploration Operating c The relevant 25th percentilesimple engrossment of part year values. Our analysis this year covers more than 14,000 UK employees, 45% of whom work in our retail sites. Employee values reflect the zero bonus outcome for the majority of employees, and the delayed salary review date, from 1 April to 1 October. Given the succession of CEO in 2020, these employee values are £19,108compared against the sum of total pay values, per the single figure table on page 113, for Bernard Looney and Bob Dudley. Year Method 25th percentile: pay ratio, total pay and benefits, and £18,845 salary. BP Chemicals Limited Company Limited d The relevant(salary) 50th percentile values are £55,071percentile: pay ratio, total pay and benefits, and £38,800 salary. median(salary) 75th percentile: pay gap -12.4% median pay gap 24.9% e The relevant 75th percentile values are £126,085ratio, total pay and benefits, (salary) 2019 Option A 543:1 £19,108 (£18,845) 188:1 £55,071 (£38,800) 82:1 £126,085 (£74,200) 2020 Option A 99:1 £18,984 (£18,984) 40:1 £46,933 (£29,040) 19:1 £98,546 (£80,475) Bob Dudley’s pay has been converted from US dollars at 0.77907 for 2020. The 2019 ratio is as originally reported. The sharp reduction in 50th percentile ratio from 188:1 to 40:1 reflects the fact that CEO remuneration is more heavily weighted to variable pay which reduces in years of weaker performance such as 2020. This is a natural reason for volatility in pay ratio reporting from year to year, and £74,200 salary. Upper f The company believesillustrates one of the challenges in commenting on whether any given year’s pay ratio is appropriate. Our considered view as to appropriateness is that the 50th percentilepolicies for our CEO, and for the wider workforce, are both fit for purpose and that they deliver pay outcomes appropriate to the circumstance of the year. Thus differentials reflect both the relative contributions made at different levels in our hierarchy, and the nature of the year in question. Taken in the round with all of the insights we have gained into pay policies and practices, we remain satisfied that pay outcomes, and the ratios derived from them, are as they should be. In particular we note that as well as being paid at least the real living wage, our UK employees also benefit from the significant intangible value of working in an inclusive and caring enterprise that is not reflected in pay ratio reflects total pay and benefits values 74% 26% Upper 90% 10% fully in line with reward policies for the group chief executive and the median UK employee respectively, and consequently that the ratio is consistent with policy. 73% 27% 84% 16%analyses. Percentage change comparisons: 88% 12% 80% 20% Lower GCEDirectors’ remuneration versus UK workforce 75% 25% Lower 58% 42%employees In the table below, values in column ‘a’ represent the percentage change in salary and fees; values in column ‘b’ represent the percentage change in taxable benefits; and values in column ‘c’ represent the percentage change in bonus outcomes for performance periods in respect of each financial year. The employee percentages shown represent the change in median employee pay. This compares the median BP Chemicals is our petrochemicals businessp.l.c. employee on 31 December of the relevant financial year, with the median BP Exploration covers Upstream activitiesp.l.c. employee on 31 December of the preceding financial year, in each case ranked based on the total of salary, benefits and bonus. For the chair and non-executive directors, the decline in the UK, principally our operationvalue of taxable benefits largely relates to the sharp drop in Hull. Comparingbusiness travel arising from pandemic-related travel restrictions. 2020 v 2019 a b c Employees 0% 0% -100% Bernard Looney – – – Murray Auchincloss – – – Bob Dudley 0% -5% -100% Brian Gilvary 1% 13% -100% Nils Andersen -7% -46% n/a Dame Alison Carnwath -4% -94% n/a Pamela Daley -15% -92% n/a Sir Ian Davis -14% -81% n/a Professor Dame Ann Dowling -4% -96% n/a Helge Lund (Chair) 0% -74% n/a Melody Meyer 9% -77% n/a Tushar Morzaria – – n/a Brendan Nelson -7% -71% n/a Paula Rosput Reynolds 2% -92% n/a Sir John Sawers -3% -83% n/a Bob Dudley, Brian Gilvary and Nils Andersen resigned during 2020, therefore, other than for one-time items, their 2020 pay has been annualised for comparison. Bernard Looney, Murray Auchincloss and Tushar Morzaria were appointed on the board in 2020 and therefore no comparison to 2018 Salary Benefits Bonus in the UK, principally North Sea operations. % change in GCE remuneration 0% 6.3% 66.7% Men Women % change in comparator group remuneration 3.8% 1.0% 16.8% BP Oil UK Limited BP Express Shopping Limited median pay gap 9.5% median pay gap 4.0% The comparator group used here2019 is our UK workforce, in line with the required basis for chief executive to employee pay ratio reporting and Upper 69% 31% Upper 61% 39% therefore provides a measure of consistency in reporting. 61% 39% 60% 40%available. Relative importance of spend on pay 69% 31% 49% 51% ($ million) Lower 42% 58% Lower 38% 62%20202019 9,844 6,340 Distributions to shareholders 20202019 9,872 9,878 Remuneration paid to Capital investment shareholders all employees BP Oil represents our Downstream BP Express Shopping is our largest UK20202019 15,238 15,140 fuels and lubricants businesses. employing business, concerned with retail operations supporting our UK-wide network of forecourts. 10,497b 9,844a 9,872 BP p.l.c. a 8,435 median pay gap 18.9% Upper 71% 29% 66% 34% 56% 44% 2019 2018 2019 2018 2019 2018 Lower 37% 63% a Distributions to shareholders comprise dividend payments of $8,333 million. ($8,080 million in 2018) and share buybacks at a cost of $1,511 million ($355 million in 2018). BP p.l.c. predominantly covers employees in Bar charts represent the balance between See page 299 for details. corporate business and functions, including male ( ) and female ( ) employees in each b This amount was misstated as $10,494 in our 2018 report. our integrated Supply and Trading and Air total pay quartile of the relevant business. BP businesses. BP12,034 Capital investment

Directors’ remuneration reportForm 20-F 2020 Stewardship and executive director interests Value of current Multiple of Director Appointment date shareholding salary achieved We believe that our executive directors should have a material interest Bob Dudley October 2010 $28,145,173 15.18 x salary in the company, both during their tenure and after they leave BP.bp. Our Brian Gilvary January 2012 £12,808,714 16.20 x salary recent shareholding2020 remuneration policy therefore requiredrequires the CEO and other executive directors to build a personal shareholdingshareholdings of five times their salary and four and half times salary, respectively, within five years of their appointment. They are expected to maintain those shareholding levels for two years post employment. Directors’ shareholdings (audited) The table below details the personal shareholdings of each current and former executive director. Both Bob Dudley and Brian Gilvary significantly exceed their post-employment shareholding commitment. Bernard Looney and Murray Auchincloss are building towards the policy requirement that applies five years from their dates of appointment, 5 February and 1 July 2020 respectively. These figures include all beneficial and non-beneficial ownership of shares of bp (or calculated equivalents) that have been disclosed to the company. Director Ordinary shares or equivalents at 1 Jan 2020 Ordinary shares or equivalents at 31 Dec 2020 Changes from 31 Dec 2020 to 2 Mar 2021 Ordinary shares or equivalents at 2 Mar 2021 Appointment date Value of current shareholding Multiple of salary achieved Bernard Looney – 331,711 212,228 543,939 5 February 2020 £1,615,499a 1.24x Murray Auchincloss – 139,525 2,010 141,535 1 July 2020 £420,359a 0.60x Bob Dudleyb 4,592,208 – – – October 2010 – – Brian Gilvaryb 2,593,708 – – – January 2012 – – a Based on ordinary share price at 2 March 2021 of £2.97. b Bob Dudley and Brian Gilvary resigned on 4 February and 30 June 2020 respectively. These current and former executive directors have additional interests in restricted and performance shares, and Bob and Brian have various interests in both performance shares and deferred of their appointment. They were expected to maintain personal bonus shares under the executive directors’ incentive plan (EDIP). The shareholdings of at least two and a half times salary for two years postshares. These additional share interests are shown in aggregate, and by plan, in the tables below. employment. Updates to this policy are proposed as an integral part of TheseFor performance shares, the figures show thereflect maximum possible vesting levels. Thelevels (excluding the addition of reinvested dividends) even though the actual our 2020 remuneration policy, as detailed on page 121. number of shares/ADSsshares that vest will depend on the extent to which Directors’ shareholdings (audited) performance conditions are satisfied. The tables below detail the personal shareholdings of each currentAggregated interests, all plans (audited) Directora Unvested ordinary shares or equivalents at 1 Jan 2020 Unvested ordinary shares or equivalents at 31 Dec 2020 Changes from 31 Dec 2020 to 2 Mar 2021 Unvested ordinary shares or equivalents at 2 Mar 2021 Bernard Looney – 3,193,599 -530,370 2,663,229 Murray Auchincloss – 1,581,899 -2,755 1,579,144 Bob Dudley 6,639,882 5,296,740 – – Brian Gilvary 2,905,764 2,060,135 – – a Bernard Looney was appointed as CEO on 5 February and recent executive director. BothMurray Auchincloss was appointed as CFO on 1 July 2020, Bob Dudley and Brian Gilvary ordinary shares ordinary shares Changes from ordinary shares significantly exceed the policy requirement at 3 Marchresigned on 4 February and 30 June 2020 with or equivalents at or equivalents as 31 Dec 2019 to or equivalents at Bernard Looney building towards the policy requirement that applies Director 1 Jan 2019 31 Dec 2019 3 Marrespectively. Directors’ remuneration report continued

Corporate governanceForm 20-F 2020 Deferred sharesa (audited) Bonus year Type Performance period Date of award of deferred shares (audited)a Deferred share element interests PotentialInterests vested in 2020 and 2021Potential maximum deferred shares Interests vested in 2019 andAt 1 Jan 2020 Awarded 2020 At 31 Dec 2020 Number of ordinary shares vested Vesting date Face Date of award ordinary value of Bonus Performance of deferred At 1 Jan Awarded At 31 Dec shares Vesting the award, year Type period shares 2019 2019 2019 vested date £awardd, £ Bob Dudleybc 2014 Comp 2015-17 11 Feb 2015 147,054 –– 147,054 – – 655,861d– – 655,861 Vol 2015-17 11 Feb 2015 147,054 –– 147,054 – – 655,861d– – 655,861 Mat 2015-17 11 Feb 2015 294,108 –– 294,108 – – 1,311,722d– – 1,311,722 2015 Comp 2016-18 044 Mar 2016 275,892 –– 275,892 – – 1,015,283e– – 1,015,283 Vol 2016-18 044 Mar 2016 275,892 –– 275,892 – – 1,015,283e– – 1,015,283 Mat 2016-18 044 Mar 2016 551,784 –– 551,784 – – 2,030,565e– – 2,030,565 2016 Comp 2017-19 19 May 2017 147,642 –– 147,642 – – 696,870f– – 696,870 Mat 2017-19 19 May 2017 147,642 –– 147,642 – – 696,870f– – 696,870 2017 Comp 2018-20 22 May 2018 226,236 –– 226,236 – – 1,330,268g– – 1,330,268 2018 Comp 2019-21 19 Feb 2019 118,584 – 118,584 – – 636,796h– – 636,796 2019 Comp 2020-22 18 Feb 2020 – 228,486 228,486 – – 1,046,466 Brian Gilvary 2014 Mat 2015-17 11 Feb 2015 176,576 – 176,576 246,359i– – 253,223e 18 Feb 20 –– 2015 CompMat 2016-18 04 Mar 2016 159,021 – 159,021 196,262j 19 Feb 19 – Vol 2016-18 04 Mar 2016 159,021 – 159,021 196,262j 19 Feb 19 – Mat 2016-18k 044 Mar 2016 318,042 –– 318,042 – – 1,170,395 e402,227f 19 Feb 21 – 2016 Comp 2017-19 19 May 2017 73,070 – 73,070 86,176 i– – 88,577e 18 Feb 20 – Mat 2017-19l– Matg 2017-19 19 May 2017 73,070 –– 73,070 – – 344,890f– – 344,890 2017 Comp 2018-20 22 May 2018 127,457 –– 127,457 – – 749,447g153,562h 19 Feb 21 – 2018 Comp 2019-21 19 Feb 2019 64,436 – 64,436 – – 346,021h– – 346,021 2019 Comp 2020-22 18 Feb 2020 – 126,110 126,110 – – 577,584 a Since 2010, vesting of the deferred shares has been subject to a safety and environmental sustainability hurdle. If the committee assesses that there has been a material deterioration in safety and environmental performance, or there have been major incidents, either of which reveal underlying weaknesses in safety and environmental management, then it may conclude that shares should vest only in part, or not at all. In reaching its conclusion, the committee will obtainobtains advice from the SESAC.SAS committee. There is no identified minimum vesting threshold level. ‘Comp’ denotes compulsory deferral, ‘Vol’ denotes voluntary deferral, and ‘Mat’ denotes matching awards. b Bob Dudley received awards in the form of ADSs. The above numbers reflect calculated equivalents in ordinary shares. One ADS is equivalent to six ordinary shares. c Bob Dudley has voluntarily agreed to defer vesting of these awards until the later of one year post employment or the end of the relevant performance period, therefore the performance period will exceed the minimum term of three years.employment. d The face value hasFace values have been calculated using the market priceprices of ordinary shares on the dates of award, as follows; £4.46 on 11 February 2015 of £4.46. e The face value has been calculated using the market price of ordinary shares2015; £3.68 on 4 March 2016 of £3.68. f The face value has been calculated using the market price of ordinary shares2016; £4.72 on 19 May 2017 of £4.72. g The face value has been calculated using the market price of ordinary shares2017; £5.88 on 22 May 2018 of £5.88. h The face value has been calculated using the market price of ordinary shares2018; £5.37 on 19 February 2019 of £5.37 i2019; £4.58 on 18 February 2020. e Represents vestings of shares made at the end of the relevant performancedeferral period based on performance achieved under rules of the plan and includes reinvested dividends on the shares vested. The market price of each share used to determine the total value at vesting on the vesting date of 18 February 2020 was £4.54. j£4.54. The additional reinvested dividend shares were delivered on 5 November 2020, at a market price of £2.03. The adjusted amount reported as 2019 income on the single figure table is therefore £1.529 million. f Represents vestingsvesting of shares made at the end of the relevant performancedeferral period, based on performance achieved under rulesprorated for 54 months’ service out of the plan60 months’ vesting period, and includes reinvested dividends on the shares vested.thereon. The market price of each share used to determine the total value at vesting on the vesting date of 19 February 20192021 was £5.38. These totals include£2.72. As they were received post-employment, the accrual of dividends which vested on 3 May 2019. k Brian Gilvary has voluntarily agreed to defer vestingvalues of these matching awards for a total of five years with a further one-year retention period. lvested shares are included in the payments to past directors section on page 122. g Brian Gilvary has voluntarily agreed to defer vesting of this 2016 matching award to at least one year post employment. h In line with the 2017 policy, these compulsory deferrals of Bob and Brian’s 2017 bonus were included in the single figure of total remuneration reported for 2017 and therefore the values of these shares are not included as payments to past directors. In common with many of our UK employees, Brian GilvaryBernard Looney holds options under the BPbp group Save As You Earnsave as you earn (SAYE) schemesscheme as shown below. These options are not subject to performance conditions. Share interests in share option plans (audited) Market price Date fromDirector Option type At 1 Jan 2020 Granted Exercised At 31 Dec 2020a Option price Market price at date of exercise Date from which first exercisable Expiry Option type 2019 Granted Exercised 2019a price exercise exercisable date Bernard Looney SAYE 6,024 – – 6,024 £2.54 – 01 Sep 2025 28 Feb 2026 Murray Auchincloss SAYEb – 3,614 – 3,614 £2.54 – 01 Sep 2023 28 Feb 2024 Brian Gilvary BP 2011b2011c 400,000 – –– – 400,000 £3.72 –£3.72 – 07 Sep 142014 07 Sep 2021 SAYE 3,103 – 3,103 – £2.90 £5.07Brian Gilvary SAYEd 2,064 – – – £4.36 – 01 Sep 19 28 Feb 2020 SAYE – 2,064 – 2,064 £4.36 01 Sep 222022 28 Feb 2023 a The closing market pricesprice of an ordinary share on 31 December 20192020 was £4.72.£2.55. During 20192020 the highest market price was £5.83£5.04, and the lowest market price was £4.62.£1.93. b Interest of person closely associated with Murray Auchincloss. c The BP 2011 means the BP 2011 plan. Theseplan – these options were granted to Brian Gilvary prior to his appointment as a director and are not subject to performance conditions. d Brian Gilvary closed his save as you earn contract, and therefore these options lapsed, on 18 June 2020. Bernard Looney, Murray Auchincloss, Bob Dudley and Brian Gilvary have no interests in BPbp preference shares, debentures or option plans (other than as listed above), and nonone have interests in shares or loan stock of any subsidiary company. No directors or other senior managersleadership team members own more than 1% of the ordinary shares in issue. At 32 March 2020,2021, our directors and senior managersleadership team members collectively held interests of 19,004,6885,294,828 ordinary shares or their calculated equivalents, 7,699,79510,204,082 restricted share units (with or without conditions) or their calculated equivalents, 8,542,4633,075,878 performance shares or their calculated equivalents and 4,299,9721,580,380 options over ordinary shares or their calculated equivalents, under BPbp group share option schemes. BPDirectors’ remuneration report continued