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Alaskarova

Ulkar Alaskarova

Fariz Ismailzada

Strategic Management Course

7 October 2020

New Strategy of BP

On 15 September of 2020, BP and Microsoft announced their new partnership to drive

digital energy innovation and their goals in this partnership is to achieve net zero carbon

environment by 2050. According to Microsoft News Center, William Lin-BP executive vice

president for regions- mentioned that BP tries to get net zero, however this kind of big venture

can’t be done without any help, and he also mentioned that Microsoft is the best chance for them

and they believe that with the help of Microsoft, they cam achieve to these goal (2020).

At the beginning of 2020, BP was announced that, they want to be net zero emission by

the end of 2050, and in my opinion, this new strategic partnership will be very helpful for them

achieving this goal. BP’s target is to build up 50 gigawatts of net renewable generating capacity

which is expected to 20 times improvement than the last growth. On the other hand, this strategic

move also benefits to Microsoft. Microsoft’s target is being carbon negative till 2030, and

removing more carbon from the environment by 2050 (Microsoft News Center, 2020).

According to the contract, this partnership will speed up the period of achieving both

companies’ goals and it will affect to 4 four fields that merge Microsoft's digital experience with

BP's strong knowledge of energy sector: 1. Smart and clean cities, 2. Clean energy Parks, 3.

Consumer energy, 4. Industrial internet of things solutions. The benefit of Microsoft to BP will

be that BP will be able to use Microsoft Azure cloud services as a strategic platform which will

enable BP to access a wide and extensive suite of cloud services, including machine learning
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with Azure Digital Twins, data analytics, security and more, to gain insight, provide substantial

opportunities for optimization and transform business processes (Microsoft News Center, 2020).

Conversely, BP will benefit to Microsoft by providing renewable power to Microsoft around a

wide variety of countries and continents, including the US, Europe and Latin America. The

cooperation will lead to Microsoft's 100 % renewable energy goal by 2025 (Microsoft News

Center, 2020).
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References

“Bp and Microsoft Form Strategic Partnership to Drive Digital Energy Innovation and Advance

Net Zero Goals.” Microsoft News Center, Stories, 15 Sept. 2020,

news.microsoft.com/2020/09/15/bp-and-microsoft-form-strategic-partnership-to-drive-

digital-energy-innovation-and-advance-net-zero-goals/.

“Our Sustainability Frame: Sustainability: Home.” Bp Global,

www.bp.com/en/global/corporate/sustainability/our-sustainability-frame.html.