GCSE OCR Business The economic climate: Text 1

BP plc is a UK energy co

Question

Text 1

BP plc is a UK energy company, which has its headquarters in London. BP produces oil, gas and petrol. It sells and distributes these products to customers all over the world. It also produces some environmentally friendly energy including biofuels, as well as wind- and solar-powered electrical energy.

The company’s finance function is critical in ensuring the business is managed efficiently. BP plc's revenue increased from $245 billion in 2017 to $283 billion in 2019.

One of BP’s operations involves selling petrol to the public. BP has 18,700 petrol stations around the globe, with 8500 in the UK. Another of BP’s operations involves extracting oil, using oil rigs. These are located in the seas around the UK, Norway, Australia, Angola, the Gulf of Mexico (USA) and off the coast of many other countries. Once the oil is extracted it is then transported to refineries.

BP strives to be more sustainable. BP has the aim of cutting its carbon emissions by 2050 to help reduce the effects of climate change. It is installing electric charge points for Police Scotland’s electric vehicles and is developing wind farms in America in partnership with an American company.

(a) Identify two possible advantages to a business of being environmentally friendly.  
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(b) Explain one way climate change might affect business activity.

Text 1 BP plc is a UK energy company, which has its headquarters in London - OCR - GCSE Business - Question 16 - 2022 - Paper 1

Worked Solution & Example Answer:Text 1 BP plc is a UK energy company, which has its headquarters in London - OCR - GCSE Business - Question 16 - 2022 - Paper 1

Identify two possible advantages to a business of being environmentally friendly.

Explain one way climate change might affect business activity.

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