BP executive warns strict ESG rules could undermine energy transition

Oil and gas revenues remain an important source of financing for the transition to green energy, and overly strict regulation of Environmental, Social, and Governance (ESG) principles could negatively affect the energy transition itself, Bakhtiyar Aslanbeyli, bp Vice President for the Caspian region, has stated.

At a conference of the American Chamber of Commerce in Azerbaijan (AmCham Azerbaijan), he said ESG principles should not be treated as a separate agenda for companies but rather as an integral part of business strategy and corporate governance, Caliber.Az reports, citing local media.

Aslanbeyli noted that ESG requirements can be effective when they are realistic and implementable, adding that the oil and gas sector is already regulated by both local legislation and international standards due to its high-risk nature.

He also pointed out that optimising costs is currently a key priority for both public and private sectors, giving examples of increased operational efficiency at bp projects without changes in budget or staffing levels.

He further warned that new European Union discussions on methane emissions taxes could have a negative impact on the energy sector.

By Bakhtiyar Abbasov