Cenovus’ Energy Transition Strategy to Reach Climate Goals by 2050

The oil and gas industry remains a major contributor to the global economy. However, due to the current energy crisis, ESG reporting and climate change initiatives are shifting the way Canadian companies run their businesses. Major producers contributing to the global oil demand must adapt and look into alternative energy solutions, such as solar, wind, carbon capture and more, to reach 2050 climate goals.

In the past couple of years, Cenovus Energy, a natural gas company in Calgary, has reduced greenhouse gas emissions by over 30%. Now, they are working towards reducing 100% of their GHG emissions by 2050. 

In our latest 5x5 series, Chief Sustainability Officer and Senior Vice President' Stakeholder at Cenovus Energy, Rhona DelFrari, sat down with Rachel Gregory, Digital Host at The Global Energy Show, to discuss Cenovus’ energy transition strategy to reach emissions reduction goals by 2050.

How Cenovus is Moving Through the Energy Transition

Cenovus’ Energy Transition Strategy

Rachel: As one of Canada's largest energy companies, can you tell us more about Cenovus and its strategy as the world moves through this energy transition?

Rhona: We're the third-largest Canadian oil and natural gas producer and the second-largest Canadian upgrader in the refiner. Much of that came from when we closed a deal to acquire Husky Energy in January 2021. 

The energy transition is really top of mind for us. We absolutely agree and believe that Cenovus will be a successful company as the world transitions to a lower-carbon economy. 

We have a net-zero ambition by 2050, and we feel like, as a company with emissions, we're very much responsible for being part of the climate solutions that we all need to be addressing right now. We've already been able to reduce our emissions intensity at Cenovus by about 30% over the past years. But we're not stopping there because we need to reach net-zero GHG emissions targets. 

It goes beyond just targets; you really need to ensure that everything you think about as a company embeds those sustainability considerations into them. 

Cenovus’ Initiatives in Undertaking Sustainability

Rachel: What are some of the initiatives that Cenovus is undertaking when it comes to sustainability? 

Rhona: When it comes to the social part, the S in the ESG, we have really strong relationships with indigenous communities, for example. Many of them are around our oil sands operations. We've already spent 3 billion over the last 10 years with indigenous business partners. 

Another example of our sustainability performance is a very large caribou habitat restoration program that Cenovus is leading and has underway. We're talking about new techniques to ensure that the caribou are protected from predators, involving planting up to 5 million trees.

How Emissions Reductions Stay Top of Mind For Cenovus 

Rachel: How does a company like Cenovus ensure sustainability considerations are embedded in your company's decision making?

Rhona: You aren't going to be a successful company unless sustainability is part of all of your business decisions. We strongly believe that. So it's not good enough that a project is going to make us money in the long run. It also has to fit in with our longer-term sustainability goals. And those are all things that are considered at the time before we decide to proceed with a project.

As we're building our strategy, we're making decisions about what assets may be core or non-core for acquiring or divesting them. Sustainability considerations are part of that. 

How Cenovus Engages With Other Global Energy Supply Leaders

Rachel: As the co-host of this year's Global Energy Show, how is Cenovus engaging with other leaders in the energy space? 

Rhona: It's absolutely essential. We have some brilliant people within Cenovus, but we know we can't come up with all the solutions on our own. We're a founding member of Canada's Oil Sands Innovation Alliance, or COSIA; a group of oil sands producers got together and said, look, we are strong competitors, but when it comes to the environment, we shouldn't be competing. 

Learn More About How Companies Like Cenovus Are Moving Through the Energy Transition

In order to reach Canada’s climate targets by 2050, companies must reduce GHG emissions. As a contributor to the Oil Sands Pathways to Net-Zero Initiative, Cenovus Energy is a great example of a company making progress in reaching net-zero emissions by 2050 through collaboration and innovative processes.

If you're interested in learning more about sustainability in global energy markets from industry leaders actively changing the game in the global energy industry, register for the next Global Energy Show today.