How Capital Power’s Sustainability Strategy Is Powering a Net Carbon Neutral Future

If there is one thing Albertans are focusing on, it's reducing carbon emissions and creating a low-carbon future.

Kate Chisholm, Capital Power's, Senior Vice President Planning, Stakeholder Relations, and Chief Sustainability Officer, is committed to powering this carbon-neutral strategy for the future of energy.

Kate believes that natural gas power generation combined with carbon mitigation technologies will continue to play a primary role in North American power markets. Capital Power actively pursues and invests in decarbonized technologies to deliver safe, reliable, and affordable electricity while reducing greenhouse gas emissions.

Kate sat down with Rachel Gregory, Digital Host at The Global Energy Show, to discuss Capital Power's future plans, expected future developments, and current achievements in powering a carbon-neutral future.

Interview with Kate Chisholm, SVP & Sustainability Officer, Capital Power

Capital Power Set to Achieve Carbon Neutrality by 2050

Rachel: So, Kate, net carbon neutrality by 2050, what does this mean to Capital Power, and how does Capital Power get there?

Kate: In 2020, we developed a whole roadmap to achieve net-zero carbon emissions by 2050. These steps include purchasing carbon offsets to eliminate the use of greenhouse gases, like coal, in 2023. We're powering our coal units with the newest, most efficient combined cycle technology, investing in renewable energy and strategic natural gas generation with either carbon capture usage or storage of hydrogen. This will ultimately help us remove carbon dioxide and achieve net-zero emissions for the future of energy.

We are now playing with direct air capture that we hope we'll be able to use beyond sequestration to drive us further towards our net carbon neutral goals by 2050, and we're actively pursuing and investing in decarbonization technologies to make it all possible.

The Impact of ESG Investors on Low-Carbon Investment

Rachel: So, how are environmental, social, and governance (ESG) investor relations influencing a low-carbon economy and investment?

Kate: Investors are increasingly focused on combatting climate change, global warming, energy, poverty, and other systemic risks with their significant investments. And those systemic risks can only be managed by a thoughtful sustainability strategy. We share the perspective of ESG investors in respect to systemic risks, and we assess all of our risks and opportunities through a sustainability lens. So, take our carbon emission reduction target as an example. We're committed to taking climate action by reducing GHG emissions by 65% by 2030, from 2005, in spite of ambitions to grow significantly. This will help us eliminate emissions produced in the years to come.

The Importance of Thorough ESG Reporting for Capital Power

Rachel: Capital Power just released their second integrated annual report and third climate change disclosure. Why is thorough and transparent reporting important for Capital Power?

Kate: There is a whole alphabet soup of ESG reporting standards out there at the moment, as well as an absolute army of ESG analysts, all applying different lenses. This means that numerous companies can cherry-pick the standards and analysts that will make them look the best, making it very difficult for investors to make informed decisions based on apples-to-apples comparisons.

For our small part, we would look forward to being compared on an apples-to-apples basis with our competitors. We're committed, for that purpose, to transparently sharing comprehensive, accurate, and detailed data so that investors and potential investors can see all of our financial and ESG performance together. 

Why Capital Power Is Committed to Building a Sustainable Future

Rachel: How has a stronger focus on sustainability improved long-term decision making and long-term value at Capital Power?

Kate: We understand that our shareholders don't want to earn their return at a cost to society. We also believe that helping society solve some of its problems will make us more attractive to consumers who are increasingly factoring ESG considerations into their buying decisions. We all see sustainability as a fundamental part of the Capital Power story.

Capital Power’s Commitment to Diversity & Equity 

Rachel: What is Capital Power doing to support diversity, inclusion, and equity, and why is it important? 

Kate: We see EDI as a total business imperative. It's the only way to ensure that we have the very best people on our team.

In 2017, we formalized a commitment to achieve 30% female representation on our executive team. We've now achieved this with 43% of our executive team and 40% of our board of directors, all being women. We then added a requirement to have diverse candidates on the shortlist for every open position at all levels of the organization. I'm proud to report that we met this objective throughout 2020.

For 2021, we've added an additional commitment to increase the number of female hires we make. We also joined Equal by 30, a global campaign committed to working towards equal pay, equal leadership, and providing an equivalent amount of opportunities for women in the renewable energy sector by 2030.

Rachel: Congratulations on that initiative. It's very inspiring, and it's so great to hear that companies like Capital Power are working towards equal pay, equity, and inclusiveness.

The Future of Low-Carbon Solutions

Creating a net carbon neutral status worldwide is crucial for the future of our environment. Not only is Capital Power's commitment to diversity and inclusion inspiring, but its goal to reduce carbon emissions also makes them stand out as an industry leader.

Capital Power's sustainability strategy is a great example of how the industry is starting to push back on fossil fuels and reduce greenhouse gas emissions by promoting innovative renewable energy alternatives to reach better environmental, social, and corporate governance.

If you’re interested in learning more about emission reductions from the people actively changing the game in North America’s energy industry, register for the next Global Energy Show today.