Canadian Natural Resources

CNRL only has a target for reducing scope 1 and 2 emissions intensity for 31% of its business accounted for by its oil sands activities emissions. The company does not mention any targets for scope 3 emissions in any of its published documents. CNRL can engage with the Science Based Target initiative’s (SBTi’s) oil and gas target-setting guidance when this is released. The SBTi approach can educate and help management focus on the need for far-reaching changes to the company’s business to achieve a low-carbon transition.

There is no evidence to indicate that CNRL has an understanding of the impact of decarbonisation on its business and the necessary changes that will be required for the company to thrive in the low-carbon economy. Although the company focuses on technological innovation to improve its processes and has aims for its oil sands activities to become net-zero in an undisclosed timeframe, much of its effort related to decarbonisation is focused on reducing emissions intensity and not absolute emissions. CNRL’s low-carbon transition plan primarily focuses on technological solutions. The company lacks strong climate governance, a robust transition plan and focus on new low-carbon business areas.

CNRL’s focus on technology can provide an opportunity for low-carbon innovation. The company has experience in carbon capture and storage, albeit for enhanced oil recovery. At a time when the oil and gas sector needs to ramp up investment and research in this area, CNRL can contribute with its expertise and experience.

CNRL has few environmental commitments beyond those stated in its existing business model. The company lacks a clear low-carbon transition plan and has not set intermediate emissions reductions targets to focus near-term action towards decarbonisation.

CNRL has not disclosed a low-carbon transition plan and provides little information regarding its emissions reduction targets or renewable energy capacity. It remains unclear how the company plans to achieve its objective for reducing scope 1 and 2 emissions. Moreover, the company does not consider scope 3 emissions in its emissions reduction targets.

CNRL’s current activities are characterised by limited action on decarbonisation and pursuing a business-as-usual pathway. Although the company pursues technological solutions, these remain insufficient and cannot be relied on to deliver decarbonisation.

CNRL has been expanding its oil assets and increasing overall oil production, in turn increasing the company’s absolute emissions and undermining its progress on reducing scope 1 and 2 emissions intensity.

CNRL’s business strategy relies on optimistic assumptions about low-carbon technology and demand for fossil fuels. The lack of a detailed transition plan and ambitious targets, including a focus on reducing scope 3 emissions, undermines the company’s credibility with regard to achieving a low-carbon transition.