Download the Climate Change Disclosure document
Capital Power is a forward-looking, innovative power producer with a strategic focus on sustainable energy. We are responsible and realistic and consider this to be a great competitive advantage as we are set to lead our industry in the production of reliable, cleaner power.
Sustainability is nothing new to us and each Capital Power employee holds, at their core, the commitment to providing responsible energy for generations to come.
We are also committed to evolving our current reporting and disclosure of climate-related risks and opportunities to provide our shareholders, investors and stakeholders with an increased level of open and transparent disclosure. We support the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and the objectives they aim to address with respect to increasing the level of disclosure of potential risks and opportunities faced by businesses relating to climate change.
This information is provided to identify elements of the TCFD recommendations currently being addressed through our existing disclosure and reporting, identify the three climate scenarios that will provide the basis for our strategy assessment going forward, and provide an initial qualitative assessment of the key risks and opportunities those scenarios present for Capital Power’s business.
Capital Power has historically disclosed how issues relating to greenhouse gas (GHG) emissions and climate change-related matters are managed and assessed, along with other business risks, in our Management Discussion & Analysis (MD&A) reports, our Annual Information Form (AIF) reports, and our Corporate Sustainability Report (CSR) as summarized below.
Climate change scenarios help us plan and make better decisions by considering possibilities, opportunities and uncertainties that lie ahead. They help us to innovate, create and deliver long-term value.
Members of our leadership team conducted an initial analysis of three alternate climate change scenarios:
We did this to facilitate Capital Power’s assessment of policy, market, technological, reputational and physical risks and opportunities associated with climate change. Based on our assumption that governments, companies, and markets are shifting to a lower-carbon economy, drivers - such as more robust climate-related policy and regulation, technological advancements, rising investor interest, and increasing physical impacts - will present opportunities to build and develop zero and low-emitting generating sources and technologies and receive incentives for such investments, and will also present us with risks related to increasing compliance costs, damage and operational impacts caused by climate-related weather change and, enhanced disclosure requests.
Capital Power’s initial assessment of climate change scenarios indicates that: (1) there will continue to be several options available to mitigate risks and capitalize on opportunities related to a changing climate and energy system (as summarized in the table below) and (2) our business and strategy will be resilient to the risks and opportunities presented by all three scenarios. The expected continued global shift toward renewables - and corresponding requirement for natural gas to provide firming and backstop services to ensure reliable and affordable electricity – are reflected in our strategic focus on both types of generation. Our efforts to support the advancement and deployment of CCUS will support the long-term and sustainable use of natural gas as a zero or near-zero emitting fuel, not only in power generation, but in other industrial sectors as well.