International Petroleum Corporation (IPC) has achieved its 2025 climate target by reducing its Scope 1 net greenhouse gas (GHG) emissions intensity by 50 percent from its 2019 baseline, marking a major milestone in its sustainability strategy.
The company lowered its net emissions intensity to 20 kg CO₂e per barrel of oil equivalent (boe) and has committed to maintaining this level through the end of 2028, underscoring its long-term focus on operational decarbonization rather than setting an absolute net-zero deadline.
IPC’s sustainability strategy is built around reducing operational emissions while enhancing climate resilience across its upstream oil and gas assets. The company identified 15 material ESG topics through its Double Materiality Assessment (DMA) and assessed 14 climate-related impacts, risks and opportunities (IROs) to strengthen climate governance and long-term business planning. To reinforce executive accountability, 15 percent of variable executive compensation is linked to climate, environmental and safety performance.
Rather than committing to a fixed net-zero year, IPC continues to manage its organization-wide Scope 1 net GHG emissions intensity through four strategic pillars: operational emissions reductions, small-scale efficiency projects, large-scale decarbonization initiatives including carbon capture systems, and the use of carbon offsets and carbon markets.
IPC also conducts detailed climate scenario analysis to assess business resilience. Under its Net Zero Emissions (NZE) Scenario, which aligns with limiting global warming to 1.5°C by 2050, the company models carbon prices of US$180 per tonne of CO₂ by 2035, US$205 per tonne by 2040, and US$250 per tonne by 2050. Other assumptions include Canada’s current policy carbon price of US$70 per tonne, Canada’s stated policy price of US$126 per tonne, and EU ETS carbon prices of US$89 per tonne in 2035, US$92 per tonne in 2040, and US$174 per tonne in 2050.
The climate resilience assessment showed only a 0.5 percent reduction in Bitumen 1P reserves under the Net Zero scenario, while 2P reserve volumes remain unchanged under both Net Zero and Stated Policies scenarios. IPC expects only moderate reductions in 2P reserve net present value (NPV) under the STEPS and NZE scenarios, with significant NPV impacts occurring only under the Net Zero pathway because of lower oil prices and higher carbon costs.
To further reduce emissions, IPC is expanding renewable energy and low-carbon initiatives across its operations. The company has signed a Power Purchase Agreement (PPA) to export excess electricity to Alberta’s electricity grid and is evaluating biofuels, hydrogen, expanded microturbine electricity generation, electrification projects, and carbon capture systems. Additional initiatives include solar-powered pumps, waste heat recovery, pneumatic system upgrades, and active participation in both the Canadian carbon market and international voluntary carbon markets through offsets and carbon credits.
IPC continues to strengthen ESG governance. During 2025, the Reserves and Sustainability Committee met four times with full attendance, while the company’s Board consisted of eight directors, including five independent directors, ensuring strong oversight of sustainability and climate-related decision-making.
The company also advanced sustainable investment across its asset portfolio. By the end of 2025, IPC had invested approximately US$820 million in the Blackrod Phase 1 project, which achieved first steam in December 2025 and moved closer to commercial operations. IPC also reported US$344 million in capital and decommissioning expenditures during the year, supporting operational improvements and long-term asset development.
Health and safety remained another key sustainability achievement, with IPC reporting zero material safety or environmental incidents across all operating regions during 2025. The company continues to focus on community engagement, Indigenous peoples’ rights, workforce development and responsible environmental management while improving transparency through sustainability reporting aligned with ISSB IFRS S1, ISSB IFRS S2, GRI, TCFD, and IPIECA reporting frameworks.
By combining emissions intensity reductions, renewable energy integration, carbon pricing analysis, climate governance and strategic investments, IPC has strengthened its sustainability performance while positioning its operations for a lower-carbon future. The company’s achievement of a 50 percent reduction in Scope 1 emissions intensity, commitment to maintaining 20 kg CO₂e/boe through 2028, and continued investment in decarbonization initiatives demonstrate a measurable and disciplined approach to long-term climate action.
SHAFANA FAZAL
