Energy Transition: An Inside Look at Parkland Corporation’s ‘Drive to Zero’ Strategy

Headquartered in Calgary, Parkland Corporation is an international fuel distributor and convenience store retailer with operations spanning 25 countries. Committed to helping their customers through the energy transition, Parkland is a leader in low-carbon fuels innovation with a focus on realizing significant GHG reductions in the most capital and asset-efficient way.  
 
Their targets include reducing Scope 1 and 2 GHG emissions by 40% per site at their Canadian marketing and commercial operations by 2030 and reducing 1MT of emissions annually by 2026. To chart a clear path to achieve these targets and support governments’ goal to achieve net-zero emissions by 2050, in alignment with the 2015 Paris Agreement, Parkland launched their ‘Drive to Zero’ sustainability strategy.  
 
Ahead of our upcoming Transformation in Energy Summit, taking place in Calgary from May 14-16, we sat down with the Director of Sustainability at Parkland, Jeremy van Loon, to talk about their approach to decarbonizing operations. Read as he shares exclusive insights on ‘Drive to Zero’, along with the lessons learnt and challenges overcome when driving this strategy.  
 
Maryam Irfan, Oil & Gas IQ: Can you tell us about Parkland’s Drive to Zero Strategy? 
 
Jeremy van Loon: Parkland’s Drive to Zero strategy encapsulates various aspects of our sustainability strategy. We are addressing core issues such as safety and aiming for zero safety and severe injury incidents. Additionally, we are committed to reducing emissions and moving in the right direction towards a more sustainable business.  
 
Maryam Irfan, Oil & Gas IQ: Can you highlight the key stages Parkland has undergone in adapting this sustainability strategy, and how has it evolved over time? 
 
Jeremy van Loon: The strategy emerged about four years ago, and at that time, the context was a little different, both in terms of macro issues and how people were tackling challenges like climate change and addressing emissions. 
 
The strategy has evolved over time based on both external and internal considerations. Some of our existing targets we have already reached, and therefore we are constantly keeping an eye on the best way to move forward sustainably and adjusting our approach as needed. In general, the approach is an effort to be a good corporate citizen, help our customers through the energy transition and find ways to add shareholder value.  To do that, we need to be responsive to changes in conditions, and consider how we can take advantage of opportunities in the energy transition. 

READ: 6 Ways Digital Transformation Can Accelerate Sustainable Operations
 
Maryam Irfan, Oil & Gas IQ: Any lessons learnt in driving this strategy? 
 
Jeremy van Loon: The key lesson is to listen to stakeholders, both internal and external, and understand what's important to them. You can’t build strategy in a vacuum. 
 
The second thing is to make sure that you have an eye on the horizon in terms of where you want to go but also have very practical, achievable, short- and medium-term goals.  
 
A lot of companies are obviously looking to 2050, but the range of uncertainty widens considerably as you look that far into the future. We are focused on how we can take steps to achieve interim targets, while very carefully thinking about the long-term aspirations. Our next goal post is 2030. Understanding the larger picture is critical. Demand for energy is going to change, and regulations are going to change as well over time. So, it's important to keep all those different, moving pieces in mind when thinking about the strategy. 
 
Maryam Irfan, Oil & Gas IQ: What specific KPIs do you consider when measuring decarbonization progress? 
 
Jeremy van Loon: Emissions reduction targets are one aspect, and an important one. The other thing that we keep an eye on is efficient operations because that's a benefit to shareholders in terms of reducing costs. Are there ways we can reduce our energy consumption, use less water, paper and make Parkland a more inclusive workplace? So, there are a lot of ways we measure our progress.   
 
Maryam Irfan, Oil & Gas IQ: Can you share any challenges faced and how were they overcome? 
 
Jeremy van Loon: One big challenge is ensuring that any technology we implement to achieve efficiency targets or aspirations has a return on investment (ROI) associated with them. It is, at the end of the day, a business decision, and we must ensure that whatever investments we make provide a return for shareholders. 
 
With many technologies in their early stages, even relatively mature ones like solar, the deployment location and available incentives play a crucial role. There's a calculation involved, and it has to compete with other initiatives across the organization.  
 
The other challenge is the communication side of it, making sure that everyone internally and externally understands why we're implementing a sustainability strategy and addressing climate change, diversity and inclusion and other sustainability elements in the way we are. Ensuring that everyone has a common understanding of what we're trying to achieve is important to the success of the strategy. 

READ: Sustainability and Decarbonization: What Language Are We Speaking?

Maryam Irfan, Oil & Gas IQ: What has been Parkland’s approach to managing both decarbonizing operations and meeting the growing energy demand? 
 
Jeremy van Loon: We have several interesting initiatives: 
 
1. Parkland owns and operates a refinery just outside of Vancouver and at this refinery, there is significant work on co-processing renewable fuels - a key part of our initiative to meet the demand for liquid fuel while reducing emissions. These fuels typically have 1/8th the carbon intensity of standard hydrocarbons, making it a crucial component of our strategy. 
 
2. Another aspect is our work on blending renewable elements into fuel, such as ethanol, across the various jurisdictions where we operate internationally and across North America. 
 
3. The third and rapidly growing part of our business is EV charging. We've built one of the largest charging networks in Western Canada, stretching from Calgary to Vancouver Island.  
 
These three elements - co-processing renewable fuels, blending renewable elements into fuel, and expanding our EV charging network - are core to how we are attempting to meet demand while providing customers with lower emissions. 
 
Maryam Irfan, Oil & Gas IQ: Have COP28 outcomes impacted the strategy in anyway? If so, can you highlight any specific measures or adjustments made in response to these outcomes? 
 
Jeremy van Loon: We certainly pay attention to the discussions and decisions that happen at climate talks, and other regulatory and legislative changes wherever we operate. They certainly are among the many factors that contribute to planning our long-term sustainability objectives and approaches. 
 
We have seen more talk about nature-based solutions and biodiversity at both last year’s climate COP and the biodiversity COP. We do regular reviews of material issues that affect Parkland and biodiversity is one of the issues that we are hearing more about from our stakeholders. Currently, it is not as material for Parkland as the energy transition, for example. Overall, climate COPs are very important in setting the tone and direction for the world’s approach to tackling climate change and then governments and companies find ways to make their own contributions, according to impact, resources, and circumstances.  

LISTEN: Episode 8: From Policy to Practice: New Mexico's Role in the Energy Transition
 
Maryam Irfan, Oil & Gas IQ: What are you most looking forward to at the Transformation in Energy Summit? 
 
Jeremy van Loon: It's always good to hear what other companies are working on and how they're solving some of these problems. Every time I go to a conference, I'm struck by how similar some of the challenges are, even though maybe companies operate in a very different sector or have a different competitive environment. Nevertheless, it's always beneficial to hear how others are solving these big challenging problems in innovative and new ways. 

Interested in learning more?

Jeremy van Loon will be presenting a case study on 'Strategic Evolution: How Parkland is Adapting its Sustainability Strategy' at our upcoming Transformation in Energy Summit, taking place in Calgary from May 14-16. This years event will have a host of exclusive keynotes, panels and peer-led discussions on how to navigate the energy transition while maintining sustainability and competitive advantage. Download the agenda for more information.