By Adriano Marchese

Canadian Pacific Railway Ltd. will aim to reduce its carbon footprint and adapt operations to the physical risks of climate change as part of its climate strategy.

The Canadian Class I railway said Monday that it has set new emissions-reduction targets that seek to fully address its scope 1 and scope 2 greenhouse gas emissions and more than half of scope 3 emissions.

Scope 1 and 2 emissions are emissions that are created directly or indirectly through a company's operations, while scope 3 emissions include indirect emissions occurring along its value chain.

CP said it has committed to reduce the intensity of all three emissions scopes by its locomotives--its largest source of emissions--by over 38% by the end of the decade.

The company also said it aims to reduce absolute scope 1 and scope 2 emissions from non-locomotive operations by over 27% by 2030.

"CP's Climate Strategy, and supporting science-based emissions reduction targets, have been developed in alignment with the goals of the Paris Agreement and the Pan-Canadian Framework on Clean Growth and Climate Change, which seek to limit global temperature increases to well below 2 degrees Celsius," the company said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

07-26-21 0914ET