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View Report - SocialFunds.com

View Report - SocialFunds.com

There’s a famous

There’s a famous saying, “May you live in interesting times.” Scholars continue to debate whether it’s meant to be a blessing or a curse—and the confusion is understandable. Interesting times, like the ones we are currently experiencing, are filled with both challenges and opportunities. ceo’s message Starting in fall 2008, the global credit crisis and resulting market turmoil affected every sector of the economy, and every industry and company. It forced all of us to take a long, hard look at how we conduct our businesses—and what changes are needed to chart a successful course in the years and decades ahead. For the energy industry, the challenge was compounded. Even before the global financial crisis struck, our industry faced a significant dilemma—how to produce the energy required to fuel our economy in a way that is socially beneficial and preserves a healthy environment. At Suncor, we’ve been thinking about this dilemma for a long time. That’s why, in the early 1990s, we were one of the first energy companies to adopt a vision of sustainable development as a key part of our business strategy. It’s also why, more than a decade ago, we implemented a comprehensive climate change action plan. And we continue to challenge ourselves to do more. With this Report on Sustainability, Suncor is setting out specific performance goals for improving energy efficiency and reducing our environmental footprint. We intend to monitor and report our progress in meeting these goals. A Changing World “Interesting times” inevitably means “changing times”— and that’s very true for Suncor. In response to the recent market turmoil, we have put major growth projects on hold. While it was a difficult decision, the opportunity we see is breathing room to further refine our core business strategy across a triple bottom line of environmental, social and economic performance. We are seizing that opportunity. An intense focus on operational excellence targets improvements in every aspect of our business—including safety, reliability and environmental responsibility. The efficiencies we build into our operations are intended to strengthen our performance today and put us on a more sustainable footing when the time comes to resume our growth projects. And we know improvements are needed. As recently as 2008, we experienced setbacks at our oil sands plant and in situ operations due to environmental performance problems. Going forward, we are determined to do better. There are other ways in which these are “interesting times.” The proposed merger of Suncor and Petro-Canada announced in March 2009 would create a premier Canadian energy company with the integrated assets and financial strength to compete globally. But it’s also important to note these are two companies with a longstanding commitment to environmental stewardship and social responsibility. By joining forces, we see an opportunity to strengthen and build on those shared values. So the central theme of this report—“seeing the possibilities in a changing world”—is timely. Suncor has always been about seeing possibilities where others saw only problems and obstacles. That’s how we pioneered development of Canada’s oil sands at a time when many thought it couldn’t be done on an economic basis. This report documents our successes and outstanding challenges on a wide range of social and environmental issues. For the first time, Suncor’s annual climate change report—documenting our progress in managing greenhouse gas (GHG) emissions—is included as part of this broader Report on Sustainability. We know our industry is in the public eye as never before. We are also keenly aware that many believe the oil sands industry is not doing enough to reduce environmental impacts. We have heard this message loud and clear—and we are responding. Consultation with our own stakeholders reveals two other expectations—frankness and transparency. They want us to be candid about our sustainability challenges and forthright about potential solutions. This report attempts to do just that. One of the biggest challenges we face is reducing the carbon intensity of our business. Suncor continues to act on several fronts—investing in new technologies, developing renewable energy sources and getting involved in the public policy discussion. Suncor Energy Inc. 4

Suncor is proud of its sustainability efforts to date, but we also recognize there is still much work ahead of us. In response to our stakeholders’ requests, we have set environmental performance goals to measure our sustainability progress. Consolidated tailings ponds at Suncor’s oil sands facility. We are encouraged by recent moves in Canada and the United States to develop coherent and comprehensive plans to manage GHG emissions. As climate change regulations are introduced, we will continue to press for clarity, fairness and as much harmonization as possible. We recognize there are many areas where we can target improvement on past performance; several are highlighted in this report. But I’d like to conclude by citing a couple of emerging success stories. In 2010, Suncor expects to become the first oil sands company to have a tailings pond with a trafficable surface that has progressive reclamation underway. This milestone is a source of pride for us, but it’s also just one step on a longer journey. That’s why we’re investing in research and development of new technologies to significantly accelerate the pace of tailings pond reclamation. Suncor has also reduced its absolute water use over the past six years. Our objective now is to become the lowest intensity water user in the oil sands industry and we are committing nearly $600 million over the next decade to manage our water plan. Water use and tailings management represent huge costs for our business. Our focus on improved performance in both areas is a good example of how we see—and intend to realize—the possibilities for creating a more sustainable energy industry. None of this will come easily and it will require collective action. In that context, I ask you to read this report carefully and give us your feedback. Together, we have the opportunity to take this changing world of ours and make it a better one. Rick George president and chief executive officer Suncor’s performance goals Suncor is taking a proactive approach to further reducing its environmental footprint by adopting a series of strategic environmental performance goals. All of the proposed reductions are absolute, except for energy efficiency which is intensity-based. We are planning to achieve these goals even as our production rates grow.* Indicator Water Use Land Disturbance Energy Efficiency Air Emissions Environmental Performance Goal Reduce water intake by 12 percent by 2015 Increase land area reclaimed by 100 percent by 2015 Improve energy efficiency by 10 percent by 2015 Reduce current air emissions by 10 percent by 2015 We will also work to align our current GHG strategy to address emerging climate change policies by 2010. This, in turn, will help us clarify our long term goals. * The base year for the planned improvements is 2007. The goals were established in 2009 and our business units will be addressing them in the 2010 business planning cycle, with capital allocations to follow. Suncor is looking at a five-year timeframe for implementation as these performance goals will require significant resources (capital investments and people) and focus. Our focus will be to assign the right resources at the right time. On the web: Details on how Suncor plans to achieve each of these performance goals can be found in the “What Guides Us” section, under CEO’s Message/Performance Goals. 5 2009 summary report on sustainability