Report on Sustainability 2020 CEO Message
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Report on Sustainability 2020 CEO message As I write this, the world is contending with the health and economic effects of a global pandemic which has not only impacted lives, but has brought about disruptions to fnancial markets, businesses, and the way we work and live. Mark Little president and chief executive offcer This crisis is highlighting how interconnected environmental, social and economic systems are. Responding and recovering from the effects of the pandemic and fostering resiliency will require cooperation and collaboration among all stakeholders. Our collective actions can have an enormous impact when we work together to fnd solutions. At Suncor we use our purpose – Our purpose embodies to provide trusted energy that enhances people’s lives, while caring for each other and our commitment to the earth – to guide our decisions and actions. sustainability and is our As much as our world has changed through COVID-19, Suncor remains fully committed to our strategy, sustainability leadership and our role in the energy transition to a low-carbon future. guide in these times of Our commitment is unwavering and continues to be at the heart of everything we do. uncertainty. We all have a We continue to see outstanding progress being made on the social goal we’ve set, including role to play in our shared increasing the participation of Indigenous Peoples in energy development. In 2019, we spent more than $800 million with Indigenous businesses, representing 8% of our total supply chain energy future. spend. We have also increased the number of Petro-Canada™ stations that are Indigenous-owned Mark Little and operated. But success is more than just metrics; we also continue to refect on whether our president and chief executive offcer efforts are leading to cultural shifts and behavioural changes in how we work with and learn from Indigenous Peoples. That said, ongoing racist and discriminatory events in the United States and Canada have underscored deep and systemic societal bias – highlighting that more work is required, and deepening Suncor’s commitment to inclusion and diversity, and creating a respectful workplace. ™ Trademark of Suncor Energy Inc. Suncor Energy Inc. | Report on Sustainability 2020 | 2 CEO message Ensuring the personal safety of our employees and contractors is a Petro-Canada™ stations across Canada, which we completed in 2019. continuing priority. Safety is at the core of Suncor’s values and we We know our customers want options to reduce their carbon footprint, moved quickly to respond to the COVID-19 pandemic to ensure the and Canada’s Electric Highway™ is one way that Suncor, through its health and safety of our workforce in all our locations. We used our Petro-Canada™ brand, can support reducing emissions by providing discipline in health and safety to work with health offcials to think Canadians with lower carbon choices for their energy needs. through every scenario and develop detailed protocols, which we When it comes to our environmental performance, I am proud of the shared with industry and companies around the world. While I’m proud progress in key areas such as improved water recycling rates at our Oil of our response to the pandemic, our operational safety performance in Sands Base Plant. I’m also pleased with the progress we’ve made on 2019 demonstrates that we still have work to do. We saw an increase tailings. With the implementation of permanent aquatic storage system in personal safety incidents, reminding us we must focus on safety (PASS), we now treat more tailings than we produce in a year which every day so that we all go home healthy. means we’re reducing the inventory of legacy fuid tailings on site. When we consider what sustainability for the future looks like, we have I encourage you to read the 2020 Report on Sustainability to learn about to address one of the most complex challenges the world faces and a all the ways Suncor is working to operate in a sustainable manner. critical focus for Suncor – climate change. We continue to take steps to reduce emissions across all our facilities. This means continuing to Our purpose embodies our commitment to sustainability and is our guide work towards our 2030 commitment to reduce our total emissions in these times of uncertainty. We all have a role to play in our shared intensity by 30% as well as developing more ambitious approaches to energy future. The more people that are engaged, and the more we sustainability beyond our 2030 commitments. collaborate with our peers, governments and others, the greater our likelihood of success. When we look back years from now, we will be In support of our current climate goal, we announced a $1.4 billion proud of our collective action of working together to build a better future. investment in a new cogeneration facility at our Oil Sands Base which will replace coke-fred boilers with more energy effcient, natural gas- fred cogeneration units, and is expected to reduce GHG emissions from our Base Plant by approximately 25%. I am equally excited about our plans to invest in the $300 million Forty Mile Wind Power Project in southern Alberta, which once in commercial service, will generate double-digit economic returns through zero carbon power generation. Unfortunately, we have had to extend the timeline to develop both projects by up to two years due the current market situation – a strong reminder that our investments in low-carbon innovations depend on Mark Little the fnancial health of our business. president and chief executive offcer Another way we are contributing to Canada’s climate commitments is through the country’s frst electric highway – a coast to coast network of more than 50 fast-charging electric vehicle chargers at ™ Trademark of Suncor Energy Inc. Suncor Energy Inc. | Report on Sustainability 2020 | 3 ESG highlights * ~10% reduction $33 million 351 million in GHG emission intensity since 2014 community investments total barrels of oil equivalent Additional 10% sanctioned produced and refned $3.1 million Canada’s largest million tonnes CO e employee donations 22.78 2 Absolute GHG emissions in 2019 ethanol facility $836 million 400 million litres produced in 2019 New 2°C supply chain spend with Indigenous businesses in 2019 ~5,000 scenario vendors across Canada helps us assess the resilience of our long-term strategy FORT MCMURRAY EDMONTON ST. JOHN’S VANCOUVER LONDON CALGARY REFINERY MONTREAL MINING AND IN SITU OPERATIONS TORONTO OFFSHORE OPERATIONS WIND POWER PROJECT BIOFUELS DENVER PETRO-CANADA™ ELECTRIC VEHICLE CHARGING NETWORK Completed 49% 2,400MW Canada’s Electric Indigenous ownership in the operational and sanctioned ™ $1.0 billion East Tank Farm low-carbon power equivalent to Highway 2.25M homes’ electricity a coast-to-coast electric vehicle (EV) use per year fast-charging network spanning more than 50 Petro-Canada™ stations *We expect there to be impacts to our GHG intensity due to government mandated production curtailment and COVID-19 impact on demand. Suncor Energy Inc. | Report on Sustainability 2020 | 4 ESG highlights Greenhouse gases 2014 BASELINE Driving real reductions in the Energy efÿciency global energy system CO2 • >50% lower GHG intensity at our newest 2030 TARGET Fort Hills mine vs. oil sands average New technology • ~2.5 Mt/y GHG reductions from newly sanctioned GHG cogeneration facility goal equivalent to avoiding emissions from 550,000 Reducing Low-carbon fuels passenger vehicles per year emissions intensity by • ~0.4 Mt/y GHG emissions avoided from newly 30% by sanctioned Forty Mile Wind Power Project 2030 Low-carbon power equivalent to avoiding emissions from 85,000 passenger vehicles per year Water, tailings and reclamation High water recycle rates in upstream operations 100% 2,795 ha increase in annual fuid tailings reclaimed since 1967 treatment with new PASS process, equivalent to 5,223 football felds 92% reducing legacy tailings Oil Sands Base Plant 96-100% Suncor’s Wapisiw Lookout Firebag & MacKay River in situ facilities First reclaimed oil sands tailings pond Technology and innovation Governance Board diversity Next generation extraction Management diversity • 50-70% potential GHG reductions and lower water use through solvents-based processes 25-year history of Advanced low-carbon fuels sustainability reporting $830M • Lower downstream emissions • Converting waste streams to useful products Carbon is a principal risk technology with full board oversight investment Digitalization 40% 34% 66% 60% Executive remuneration • Improved safety and costs FEMALE FEMALE MALE MALE tied to ESG performance • Autonomous haul trucks • Drones and remote sensing 100% independent chair and committees Cleantech venture capital • Evok Innovations • ArcTern Ventures Indigenous representation on board since 2000 • Enerkem Inc. • LanzaTech Suncor Energy Inc. | Report on Sustainability 2020 | 5 Table of contents n Executive summary n Environment 68 CEO message 2 Air quality 69 ESG highlights 4 Water stewardship 71 Tailings management 76 n About our report 7 Land and reclamation 79 n Strategy and governance 9 Biodiversity 81 Our purpose 10 n Communities 84 Sustainability Q and A 11 Community investment 85 Sustainability goals 13 Indigenous relations 88 UN Sustainable Development Goals 14 Social goal 89 Corporate governance 16 Strengthening relationships 90 Risk management 18 Partnering with Indigenous youth 91 Innovation 20 Partnering with Indigenous businesses 92 Engagement 25 and communities Improving Indigenous workforce 93 n Our business 26 development Operations summary 27 Economic impact 29 n Appendix 94 Supply chain 30 Performance data 95 Personal and process safety 33 Performance data footnotes 101 Inclusion and diversity 37 Independent assurance statement 110 GRI and SASB disclosure index 112 n Climate change 39 TCFD disclosure index 124 CFO message 40 UNGC communication on progress 125 Our perspective 41 Advisories 127 Leading energy system transformation 42 Governance 45 Climate-related risk management 46 Strategy 49 Metrics and targets 60 Low-carbon innovation 65 Suncor Energy Inc.