Report on Sustainability 2018 Suncor Energy Inc

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Report on Sustainability 2018 Suncor Energy Inc REPORT ON SUSTAINABILITY 2018 SUNCOR ENERGY INC. REPORT ON SUSTAINABILITY 2018 TABLE OF CONTENTS | 2 TABLE OF CONTENTS CEO’s message ............................... 3 Climate change .............................. 46 Innovation ..................................... 109 Our perspective and engagement .......................... 47 Our approach to technology and innovation ........ 110 About our report ........................... 6 GHG performance and mitigating emissions ......... 51 In situ technologies .................................................. 113 Strategy and governance ............. 10 Integrating our GHG performance goal ................. 55 Mining technologies ................................................ 117 Suncor’s mission and vision ...................................... 11 Low-carbon innovation ............................................ 57 Upgrading and refning technologies .................... 119 Sustainability Q and A: taking the long view ......... 13 Carbon risk and energy outlook ............................. 60 Reclamation technologies ....................................... 120 Sustainability goals .................................................. 17 Resilient strategy ...................................................... 64 Digitization ............................................................... 121 Renewables ............................................................... 18 Carbon policy and regulation .................................. 69 Collaboration ............................................................ 122 Corporate governance ............................................. 21 Environment .................................. 71 Performance data .......................... 125 Risk management ..................................................... 23 Water performance and stewardship ..................... 72 Performance data ..................................................... 126 Policy engagement ................................................... 25 Tailings management ............................................... 76 Lobbying and disclosure .......................................... 29 Appendices .................................... 132 Air quality ................................................................. 78 Appendix A: Performance data notes ..................... 133 Our business .................................. 31 Reclamation .............................................................. 81 Appendix B: Independent assurance statement .... 143 Operations summary ................................................ 32 Land, biodiversity and wetlands ............................. 85 Appendix C: Advisories ............................................ 146 Economic impact ...................................................... 34 Caribou conservation ............................................... 88 Appendix D: GRI content index ............................... 150 Market access ........................................................... 36 Social responsibility ...................... 89 Personal and process safety ..................................... 37 Stakeholder and Aboriginal relations ..................... 90 Ethical business conduct .......................................... 39 Community investment ............................................ 94 Diversity and inclusion ............................................. 42 Social goal ................................................................. 100 Strengthening relationships .............................. 101 Partnering with Aboriginal youth ..................... 103 Partnering with Aboriginal businesses and communities ....................................................... 105 Improving Aboriginal workforce development 107 SUNCOR ENERGY INC. REPORT ON SUSTAINABILITY 2018 CEO'S MESSAGE | 3 Steve Williams, President and Chief Executive Offcer CEO’S MESSAGE MESSAGE In today’s world of instant messages and rapid response, it’s easy to get While much work remains to be done, I believe caught up in whatever is pressing at any given moment. But it’s also easy Suncor is making progress in responding to these key challenges. That’s a result of the to lose sight of the bigger picture. sustainability journey we embarked on more than two decades ago, which commits us to Suncor recognizes and has embraced the be an energy provider of choice going forward, continually improve our environmental, social importance of taking the long view. Our companies like Suncor need to build pathways and economic performance. business model, strategies and growth plans are towards global competitiveness, on both cost driven by a clear vision of the role we aspire to and carbon. We’ve learned the key to making progress is play in creating energy for a better world over to bring together and engage with people of We also need to ensure the benefts of resource the next 50 years or more. diverse interests and perspectives – and listen development are shared more fully. It’s not just intently to their concerns, expectations and That kind of long-term thinking is more critical about corporate profts – it’s about something ideas about how we can work together on than ever in a world facing signifcant long- bigger. That is why we focus so much effort solutions to shared challenges. term social, economic and environmental on ensuring communities we touch, including challenges – including the challenge to lower Aboriginal communities, participate with us to These conversations continue to shape, change global emissions to address climate change. To co-create our future. and guide us. I know they help make us a more SUNCOR ENERGY INC. REPORT ON SUSTAINABILITY 2018 CEO'S MESSAGE | 4 sustainable and resilient energy company. And sustainability. We understand that the to meet this goal by targeting a reduction in they’re good reminders that when you take a economic, environmental and social dimensions the total GHG emissions intensity of our oil long-term view, you’re ensuring a better future of energy development are deeply integrated and petroleum products by 30% by 2030. We for those that follow. and success in one cannot be achieved without believe this target, together with our ongoing success in all. commitment to technology and innovation, The energy future: puts us on the path to ultimately bending the By taking costs out of our business and curve on our absolute GHG emissions as well. challenges and opportunities pursuing operational excellence, Suncor can now generate suffcient funds from operations In addition to our internal strategies, Suncor Energy is the lifeblood of our economies and at a US$40 to $45 per barrel oil price to cover works closely with organizations like Canada’s quality of life. Whether it’s providing for food, our sustaining capital and our dividend. There Oil Sands Innovation Alliance (COSIA) and Evok heat or transport, reliable and affordable aren’t many oil producers globally that can Innovations on clean technology solutions. oil and gas remains one of the primary make that claim. We also continue to partner with groups energy sources for modern society. And while like the Carbon Pricing Leadership Coalition, renewable energy continues to advance, oil At the same time, we are driving improvements Canada’s Ecofscal Commission, Clean Resource and gas are expected to continue to be a in environmental performance. Suncor recently Innovation Network (CRIN) and the Energy signifcant part of the global energy mix for the achieved a signifcant milestone at our Fort Futures Lab to support collaboration and foreseeable future. Hills project – achieving design capacity much innovation. earlier than planned. This project is poised to That doesn’t mean it’s business as usual. Climate provide energy for the next 50 years and the Suncor’s commitment to engaging in open change is real – one of the most pressing greenhouse gas (GHG) emissions intensity of and honest conversations – listening to, and challenges of our time – and we all have a production at Fort Hills is currently on par with learning from, a broad range of viewpoints shared responsibility to fnd solutions. Failing to the average refned barrel in the United States. – has allowed us to play a positive role in act is not an option. advancing progressive public policy on climate The next major challenge is at our in situ sites, Canada has the energy the world needs. change. where the bulk of Suncor’s future growth is Our challenge is to continually improve our expected. Next-generation in situ technologies Canadian leadership in this area has been performance, inspire others to do so and move hold the potential to not only reduce costs, noticed and is making a difference. our products to new customers in new markets but to also dramatically lower GHG emissions in the years ahead. – in some cases by 50 to 70%. We’re currently If you ask people outside our borders where they would like their oil to come from, they For a company like Suncor, that means our allocating capital to advance some of these in prefer Canada to other places in the world. We oil must be globally competitive on cost and situ technologies at commercial scale. must continue to work together to meet that carbon. I’m encouraged by the progress we’re Throughout the recent oil-price downturn, demand in a way that helps to make progress making in both of these areas. Suncor continued to invest in technology on these signifcant challenges. Suncor has been on a multi-year journey development. In 2017, we invested
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