Suncor Energy Inc.

1. Suncor Energy Inc. Globepreneurs James Huberts Kelvin Malpartida Gwen Robak Lepine Suzanne Samborski Mike Williams

2. About Suncor • Canadian based 80 year old company • Rick George, CEO since 1989 • Over 4,000 employees • Growth oriented company • Extracts oil from sands of Northern Alberta • Other facilities in Colorado and Wyoming • Explores, develops, and markets natural gas under their Sunoco brand name • Develops renewable energy sources • Committed to Sustainable Development

3. Sustainability Vision • “Suncor’s vision is to a unique, sustainable energy company dedicated to vigorous growth by meeting the changing needs of our current and future stakeholders”…Rick George, CEO • “Being a sustainable energy company means managing our business in a way that enhances social and economic impacts to society, while striving to minimize the environmental impacts associated with resource development”…Suncor website

4. Competitive Strategy • Developing Suncor’s large, well-defined oil sands resource base • Investing in technology to expand our upgrading operations and increase crude oil production • Linking production to the growing North American energy market through term supply agreements and their own refining operations

5. Competitive Strategy • Believes in free enterprise • Healthy and unhampered competition is essential • Complies with and supports competition law • Wants to eliminate special treatment of protected businesses and economies • Wants to ensure economy and market work well and run smoothly within a sustainable context • Developed their own competition act • Act contains “reviewable practices” • Exclusive Dealing • Market Restriction • Delivered Pricing

6. Reviewable Practices • Exclusive Dealing: describes method of product distribution, a condition of supplying products to a customer or supplier requires or induces a customer deals only in the supplier’s products or the customer not deal in products of any of supplier’s competitors • Market Restriction: distribution practice, a supplier requires it’s dealers and distributors sell only to certain persons or only in a restricted geographical area • Delivered Pricing: it is prohibited that a supplier engage in a practice of refusing to permit customers to buy and take delivery of an article at any locality where supplier makes deliveries to other customers on same terms and conditions that are available to customers whose business are found in the locality

7. Sustainability Drivers • “If you are going to be in business and prosper for 50 years, then reducing environmental footprint has to come front and centre.”…Rick George, CEO

8. Sustainability Drivers The Triple Bottom Line • Builds stakeholder support for a company’s growth plan • Decreases costs of business • Positions the company to meet consumer demand with less environmental impact

9. Sustainability Drivers • Attract and retain a more talented workforce • Improve relations with regulators • Prosper and provide long-term shareholder value • Improve access to borrowed capital

10. Sustainability Drivers • Recognition that fossil fuel resources are finite • Helps maintain a good reputation • Relationship building with environmental groups • New regulations (Kyoto)

11. Sustainability to Date Measuring up against the Triple Bottom Line • Environmental Sustainability • Social Sustainability • Economic Sustainability

12. Sustainability to Date Environmental Sustainability • $1.5B spent on R&D to reduce environment damage • 2002 - first wind power project in Saskatchewan with Enbridge - 11 megawatt • 2003 - partner in 30 megawatt wind power project in Alberta to triple their wind capacity • Member of Cumulative Environmental Management Association (CEMA) • Protected Alberta regions of wildlife and backcountry

13. Sustainability to Date Environmental Sustainability • 2002 - GHG management • better measurement and recording to enhance energy efficiency • Reduced emission intensity by 18% • Provided Ontario consumers with lower sulphur gasoline • well ahead of the regulated 2005 deadline • Reduced emissions of CFC’s by 65%

14. Sustainability to Date Environmental Sustainability • Life Cycle Value Assessment (LCVA) Initiative • evaluates projects start to finish from manufacturing to disposal • assess social, environmental, and economic impacts to make decisions on triple bottom line • Participant in US $24 million CO2 Capture Project • 95% of water used in extraction of bitumen is recycled back into steam generator

15. Held meetings for community to ensure plans meet the needs of the community Journey to Zero program eliminates all occupational injuries and illnesses Matches employees in United Way donations Works with other industry and local partners including Wood Buffalo Municipality Sustainability to Date Social Sustainability

16. Sustainability to Date Social Sustainability • Signed Industry Relations Agreements with First Nations groups • 13% of workforce is comprised of Aboriginal workers through education, training, and recruitment • Promoted Cultural Awareness • in-house Aboriginal awareness workshops

17. Sustainability to Date Economic Sustainability • Diversification of operations through new energy sources (wind power and ethanol) • Net Earnings doubled from 2001-2002 to $761m • 50 Year Operating Plan

18. Sustainability to Date Economic Sustainability • Transparency • High degree of disclosure • Use of independent auditors • 24 hour integrity hotline for employees

19. Link to Overall Strategy • “ Suncor is committed to growing its energy business in a way that generates value for shareholders. To achieve our financial goals, we realize we must constantly strive to improve the performance of our operations and products, engage our employees in finding new and better ways of doing things, and work with all of our stakeholders to realize social, environmental and economic benefits.”…2003 What’s at Stake - Report on Sustainability

20. Link to Overall Strategy • Committed to delivering shareholder returns, while providing social and economic benefits to stakeholders and reducing environmental impacts • Focused on generating shareholder value by developing huge resources of Athabasca oil sands using sustainable processes • Uses best available manufacturing technology to increase oil production while protecting the environment

21. Link to Overall Strategy • Meeting customer needs for quality products (i.e. ethanol fuels) • secure a balance of stable, long-term commercial and industrial contracts with sustainability-minded businesses • improve the efficiency of sustainable retail network • investigate opportunities to expand responsible refining operations • Developing wind power because it provides business opportunities and minimizes economic footprint • Higher rates of responsible production

22. Link to Overall Strategy • Committed to working with employees, shareholders, stakeholders, communities, environmentalists, and aboriginal peoples to ensure the rights, safety (Journey to Zero), and quality of life are protected • Pursues alternate power sources as a financial and environmental commitment the corporation which embraces triple bottom line • Only oil and gas company to produce cost analysis for business case to comply with Kyoto accord

23. Recommendations • In walking his talk, Rick George should leverage his experience and credibility by having 50% of all members of the Canadian Council of Chief Executives producing sustainability strategies and reports by 2010 • Suncor needs to commit to generating 50% of its revenues from alternative renewable resource energies by 2015 possible mix: (30% Wind/20% Ethanol)

24. Recommendations • The annual report should make references to sustainability to underline its company-wide commitment • Provide comparative analysis with other oil and gas corporations in the global market to benchmark their performance • Increase R&D and further expand the ethanol projects • Improve social responsibility in communities were transfer credits are purchased

25. Recommendations • Provide more "measurability" in their initiatives with specific targets • Increase the wind power by 30% of their current output • Invite local environmental groups to act as "watchdogs" in each country they operate to attain the corporate goal for transparency • Set up a "green hotline" for those seeking specific information and advice

26. References