AHC GROUP: Answering Public Expectations Since 1981

AHC Group4 Franklin Square, Suite BSaratoga Springs, NY 12866518-583-9619Bruce Piasecki, Founder and Presidentbruce@ahcgroup.com

For more information on our quarterly benchmarking exchanges and how to participate in The AHC Group’s Corporate Affiliates Program, please contact David Frazier at David@ahcgroup.com, or visit www.ahcgroup.com

AHC Group’s Annual Corporate Affiliates Event

Advancing the Case for Sustainable Products and Value CreationJune 29 and 30, 2004

held at the Gideon Putnam Hotel, Saratoga Springs, NY

AHC Group Proudly Presents

Gord Lambert

VP of Sustainable Development

Suncor

presenting on

Growing A Sustainable Energy Company

Shareholder Value WorkshopChaired by Hewson Baltzel

Facilitated by Bruce Piasecki, AHC Group

TopicsTopics•Sustainable development - brief history•Sustainable development - brief history

•Why sustainable development is important•Why sustainable development is important

•Brief overview of Suncor’s progress•Brief overview of Suncor’s progress

•The path forward for Suncor•The path forward for Suncor

Sustainable Development Concept

Sustainable Development Concept

Importance of Sustainability to Suncor

Importance of Sustainability to Suncor

•License to growth/stakeholder expectations•License to growth/stakeholder expectations

•Issue of climate change•Issue of climate change

•Strategic competitive advantage (shareholder value)•Strategic competitive advantage (shareholder value)

“Suncor Energy is a unique and sustainable energy company dedicated to vigorous growth in world wide markets by meeting the changing expectations of our current and future stakeholders”

“Suncor Energy is a unique and sustainable energy company dedicated to vigorous growth in world wide markets by meeting the changing expectations of our current and future stakeholders”

Our Vision of Sustainability:Core Purpose

Our Vision of Sustainability:Core Purpose

Our Vision of Sustainability:Strategic Framework

Our Vision of Sustainability:Strategic FrameworkSustainable Energy CompanySustainable Energy Company

Environmental Quality

Environmental Quality

EconomicProsperityEconomicProsperity

SocialWell-Being

SocialWell-Being

OperationalExcellenceOperationalExcellence

Products &Services for the Future

Products &Services for the Future

Issues Management

Issues Management

ImprovedDecisionMaking

ImprovedDecisionMaking

Stakeholder Relations

Stakeholder Relations

OrganizationalCapability &Commitment

OrganizationalCapability &Commitment

Stakeholder ExpectationsStakeholder Expectations

•Customers•Shareholders•Employees

•Customers•Shareholders•Employees

•Communities•Governments•General public

•Communities•Governments•General public

Sustainability in Action Operational Excellence

Sustainability in Action Operational Excellence

• Journey to Zero- Safety• significant change initiative

• ISO 14001• Energy Management

• Journey to Zero- Safety• significant change initiative

• ISO 14001• Energy Management

•Climate change•Climate change

Sustainability in Action Issues Management

Sustainability in Action Issues Management

10,000

Greenhouse Gas Emissions

Actual Projected with no offsets Projected with offsets

4,969

1994 1995

1990 actual emissions

1996 1997 1998 2002

8,000

6,000

4,000

•Alternative and renewable energy

•Wind Power

•Ethanol-enhanced gasoline

•Emerging energy technologies

•Alternative and renewable energy

•Wind Power

•Ethanol-enhanced gasoline

•Emerging energy technologies

Sustainability in Action Products and Services for the Future

Sustainability in Action Products and Services for the Future

•LCVA is a new core tool for

engineering

•LCVA is a new core tool for

engineering

Design Design improvementimprovement

ImpactImpactAssessmentAssessment

Inventory AssessmentInventory Assessment

ScopingScoping

Goal Goal definitiondefinition

DECISIONDECISION

LCVA LCVA Methodology Methodology

Overview Overview

Sustainability in Action Improved Decision-Making

Sustainability in Action Improved Decision-Making

•Stakeholder expectations and Suncor

performance assessed every two years

•Aboriginal partnerships

•Stakeholder engagement-- rigorous and

real time

•Workplace diversity

•Stakeholder expectations and Suncor

performance assessed every two years

•Aboriginal partnerships

•Stakeholder engagement-- rigorous and

real time

•Workplace diversity

Sustainability in Action Corporate Social Responsibility

Sustainability in Action Corporate Social Responsibility

Sustainability in Action Organizational Capability and Commitment

Sustainability in Action Organizational Capability and Commitment

•Integrated into leadership development•Integrated into leadership development

•Innovative action by employees•Innovative action by employees

•Support at operating and corporate levels•Sustainability Steering Committee

• reports to CEO’s Corporate Committee

•Support at operating and corporate levels•Sustainability Steering Committee

• reports to CEO’s Corporate Committee

What We Have Accomplished (1998-2001)What We Have Accomplished (1998-2001)

19991998

• Emission reduction trade

• Belize forest project

• Alberta wind power agreement

• Ethanol enhanced gasolines

• Petroleum coke sale

• Suncor Energy Foundation

• Lifecycle value assessments (LCVAs)

• Fort McMurray air monitoring program

• Destination Conservation project

• Award for benzene reductions at Sarnia

• Fort McKay Industrial Relations Corporation

• Australia restoration project

• 3rd We Care report

• NOx emission reduction project in Ontario

• ISO 14001 certification at Sarnia

• Suncor included in Dow Jones Sustainability Index

• LCVAs used for Firebag In-situ project

• Sponsorship of mine operations program at Keyano College

• We Care Connection, employee volunteer group, started in Calgary

2000

• Action By Canadians program on climate change

• Founding of Cumulative Environmental Management Association

• Flaregas recovery system at OSG

• Participation in Ontario’s Anti-Smog Action Plan

• Record performance for sulphur dioxide reduction plant at OSG

• Major urban environmental projects in Fort McMurray, Calgary and Sarnia

• Commitment to invest $100 million in alternative and renewable energy by 2005

• Leadership award from Canada’s Climate Change Voluntary Challenge and Registry (VCR) • Creation of multi-shareholder

CARE Coalition to promote renewable energy in Canada

2001

• Sunbridge wind power project in Saskatchewan

• Suncor achieves target for aboriginal business development at OSG; company on track to achieve target for aboriginal employment

• Suncor Energy Foundation announces that nearly $3 million given to charitable causes in 2000

Progress toward sustainable development

• Sponsoring of Coal Bed Methane Project

• Cogeneration agreement with TransAlta

• Company-wide team directed to develop energy efficiency initiatives and other opportunities to reduce greenhouse gas emissions from operations

• Equity investment in Northern Power Systems, US-based commercial developer of renewable energy

• Sunoco achieves zero underground storage system leaks in retail operations

HealthyEnvironment

HealthyEnvironment

StrongEconomyStrong

Economy

SocialWell-Being

SocialWell-Being

Sustainable

Development

Sustainable

Development

The Path Forward:What’s Required

The Path Forward:What’s Required •Performance

•Integrity

•Courage

•Performance

•Integrity

•Courage

Shareholder ValueShareholder ValueBased on C$100 invested December 31, 1992 Based on C$100 invested December 31, 1992

92 94 96 98 00 02 04

Personal Biography 

 Gord Lambert is Vice President, Sustainable Development for Suncor Energy. In this role, Gord directs Suncor’s environment, health and safety policies and works with senior management and external stakeholders to align and improve the company’s long-term financial, social and environmental performance.

 Prior to assuming this role in July 1997, Gord spent two years as Director, Sustainable Development for TransAlta Corporation and 15 years with Imperial Oil Limited.

He is involved with the World Business Council for Sustainable Development in support of its work on climate change and sustainable development within the business community. He is currently on the Board of the BIOCAP Canada Foundation and the Learning for a Sustainable Future (LSF).

Gord is a current member and past director/treasurer of the Alberta Society of Professional Biologists. Gord graduated in 1980 from the University of Guelph with an Honors Bachelor of Sciences degree majoring in Biological Science with a minor in economics.