GlobepreneursGlobepreneursJames HubertsJames HubertsKelvin MalpartidaKelvin MalpartidaGwen Robak LepineGwen Robak LepineSuzanne SamborskiSuzanne SamborskiMike WilliamsMike Williams

About SuncorAbout Suncor Canadian based 80 year old companyCanadian based 80 year old company Rick George, CEO since 1989Rick George, CEO since 1989 Over 4,000 employeesOver 4,000 employees Growth oriented companyGrowth oriented company Extracts oil from sands of Northern Extracts oil from sands of Northern

AlbertaAlberta Other facilities in Colorado and WyomingOther facilities in Colorado and Wyoming Explores, develops, and markets natural Explores, develops, and markets natural

gas under their Sunoco brand namegas under their Sunoco brand name Develops renewable energy sourcesDevelops renewable energy sources Committed to Sustainable DevelopmentCommitted to Sustainable Development

Sustainability VisionSustainability Vision

““Suncor’s vision is to a unique, sustainable Suncor’s vision is to a unique, sustainable energy company dedicated to vigorous growth energy company dedicated to vigorous growth by meeting the changing needs of our current by meeting the changing needs of our current and future stakeholders”and future stakeholders”……Rick George, CEORick George, CEO

““Being a sustainable energy company means Being a sustainable energy company means managing our business in a way that enhances managing our business in a way that enhances social and economic impacts to society, while social and economic impacts to society, while striving to minimize the environmental impacts striving to minimize the environmental impacts associated with resource development”…associated with resource development”…Suncor Suncor websitewebsite

Competitive Competitive StrategyStrategy Developing Suncor’s large, well-Developing Suncor’s large, well-

defined oil sands resource base defined oil sands resource base Investing in technology to expand our Investing in technology to expand our

upgrading operations and increase upgrading operations and increase crude oil production crude oil production

Linking production to the growing Linking production to the growing North American energy market through North American energy market through term supply agreements and their own term supply agreements and their own refining operationsrefining operations

Competitive Competitive StrategyStrategy Believes in free enterpriseBelieves in free enterprise Healthy and unhampered competition is Healthy and unhampered competition is

essentialessential Complies with and supports competition lawComplies with and supports competition law Wants to eliminate special treatment of Wants to eliminate special treatment of

protected businesses and economiesprotected businesses and economies Wants to ensure economy and market work Wants to ensure economy and market work

well and run smoothly within a sustainable well and run smoothly within a sustainable contextcontext

Developed their own competition actDeveloped their own competition act Act contains “reviewable practices” Act contains “reviewable practices”

Exclusive DealingExclusive Dealing Market RestrictionMarket Restriction Delivered PricingDelivered Pricing

Reviewable Reviewable PracticesPractices Exclusive Dealing:Exclusive Dealing: describes method of product describes method of product

distribution, a condition of supplying products to a distribution, a condition of supplying products to a customer or supplier requires or induces a customer customer or supplier requires or induces a customer deals only in the supplier’s products or the customer deals only in the supplier’s products or the customer not deal in products of any of supplier’s competitorsnot deal in products of any of supplier’s competitors

Market Restriction:Market Restriction: distribution practice, a supplier distribution practice, a supplier requires it’s dealers and distributors sell only to requires it’s dealers and distributors sell only to certain persons or only in a restricted geographical certain persons or only in a restricted geographical areaarea

Delivered Pricing:Delivered Pricing: it is prohibited that a supplier it is prohibited that a supplier engage in a practice of refusing to permit customers engage in a practice of refusing to permit customers to buy and take delivery of an article at any locality to buy and take delivery of an article at any locality where supplier makes deliveries to other customers where supplier makes deliveries to other customers on same terms and conditions that are available to on same terms and conditions that are available to customers whose business are found in the localitycustomers whose business are found in the locality

Sustainability Sustainability DriversDrivers ““If you are going to be in business and If you are going to be in business and

prosper for 50 years, then reducing prosper for 50 years, then reducing environmental footprint has to come environmental footprint has to come front and centre.”front and centre.”…Rick George, CEO…Rick George, CEO

Sustainability Sustainability DriversDrivers Builds stakeholder support for a Builds stakeholder support for a

company’s growth plancompany’s growth plan Decreases costs of businessDecreases costs of business Positions the company to meet Positions the company to meet

consumer demand with less consumer demand with less environmental impactenvironmental impact

The Triple Bottom Line

Sustainability Sustainability DriversDrivers Attract and retain a more talented Attract and retain a more talented

workforceworkforce Improve relations with regulatorsImprove relations with regulators Prosper and provide long-term Prosper and provide long-term

shareholder valueshareholder value Improve access to borrowed capitalImprove access to borrowed capital

Sustainability Sustainability DriversDrivers Recognition that fossil fuel resources are Recognition that fossil fuel resources are

finitefinite Helps maintain a good reputationHelps maintain a good reputation Relationship building with environmental Relationship building with environmental

groupsgroups New regulations (Kyoto)New regulations (Kyoto)

Sustainability to Sustainability to DateDate

Environmental SustainabilityEnvironmental Sustainability Social SustainabilitySocial Sustainability Economic SustainabilityEconomic Sustainability

Measuring up against the Triple Bottom Line

Sustainability to Sustainability to DateDate $1.5B spent on R&D to reduce environment $1.5B spent on R&D to reduce environment

damagedamage 2002 - first wind power project in 2002 - first wind power project in

Saskatchewan with Enbridge - 11 megawattSaskatchewan with Enbridge - 11 megawatt 2003 - partner in 30 megawatt wind power 2003 - partner in 30 megawatt wind power

project in Alberta to triple their wind project in Alberta to triple their wind capacitycapacity

Member of Cumulative Environmental Member of Cumulative Environmental Management Association (CEMA)Management Association (CEMA)

Protected Alberta regions of wildlife and Protected Alberta regions of wildlife and backcountrybackcountry

Environmental Sustainability

Sustainability to Sustainability to DateDate 2002 - GHG management2002 - GHG management

better measurement and recording to better measurement and recording to enhance energy efficiencyenhance energy efficiency

Reduced emission intensity by 18%Reduced emission intensity by 18% Provided Ontario consumers with lower Provided Ontario consumers with lower

sulphur gasolinesulphur gasoline well ahead of the regulated 2005 deadlinewell ahead of the regulated 2005 deadline

Reduced emissions of CFC’s by 65%Reduced emissions of CFC’s by 65%

Environmental Sustainability

Sustainability to Sustainability to DateDate Life Cycle Value Assessment (LCVA) Life Cycle Value Assessment (LCVA)

InitiativeInitiative evaluates projects start to finish from evaluates projects start to finish from

manufacturing to disposalmanufacturing to disposal assess social, environmental, and economic assess social, environmental, and economic

impacts to make decisions on triple bottom lineimpacts to make decisions on triple bottom line Participant in US $24 million CO2 Capture Participant in US $24 million CO2 Capture

ProjectProject 95% of water used in extraction of bitumen 95% of water used in extraction of bitumen

is recycled back into steam generatoris recycled back into steam generator

Environmental Sustainability

Sustainability to Sustainability to DateDate Held meetings for community to ensure Held meetings for community to ensure

plans meet the needs of the communityplans meet the needs of the community Journey to ZeroJourney to Zero

program eliminates all occupational injuries program eliminates all occupational injuries and illnessesand illnesses

Matches employees in United Way Matches employees in United Way donationsdonations

Works with other industry and local Works with other industry and local partners including Wood Buffalo partners including Wood Buffalo MunicipalityMunicipality

Social Sustainability

Sustainability to Sustainability to DateDate

Signed Industry Relations Agreements Signed Industry Relations Agreements with First Nations groupswith First Nations groups

13% of workforce is comprised of 13% of workforce is comprised of Aboriginal workers through education, Aboriginal workers through education, training, and recruitmenttraining, and recruitment

Promoted Cultural AwarenessPromoted Cultural Awareness in-house Aboriginal awareness in-house Aboriginal awareness

workshopsworkshops

Social Sustainability

Sustainability to Sustainability to DateDate

Diversification of operations through Diversification of operations through new energy sources (wind power and new energy sources (wind power and ethanol)ethanol)

Net Earnings doubled from 2001-2002 Net Earnings doubled from 2001-2002 to $761mto $761m

50 Year Operating Plan50 Year Operating Plan

Economic Sustainability

Sustainability to Sustainability to DateDate

Transparency Transparency High degree of disclosureHigh degree of disclosure Use of independent auditorsUse of independent auditors 24 hour integrity hotline for 24 hour integrity hotline for

employeesemployees

Economic Sustainability

Link to Overall Link to Overall StrategyStrategy “ “ Suncor is committed to growing its Suncor is committed to growing its

energy business in a way that generates energy business in a way that generates value for shareholders. To achieve our value for shareholders. To achieve our financial goals, we realize we must financial goals, we realize we must constantly strive to improve the constantly strive to improve the performance of our operations and performance of our operations and products, engage our employees in products, engage our employees in finding new and better ways of doing finding new and better ways of doing things, and work with all of our things, and work with all of our stakeholders to realize social, stakeholders to realize social, environmental and economic benefits.”environmental and economic benefits.”……2003 What’s at Stake - Report on Sustainability2003 What’s at Stake - Report on Sustainability

Link to Overall Link to Overall StrategyStrategy Committed to delivering shareholder Committed to delivering shareholder

returns, while providing social and returns, while providing social and economic benefits to stakeholders and economic benefits to stakeholders and reducing environmental impactsreducing environmental impacts

Focused on generating shareholder Focused on generating shareholder value by developing huge resources of value by developing huge resources of Athabasca oil sands using sustainable Athabasca oil sands using sustainable processesprocesses

Uses best available manufacturing Uses best available manufacturing technology to increase oil production technology to increase oil production while protecting the environmentwhile protecting the environment

Link to Overall Link to Overall StrategyStrategy Meeting customer needs for quality products Meeting customer needs for quality products

(i.e. ethanol fuels)(i.e. ethanol fuels) secure a balance of stable, long-term commercial secure a balance of stable, long-term commercial

and industrial contracts with sustainability-minded and industrial contracts with sustainability-minded businessesbusinesses

improve the efficiency of sustainable retail networkimprove the efficiency of sustainable retail network investigate opportunities to expand responsible investigate opportunities to expand responsible

refining operationsrefining operations Developing wind power because it provides Developing wind power because it provides

business opportunities and minimizes business opportunities and minimizes economic footprinteconomic footprint

Higher rates of responsible productionHigher rates of responsible production

Link to Overall Link to Overall StrategyStrategy Committed to working with employees, Committed to working with employees,

shareholders, stakeholders, shareholders, stakeholders, communities, environmentalists, and communities, environmentalists, and aboriginal peoples to ensure the rights, aboriginal peoples to ensure the rights, safety (Journey to Zero), and quality of safety (Journey to Zero), and quality of life are protectedlife are protected

Pursues alternate power sources as a Pursues alternate power sources as a financial and environmental financial and environmental commitment the corporation which commitment the corporation which embraces triple bottom lineembraces triple bottom line

Only oil and gas company to produce Only oil and gas company to produce cost analysis for business case to cost analysis for business case to comply with Kyoto accordcomply with Kyoto accord

RecommendationsRecommendations In walking his talk, Rick George should In walking his talk, Rick George should

leverage his experience and credibility leverage his experience and credibility by having 50% of all members of the by having 50% of all members of the Canadian Council of Chief Executives Canadian Council of Chief Executives producing sustainability strategies and producing sustainability strategies and reports by 2010reports by 2010

Suncor needs to commit to generating Suncor needs to commit to generating 50% of its revenues from alternative 50% of its revenues from alternative renewable resource energies by 2015 renewable resource energies by 2015 possible mix: (30% Wind/20% Ethanol)possible mix: (30% Wind/20% Ethanol)

RecommendationsRecommendations The annual report should make The annual report should make

references to sustainability to underline references to sustainability to underline its company-wide commitmentits company-wide commitment

Provide comparative analysis with Provide comparative analysis with other oil and gas corporations in the other oil and gas corporations in the global market to benchmark their global market to benchmark their performanceperformance

Increase R&D and further expand the Increase R&D and further expand the ethanol projectsethanol projects

Improve social responsibility in Improve social responsibility in communities were transfer credits are communities were transfer credits are purchasedpurchased

RecommendationsRecommendations Provide more "measurability" in their Provide more "measurability" in their

initiatives with specific targetsinitiatives with specific targets Increase the wind power by 30% of Increase the wind power by 30% of

their current outputtheir current output Invite local environmental groups to act Invite local environmental groups to act

as "watchdogs" in each country they as "watchdogs" in each country they operate to attain the corporate goal for operate to attain the corporate goal for transparencytransparency

Set up a "green hotline" for those Set up a "green hotline" for those seeking specific information and adviceseeking specific information and advice

ReferencesReferences Canada NewsWire, February 13, 2004, Financial News, Canada NewsWire, February 13, 2004, Financial News,

Attention Business Editors, “Suncor announces Attention Business Editors, “Suncor announces preliminary federal ethanol funding approvalpreliminary federal ethanol funding approval

Canadian Business, Features, Oil and Gas, “Saint or Canadian Business, Features, Oil and Gas, “Saint or Sinner”, by Andrew Nikiforuk Sinner”, by Andrew Nikiforuk

Competitive Strategy, Quick MBA website - Competitive Strategy, Quick MBA website - www.quickmba.com www.quickmba.com

Fort McMurray Today, September 5, 2003, Final Fort McMurray Today, September 5, 2003, Final edition, “Suncor Wind Power Project Approved” edition, “Suncor Wind Power Project Approved”

Global News Wire, Europe Intelligence Wire, Investors Global News Wire, Europe Intelligence Wire, Investors Digest, January 24, 2003, “Kyoto’s Impact on Digest, January 24, 2003, “Kyoto’s Impact on Investors”, by Anne Papmehl Investors”, by Anne Papmehl

National and Global Perspectives, Business Council on National and Global Perspectives, Business Council on National Issues, Canadian Council of Chief Executives, National Issues, Canadian Council of Chief Executives, Speech from Richard George, Suncor, Spring 2002 Speech from Richard George, Suncor, Spring 2002

Perspectives, Spring 2002, Excerpts from recent Perspectives, Spring 2002, Excerpts from recent speeches by members of the Canadian Council of speeches by members of the Canadian Council of Chief Executives Chief Executives

Suncor Website - www.suncor.com Suncor Website - www.suncor.com