Suncor's Additional Policies and Programs Addressing the GRI Guidelines

Suncor's Report on Sustainability was prepared in accordance with the G3 Guidelines of the Global Reporting Initiative (GRI). Although most of the elements of the GRI Guidelines are addressed throughout this report, there are some aspects of the GRI guidelines that were not accommodated in the previous sections. Instead, Suncor chose to create these tables to respond to the remaining requirements identified by GRI.

General Indicators

Aspect/
Indicator

Suncor's Response

GRI Index
Reference

Governance, Commitments and Engagement

Structure and Governance

Board Committees

Roles and Responsibilities

Suncor's Board of Directors is comprised of 11 members. As of April 27, 2009, 10 board members were determined to be independent of management as determined in accordance with the Toronto Stock Exchange and New York Stock Exchange guidelines. The chairman of the Board and the chairs of the four committees of the Board are all independent directors. All board committees are comprised entirely of independent directors. The roles and responsibilities of the board committees include the following:

Governance Committee — Oversees key matters relating to corporate governance and corporate strategy, including matters related to Suncor's values, beliefs and standards of ethical conduct. Reviews other key matters pertaining to governance, including organization, composition and effectiveness of the board. Reviews preliminary stages of key strategic initiatives and projects.

Human Resources and Compensation Committee — Reviews and ensures Suncor's overall goals and objectives are supported by appropriate executive compensation philosophy and programs; annually evaluates the performance of the CEO against predetermined goals and criteria and recommends to the Board the CEO's total compensation.

Audit Committee — Assists the board in matters relating to Suncor's internal controls, internal and external auditors and the external audit process, oil and natural gas reserves reporting, financial reporting and public communication and certain other key financial matters. Approves Suncor's interim financial statements and management's discussion and analysis.

Environment, Health and Safety Committee — Reviews the effectiveness with which Suncor meets its obligations pertaining to environment, health and safety, including the establishment of appropriate policies with regard to legal, industry and community standards and related management systems to implement policies and monitor compliance.

For detailed committee descriptions, please see the annual proxy at http://www.suncorpetro-canada.com/.

4.1, 4.2, 4.3

Suncor's Board of Directors

 Suncor's Board of Directors includes two women and one person of Aboriginal descent. The composition of the Board of Directors can be found in Suncor's annual proxy circular at http://www.suncorpetro-canada.com/

4.1, LA13

Mechanism for Shareholders and Employees

In order to be accessible to stakeholders regardless of location, Suncor webcasts its Annual General Meeting (AGM) and provides the opportunity for viewers to participate in the question and answer period via the Internet. Any shareholder with the minimum required number of shares may also put forward a “shareholder proposal” at the AGM.

At any time, individuals may express their opinion to management by calling toll free or sending an e-mail to Suncor's information mailbox. This number and e-mail address are provided on our external website and in our annual report to shareholders. In addition, Suncor maintains an investor relations function that addresses analyst and investor inquiries.

There was one sustainability-related resolution proposed in 2008 and after discussion with the interested party it was withdrawn.

4.4

Conflict of Interest On an annual basis, the Governance Committee reviews a declaration of interest from each member of the Board to determine if any conflicts of interest exist. See Suncor's annual proxy circular at http://www.suncorpetro-canada.com/ for more details.

4.6

Process for Determining Expertise A process is in place to recruit new board members based on skill and expertise. The board seeks a diversity of skills and perspectives that include environmental, social and economic considerations.

4.7

Code of Conduct Each year, Suncor's staff employees and contract workers must read the company's business conduct policies and acknowledge they have complied with those policies during the preceding calendar year. These policies include: Competition, Conflict of Interest and Confidentiality, Disclosure of Material Information and Trading in Shares and Securities, Improper Payments, Trade Relations, Harassment-Free Working Environment, Accounting Reporting and Business Control, Directors, Officers, Trustees and Board Members of Outside Organizations, and Business Conduct Policy Statement. See http://www.suncor.com/ for more details.

4.8, HR3, HR8

Board Procedures - Risk Management

Suncor has a company-wide EH&S management system modeled on the ISO 14001 standard to ensure the company complies with regulations while managing risks to people, equipment, products and the environment. Suncor uses its risk matrix to evaluate and manage risk across all businesses.

Suncor's EH&S audit and self-assessment program was redesigned in 2006. The new audit program will confirm compliance with the Suncor EH&S Management System standard. Each operating area will be audited every three years with internal self-assessments to be done on an annual basis. The audits will be conducted by Suncor employees along with an external, third party auditor. The audit findings will be shared with the senior leaders.

The EH&S Committee of the board holds quarterly stewardship meetings to review EH&S compliance, performance, risks and opportunities with management.

The Audit Committee assists the board in matters relating to Suncor's internal controls, internal and external auditors and the external audit process, reserve reporting, financial reporting and public communication, risk management, security and certain other key financial matters. See Suncor's annual proxy circular at http://www.suncorpetro-canada.com/ for more details.

4.9

Evaluating Board Performance The Board completes an annual self-evaluation. See Suncor's annual proxy circular at http://www.suncorpetro-canada.com/ for more details.

4.10

Precautionary Principle Suncor supports the precautionary principle, which is reflected in our life cycle value assessment tool we use to provide guidance on the environmental, social and economic impacts of a project, including stages from design through to operations and maintenance and reclamation. Other examples include our support and participation in understanding our cumulative effects in the areas in which we operate.

4.11

External Charters or Principles Suncor has developed our own sustainability strategy and other sets of principles to govern company activities. We have not adopted externally developed principles.

4.12

Memberships in Associations and Advocacy Organizations Suncor provides input to the development of public policy that encourages sustainable development. Suncor's involvement includes participation in the World Business Council for Sustainable Development, the Joint Public Advisory Committee of the Commission for Environmental Cooperation, Ceres, Canadian Council of Chief Executives, Canadian Association of Petroleum Producers, Canadian Chamber of Commerce, Canadian Petroleum Products Institute, Clean Air Renewable Energy Coalition, Canadian Wind Energy Association, the Mining Association of Canada's Toward Sustainable Mining Initiative, Conference Board of Canada, Canadian Boreal Initiative, the Excel Group, London Benchmarking Group Canada, National Petroleum and Refiners Association, National Roundtable (NRTE), Alberta's Clean Air Strategic Alliance, Alberta Chamber of Resources, Alberta Biodiversity Monitoring Program, Cumulative Environment Management Association, Centre for Philanthropy, Boston College Center for Corporate Citizenship, the Centre for Innovation and Management at Simon Fraser University, Colorado Alliance of Environmental Education, Colorado State Chamber of Commerce, Colorado Association of Commerce and Industry, Colorado Environmental Partnerships, Colorado Association of Petroleum Asphalt, Colorado Petroleum Marketers Association, Colorado Petroleum Association, Denver Metro Chamber of Commerce, Metro North Chamber of Commerce, Grand Junction Chamber of Commerce, Regional Air Quality Council, Petroleum Association of Wyoming, Fort McMurray Chamber of Commerce, Calgary Chamber of Commerce, Oil Sands Developer's Group, and Boreal Leadership Council.

4.13

Stakeholder Engagement Suncor has a Stakeholder Relations Policy to guide work with stakeholders and has developed an internal guidebook for stakeholder relations practitioners. Each stakeholder engagement process is designed to foster productive dialogue and decision-making, giving consideration to project size, scope, potential impacts and the degree to which stakeholders themselves wish to be involved. Core to our approach is a detailed matrix for stakeholder engagement — ranging from information sharing (newsletters, web updates, open houses), through consultation (memorandums of understanding, socio-economic or environmental agreements, leadership summits) to collaboration (joint ventures, shared management, advisory boards). The type and frequency of interactions varies with projects and are mutually agreed upon with the stakeholder. See Suncor's stakeholder relations policy at http://www.suncor.com/ for more details. In 2009, a review is being conducted of the overall stakeholder relations function to review and update the relevant tools and processes.

4.16

Economic Indicators

Aspect/
Indicator

Suncor's Response

GRI Index
Reference

Benefit Obligation

 Suncor employees are eligible to receive certain pension, health care and insurance benefits when they retire. The related Benefit Obligation or commitment that Suncor has to employees and retirees at December 31, 2008, was $955 million (2007 — $1,063 million). At the end of December 2008, Plan Assets to meet the Benefit Obligation were $613 million (2007 - $684 million). The excess of the Benefit Obligation over Plan Assets of $342 million (2007 - $379 million) represents the Net Unfunded Obligation. See Suncor's 2008 annual report at http://www.suncor.com/.

EC3

Local Spending and Hiring of Senior Management

The term ‘local' for this category is defined differently depending on the Suncor business. Our oil sands operations considers the Regional Municipality of Wood Buffalo as local and our natural gas and refining and marketing operations defines local at the provincial or state level (Alberta, British Columbia, Ontario and Colorado).

Suncor does not measure proportion of senior management hired locally, but our practice is to hire from the local population where possible. Suncor actively develops skills in the communities within which we operate by sponsoring programs at local colleges. The only recruiting that occurs out of country is typically for “hard to fill” positions, such as mid-career professionals. This consists of fewer than 5% of total hiring volume.

Suncor‘s Aboriginal Affairs Policy encourages each business unit to have a strategic plan and measurement around business development and strategic partnerships which includes creating opportunities for Aboriginal businesses to participate in Suncor's success as well as to develop community-based businesses.

EC6, EC7

Social Indicators

Aspect/
Indicator

Suncor's Response

GRI Index
Reference

Discrimination

As part of our long-term people strategy, Suncor is working to establish an inclusive work environment that is free of discrimination and harassment, and processes and practices that are free of bias and systemic barriers. Suncor's Harassment Free Working Environment Policy mandates that all employees and others working at or with Suncor have a process to lodge an harassment complaint. The process is easily accessible, confidential and provides an impartial process for investigation through resolution of each complaint. In the reporting period of 2007 and 2008 five incidents were reported. All incidents were investigated, and four of the incidents have been resolved. One incident is still under investigation.

HR4

Freedom of Association and Collective Bargaining

 Suncor operates under applicable labour laws in jurisdictions where we operate. These laws prohibit terminating any individual as a result of choosing to enter into collective bargaining. Suncor has not developed a written policy independent of these laws nor do we operate in areas where the right to collective bargaining and freedom of association is at risk. Local labour boards monitor Suncor's adherence to these laws. Suncor has active trade union agreements which are reviewed regularly and many of the contractors are also represented by collective agreements. Information on percentage of employees covered by collective bargaining agreements can be found in the social performance indicators section.

HR5

Child Labour and Forced and Compulsory Labour

Suncor has no specific policies or programs on child labour, but adheres to Canadian and U.S. labour laws and the ILO, Conventions 182 and 138. Suncor has no specific policies or programs on forced and compulsory labour, but adheres to the ILO, Convention No. 29. We do not operate where there might be significant risk of incidents of child or compulsory labour.

HR6, HR7

Indigenous People For information on Suncor's Aboriginal Affairs Policy, see http://www.suncor.com/. There were no incidents reported in the 2007 and 2008 reporting period.

HR9

Changes in Operations

 Current collective agreements stipulate six months notice to employees of significant operational changes at our Oil Sands and USA operations and three to four months notice for R&M Canada. The collective agreements also include provision for consultation and negotiation. There are no collective bargaining agreements in Natural Gas.

LA5

Formal Joint Management-Worker Health and Safety Committees All of Suncor's workforce at our Oil Sands operations, Natural Gas production facilities, and R&M Canada and USA operations are represented in formal joint management-worker health and safety committees. These committees address health and safety concerns and provide guidance on required next steps.

LA6

Health & Safety in Collective Agreements

All Suncor collective agreements contain articles on health and safety. Specific requirements for the membership in joint health and safety committees are included in three of the four agreements.

LA9

Training Suncor tracks completion of assigned courses that have been identified to enable employee competence.

LA10

Skills Management and Career Transition

Suncor provides over 500 internal training courses to support employee competence in environment, health & safety, technical and operations skills, information technology, business processes, leadership, and personal effectiveness. Suncor will also fully fund any training that is not available internally but is required for competency in job performance. Suncor supports an educational assistance program for employees to pursue studies at post secondary institutions to further their development and preparedness for future career aspirations with Suncor. Employees are reimbursed upon successful completion of the course. Suncor also offers leaves of absence to pursue further education — return to employment is not guaranteed but Suncor has maintained a very good track record of re-employment.

Employees who are terminated without cause generally receive a severance package that takes employee age and years of service into account. They typically receive the services of a career transition advisor to assist them in identifying alternate career opportunities, financial planning, and a variety of other services to enhance their prospects for future employment.

LA11

Corruption

Suncor's Improper Payments Policy prohibits employees from using corporate funds for illegal or improper purposes including bribery and kickbacks. Suncor maintains books, records and accounts that accurately reflect and properly describe all payments and other transactions. Suncor's policy was designed to align with both Canadian and U.S. foreign corrupt practices legislation. Both countries are signatory to the Organisation for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials.

Suncor conducts an annual corporate-wide risk assessment that includes procurement, employee and management fraud. Although we do not require training to reinforce compliance with Suncor's policy, all employees must sign off annually that they have complied with this policy.

Suncor did not record a bribery or corruption incident in the 2007 and 2008 reporting period, nor were any such actions brought against Suncor.

SO2, SO3, SO4

Political Contributions Suncor makes political contributions in support of the Canadian democratic process. Suncor's Policy on Political Contributions governs these contributions. All political contributions, including political fundraising events, are authorized and recorded by the senior vice president, Human Resources and Communications, within a pre-allocated budget approved by the president and chief executive officer. All contributions are reviewed annually by Suncor's Executive Committee. We have not made any political contributions in the U.S. See the economic performance indicator section for more on Suncor's political contributions.

SO5

Anti-Competitive Behaviour Suncor has not been involved in any legal actions for anti-competitive behaviour, anti-trust or monopoly practices.

SO7

Compliance Suncor has not received any significant fines or non-monetary sanctions for non-compliance with laws and regulations other than EN28 fines disclosed in this report in the 2007 and 2008 reporting period.

SO8

Assessment of Health and Safety Impacts through Life Cycle Stages

All work performed during the manufacturing, distribution and retail of products - including work done by contractors, site operators and employees - goes through a thorough safety assessment. The project or task is assessed before starting, during work and after completion. The assessment assures that work completed has appropriately mitigated health and safety risks, complies with all applicable laws and regulations. The following life stages are assessed for improvement: development; certification; manufacturing and production; marketing; storage and supply; delivery; use and service; and disposal, reuse, or recycling.

Each Suncor operator at Phillips 66 in the U.S. and every Ontario Sunoco retailer are trained and follows guidelines to train his/her staff in environment, health and safety procedures and standards. Suncor's auditors observe operations and check each site to ensure appropriate training is in place, heath and safety signage for customers and staff is visible, and the retail station is operating within EH&S guidelines. All retail safety incidents are reported and reviewed to evaluate and learn from incidents, and to implement recommendations to prevent future incidents. In Ontario, Retail Operations and EH&S review incidents for retail sites and recommends the appropriate corrective actions/risk mitigation tactics on a weekly basis.

In the 2007 and 2008 reporting period Suncor had no incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle.

PR1, PR2

Product Information and Labelling

The retail operations training provided to all Suncor retail operators in Canada and the United States includes guidelines on the labeling of products and the posting of relevant safety and environmental information at the retail station. This labeling includes Workplace Hazardous Material Information System and Material Safety Data Sheet requirements, which describe hazardous contents and include information on safe use and disposal of products. Retail territory managers are responsible for the monitoring for adherence to these guidelines.

In Canada, Suncor's ethanol-blended gasoline and ecowash-branded car washes are certified with Environment Canada's EcoLogo designation. The Canadian Retail Petroleum Awards named Suncor's ecowash Canada's "Best Car Wash" for five consecutive years. The EcoLogo is displayed at all retail sites.

In the US Suncor sells ethanol-blended gasoline at most of its Philips 66 branded stations. Labeling for the ethanol content is featured at each site.

In the 2007 and 2008 reporting period Suncor had no incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling.

PR3, PR4

Customer Satisfaction

Customer satisfaction is measured at Sunoco's Ontario retail sites using mystery shopper program delivered by a third-party provider. The results of these shops are reviewed monthly by Suncor management and used by the retail sites to make improvements to customer satisfaction. In addition, Suncor maintains a toll free customer service line that customers may call to obtain information or report any concerns. Customers are invited to give feedback via an online survey or by phone. While the combined program results confirm customers are satisfied, we are focusing on those indicators of true customer loyalty and areas of differentiation.

In the U.S., customer satisfaction is measured on two levels. First, each Phillips 66-branded retail facility is required to complete a monthly “mystery shop,” conducted by a third-party research firm. The mystery shop analyzes many aspects of the business, including employee courtesy, facility appearance and customer service. Suncor has ranked consistently in the top quartile with score above 90%. A second customer satisfaction tool is a 24-hour, toll-free customer service telephone number posted at all stores. All calls to the customer service line are logged and resolved within 72 hours. Store management evaluates the results monthly and compares those to results of other companies surveyed.

PR5

Marketing

Sunoco-branded advertising, promotion and sponsorship opportunities at all of the Ontario Sunoco retail stations go through a series of processes to ensure accuracy and factual proofing and are approved by department managers or directors. Other on-site merchandise advertising (e.g. snack/food) is also approved by managers although it does not require director sign-off. Suncor follows the Ontario Technical Standards and Safety Act (TSSA) as well as guidelines on marketing of petroleum products and car wash Best Management Practices from CPPI. Similarly in the U.S., we maintain a rigorous advertising approval process to ensure accuracy and factual proofing. Phillips 66-branded advertising occurs in both the retail and wholesale marketing channels. All on-site retail convenience product merchandise advertising is managed by the retail merchandising manager. ConocoPhillips approval is required for Phillips 66-branded advertising as detailed in the licence agreement.

Suncor has not been in any breach of related regulations in the 2007 and 2008 reporting period.

PR6, PR7

Privacy

Through our Privacy Policy, Suncor is committed to protecting the privacy and security of the personal information of individuals with whom the company interacts, including customers, suppliers, employees and contractors. The policy states that Suncor cannot use or disclose this information without the person's consent, except in the limited circumstances prescribed by applicable law. There has been no material impact to Suncor as a result of the Personal Information Protection and Electronic Documents Act (Canada) that came into effect on January 1, 2004.

In the U.S., Suncor safeguards the protected health information of employees in accordance with the federal Health Insurance Portability and Accountability Act. In addition, Suncor's standards of conduct require all employees protect and not disclose any confidential information from Suncor's customers, suppliers, employees and contractors. Suncor has not had any complaints regarding breaches of customer privacy or losses of customer data.

PR8

Compliance Suncor has not been cited for or incurred any fines for non-compliance with laws and regulations concerning privacy or issues related to marketing communications, advertising, promotion or sponsorships in the 2007 and 2008 reporting period.

PR9

Environmental Indicators

Aspect/
Indicator

Suncor's Response

GRI Index
Reference

Material Used

 With the exception of water and energy use, Suncor does not track other material use. The percentage of materials used in our processes that are wastes from external sources is not currently tracked.

EN1, EN2

 

Protected Areas

Suncor has an interest in a project in the Panther area, a natural gas extraction operation covering 124 square kilometres in the foothills of the Canadian Rocky Mountains. Portions of the project area are in a zone now designated for protection of sensitive alpine ecological values. The mineral lease was granted prior to protection status designation. Suncor is working closely with Regulators, Municipalities, First Nations, and local stakeholders to ensure our operations are economically and environmentally sustainable to all stakeholders.

A Caribou Mitigation Effectiveness Project was conducted in 2008 in the Little Smokey caribou range. Remote cameras were placed in the area where restoration to the oil and gas footprint was performed in 2006. The cameras allowed for the study of predator and prey movements and abundance in the area. The findings showed that there was a very high rate of natural regeneration in the area.

EN11

 

Indirect GHG Emissions Suncor tracks direct and indirect GHG emissions associated with our operations as defined by the GHG Protocol. Suncor's Tier III indirect emissions were determined for Sunjet business travel as 8,063 tonnes in 2007 and 11,373 tonnes in 2008.

EN17

Environmental Impacts of Products and Services

In 1996, Suncor began selling ethanol-blended gasoline at Sunoco retail stations. Ethanol, an alcohol made from corn, is blended with gasoline. It is a renewable resource that reduces emissions that contribute to global warming. Today, all Sunoco and most other retail stations sell gasoline containing 10 percent ethanol at no extra cost to consumers.

At our refining facilities, we have introduced low sulphur diesel production to meet Canadian legislative requirements. A new diesel desulphurization unit has been installed at our Commerce City refinery to meet U.S. clean fuels requirements and a diesel desulphurization unit was installed at our Sarnia refinery in 2006.

In May 2006, Suncor signed an agreement with the Toronto Transit Commission to supply biodiesel to commission's bus fleet. Biodiesel fuel, created by blending petroleum diesel with soy-based biodiesel, reduces carbon monoxide and particulate emissions, which contribute to smog.

In 2008, Suncor began distributing ethanol blended fuel at Oil Sands two fuel centres. E10 is a mixture of 10 percent ethanol with 90 percent gasoline and helps to reduce tailpipe emissions from Oil Sands light vehicle fleet.

EN26

Product Reclaimed Since our gasoline and diesel products are consumed during use, none of the product is reclaimed.

EN27

Transport Our products are also transported via pipelines, rail cars and trucks to various markets in Canada and the U.S. At our oil sands facility Suncor is working to reduce emissions from our mine fleet through initiatives to improve maintenance and tire efficiency. In addition, the majority of Oil Sands' 3500 employees are bused to and from work daily — an 80 kilometre round trip. Camp accommodation, situated in close proximity to the operations, is also provided for construction workers. In 2008 approximately 400 Oil Sands employees were moved from the base plant site to the business centre, located in Fort McMurray. This moved reduced congestion on the highway and commute time for employees.

EN29

Copyright Suncor Energy Inc. All Rights Reserved Legal Notices, Copyright & Privacy