Progress from 2007 Report

In Suncor's 2007 Report on Sustainability, we outlined our priorities for the next two years. Here's a snapshot of our progress:

Advance new technologies and investments to better manage greenhouse gas emissions. We are working to improve energy efficiency, reliability and environmental performance. We have invested in a company exploring petroleum coke gasification, helping to reduce our reliance on natural gas while eventually sequestering carbon dioxide (CO2). While our plans to progress carbon capture and sequestration at our site have been slowed by the delay in host facilities, outside of the oil sands we continue to participate in the Integrated CO2 Network (ICO2N), and are a member of the international Carbon Capture Project. The use of solar- powered chemical pumps at our natural gas facilities has also reduced our greenhouse gas emissions.

Drive environmental excellence further by reducing resource consumption and waste. We have reduced our absolute water use by more than 20 percent over the past six years through increased reuse and recycling, which was driven by improved mine tailings operations. While our water intensity increased in 2008 due to plant reliability issues, our 2007 intensity at oil sands was 45 percent less than 2003. Our operational excellence strategy will be leveraged to get performance back to expectations.

Establish targets for key performance areas such as greenhouse gases and water intensity. With the launch of this year's Report on Sustainability, we are announcing environmental performance goals. These include reducing water intake, increasing reclamation of disturbed land area, improving energy efficiency and reducing air emissions. We will also align our GHG strategy to address emerging climate change policies.

Support community development by mitigating the impact of growth and supporting quality of life efforts. In 2007 and 2008, Suncor invested a total of $24.9 million in various charitable organizations and non-profit groups. This included funding of health programs and a new performing arts centre in Fort McMurray. We have participated in the Oil Sands Developers Group in identifying local infrastructure needs and encouraging government planning and funding. A Suncor employee also serves as Chair of the Wood Buffalo Housing and Development Corporation.

Build and develop our workforce. Despite an increasingly tight labour market, Suncor has made good progress in attracting and retaining a skilled workforce. An innovative recruitment campaign, combined with an integrated labour plan focusing on retention and development of skilled employees has helped sustain our workforce. In 2008, we were named one of Canada's top 100 employers by Mediacorp Canada Inc.

Support the safety culture created through Journey to Zero. Suncor has implemented stringent safety monitoring and process safety management improvements. Between 2002 and 2008, the frequency of lost-time injuries among Suncor employees and contractors fell by nearly two-thirds while the frequency of recordable injuries dropped by half. We achieved these improvements at a time when all of our major operations went through significant expansion, maintenance or upgrade phases that saw thousands of additional contractors working at our sites.

Looking ahead to 2010 and 2011

As we move forward, we will focus on the following priorities:

Merger integration. The proposed merger with Petro-Canada, pending regulatory approvals and review by the Canadian Competition Bureau, will require significant integration work. A large degree of effort will be required and dedicated to integrate the two companies, in terms of systems, processes, operations and staff. Our focus will be to achieve the expected synergies and efficiencies envisioned by the merger transaction, while maintaining our commitment to sustainability.

Operational excellence. A relentless focus on improving performance will also be a key priority. Safe, steady and reliable operations, in combination with an unwavering commitment to the environment, our people and the communities where they live and work will define our success.

Environmental performance goals. The goals we've outlined in this Report on Sustainability are ambitious and will require the right mix of capital investment, time, and people to achieve them. Planning how to achieve these goals will be a key part of the 2010 business planning cycle. Timely and effective implementation of these goals will be critical in improving our environmental performance.

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