I’ve always believed that when it comes to defining and communicating a corporation’s vision and goals, conciseness is a virtue. In that spirit, the theme of this year’s Report on Sustainability is built around just three words—energy, innovation and commitment. It’s no accident that these words sum up the past, present and future of what is Suncor’s core enterprise—the responsible development of energy, including Canada’s oil sands.

Four decades ago, Suncor pioneered development of the oil sands, an important new source of energy in a world constantly seeking fresh avenues of supply. Our success is built on innovation—investing in the new technologies that first unlocked the production potential of the oil sands and that continue to drive improvements in reliability and environmental performance. Central to everything we do is a firm commitment to the principles of sustainable development, which is all about producing the energy required to fuel our economy in a way that is socially beneficial and preserves a healthy environment.

In 2009, Suncor embarked on an exciting new chapter after merging with another progressive energy company, Petro-Canada. The result is a larger, stronger and more financially flexible company that combines a leading position in the oil sands with complementary operations in refining and marketing, North American gas production and conventional oil and gas production internationally and offshore East Coast Canada. This merger will allow us to continue to invest in innovation and growth and to compete globally.

But while much has changed, our core identity remains unaltered. The new Suncor, like the old Suncor, is strategically focused on responsibly developing Canada’s oil sands—the world’s second largest resource base. We also remain committed to our longstanding vision for sustainable energy development. We will continue to apply that vision to every aspect of our operations.

Suncor’s stakeholders have come to expect a lot of us on this front. After all, we were one of the first major energy companies to adopt a climate change action plan to better manage our greenhouse gas emissions and to make industry-leading investments in renewable energy products.

With the additional responsibilities—and opportunities—that flow from the recent merger, our stakeholders expect Suncor to continue to be an industry leader in social responsibility, environmental stewardship and technological innovation. We intend to do just that.

One of the most exciting examples of innovation is the new approach to tailings reduction Suncor plans to implement on a commercial scale in 2010. The de-watering technologies we are pioneering (described in greater detail in this report) will see Suncor once again leading the way by addressing one of the biggest sustainability issues facing our industry.

Managing mines tailings represents a significant environmental challenge and economic cost for companies like Suncor. Using technology to reduce the current backlog of tailings and the need for future tailings ponds is good for the environment and will also save us money over the long run. It’s a classic example of why sustainable development simply makes good business sense.

We’ve also made significant strides in water management. In 2009 alone, Suncor’s mining operations achieved an 11% reduction in water withdrawal compared to 2008, bringing the reduction to 27.5% since 2004. Water withdrawal from the Athabasca River is now the lowest since 1998.

Success in this area is not the result of any single initiative, so much as a corporate-wide determination to do more with less. We realize water is a precious, finite resource. So the question for all employees is this: how little water do we need to get the job done and what are the continuous improvements required to achieve further reductions? Again, this is Sustainable Development 101.

Suncor continues to work on several fronts to reduce the carbon intensity of all our business—investing in new technologies, developing renewable energy sources and improving the energy efficiency of our operations. We are also active in public policy discussions and are a strong advocate of a national energy strategy for Canada that would include clear targets and goals for reducing greenhouse gas emissions.

When it comes to our own performance goals, Suncor is taking a proactive approach. In last year’s Report on Sustainability we set out specific goals for achieving reductions by 2015 in four key areas—water use, land disturbance, energy efficiency and air emissions. In this report, we describe our progress in 2009 and how we intend to further move the yardsticks.

In addition to leading by example, our stakeholders want Suncor to be candid about our sustainability challenges and forthright about potential solutions. This report is one way we attempt to engage in a dialogue with industry critics. Another is Suncor’s longstanding willingness to engage in a dialogue with industry critics. We believe no one has a monopoly on good ideas and we will work with anyone who has constructive proposals for improved performance.

In that context, I ask you to read this report carefully and give us your feedback. With a shared commitment to excellence and innovation, we can work together to build a more sustainable energy future.

Rick George
President and Chief Executive Officer