Environmental Performance Goals & Progress

As part of Suncor's ongoing commitment to environmental stewardship, the company committed to a series of strategic, beyond-compliance environmental performance goals. The target year for these planned improvements is 2015, with a base year of 2007. The goals were established in 2009 and take into account improvements to existing operations as well as new technologies. Each of the goals relate to significant aspects of Suncor's environmental performance. Through a series of planning meetings with senior executives, these goals were identified as priority measures to address business and environmental risks, concerns expressed by stakeholders, and a means to further our commitment to sustainability.

Suncor completed its merger with Petro-Canada on Aug. 1, 2009, resulting in Suncor becoming Canada’s largest energy company by market capitalization. These goals relate to all of Suncor’s currently operated assets, including those of the former Petro-Canada organization. In 2010, Environmental Excellence Plan work focused on internal communication of our goals, determining companying baselines, and identifying gaps between baselines and goals. In 2011, work continues to identify capital projects and operational initiatives that will assist in closing those gaps and drive the organization towards success in the performance goals. Suncor baselines have been set to include all currently operated assets; over time baselines may be adjusted to reflect changes in Suncor’s operated portfolio resulting from acquisitions and divestitures.

What follows is a brief description of Suncor's four environmental performance goals and what we expect is required to accomplish them. All of the proposed company environmental improvements are absolute, except for energy efficiency, which is intensity-based.

Please note that the Suncor environmental performance data presented in this section may be different than Suncor environmental performance data presented elsewhere in the 2011 Report on Sustainability. Historical environmental performance data for the Environmental Goals includes only operated assets as at December 31, 2010 and does not include assets which have been disposed prior to this date.

1. Reduce fresh water consumption (the amount of fresh water withdrawn minus the amount of water returned to the environment) by 12% by 2015*

Fresh water is a key resource for each of our business units, as well as being critically important to our stakeholders, communities and employees. Reducing our fresh water consumption include initiatives to both reduce our fresh water intake, as well as increase our water return to the environment through improved water treatment. A 12% reduction in total fresh water consumption is challenging, but Suncor has several initiatives planned or underway which will help reduce our overall fresh water consumption. In 2010, for example, we started recycling a small flow of treated wastewater at our oil sands mining operations to offset fresh water use for cooling and utility purposes. We’re also continuing to identify projects that will further reduce our water consumption and evaluating opportunities to distribute water through our northeast Alberta assets to improve our overall water efficiency.

Water Goal

Learn more about water.

2. Increase reclamation of disturbed land area by 100% by 2015*

To achieve the proposed 100% increase in land reclamation by 2015 (or double our 2007 baseline), we aim to significantly increase our yearly reclamation performance—a major undertaking. Suncor has developed more aggressive reclamation plans using new technologies such as our TROTM tailings management process, which will steward towards the goal. The surface of reclamation our first tailings pond (renamed Wapisiw Lookout) in 2010 is one example of the ongoing focus on land reclamation at Suncor.

Land Goal

Learn more about reclamation.

3. Improve energy efficiency by 10% by 2015*

In 2009, we set an ambitious goal to achieve a 10% improvement in energy efficiency. Since this time, Suncor merged with Petro-Canada and the company’s growth strategy has focused on oil sands mining and in situ projects, which are intrinsically more energy-intensive than conventional hydrocarbon ones. To reflect this reality, Suncor has developed a 2015 energy efficiency performance target and a complementary longer term energy intensity goal. The energy efficiency target refers to operating our installed assets as efficiently as possible, while the longer term energy intensity goal reflects the energy associated with resource development and process design. Energy intensity varies according to asset mix and degree of processing and upgrading of bitumen in our design.

The energy efficiency target will require, on average, a 10% reduction in each business unit’s energy intensity. The 2015 target is an interim step for delivering measurable progress toward the ultimate post-2015 goal. Specific activities are currently underway to support the achievement of this target, including the implementation of a new energy management system. That system is in place at our Commerce City refinery, with encouraging results. It is expected to be deployed at the Montreal and Edmonton refineries in 2011 and other sites in 2012.

The longer term energy intensity goal reflects our intent to reduce our overall company-wide energy intensity by 10% from our 2007 baseline. This target is very challenging, given the merger and our growth aspirations, and requires long-term investment, development and deployment of new technologies in order to promote step changes in our overall energy intensity. This is a long-term target, requiring a post-2015 timeline.

Energy Goal

4. Reduce air emissions (nitrogen oxides, sulphur oxides and volatile organic compounds) by 10% by 2015*

A 10% absolute reduction in total nitrogen oxide, sulphur dioxide and volatile organic compound emissions (total tonnes emitted) is an extremely challenging goal given our growing oil sands mining and in situ assets. An increase in production inevitably results in higher air emissions, making absolute reductions more difficult in growth areas. Improved reliability of operations and optimization, upgrades and replacement of equipment will help to minimize these increases. Plans are being developed in each of our business units which will help to steward towards this goal.

Air Goal

Learn more about air.

*The base year for the planned improvements is 2007. The goals were established in 2009.
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