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Suncor's additional policies and programs addressing the GRI guidelines

Suncor's Report on Sustainability was prepared in accordance with the G3.1 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 the GRI.

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General indicators

Aspect/indicator

GRI index

Suncor's response

Governance, commitments and engagement

4.1, 4.2, 4.3

Suncor's Board of Directors is comprised of 12 members, of which 11 are independent of management as determined in accordance with Toronto Stock Exchange and Securities Exchange Commission (SEC) guidelines. The chairman of the board and the chairs of the four standing committees of the board (audit, governance, human resources & compensation and environmental, health, safety and sustainable development) are all independent directors. Two of the 12 members are women. All board committees are comprised entirely of independent directors. Some of the roles and responsibilities of the board committees (including those related to economic, social and environmental performance) are detailed in Schedule C of Suncor's management proxy circular (PDF, 95 pp., 562 KB) dated March 5, 2013.

Structure and governance board committees

4.1

Governance committee — Oversees key matters relating to corporate governance and corporate strategy, including matters related to corporate values, beliefs, standards of ethical conduct and Suncor's corporate reputation. Reviews other key matters pertaining to governance, including performance and effectiveness of the board, its committees and individual directors, as well as the competitiveness of board compensation and share ownership guidelines. Acts as sounding board for management on preliminary stages of key strategic initiatives and projects and reviews and assesses processes for long-range and strategic planning and budgeting. The chair of the governance committee is not an executive officer.

Roles and responsibilities

 

The 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; annually reviews the CEO's evaluation of other senior executives within the company and his recommendation for their total compensation.

 

 

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 management proxy circular(PDF, 95 pp., 562 KB) dated March 5, 2013 for more details.

 

 

The environment, health, safety and sustainable development 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 Suncor's management proxy circular(PDF, 95 pp., 562 KB) dated March 5, 2013.

Suncor's Board of Directors

4.1, LA13

Suncor's Board of Director's is comprised of 12 members, which include two women and one person of Aboriginal descent as at March 1, 2012. Nine of the members were over 60, two of the members were between the ages of 50 and 60 and one was between the ages of 40 and 50. The composition of the Board of Directors can be found in Suncor's management proxy circular(PDF, 95 pp., 562 KB) dated March 5, 2013. Suncor reports the breakdowns of employee category according to gender, age group, minority group membership, and other indicators of diversity on a Suncor-wide and business unit level which can be found in the social performance indicator sections. Links to these pages are outlined in the GRI content index for LA13.

Mechanism for shareholders and employees

4.4

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. Employees are also entitled to share their comments, questions and/or concerns through regularly scheduled employee Web calls.

At any time, individuals may express their opinion to management by calling a toll-free number or sending an email to Suncor's information mailbox. This number and email 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. Suncor, in 2011, also implemented a shareholder engagement policy, details of which are described in Schedule ‘C' of Suncor's management proxy circular(PDF, 95 pp., 562 KB) dated March 5, 2013.

 

 

There was one shareholder-related resolution (related to Suncor's sustainability operations) filed in November, 2012. After discussions with the interested party, it was withdrawn.

Conflict of interest

4.6

Annually, the governance committee reviews a declaration of interest from each member of the board to determine if any conflicts of interest exist. In addition, directors are required to maintain with the corporate secretary a current list of all other entities in which they have a material interest or on which they serve as a director, trustee, or in a similar capacity. See Suncor's management proxy circular(PDF, 95 pp., 562 KB) dated March 5, 2013.

Pursuant to Suncor's conflicts of interest policy, if a director is a party to, or has an interest in any party to, a contract or transaction before the Board of Directors (regardless of the materiality of the contract or transaction), the director must immediately advise the chairman of the board or the particular committee chair. The director's conflict or potential conflict is recorded in the minutes of meeting and the director is required to absent himself or herself from the meeting for any material discussions or deliberations concerning the subject matter of the contract or transaction. The director is required to abstain from voting on any resolution in respect of such contract or transaction. The corporate secretary also ensures that directors do not receive board materials in situations where the subject matter of the materials could involve an actual or potential conflict of interest.

Process for determining expertise

4.7

Suncor has a process is in place to recruit new board members based on skill and expertise. The board seeks diversity of skills and perspectives that include environmental, social and economic considerations. The skills and expertise of each board member is outlined in Suncor's management proxy circular (PDF, 95 pp., 562 KB) dated March 5, 2013.

Code of conduct

4.8, HR3, HR8

Effective in 2011, and each year after, Suncor's directors, officers, employees and certain contract staff are required annually to read a summary of the company's business conduct code and affirm that he or she has reviewed the summary, that he or she understands the requirements of the business conduct code and he or she has complied with the code in the previous year. Policies in the business conduct code include those related too: Competition, Conflict of Interest and Confidentiality, Trading in Shares and Securities, Improper Payments, Trade Relations, Harassment-Free Working Environment, Accounting Reporting and Business Control, Use of Company Assets and Gifts and Entertainment. See our business code of conduct on Suncor.com for more details

Suncor has a Human Rights policy, which affirms Suncor's responsibility to respect human rights and ensures that Suncor is not complicit in human rights abuses. Suncor is subject to the laws of the countries in which it operates and is committed to complying with all such laws while honouring the spirit of international human rights principles, such as those described in the Universal Declaration of Human Rights and the Voluntary Principles on Security and Human Rights. The policy includes principles committed to a harassment-free and violence-free working environment, which respects the cultures, customs and values of the communities in which we operate. The policy makes it clear that the scope of Suncor's human rights due diligence includes its own operations and, where we can influence our third-party business relationships, the operations of others.

Suncor has a Stakeholder Relations policy, which reflects Suncor's values. The policy provides that Suncor is committed to developing and maintaining positive, meaningful relationships with stakeholders in all of its operating areas and provides Suncor's principles for guiding the development of stakeholder relations (respect, responsibility, transparency, timeliness and mutual benefit). The policy makes it clear that successful stakeholder engagement fosters informed decision-making, resolving issues with timely, cost-effective and mutually beneficial solutions and supporting shared learning. Suncor has an Aboriginal Affairs policy, which affirms Suncor's desire to work in collaboration with Canada's Aboriginal Peoples to develop a thriving energy industry that allows Aboriginal communities to be vibrant, diversified and sustainable. The policy provides a consistent approach to the company's relationships with Canada's Aboriginal Peoples and outlines Suncor's responsibilities and commitments, and is intended to guide Suncor's business decisions on a day-to-day basis. Suncor is committed to working closely with Canada's Aboriginal Peoples and communities to build and maintain effective, long-term and mutually beneficial relationships. The policy makes it clear that responsible development takes into account Aboriginal issues and concerns about the effects, positive and negative, of energy development on communities and their traditional and current uses of lands and resources.

Suncor has an Environment, Health and Safety (EHS) policy, which affirms Suncor's aspirations to be a sustainable energy company by meeting or exceeding the environmental, social and economic expectations of our current and future stakeholders. The policy reflects Suncor's belief that our EHS efforts are complementary and interdependent with our economic and social performance. The policy makes it clear that Suncor management is responsible for ensuring that employees under their direction are competent to manage their EHS responsibilities and knowledgeable of the hazards and risks associated with their jobs, and that all Suncor employees and contractors are accountable for compliance with relevant acts, codes, regulations, standards and procedures, and for their own personal safety and the safety of their co-workers. The aforementioned policies are available on the company's intranet and external website and additional workshops and training sessions are conducted as warranted throughout the year. In addition, information regarding the policies is provided for employees primarily though feature articles on the company's intranet or employee newsletter. The Aboriginal policy has Cree and Dene audio translations. Regular training is provided for employees and contract workers whose roles require interaction with the respective stakeholder group.

In 2012, Suncor developed a social risk assessment tool subsequent to which social risk assessments commenced on certain new initiatives or, where warranted, due to significant changes to projects. The company continues to evaluate the process and revise the tools as needed. Regarding the EHS policy, the annual President's Operational Excellence Awards, which honour employees and contractors who demonstrate an exceptional commitment to health and safety, highlight progress on safety initiatives and provide educational opportunities for all employees. These significant policies are reviewed annually.

Read more about the President's Operational Excellence Awards on Suncor.com

Board procedures — risk management

4.9

Suncor has a company-wide Environment Health and Safety (EHS) management system modelled 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.

The environment health and safety and sustainable development committee of the board holds quarterly stewardship meetings to review EHS 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. For details, see Suncor's management proxy circular (PDF, 95 pp., 562 KB) dated March 5, 2013.

Evaluating board performance

4.10

The board completes an annual self-evaluation. For details, see Suncor's management proxy circular (PDF, 95 pp., 562 KB) dated March 5, 2013.

Precautionary principle

4.11

Suncor supports the precautionary principle, which is reflected in our life cycle value assessment tool that 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 cumulative effects in the areas in which we operate
  • the four environmental goals we have set to reduce our environmental impact.

External charters or principles

4.12

Suncor has developed a sustainability strategy and principles to govern company activities. In addition, we subscribe to the United Nations Declaration of Human Rights. In 2010, Suncor became a signatory to the United Nations Global Compact.

Memberships in associations and advocacy organizations

4.13

Suncor provides input to the development of public policy that encourages sustainable development. Suncor's involvement includes participation in:

  • Alberta Biodiversity Monitoring Program
  • Colorado Petroleum Association
  • Alberta Chamber of Resources
  • Colorado Petroleum Marketers Association
  • Alberta's Clean Air Strategic Alliance
  • Colorado State Chamber of Commerce
  • Boreal Leadership Council
  • Conference Board of Canada
  • Boston College Center for Corporate Citizenship
  • Cumulative Environment Management Association
  • Calgary Chamber of Commerce
  • Denver Metro Chamber of Commerce
  • Canadian Association of Petroleum Producers
  • the Excel Group
  • Canadian Boreal Initiative
  • Fort McMurray Chamber of Commerce
  • Canadian Business for Social Responsibility
  • Grand Junction Chamber of Commerce
  • Canadian Chamber of Commerce
  • the Joint Public Advisory Committee of the Commission for Environmental Cooperation
  • Canadian Council of Chief Executives
  • London Benchmarking Group Canada
  • Canadian Fuels Association
  • Metro North Chamber of Commerce
  • Canadian Wind Energy Association
  • the Mining Association of Canada's Toward Sustainable Mining Initiative
  • the Centre for Innovation and Management at Simon Fraser University
  • National Petroleum and Refiners Association
  • Centre for Philanthropy
  • National Roundtable (NRTE)
  • Ceres
  • Network for Business Sustainability
  • Clean Air Renewable Energy Coalition
  • Oil Sands Developer's Group
  • Colorado Alliance of Environmental Education
  • Petroleum Association of Wyoming
  • Colorado Association of Commerce and Industry
  • Regional Air Quality Council
  • Colorado Association of Petroleum Asphalt
  • the World Business Council for Sustainable Development
  • Colorado Environmental Partnerships

 

Stakeholder engagement

4.16

Suncor undertook a thorough review of its Stakeholder Relations policy and tools in 2010. The policies and tools are designed to guide work with stakeholders and included 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. On an enterprise level, each year Suncor hosts one multi-stakeholder forum to address and discuss all material issues. This annual forum is an integral part of Suncor's reporting process, where key issues are identified to report on. Engagement generally follows the structure listed below:

  • Employees — regular communication through surveys, focus groups and written communication
  • Community residents, land owners — frequent communication through community panels / town halls and Suncor's consultation process
  • Aboriginal communities, trappers — frequent communication through face-to-face, community panels, Suncor's consultation process and meetings
  • Governments and regulators — frequent communication through meetings, government events and written communication
  • Non-government organizations, environmental groups — regular communication through written communication, face-to-face meetings, advisory panels and stakeholder forums
  • Business groups, customers, suppliers — regular communication through focus groups, community panels, written communication, surveys, face-to-face meetings

Key stakeholder topics and concerns

4.17

Annually, Suncor conducts a materiality review process that involves external and internal stakeholders wherein specific environmental, economic and social 2011 issues are analyzed and applied to our materiality matrix found in the materiality review section of this report. An example of a selection of issues that were identified as having both high impact and high concern to our stakeholders and organization can be found in the materiality review section.

Suncor's response to these key topics and concerns has been addressed in both the performance indicator and narrative content sections of this report. Additional links relevant to this indicator have been provided in the GRI content index. These links highlight specific examples of actions and initiatives that have been taken as an outcome of stakeholder topics and concerns.

Economic indicators

Economic indicators

Aspect/indicator

GRI index

 Suncor's response

Benefit obligation

EC3

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 Dec. 31, 2012, was $4,682 million (2011 — $4,208 million). At the end of December 2012, plan assets to meet the benefit obligation were $2,843million (2011 — $2,499 million). The excess of the benefit obligation over plan assets of $1,839 million (2011 — $1,709 million) represents the net unfunded obligation. The company also provides a number of defined contribution plans, including a U.S. 401(k) savings plan, that provide for an annual contribution of 5% to 11.5% of each participating employee's pensionable earnings. See Suncor's 2012 annual report.

Local spending and hiring of senior management

EC6, EC7

The term 'local' for this category is defined differently depending on the Suncor business unit. Our Oil Sands operations considers the Regional Municipality of Wood Buffalo as local; Refining &Marketing and Natural Gas operations defines local at the provincial or state level. For Natural Gas, local is Alberta and British Columbia and for Refining & Marketing local is Alberta, Quebec, Ontario and Colorado. The Exploration & Production business defines local at the provincial or national level (Newfoundland, Norway, Nova Scotia). Suncor has specific practices in place related to local supplier selection. There are regional development clauses in place with suppliers and in contracts across all business and sourcing documents often have criteria that evaluate suppliers on Aboriginal or local content. In addition, it is a common practice by Suncor to post local contract and supplier opportunities on regional organizations websites such as Regional Economic Development (REDlink) and North East Alberta Aboriginal Business Association (NAABA). This is to ensure local businesses and suppliers are the first to be aware of opportunities in their region.

 

 

Suncor is partially disclosing this indicator as Suncor does not currently have a data management system that tracks the information. Suncor has a plan in place to fully report on the proportion of senior management from the local community in the near future. Suncor's common 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 Relations 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. A key belief stated in Suncor's Canadian Aboriginal Relations policy is that, "People and communities affected by our activities should have the opportunity to benefit from energy development through opportunities such as employment, business development, education, training and community investment." Suncor's Aboriginal guidelines encourage business units to have a strategic plan to address Aboriginal employment and business development. In 2011 Suncor developed a corporate Aboriginal Economic Collaboration strategy to realize mutually beneficial economic collaboration opportunities with Aboriginal individuals, communities, and organizations. In 2013, implementation plans were developed for six business units. Suncor is currently working on an Aboriginal recruitment and retention strategy as well.

Social indicators

Social indicators

Aspect/indicator

GRI index

 Suncor's response

Investment and procurement practices

HR1

Suncor’s Human Rights policy (2011) states that our responsibility to respect human rights applies across all of our activities and through our business relationships with others. The policy also states that a due diligence process for human rights impact assessment be undertaken regularly to identify, prevent, mitigate and remedy our potential impacts on human rights. The scope of our human rights due diligence should include our own operations and where we can influence our third party business relationships, those of others. We recognize that a heightened level of due diligence is required in high risk and conflict environments. Human rights-related clauses have been integrated into all of our contracts in our Libyan operations.

Please see the human rights section of this report for further disclosure on human rights investments and updates.

 

HR2

Suncor does not currently undergo screening of contractors and suppliers on human rights, however, we are currently in the process of implementing a framework for our human rights policy, which will include screening mechanisms for contractors and suppliers. Implementation of these mechanisms will begin in 2013/2014. Plans to report on this indicator will begin in 2014/2015.

During 2009, the Exploration & Production (formerly International & Offshore) business unit developed a contractor code of conduct for use in countries like Syria and Libya. The document was developed and approved for use and is being shared with contractors.

Please see the human rights section of this report for further disclosure on human rights investments and updates.

Discrimination

HR4

For 2012, there were three new formal complaints to Canadian and U.S. Human Rights Commissions on the basis of discrimination. Two claims in the U.S. went through the Equal Opportunity Employment Commission (EEOC), with no findings made against Suncor. One of those claims resulted in the filing of the complaint in federal court and is still active, while the other claim was not filed in federal court and is now barred. In Canada, one human rights complaint was filed in 2012 and is set to proceed to a hearing in front of the Ontario Human Rights Tribunal. In addition, there are currently two complaints filed prior to 2012 that are still in process.

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 and Violence Free Working Environment policy mandates that all employees and others working at or with Suncor have a process to lodge a harassment complaint. The process is easily accessible, confidential and provides an impartial process for investigation through resolution of each complaint. All new employees are made aware of the policy and the procedures for complaint, and all employees review the policy annually. Supervisors, human resource advisors and union representatives are available and capable to assist or refer for complaint resolution.

 

Freedom of association and collective bargaining

HR5

Suncor’s employment policies adhere to all applicable domestic laws and honour internationally accepted labour standards, including those concerning freedom of association and collective bargaining, non-discrimination, forced labour, and underage workers in the workplace. In addition to our employment policies, these standards are also espoused in Suncor’s Human Rights policy.

Child labour and forced and compulsory labour

HR6, HR7

Suncor’s employment policies adhere to all applicable domestic laws and honour internationally accepted labour standards, including those concerning freedom of association and collective bargaining, non-discrimination, forced labour, and underage workers in the workplace. In addition to our employment policies, these standards are also espoused in Suncor’s Human Rights policy.

Suncor developed a Social Risk Assessment tool that includes screening for potential complicity in human rights and labour rights abuses. Because of the political unrest and conflict in Syria and Libya, our operations in those countries underwent separate and specific risk assessments in 2011. Suncor is also going to be conducting a corporate social responsibility Audit in 2013 of our Libya operations that will cover, among other things, the management and protection of human and labour rights. Results of that audit will be reported in the 2014/2015 reporting year.

Indigenous people

HR9

There were no incidents in violation of rights of indigenous people reported in the 2008-2012 reporting periods.

Suncor’s Human Rights policy commits to respecting the rights of indigenous peoples in all countries where we operate. Suncor’s Aboriginal relations policies commit to respecting the cultures, customs and values of the communities in which we operate.

Changes in operations

LA5

Current collective agreements stipulate three to six months’ notice to employees of significant operational changes at our Oil Sands, U.S.A. operations, Refining & Marketing and Natural Gas operations. The collective agreements also include provision for consultation and negotiation.

Formal joint management-worker health and safety committees

LA6

Suncor's workforce at Oil Sands, In Situ, Exploration & Production (North America Onshore and East Coast Canada, Syria, U.K., Norway) and Refining & Marketing that include 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.

 

Rate of injury, occupational diseases, lost days and absenteeism

LA7

Suncor reports on the most material indicators relevant to the oil and gas industry which include employee and contractor lost time injury frequency, recordable injury frequency and fatalities. Occupational disease claims are also reported internally as well as to the regulators for the applicable jurisdiction. Suncor also reports internally on incidence rates for non-occupational illnesses through our Integrated Disability Management program on an enterprise-wide level as well as by business unit.

Health & safety in collective agreements

LA9

All Suncor collective agreements contain articles on health and safety. Specific requirements for union or employee representation on joint health and safety committees are included in all collective agreements.

Training

LA10

Suncor tracks spend on employee training and development on a Suncor-wide and business unit level, which can be found in the performance indicators section outlined in the GRI content index for LA10. Data for the average hours per training per employee per year is not currently available as no enterprise wide system is in place to report this information. There is a plan to implement a new learning management system and Suncor will be able to report on this in 2014 /2015.

Training activities within Suncor:

  • Suncor has identified the number of hours of training per employee. Further detailed tracking and measurements are being identified under the OEMS learning standards element #7.3.1.
  • Qualified workforce and EHS compliance —Employee compliance is recorded and tracked in the learning management systems. Monthly reports are presented to management by business.
  • Cost-based indicators — Cost per employee for 2009 has been tracked and compared with ASTD database (American Society for Training and Development and the Conference Board of Canada). Participation in ASTD Benchmark Survey is scheduled for 2013.
  • Value-ased human resource indicators (ROI — return on investment per employee) — Since 2010, Suncor has tracked and measured all learning events at Level I and Level II across the enterprise. ROI is applied to large enterprise initiatives to ensure ROI and value is achieved. This system was implemented across enterprise to all areas in Q2 2011.
  • The capability model is used to assess employee and leadership performance.
  • Performance management tools and processes are applied to ensure personal and corporate goals are accomplished. Goals have specific measures / targets that are reported monthly to senior leaders.
  • A new competency development process and learning standard was introduced in 2011 to establish a base link for operating businesses. This standard is part of Suncor's Operational Excellence Management System (OEMS).
  • Competence development processes have been mapped and integration points identified to support new learning technology expected to start implementation in 2014. The system will allow training data visibility to leaders and improved reporting analytics across the enterprise.

Skills management and career transition

LA11

Suncor provides an online course catalogue of relevant training courses, programs and job aids to support employee competence in environment, health and safety, technical and operations skills, information technology, business processes, leadership, and personal effectiveness. Suncor has an educational assistance policy. This program is for full-time, permanent employees to pursue studies at post-secondary institutions to further their education related to their position and preparedness for future career aspirations with Suncor. Employees are reimbursed upon successful completion of the course.

Suncor has completed the design of a new competency process and defined learning standards as part of the Operational Excellence Management System OEMS element #7. Baseline assessment has been completed and gap closure plans will be prioritized and scheduled for 2013/2014.

Suncor has a learning management system that is accessible from the intranet site. The system details numerous learning programs to meet the training and development needs of employees. Internal learning programs can be categorized into three types:

  • technical skills
  • EHS skills/procedures
  • capability development

All capability development learning programs are offered to support the employee capability model and the leadership capability model. At Suncor, a foundation learning program that is recommended for all staff employees is Stephen Covey's 7 Habits of Highly Effective People. We believe that enhancing individual effectiveness has a positive impact on the performance of the team and organization.

Suncor U (corporate university) was founded in 2007. Suncor U offers complete customized leadership programs for each level of leadership. Suncor U continues to evolve and is launching second generation programs this year. In addition, Suncor offers a number of generic leadership skill building programs for open registration based on the leader's development plan. . Continued review of new and custom leadership and management programs will be completed to ensure ongoing relevance and alignment to Suncor strategy and goals.

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.

Community

SO1

Suncor engages with communities on both a project specific basis and in our daily operations. On a project level, we interact with communities to solicit feedback related to a project and the regulatory process. In our daily operations, Suncor maintains its relationship with local communities to ensure that we are meeting the commitments we made during the major project consultations and regulatory approval process. These interactions can take place through informal relations or formal interaction through workshops, advisory panels and committees, or other community groups.

 

 

Suncor ensures our dialogue with our stakeholders is productive and fosters good decision-making. Stakeholders are encouraged to define how they want to be consulted, and we strive to remain flexible and responsive to their preferences. We are willing to be influenced by stakeholders, even if it means making changes to how we operate our business, and we will keep stakeholders informed of our response to their concerns.

Suncor has also engaged in community partnerships to address capacity issues in communities where we have an operating presence and where we acknowledge socio-economic or environmental impacts.

Examples include:

In the Wood Buffalo region, Suncor does offer compensation for trapline disturbances based on a consultation program with payment based on a trappers’ compensation matrix.

 

SO10, SO11, OG9, OG10

Suncor understands that all of our operations could potentially have a negative impact on community through our own operations and/or through cumulative impacts of several industry operations in a geographic area. This includes indigenous communities.

Through consultation with communities impacted by Suncor's operation, the level of significance of impact is determined and mitigation efforts are discussed.

The risk of operations is assessed on an ongoing basis through all stages of development. Life Cycle Value Assessments (LCVA) and Environmental Impact Assessments (EIA) are internal and regulatory standards. More recently, we have begun to include a more comprehensive social risk assessment process into the overall risk assessment for new initiatives and changes to processes. Comprehensive risk assessments, including social risk, were utilized for new wind development projects, shifts in Major Projects initiatives and future oil sands mining operations.

Suncor has also recognized that there are potential cumulative impacts from several operations working in a geographical area and had been instrumental in the formation of the Canadian Oil Sands Innovation Alliance and previously the Oil Sands Leadership Initiative. Building on the success of these collective impact organizations, Suncor has been working with other oil sands leaders to develop an organization that will collaboratively focus on the socio-economic impacts of development in the Wood Buffalo region and will focus on issues of Aboriginal success, infrastructure, healthy communities and workforce development.

A number of tools and processes are utilized to evaluate the risk and then continually monitor the impact including but not limited to: risk assessment tools, LCVA, SPIM, EIA, environmental monitoring, research, stakeholder consultation, stakeholder research, open houses, printed communications, social and traditional media, presence in the community, community advisory councils, leader to leader meetings with Chiefs and political leaders.

Suncor is in the final stages of developing a formal grievance mechanism for stakeholders. We have been working with International Alert through 2012/2013 to develop a process that is robust and will work for all of our operations. Currently stakeholders most directly impacted by our operations would have personal contact information for local representatives as well as office numbers and emergency contact numbers for all sites.

Corruption

SO2, SO3, SO4

Suncor's Improper Payments policy prohibits company personnel from committing or using corporate funds, facilities or assets directly or indirectly for any illegal or improper purposes, including but not limited to bribery, kickbacks, or diversion to separate funds or companies for personal use or for the purpose of disguising such payments. Suncor personnel shall comply with all the laws and regulations of jurisdictions where Suncor does business concerning improper payments to foreign officials or other third parties, including the United States Foreign Corrupt Practices Act, the U.K. Bribery Act and the Canadian Corruption of Foreign Public Officials Act. All three countries are signatory to the Organization for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials. To ensure continued adherence with policies prohibiting bribery and corruption, all employees and certain contractors and suppliers must read and sign off on the Improper Payments policy, as well as other policies relating to Suncor's expectations for lawful and ethical conduct annually. In 2012, Suncor dedicated resources to the development of a comprehensive anti-bribery compliance program. The program includes training, contractual protections, audits and third party contractor prequalification.

 

 

Suncor conducts an annual business conduct compliance program that includes procurement, employee and management fraud. In 2011, all Suncor employees were required to affirm their compliance with our corporate code of conduct called Standards of Business Conduct Compliance Program (SCUP) . Training specific to the prevention of improper payments is provided on a targeted basis to certain individuals in high-risk jobs and jurisdictions.

 

 

Suncor did not record an unlawful bribery or unlawful corruption incident in the 2007—2012 reporting period, nor were any such actions brought against Suncor.

Political contributions

SO5

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 vice president, government relations, within a pre-allocated budget approved by the executive vice president, business services. Contributions are reviewed annually by Suncor's Executive Leadership Team. We have not made any political contributions in the U.S. See the section for more information on Suncor's political contributions.

Anti-competitive behaviour

SO7

Suncor strives to compete for business vigorously, honestly and in compliance with all applicable antitrust and competitive laws. Suncor's business code of conduct provides that Suncor shall in the conduct of its business (a) avoid all practices and activities that are a violation of any provision of competition law, and (b) support and encourage the maintenance of a competitive economy.

Compliance

SO8

Suncor consented to a fine of Cdn$500,000 for non-compliance under the Competition Act of Canada as a result of certain isolated business communications involving its Sunoco branded gas stations in the Belleville, Ont. area in 2007. Sunoco subsequently engaged in further competition training beyond that already provided to all relevant Sunoco personnel. Other than the above and the EN28 fines disclosed in this report, Suncor did not receive any significant fines or non-monetary sanctions for non-compliance with laws and regulations in 2012.

Resettlement

OG12

Suncor has not operated in an area where we have had to involuntarily resettle communities.

Process safety events

OG13

Suncor reports safety tier 1 safety events, such as lost-time injury frequency and fatalities in the performance data section of this report, by business unit. The development of an incident management system to track and monitor other process safety events is under development.

Assessment of health and safety impacts through life cycle stages

PR1, PR2

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, and 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 Shell/Phillips 66 in the U.S. and every Petro-Canada retailer in Canada are trained and follow guidelines to train his/her staff in environment, health and safety procedures and standards. Suncor's auditors measure and monitor consigned fuel inventories, financial performance and ensure the retail station is in compliance with government legislations. All retail health and safety incidents are reported and reviewed to evaluate and learn from incidents, and to implement recommendations to prevent future incidents. Site security standards focus on robbery prevention, deterrence, and protection of guest services attendants.

 

 

The lubricants business conducts safety assessments and safe work audits. Potential failures are analyzed through failure modes and effects analysis (FMEAs), process hazard analysis and control plans to prevent any incidents. All incidents (including health, safety, quality and environmental) are reported and reviewed. Root cause analysis is completed to prevent future occurrences.

 

 

In the 2007—2012 reporting periods Suncor reported no incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle.

Product information and labelling

PR3, PR4

The retail operations training provided to all Suncor retail operators in Canada and the United States includes guidelines on the labelling of products and the posting of relevant safety and environmental information at the retail station. This labelling includes Workplace Hazardous Material Information System and materials 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 sells ethanol-blended gasoline and diesel fuel with renewable content at many Petro-Canada branded sites and Petro-Pass sites. Petro-Canada car washes utilize bio-degradable soaps and waxes.

 

 

In the U.S. Suncor sells ethanol-blended gasoline at most of its Shell/Philips 66 branded stations. Labelling for the ethanol content is featured at each site.

 

 

The lubricants business is a global business that strives to adhere to the regulations in all of the countries that we do business in. All material safety data sheets (both purchased and manufactured) are maintained in the official languages of the countries we sell product in. In addition, any specific and extra EHS labels required for a jurisdiction, such as GHS or DPD, are added to our packaging as required.

 

 

The lubricants' business sells a variety of environmentally friendly productscalled our EcoSia product family. These products range from hydraulic oils to food grade products. In addition, the lubricants business sells a variety of pharmaceutical grade white oils, eco-friendly lawn care products and other extended-life lubricants.

 

 

In the 2007—2012 reporting period Suncor did not report any incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling.

Customer satisfaction

PR5

Guest satisfaction is measured at Petro-Canada retail sites using a mystery shopper program delivered by a third-party provider. The Petro-Canada retail network also supports a guest survey program (guests are invited to give feedback via an online survey or by phone) that allows retail guests to provide ongoing feedback on their experience and on our sites' execution of our service standards. The results of both mystery shops and guest surveys are reviewed monthly by Suncor field personnel and management and used by the retail sites to make improvements to the guest experience. In addition, Suncor maintains a toll-free guest service line (found on the Performance Points card, the Petro-Points™ card and our website) for the Petro-Canada retail network that guests may call to obtain information or report any concerns. While the combined program results confirm guests are satisfied, we continue to focus our efforts on improving areas of true guest loyalty and differentiation.

 

 

In the U.S., customer satisfaction is measured on two levels. First, each Shell/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. Shell/Phillips 66-branded retail facilities have ranked consistently in the top quartile with scores 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.

 

 

 

Marketing

PR6

Petro-Canada branded advertising, promotion and sponsorship opportunities at all of the national Petro-Canada retail stations go through a series of processes to ensure accuracy and factual proofing 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 signoff. In Canada, all on-site retail convenience product merchandise advertising for Petro-Canada sites is managed by the Marketing department. 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 the Canadian Fuels Association (formerly the Canadian Petroleum Products Institute) for Petro-Canada branded sites. Similarly in the U.S., we maintain a rigorous advertising approval process to ensure accuracy and factual proofing. Shell/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 team lead and merchandise/promotions administrator. Shell/ConocoPhillips approval is required for Shell/Phillips 66-branded advertising as detailed in the respective licence agreements.

Privacy

PR8

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. Since their inception, Suncor has and will continue to comply with the Personal Information Protection and Electronic Documents Act (Canada) (PIPEDA) and substantially similar provincial legislation.

 

 

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 that 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.

 

 

Lubricants commits to go beyond today's standards and have a no-nonsense lubricants warranty on all of its products. The lubricants business uses a gated category management process which requires signoffs from cross functional leaders and directors at each gate. For marketing literature, managers must approve any changes or additions to ensure accuracy and validity. Marketing guidelines are in place for consistency.

 

 

Suncor has not been found to have contravened any privacy laws respecting customer data during the period of 2007—2012 within Refining & Marketing Canada.

Compliance

PR7, PR9

The lubricants business closely monitors Canadian, United States and European environmental regulations. Recently, the business has been working with the Canadian government and European Union to evaluate the safe use of the chemicals and additives used in the products.

 

 

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—2012 reporting period.

 

 

 

Environmental indicators

Environmental indicators

Aspect/indicator

GRI index

 Suncor's response

Material used

EN1, EN2

Suncor tracks and reports gross production volumes for all business units and corporate wide; this data is found in the production section (OG 1) for each business unit and Suncor-wide. Suncor tracks average annual water recycling rate (EN2) for our In Situ business found in the water use section.

 

 

The percentage of materials used in our processes is not currently tracked. Tracking this is not applicable to Suncor's business as we don't use material to manufacture our products with the exception of water and energy which is tracked and shown in the performance indicator section for EN2 and EN3 and EN4 respectively.

Indirect energy consumption by primary source

EN4

The amount of non-renewable resources consumed by the external organization to provide Suncor with indirect energy is listed in Carbon Disclosure Project (CDP) response located in the next link provided in the GRI content index (question 12, page 41). The additional links provided in the GRI content index for EN4 provide a breakdown of indirect energy and imported electricity by business units and Suncor-wide.

 

 

 

In 2012, the amount of renewable energy consumed by the external organization to provide Suncor with indirect energy was 0.

Protected areas

EN11

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. Suncor is no longer the operator in the Panther area. Portions of the project area are in a zone now designated for protection of sensitive alpine ecological values. The petroleum and natural gas interests were granted prior to protected status designation. When Suncor was the operator, we worked closely with regulators, municipalities, First Nations and local stakeholders to ensure our operations were economically and environmentally sustainable to all stakeholders. Suncor is also involved in the savanna area in the southern foothills and have some assets on Plateau Mountain, which is a designated ecological reserve in Kananaskis Country. Similar to the protected status in the Panther area, the natural gas interests were in place prior to the ecological reserve designation. Although there is very little ongoing activity, we have been working with regulators and area stakeholders on a regular basis.

In addition, Suncor operates the Ferrier oil and gas field west of Rocky Mountain House, Alta. The overall field has encompassed Crimson Lake Provincial Park for over 40 years with a number of Cardium oil wells and associated facilities located within the park. Suncor works closely with local provincial parks staff as well as First Nations, regulators and local stakeholders in managing our ongoing activities in the area.

Suncor was recognized with a CAPP RCE Social Performance Award in March 2013 for its work in the David Thompson Corridor Visitor Services, which includes Crimson Lake Provincial Park.

 

 

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.

Biodiversity risk

OG4

Suncor has established an internal formal business case for how biodiversity issues impact company performance and biodiversity base line surveys and protection measures are fully incorporated into the management and operating procedures for the exploration and site development and construction phase of new projects. Risks from indirect impacts on biodiversity are addressed before starting new or changing existing operations. A large portion of Suncor’s operations and potential impacts are specific to the oil sands region near Fort McMurray in northeastern Alberta. The oil sands exist in the boreal region of Canada and therefore most of our biodiversity actions are focused in this area. Suncor is involved with many stakeholder groups, research activities and monitoring programs all aimed at understanding and mitigating the potential impacts our industry has on biodiversity. Examples include: membership of the Cumulative Environmental Management Association; charter member of the Canadian Oil Sands Innovation Alliance; and support of conservation projects that preserve critical boreal and wildlife habitat.

Operations owned or operated by our company are assessed for their impact on biodiversity when permits change or an expansion project warrants a review of the operations' impact on biodiversity.

Stakeholders at the local level are involved in monitoring the business’s significant risks and or potential impacts on biodiversity.

Suncor is required to provide the provincial government with a biodiversity program, a revegetation plan and a fish and wildlife monitoring plan. Additionally, annual vegetation assessments are undertaken to measure and plan species richness and density of reclaimed sites. Environmental impact assessments and/or socio-economic impact assessments are required by law at all sites where we operate.

Indirect GHG emissions

EN17

Suncor tracks direct and indirect GHG emissions associated with our operations as defined by the GHG Protocol. In 2012, Suncor is reporting Tier III emissions from buildings (including the Suncor Energy Centre, Sheridan Park and the Suncor Business Centre), ground transportation services for employees and contractors in Fort McMurray, commercial air travel and travel on Sunjet, as well as Sunjet chartered flights. The breakdown for 2012 includes: facilities (8.350 tonnes of CO2e), ground transportation (14,580 tonnes of CO2e), business travel (55,775 tonnes of CO2e — applies to both commercial air travel and Sunjet scheduled and chartered flights), as well as CO2 sold from our facilities to third parties (240,746 tonnes of CO2e). Based on the defined scope, Suncor's 2012 Tier III emissions were 319,451 tonnes of CO2e.

Total water discharged by quality and destination

EN21

 

In the performance indicators section of this report, Suncor outlines the quality of water discharges. These water discharges are planned and the water quality parameters must be analyzed, recorded and reported as per regulatory requirements. The destination of water discharges are as follows:

  • Oil Sands — Athabasca River
  • Refining & Marketing (differs by facility) —North Saskatchewan River, St. Lawrence River, Lake Ontario, St. Clair River and Sand Creek
  • Renewable Energy —Baby Creek
  • Exploration & Production ( East Coast Canada) — Atlantic Ocean.

Unplanned water discharges are an exception and for sustainability reporting purposes, Suncor does not currently report on the quality and quantity of unplanned water discharge events or whether water discharges are re-used by another organization. Unplanned water discharges are reported to regulators as required.

Total waste by type and disposal method

EN22

Total weight and type of waste are reported by disposal method in the performance indicators sections, both at the Suncor-wide and business unit level. In 2013 Suncor added additional reporting categories for waste as described under EN22 in the GRI 3.1 Sustainability Reporting Guidelines and as indicator OG7 in the GRI Oil and Gas Sector Supplement.

Environmental impacts of products and services

EN26

Today, Petro-Canada retail stations sell gasoline containing up to 10% ethanol in most markets. Suncor began selling ethanol-blended gasoline at Sunoco retail stations in 1996. Petro-Canada began selling ethanol-blended gasoline at Petro-Canada retail stations in Saskatchewan, parts of southern Ontario, Manitoba and the Montreal area in 2007. Canada's national ethanol mandate was implemented in December 2010 and it is based on a 5% pool average. Suncor is already beyond compliance in our ethanol pool average. Ethanol, an alcohol made from corn or wheat, is blended with gasoline. It is a renewable resource that reduces emissions that contribute to global warming.

In addition, Petro-Canada voluntarily complies with the Top Tier gasoline additive treat rate promoted by some of the major automobile companies. Use of Top Tier qualified gasolines promotes cleaner engines, reduced emissions and better fuel economy.

 

 

At our upgrader and all of our refining facilities, we have introduced ultra low sulphur diesel (15 parts per million (ppm) sulphur or less) production to meet Canadian legislative requirements. Our gasolines have been below 30 ppm sulphur since 2004.

 

 

Suncor supplies renewable content in diesel fuel, meeting a 2% federal mandate, a 4% mandate in British Columbia and 2% mandates in Alberta, Saskatchewan and Manitoba. Both North American sourced biodiesel and offshore hydrotreated renewable diesel from sustainable sources are required to comply with the various mandates. Renewable diesel fuel reduces carbon monoxide and particulate emissions, which contribute to smog.

 

 

Suncor has installed a biodiesel mixing facility at our Fort McMurray facility (ATT Terminal), seasonally supplying the mine and the local market with up to 5% biodiesel. Note that the mine operates on Ultra Low Sulphur Diesel with sulphur content of less than 15 ppm.

 

 

Since mid-2006, Suncor has supplied 200 million litres of ethanol annually to Eastern Canada from its production plant near Sarnia, Ont. A $120-million expansion was completed in 2010, doubling capacity to 400 million litres per year.

 

 

The lubricants business is ISO 14001:2008 certified. Within this certification, there is identification of aspects and impact on each process of the business. Environmental programs are also created to ensure that any environmental impact is mitigated. Environmentally friendly processes and initiatives are constantly being implemented.

Fuels

OG8

Benzene and sulfur content in fuels are both heavily regulated. Amounts are reported to the government quarterly and facilities have units to reduce, monitor and regulate benzene and sulfur levels. Lead is a banned substance in fuels and only allowed in aviation fuel, subject to strict standards. Exceedances of national regulations for benzene and sulfur are considered a criminal offence in Canada. For benzene, Canada’s allowance in fuels is 0.95% while Suncor is around 0.7%. For sulfur, Canada’s allowance is approximately 0.3% and Suncor is around 0.2%.

Fuel information at all Petro-Canada retail stations is available upon request and, however limited, on or near the fuel pump. Additional information is available on their website and retail site.

Product reclaimed

EN27

Since our gasoline and diesel products are sold in bulk and consumed during use, none of the product is reclaimed and there is no packaging involved.

 

 

The lubricants refinery recycles waste hydrocarbons to reuse in the refinery as are other applications. Where possible, waste oil is treated and reused for new product as well.

Field logistics and transport

 EN29

Aviation — Currently we fly 7,800 one-way flight segments per year and move approximately 260,000 passengers per year to and from the Wood Buffalo region.
Ground Transportation — Suncor runs a busing operation in the Wood Buffalo region through our third-party suppliers. We run 210 buses daily, a mix of coach and yellow buses, as well as some smaller shuttles. We shuttle 6,901 people daily between Fort McMurray and our mine location. Additionally we shuttle 2,200 workers daily within our Firebag fly-in operation.
Lodging — We operate 13,500 camp rooms in northern Alberta with 3.9 million resident room nights planned in 2012. We serve more than 12 million meals annually through our caterers at these lodges. Please note that flight, passenger and worker numbers are approximated but closely represent Suncor's transport and field logistics operations.

 

 

Our products are 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' 3,500 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.

 

 

The lubricants business optimizes our transportation routes by reducing the number of carriers that we do business with, which mitigates our environmental footprint. The contracts that we have in place with our carriers also ensure that our safety and environmental philosophies are instilled with the companies we do business with.