Report on Sustainability 2018


Forward-looking statements

Suncor’s 2018 Report on Sustainability contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in Suncor’s 2018 Report on Sustainability include references to: Suncor’s mission, vision and strategies, including to strive to be the low-cost and low-carbon producer and competitor in its sector and deliver long term value for shareholders, unlock maximum value from its extensive resources, demonstrate triple bottom line sustainability leadership in environmental performance, social responsibility and creating a strong economy, keep costs down, deliver economic prosperity, improved social well-being and a healthy environment, and increase reliability; the belief that Suncor has created a strong foundation for resilient and sustainable energy development; Suncor’s goal to decrease overall greenhouse gas (“GHG”) emissions intensity of its production of oil and petroleum products by 30% by 2030 and that Suncor can see a realistic path to achieving such goal and the areas of focus to achieve this goal, the social goal relating to increasing the participation of Canada's Aboriginal Peoples in resource development and strengthening Suncor’s relationships with Aboriginal Peoples of Canada and the areas of focus to achieve this goal, [and Suncor’s intention to create a long-term goal relating to water conservation]; the expected impact of achieving these goals; the expectation that Suncor will continue to explore other opportunities, work to improve Aboriginal Peoples' participation in its workforce, the progress of Aboriginal youth and continue efforts to increase Suncor employees' awareness of the history and experience of Aboriginal Peoples; Suncor's confidence in its resilience over the long term; that Suncor will exclusively supply PetroNor with fuel and distillate and work collaboratively to pursue additional opportunities in northwestern Quebec; the expectation that technology will keep Suncor competitive, allow Suncor to grow its business, allow for oil sands-derived oil to have GHG intensities at or below the average North American barrel and that Suncor can and will get beyond today's technologies; the belief that Suncor can generate sufficient cash flow provided by operating activities at a $US45 to $45 per barrel oil price to cover sustaining capital and its dividend; the belief that Suncor will need to drive not just continuous improvement, but transformative improvement, to remain competitive in a low carbon future; Suncor’s expectations (including potential outcomes and benefits) and plans around technologies being developed, tested, introduced in Suncor’s operations or considered for use, including technologies related to decarbonization, in situ technologies, including the next generation SAGD platform, coke capping, remote monitoring, control and support, solvent and surfactant assisted SAGD recovery, radio frequency heating techniques, electromagnetic assisted solvent extraction, direct contact steam generation and produced water treatment, mild thermal cracker technology, non-condensable gas co-injection, solvent-only technologies (including Nsolv™ ), steam-solvent technologies, expanding solvent SAGD, optimized solvent-steam hybrid, high temperature reverse osmosis, digitization, thermal-solvent based processes, demonstration pit lake, CO2 capture, SAGD LITE, surface mining technologies, including paraffinic froth treatment, non-aqueous extraction, well-bore enhancements, froth treatment tails, permanent aquatic storage structure treatment process, land reclamation, wireless badges, wireless gas detection monitors, flaring and tailings management; timelines and plans relating to technology development and testing; the expectation that technology will result in oil sands crudes being both a low cost and low carbon source of crude and that the carbon intensity of bitumen can be lowered while improving the cost competitiveness; expectations around ESEIEH™ including the potential benefits and the timing of the results from the ESEIEH™ pilot; and further implementation of the technology at a pad-scale In Situ Demonstration Facility; Suncor’s aim to bend the curve on the company’s absolute GHG emissions; potential replacement of petroleum coke fired boilers and benefits thereof; potential benefits of investment in expanding cogeneration including its impact on Alberta's electrical grid; statements about Suncor's autonomous haulage systems, including the plan to deploy more than 150 autonomous haul trucks over the next six years and the expected performance and benefits thereof; that Suncor will continue to work together with other affected stakeholders to work out the details of implementation of the recommendations of the TCFD; Suncor's expectations for the world's population by 2040 and the energy demands associated with such growth; possible initiatives that could be undertaken to achieve Suncor’s sustainability goals; Suncor’s strategy to be an industry leader in sustainable development by continued performance improvements in air emissions, water withdrawals, land reclamation and energy efficiency; Suncor’s plan to remain resilient in a world transitioning to a lower carbon energy system; the expectation that oil and gas will continue to be a significant part of the global energy mix for the foreseeable future; Suncor’s goal to continue to reduce costs and carbon intensity; statements about the Fort Hills project, including that it will provide energy for the next 50 years, will reach 90% of nameplate bitumen production capacity by the end of 2018, and the expected increase to the total CO2e of Suncor’s operated GHG emission profile; potential future wind and solar power projects in Alberta and Saskatchewan; the expected peak fluid tailings inventory at Fort Hills and the expected benefits from treating fluid tailings from the start of operations; expectations for renewable power development, including its potential to contribute to Suncor's social goal and the manner and areas in which Suncor will proceed with such projects; expectations regarding the REP II and REP III program and the opportunities provided by the Alberta merchant market structure; the belief about the development and opportunities for renewable energy projects in Alberta and Saskatchewan and Suncor's position to participate in such projects; [statements surrounding Suncor's renewable development portfolio and potential development opportunities, including the potential additional of more than 1,000 MW in Alberta and 400 MW or more of wind capacity in Saskatchewan;] the expectation that the environmental benefit of the St. Clair Ethanol plant will double to up to 600,000 tonnes of greenhouse gas reductions annually; the impacts of Suncor's safety initiatives and incident management and corrective actions; Suncor's aim to decrease the probability of ad-hoc or reactive policy development through engagement activities and by working to reduce polarized dialogue; statements surrounding the new Canadian Energy Regulator and what it is seeking to achieve; Suncor's belief that efficient, effective and transparent regulatory oversight will be valuable to accurately inform Canadians, decision-makers and other stakeholders; expectations about Bill C-68 and Bill C-69; the belief that a well-designed carbon price is the most economically efficient and inclusive way to drive responsible emission reductions, that additional policies can play a role supporting carbon pricing in specific circumstances and that a "patchwork quilt" or carbon pricing policies across the provinces can mean higher costs than necessary; statements about the Climate Leadership Plan and the expected impact thereof; the strategies, goals and areas of focus by the Suncor Energy Foundation including the steps it will take to implement such strategies and achieve such goals and that it will continue to contribute to its reserve fund so that investments will be available to sustain funding during future economic downturns; the anticipated benefits from communication with government officials; the goals of the diversity and inclusion council, including that diversity is improved, valued and optimized, and the steps being taken to achieve such goals; Suncor’s carbon price outlook and the estimated impact thereof; expected impacts of changing regulations; expectations for the Water Technology Development Centre and the timeline for opening it; expectations for future water use; the expected impact and benefits from Suncor's participation in COSIA, including the impact of its research on tailings management and ensuring that oil sands pit lakes are viable features in the closure landscape; expectations for, and potential benefits from, Suncor’s wastewater plant; land reclamation goals; tailings management plans; the belief that Suncor's highly efficient, integrated model limits Suncor's exposure to heavy crude differentials; that Suncor will continue to work with governments, regulators, industry associations and stakeholders in support of market access objectives; Suncor’s aim to deliver competitive and sustainable returns to shareholders by focusing on capital discipline, operational excellence, long-term profitable growth; the expectation that the East Tank Farm Development transaction will provide a steady stream of revenue to both FMFN and MCFN for at least 25 years and the anticipated uses of such revenue; and estimates of future absolute GHG emissions and emissions intensity. Some of the forward-looking statements and information may be identified by words like ‘‘expected’’, ‘‘anticipated’’, ‘‘will’’, ‘‘estimates’’, ‘‘plan’’, ‘‘scheduled’’, ‘‘intended’’, ‘‘believes’’, ‘‘projected’’, ‘‘indicates’’, ‘‘could’’, ‘‘focus’’, ‘‘vision’’, “mission”, strategy”, ‘‘goal’’, ‘‘outlook’’, ‘‘proposed’’, ‘‘target’’, ‘‘objective’’, ‘‘continue’’, ‘‘should’’, ‘‘may’’, ‘‘aim’’, “strives”, “would”, “potential”, “committed”, “opportunity” and similar expressions.

Forward-looking statements are based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves and resources estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; capital efficiencies and cost-savings; applicable laws and government policies, future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.

Risks, uncertainties and other factors that could influence the financial and operating performance of all of Suncor’s operating segments and activities include, but are not limited to, changes in general economic, market and business conditions, such as commodity prices, interest rates and currency exchange rates; fluctuations in supply and demand for Suncor’s products; the successful and timely implementation of capital projects, including growth projects and regulatory projects; risks associated with the execution of Suncor's major projects and the commissioning and integration of new facilities; competitive actions of other companies, including increased competition from other oil and gas companies or from companies that provide alternative sources of energy; labour and material shortages; actions by government authorities, including the imposition or reassessment of, or changes to, taxes, fees, royalties, duties and other government-imposed compliance costs; changes to laws and government policies that could impact the company's business, including environmental (including climate change), royalty and tax laws and policies; the ability and willingness of parties with whom we have material relationships to perform their obligations to us; the unavailability of, or outages to, third party infrastructure that could cause disruptions to production or prevent the company from being able to transport its products; the occurrence of a protracted operational outage, a major safety or environmental incident, or unexpected events such as fires (including forest fires), equipment failures and other similar events affecting Suncor or other parties whose operations or assets directly or indirectly affect Suncor; the potential for security breaches of Suncor’s information technology and infrastructure by malicious persons or entities, and the unavailability or failure of such systems to perform as anticipated as a result of such breaches; the risk that competing business objectives may exceed Suncor's capacity to adopt and implement change; risks and uncertainties associated with obtaining regulatory and stakeholder approval for the company's operations and exploration and development activities; the potential for disruptions to operations and construction projects as a result of Suncor's relationships with labour unions that represent employees at the company's facilities; our ability to find new oil and gas reserves that can be developed economically; the accuracy of Suncor’s reserves, resources and future production estimates; market instability affecting Suncor’s ability to borrow in the capital debt markets at acceptable rates or to issue other securities at acceptable prices; maintaining an optimal debt to cash flow ratio; the success of the company’s risk management activities using derivatives and other financial instruments; the cost of compliance with current and future environmental laws, including climate change laws; risks relating to increased activism and public opposition to fossil fuels and oil sands; risks and uncertainties associated with closing a transaction for the purchase or sale of an oil and gas property, including estimates of the final consideration to be paid or received, the ability of counterparties to comply with their obligations in a timely manner; risks associated with joint arrangements in which the company has an interest; the receipt of any required regulatory or other third party approvals outside of Suncor’s control and the satisfaction of any conditions to such approvals; risks associated with land claims and Aboriginal consultation requirements; risks relating to litigation; the impact of technology and risks associated with developing and implementing new technologies; and the accuracy of cost estimates, some of which are provided at the conceptual or other preliminary stage of projects and prior to commencement or conception of the detailed engineering that is needed to reduce the margin of error and increase the level of accuracy. The foregoing important factors are not exhaustive.

Suncor's Management's Discussion and Analysis for the first quarter of 2018 dated May 1, 2018 and its Annual Information Form, Form 40-F and Annual Report to Shareholders, each dated March 1, 2018, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email request to or by referring to the company's profile on SEDAR at or EDGAR at Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP measures

Certain financial measures in Suncor’s 2018 Report on Sustainability – namely funds from operations, operating earnings (loss) and Oil Sands operations cash operating costs per barrel – are not prescribed by Canadian generally accepted accounting principles (“GAAP”).

These non-GAAP measures are defined and reconciled in Suncor’s Management’s Discussion and Analysis for the year ended December 31, 2017.These non-GAAP financial measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.


Land is considered permanently reclaimed when landform construction and contouring, clean material placement (as required), reclamation material placement and revegetation has taken place. Land cannot be listed under permanent reclamation until revegetation has occurred which is reflective of the approved Reclamation and Revegetation Plans. Suncor has reclaimed a cumulative total of 48.2 hectares of wetlands and lakes.


Certain natural gas volumes have been converted to barrels of oil equivalent (boe) on the basis of one barrel to six thousand cubic feet. Any figure presented in boe may be misleading, particularly if used in isolation. A conversion ratio of one barrel of crude oil or natural gas liquids to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Cubic metres of oil equivalent and are calculated on the basis of one boe to 0.159 standard cubic metres. As cubic metres of oil equivalent are based on a conversion involving boe, all values are subject to the same limitations as boe, noted above.


References to “Suncor”, “we”, “our” and “the company” in Suncor’s 2018 Report on Sustainability mean Suncor Energy Inc., its subsidiaries, partnerships and interests in associates and jointly controlled entities, unless the context otherwise requires.


The use of “partnership” throughout Suncor’s 2018 Report on Sustainability does not necessarily mean a partnership in the legal context.

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Revised August 10th, 2018: Water withdrawal from the Athabasca River was reported incorrectly as 16.9 million m3; when this report was published on July 19, 2018. This typographic error has been corrected to 15.9 million m3.


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