Report on Sustainability 2019

Economic impact

The economic benefits of our success extend well beyond the returns we provide to shareholders. In 2018, we contributed more than $2.6 billion in royalties and taxes for governments – revenues that were then available to help fund public sector programs, including education, health care and critical infrastructure.
Two employees during a meeting

Strong economic performance, along with social responsibility and environmental stewardship, is part of being a sustainable energy company. Our investment in energy production, upgrading, refining and marketing benefits the economy by:

  • creating well-paying jobs
  • promoting economic growth
  • providing governments and suppliers with revenues



contributed in royalties and taxes for governments in 2018



total capital spending in 2018



spent on direct purchases from Indigenous businesses in 2018

Development of our core assets also allows us to invest in our renewable energy business and in new technologies to improve company-wide operational efficiency and environmental performance. Our strong economic performance allows us to invest in profitable growth and continuous improvements in our existing operations, and we continue to create value for our shareholders and society at large.

Royalties and taxes

In 2018, royalties totalled more than $1 billion, including $398 million directed to oil sands royalties. As well, current income tax expense totalled $1.25 billion* to governments in Canada and internationally. $295 million in property taxes were paid to municipalities in Canada (*does not include excise taxes collected and remitted by Suncor).

Capital spending

Capital and exploration expenditures totalled $5.2 billion in 2018, not including capitalized interest, compared to $5.8 billion in 2017.

Goods and services

Our supply chain spending demonstrates we had close to 5,000 Canadian vendors spanning all 10 provinces in 2018, as well as the Northwest Territories and the Yukon. We purchase from nearly 40 countries globally; the United States is our second-largest supplier with more than 1,300 vendors.

We have five major category groups that are further segmented into categories and subcategories. The range of goods and services is extensive and includes:

  • aviation services
  • chemicals, gases and fluids
  • civil works
  • construction services
  • drilling and completions
  • environment, health and safety services or consulting
  • electrical
  • engineering and services
  • facility services and materials
  • fleet and fleet parts
  • freight and transportation
  • ground transportation
  • health and wellness
  • instrumentation and controls
  • information services (digital projects, hardware, applications and infrastructure)
  • lodging
  • maintenance services
  • marketing and sales
  • materials (consumables, steel and PVF)
  • mining equipment and services
  • offshore equipment and services
  • professional services
  • rotating machinery
  • static equipment
  • support services
  • tailings on-pond assets
  • telecom
  • travel and entertainment

The typical split of materials versus services depends on the type of worksite, such as the following:

  • operating facilities, where the spend is typically 60% services and 40% materials
  • major greenfield construction sites, where the spend is typically 70% services and 30% materials

In addition to our Supplier Code of Conduct, our prequalification and qualification standards, we also have specific practices in place related to local supplier selection. Regional development clauses are in place with suppliers and in contracts across all businesses, and sourcing documents often have criteria that evaluate suppliers on Indigenous or local representation.

Our common practice is to post local contract and supplier opportunities on regional organizations’ websites such as Regional Economic Development (REDlink) and Northeastern Alberta Aboriginal Business Association (NAABA). This is to ensure local businesses and suppliers are aware of opportunities in their region.

Indigenous partners

In 2018, we spent $703 million on direct purchases from Indigenous businesses, a 35% increase over 2017 thanks to new suppliers and doubled spend from Downstream.

Since 1999, Suncor has spent approximately $5 billion with Indigenous businesses (as direct contractors and subcontractors), nearly half of which has been spent since 2013.

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Recommended readings
Financial reports
Our vision
Partnering with Indigenous businesses and communities