In 2019, we further integrated sustainability into our supply chain and field logistics business. Progress was made in order to affect environmental and social impacts of procurement decisions while improving business value. The focus on sustainability within our end-to-end processes and the partnerships we developed supports Suncor’s purpose and demonstrates leadership in environmental and social governance.
All suppliers sign-off on Suncor’s Supplier Code of Conduct to align to our sustainable development approach. Together, we seek opportunities to reduce environmental impacts, support the communities in which we work and collectively contribute to economic growth. We have also taken further steps towards engaging with our suppliers on their sustainability performance throughout the life-cycle of our engagement with them.
In early 2020, we brought together leaders from across Suncor and representatives from 40 of our suppliers and industry partners to participate in an interactive forum called FORGE. The two-day event took place at the Tsuut’ina Nation in Calgary and enabled Suncor and our key suppliers to listen, learn, transform, co-create, innovate and accelerate sustainability outcomes together. We’re taking a long-term view when it comes to creating new solutions and new partnerships.
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Joe Vetrone (0:08):
FORGE was about bringing together 40 suppliers that support Suncor's business, as well as a number of Indigenous communities and partners that we do work with.Mark Little (0:18):
Over the last year, we redid the purpose of the company. And the purpose is to provide trusted energy that enhances people's lives while caring for each other and the Earth. And FORGE is really about how do we bring along our supply chain and our suppliers and our contractors and work with them on this purpose that we have for the company.Steve Reynish (0:39):
As we're now bringing together our community, I think you used that, where collectively we can really take a long-term view of the future and have the means to bring about some change.Peter Tertzakian (0:53):
This is impressive, very impressive. So it's easy to believe until you put it in the proper perspective. I'm just pointing out the realities of the global dynamics right now and the challenges that we face.Arlene Strom (1:09):
The scope and scale of change that's happening in our industry right now requires an organization to collectively come together, and with its partners, with all of us, to address these challenges.Arthur Delargy (1:25):
You cannot afford not to innovate because if we don't innovate, we will fail.Peter Tertzakian (1:32):
It's really important that you be the clever, the fastest, most reliable, the cheapest ship.Mark Speaker (1:39):
So we believe that our culture and the fact that we allow people to be very empowered will lead to a lot of good answers.Arlene Strom (1:48):
We have to fundamentally change the way we work.Peter Tertzakian (1:51):
It's one of the biggest challenges you've seen.Arlene Strom (1:52):
It's one of the biggest challenges I've ever seen.Peter Tertzakian (2:00):
You say, well, a barrel of oil, how do you differentiate a barrel of oil? How do I differentiate from my competitor across the street? Actually competitively, the answer is being handed to you. It's being handed to you. It's actually a gift. The ability to measure across the supply chain, your environmental, social, and governance performance is going to be the differentiator.Arlene Strom (2:22):
When we talk about ESG, it's about social impact. It's about our relationship with Indigenous communities. And it's about inclusion.JP Gladu (2:32):
We're really pleased that corporations are recognizing the importance of engaging with our Indigenous entrepreneurs because it adds to the strength and the fabric of our country having a strong Indigenous population.Martha Hall Findlay (2:43):
The more we talk about the importance of collaborating, the more we're going to be able to find those solutions collectively and together. There is no question, our supply chain is going to be a big part of what we need to do going forward.Elias Panasuik (2:57):
As a partner, to say, hey, there is a correlation between what all my teams are doing and some efficiency that we found, and we need to bring that back to a community of practice.Anne Pedretti (3:07):
And the only way to do this is to collaborate across a value chain and within the territories.Stephanie Bertels (3:17):
There is so much that you could be doing to change the situation that you are in, so much potential sitting in this room right now, if we just take a different lens.Martha Hall Findlay (3:33):
Go forward and really, really lead in the solution.Mark Little (3:43):
It's exciting to be able to embrace all of the contractor community and for us to have a more holistic discussion about how do we make the biggest impact possible and make sure that we leave the world in a much better position than if we hadn't been here.Joe Vetrone (4:00):
It's about starting a new conversation with them, creating new solutions, creating new partnerships, and forging a new path forward.
Measuring our progress
To integrate sustainability in our supply chain, we look across our business. Our total supplier base spans across Canada in all 10 provinces as well as the Northwest Territories and Yukon. We also purchase products and services from nearly 40 countries.
We monitor our supply chain spending and service delivery levels and strive to grow our involvement with Indigenous businesses. We continue to ensure agreements are mutually beneficial and build capacity and capability. In 2019, Suncor assigned an Indigenous business development representative to the cross-functional teams that oversee requests for proposals. This participation ensures that Indigenous commitments are met and creates awareness of Indigenous business capabilities.
Our spend with Indigenous suppliers is approximately $836 million or 8% of our total. Since 1999, Suncor has spent more than $6 billion with Indigenous businesses. We are now reflecting on our progress to date to refine our approach and future targets.
New technology for mutual gain
One way that we are forging new partnerships with Indigenous businesses is through our collaboration with Acden Tech Sonic – ultrasonic industrial cleaning specialists. Athabasca Chipewyan First Nation, owner of Acden, has partnered with Suncor since 1995. We work closely together to align Suncor’s needs, build upon Indigenous supplier capability, expand scope and spend, and think differently about work execution.
The combination of Acden Tech Sonic’s industry-leading patented technology and their highly dedicated, skilled and innovative team members has created significant operational efficiencies. Results include an increased service level at a reduced cost for exchanger cleaning at Suncor’s Base Plant.
In 2019, we transitioned to tracking the percentage of Indigenous spend compared to our overall spend, as it better reflects the advancement of Indigenous business in high and low markets. We also track the number of new Indigenous suppliers and communities we work with and collect the percentage of Indigenous workforce engagement with all suppliers. Community partners have begun to illustrate business benefits within communities, which further helps Suncor to understand the value of working with competitive Indigenous suppliers.
