Suncor Energy : 2023 Report on Sustainability

Report on Sustainability 2023

Our approach

Environment

Social

GovernanceAppendix

Table of contents

n Our approach	3	n Governance	53
Executive messages	4	Ethics	54
Q&A with our Chief Sustainability Officer	7	Corporate governance	55
Data restatements	9	Risk management	58
2022 summary	11	Supply chain	61
n Environment	13	n Appendix	63
Climate change	14	About our report	64
Air quality	15	Glossary	67
Waste management	17	ESG disclosure index	71
Environmental incidents	18	Performance data	72
Water stewardship	20	Performance data footnotes	81
Tailings management	25	Independent practitioner's limited	91
Land and reclamation	28	assurance report
Biodiversity	30	Advisories	94
n Social	33
Safety	34
Health and wellness	38
Workforce	40
Inclusion and diversity	42
Indigenous relations	45
Social investment	49
Human rights	51

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Our approach

Environment

Social

Our approach

To live Suncor's purpose of providing trusted energy that enhances people's lives while caring for each other and the Earth, our corporate strategy focuses on sustainable energy development, long-term thinking and becoming a net-zero company by 2050.

GovernanceAppendix

• Executive messages
• Q&A with our
  Chief Sustainability Officer
• Data restatements
• 2022 summary

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Our approach

Environment

Social

GovernanceAppendix

Executive messages

Rich Kruger

President and Chief Executive Officer

Since joining Suncor earlier this year as President and CEO, my focus has been to drive performance improvement across all aspects of our business to support industry-leading safety, integrity, reliability and profitability. A strong, high performing base business enables superior returns to shareholders and ensures a strong balance sheet to fund investments in climate, air, reclamation, biodiversity, people and communities.

Foundation for success

I am committed to upholding and growing Suncor's long legacy of sustainability leadership. Our ability to deliver on our environmental, social and governance (ESG) goals depends on our core competitive advantages: a hard-to-replicate physically integrated asset portfolio, long-life reserves without exploration risk, and excellence in the operation and management of those assets. We have a history of collaboration and co-investments with partners, including historic equity partnerships with our Indigenous neighbours in the Regional Municipality of Wood Buffalo, to generate shared prosperity from our operations.

Funding the future

As we continue to build on our existing strengths, we also look to the future and investment in decarbonization, including carbon capture and sequestration, hydrogen and low-carbon fuels. Our net zero by 2050 climate ambition depends on timely and prudent investments in new technology as well as ongoing collaborations and engagement with industry partners, governments and other stakeholders. In this way, we are building a prosperous and sustainable future not only for Suncor, but for all our people, partners, communities and nation.

Rich Kruger

President and Chief Executive Officer

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Our approach

Environment

Social

GovernanceAppendix

Executive messages

Kris Smith

Chief Financial Officer and

Executive Vice President, Corporate Development

Suncor continued to diligently advance our sustainability goals this past year, leveraging operational excellence, technological innovation and ongoing collaboration and co-investments with our industry peers, governments, associations and communities to accelerate our progress. Supplying secure and reliable energy, underpinned by sound environmental, social and governance (ESG) performance, sets the conditions for a stronger and more resilient business - and world.

Evolving our safety journey

Operational excellence is foundational to Suncor delivering strong ESG performance. That starts with safety, which is why we've been taking substantial steps to improve our safety performance. We're supporting our frontline leaders and workers with a centralized operational and risk management team. We're making sure we have effective controls to prevent incidents as well as controls to help us fail safely if a mistake is made. In tandem, we've also reduced the number of contractors on site. We're leveraging technology wherever possible to have fewer people on site and less potential for injury.

We supplemented these initiatives with leadership training, exercises and workshops to reinforce and standardize safety standards, practices and reporting. These actions align with our company-wide adoption of Human and Organizational Performance principles, a globally accepted operating philosophy that outlines how we work together to learn from incidents and develop practical solutions to improve.

Advancing our climate commitment

Our progress towards our net zero by 2050 objective - with an interim target of reducing emissions by 10 megatonnes by 2030 across our value chain - is well underway. Our coke boiler replacement project, an example of fuel switching from coke combustion to natural gas cogeneration, is expected to be commissioned in late 2024. Our proposed carbon capture and storage (CCS) project in northern Alberta with the Pathways Alliance, a consortium of Canada's six largest oil sands producers working together with federal and provincial governments to address climate change, achieved a critical milestone. The Alliance's recent agreement with the Government of Alberta means the project can advance to detailed engineering studies and fieldwork to assess the feasibility of the proposed carbon storage hub. CCS has been globally recognized as one of the most effective ways to reduce industrial greenhouse gas emissions, and Alberta's geology makes this one of the most ideally suited places in the world to safely inject and permanently store CO2.

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