Suncor targets acceleration in GHG emission reduction, aims for net zero by 2050
In alignment with its purpose to provide trusted energy that enhances people's lives while caring for each other and the earth, Suncor is sharing an updated strategy focused on increasing shareholder returns and accelerating its progress in reducing GHG emissions with an objective to be net-zero by 2050.
The strategy is underpinned by Suncor's principles of operational excellence and capital discipline. Suncor will focus its planned $5 billion annual capital spend through 2025 on optimizing its integrated value chain and sustaining the base business, while improving its cost and carbon competitiveness, and growing low-carbon businesses, which is expected to deliver an annual $2 billion of incremental free funds flow to the business by 2025.
This planned free funds flow growth will be focused on returning significant value to shareholders through increased dividends, ongoing share buybacks and fortifying the balance sheet through continued debt reduction. In addition, the strategy includes a goal to be a net-zero GHG emissions company by 2050 and substantially contribute to society's net-zero goals; and a plan to sustain our world-class ESG (Environmental, Social and Governance) performance and disclosure while being recognized as a leader in sustainability.
"For decades, Suncor has been evolving and growing its business - transforming a budding oil sands resource into one of the world's most reliable and ESG-leading oil basins in the world," said Mark Little, Suncor president and chief executive officer. "We will continue to produce oilsands for many decades to come, driving significant shareholder returns and value, and delivering further emissions reductions on our journey to net-zero by 2050."
By 2030, Suncor expects to reduce greenhouse gas emissions by 10 megatonnes (MT) per year across its energy value chain. The company's emissions were approximately 29 MT per year in 2019. Suncor plans to accomplish this by reducing emissions in its base business - expanding in areas where the company has existing expertise and where it can continue to lower the cost and carbon profile of the existing base business and assets - and at the same time growing its renewable fuels, electricity, and hydrogen businesses. This includes Suncor helping its customers contribute to a net-zero world by providing them with cleaner energy choices such as renewable fuels and the Petro-Canada Electric Highway.
Suncor continues its evolution to create a stronger, more resilient and competitive company and is confident it can significantly increase returns to investors while progressing to net-zero and meet growing energy needs. The updated strategy builds on the company's unique advantages: unparalleled energy expertise; long-life, low-decline resource; integrated business; connection to customers; long history of embracing technological change and innovation; decades-long sustainability journey; and strong relationships with stakeholders.