Natural Resources Committee on Oct. 16th, 2023

[Rich Kruger]

I'm sorry, sir, but this is just to be sure. You mentioned wind and solar, but is it, more broadly, any of our operations?

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

It's any of your operations. How much have you set aside for the reclamation and so on of the renewable energy projects that you have?

[Rich Kruger]

In Alberta, our renewable energy projects are fundamentally associated with our oil and gas operations in reducing the carbon content, so any reclamation would be woven in with the overall...whether that's in the mining sector or the in situ.

Sir, I don't have numbers offhand for you.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

I appreciate that. The point I wanted to make is that there are companies that are paying attention to that, and I appreciate that this is what you do.

The other question I have, and you sort of alluded to it.... There's over $5 billion in equity partnerships with indigenous communities. People seem to forget that our oil and gas industry is working hand in glove with our indigenous communities. The fear that many of them have is that as they invest—and when they listen to the rhetoric that comes from this federal government—those investments may end up becoming stranded assets. That's going to be the same issue your investors have.

I'm wondering what kind of certainty you have for us to be able to continue with our indigenous relationships.

[Rich Kruger]

You bring up a topic that's very important to me.

I have a couple of statistics. About 5.5% of our workforce is indigenous. Last year, we did $3.1 billion with indigenous-owned businesses. Both of these numbers are growing over time. I think this is a huge opportunity to participate and not only do what's right for the communities within which we operate but also, quite frankly, do what's right for the country over time.

Ms. Strom organized a National Day of Truth and Reconciliation a few weeks ago in the office. We had three elders with us. Our indigenous board member facilitated that.

As a leader of a company, I have a huge responsibility here, not just to provide jobs and to provide business opportunities but to go deeper than that and see where there can be true partnerships and collaboration in this company. I'm very proud of what this company has done and continues to do in that area.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Often when we go to other places in the world and hear about how this government is positioning itself as far as carbon taxes and emissions control go, there are places in Europe, of course, where the governments stand up and say, “Yes, we're right onside; we're ready to work with you.” However, that's not the reality on the ground. Because of what has taken place in Europe and Ukraine, we see that there is a requirement for the old energy mixes so that they are not dependent upon Russian oil and gas.

I'm just wondering if you can comment on some of the changes you see globally with regard to the need for reliable and safe energy from Canada or from anywhere else other than those conflict-based countries.

[Rich Kruger]

Certainly, in the last year or more, we've seen the risk to global security because of energy security. I think we create a stronger, safer world when we become interdependent. Here's where I think, again, Canada can punch above its weight by providing lower-carbon energy to more and more people around the world. I think it's a huge opportunity for us as a country, and it's one that I would like to be a part of.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Thank you.

[The Chair, Liberal, George Chahal]

Thank you, Mr. Dreeshen.

Thank you, Mr. Kruger.

We'll now go to our last round of questioning.

Ms. Lapointe, you have five minutes.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you, Mr. Chair.

Mr. Kruger, in your opening remarks, you said, “Where there is a lack of energy, there's a lower quality of life.” I was pleased to hear that people's quality of life is important to you. I assume that this would extend to your employees. However, workplace safety reports would indicate that there is a problem at Suncor on this front. There have been six workplace fatalities since 2020 and 30-plus safety violations.

I'm the MP for Sudbury. We're a mining town. Workplace safety is extremely important to us, and accidents can lead to fatalities. Can you please tell us what steps you've taken to ensure workplace safety for your employees?

[Rich Kruger]

I can, and thank you.

I share your commitment and your passion about the importance of that. I look at providing a safe workplace as, fundamentally, a moral responsibility that I have. When I look at the recent years of the company, I find them to be quite sad in many regards. It is a top priority for me.

For example, one of the bases for my being called here today is that, on an earnings call, I talked about focusing on the fundamentals. To me, the fundamentals start with personnel safety. On July 7 of this year, I talked to the father of a young man who lost his life in our operation on July 7 a year ago. I promised him that I would put the safety of our employees at the top of my list at all times.

We're taking a lot of steps there, and they start with me. They start with leadership, the commitment to it, and not asking anyone to do anything that I wouldn't do myself or that I wouldn't ask any of my children to do. I have a lot of passion for safety because I think that's where it all starts. Without a safe workplace, we shouldn't have any priorities other than safety.

[Viviane LaPointe, Liberal, Sudbury, ON]

Can you describe for us some specific steps that are being taken?

[Rich Kruger]

Can I describe some of the things? Yes.

Leadership, I think, is an example. However, some of the things that we're doing.... Most of the incidents that you referred to were in our mining operations. We're using technology. We're putting collision-avoidance systems and operator-fatigue systems technology on each and every piece of mobile equipment. That can help us run a safer workplace. I think those are two big areas.

[Viviane LaPointe, Liberal, Sudbury, ON]

We've talked a lot today about goals and targets. I believe that R and D plays a very crucial role in being able to accelerate and meet those goals. Can you elaborate on Suncor's plans for investing in the research and development of new technologies or innovative solutions to address the environmental concerns related to the oil sands industry?

[Rich Kruger]

I think our greatest focus areas are in decarbonizing. I think that's an area. For us, because of the nature of our business, it's tailings ponds and water management. Those are two areas where we put a great deal of time and attention. We conduct some independent research on our own, but we also collaborate in these areas to try to get the most effective ideas, wherever they may come from. Those are two particular areas that are high on our research and development priority.

[Viviane LaPointe, Liberal, Sudbury, ON]

Actually, I had two groups on two separate occasions come in front of my constituency office in Sudbury over the summer to lobby for an oil and gas cap. It's of great interest to people in my constituency. I also have received calls and emails on it.

I'm asking, in a very genuine way, whether you could elaborate on how Suncor sees itself playing a supporting role in Canada's transition to a low-carbon economy. How do you envision the company's contribution towards this?

[Rich Kruger]

I think it gets back to some of the things I said in my opening comments. I think it's really twofold. It is continuing to decarbonize, reduce the carbon content of our fundamental base businesses, whether that's upstream or through our refining sector. Then I think it is continuing to bring about new technologies, whether those are renewable fuels or fuel switching, to drive carbon emissions out of our business.

For me, it's about two things: It's the right thing to do to participate as a citizen of our planet, but it's also what's required to enable us to continue to be competitive in Canada. To me, those line up quite well in terms of priorities.

[John Aldag, Liberal, Cloverdale—Langley City, BC]

Mr. Chair, is that the end of our round?

[The Chair, Liberal, George Chahal]

It is.

[John Aldag, Liberal, Cloverdale—Langley City, BC]

Perhaps you could give me the floor for one second.

I spoke with our colleague Elizabeth May from the Green Party prior to this meeting. She inquired as to whether she would be able to ask any questions, so I'm going to ask for unanimous consent to give her a five-minute slot to participate.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Chair, I would, but there may be bells and I really don't want to lose the witness testimony in our next round.

[The Chair, Liberal, George Chahal]

Thank you, Mr. Aldag.

[Shannon Stubbs, Conservative, Lakeland, AB]

I agree with Mr. Angus. I'm so sad about it because Elizabeth May and I had agreed completely on all the problems with the project list in Bill C-69. As you know, the Supreme Court came out on Friday saying that Elizabeth May and I were right—although, we have opposing world views—on exactly that. It would have been great if people had listened—

[The Chair, Liberal, George Chahal]

Colleagues....

[John Aldag, Liberal, Cloverdale—Langley City, BC]

It's not about what the Bill C-69 court decision was. It's just because of the situation there.