Varcoe: Suncor CEO defends local weather commitments on sizzling seat in Ottawa

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For many who take pleasure in a big sprint of political theatre blended in with their power coverage dialogue, Monday was a banner day on Parliament Hill.

It had nearly every thing — together with banners — though it lacked a dramatic soundtrack or popcorn.

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On the standing committee on pure sources, MPs invited and took turns grilling — or backing — Suncor Vitality CEO Wealthy Kruger throughout an hour-long session to debate local weather coverage.

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For the NDP and Liberal MPs, it was an opportunity to admonish the brand new chief govt of Suncor, one of many nation’s largest oilsands producers, for feedback he made this summer season in regards to the firm’s views on the power transition.

For Conservative MPs, it was an opportunity to lob just a few pictures on the Liberal authorities over Friday’s Supreme Court docket of Canada ruling, which discovered elements of the Affect Evaluation Act are unconstitutional.

For Kruger, it was an opportunity to elucidate to federal politicians what he really meant throughout a second-quarter earnings name with business analysts in August. His feedback led to a political pile-on, one which included criticism from federal Setting Minister Steven Guilbeault.

“My feedback on our earnings name checked out our firm and mentioned, ‘For us to be part of the answer for the long run, we’ve to do at this time’s enterprise very properly,’ ” Kruger informed the committee.

“Our commitments on decarbonization and being a part of the transition haven’t modified in any respect since I’ve taken over on this place six months in the past.”

What precisely did Kruger say to ignite a political firestorm and his request to indicate up in Ottawa on Monday?

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After the built-in oil producer confronted shareholder dissatisfaction over its inventory efficiency and security document final yr, Kruger took over as CEO in April. In the summertime, he mentioned with analysts a re-examination of the corporate’s technique and aims.

“We decide that our present strategic framework isn’t — or is inadequate — when it comes to what it takes to win, the dearth of emphasis on at this time’s enterprise drivers. And whereas essential, we’ve a little bit of a disproportionate emphasis on the longer-term power transition,” he mentioned on the August convention name.

“Right this moment, we win by creating worth by our giant built-in asset base underpinned by oilsands.”

The remarks have been made a number of weeks after the corporate introduced plans to remove 1,500 positions by yr’s finish.

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Coming after Suncor bought off its wind and photo voltaic developments final fall for $730 million to Canadian Utilities, critics took his feedback as an indication that Suncor was retreating from its local weather commitments.

In an interview this summer season with The Canadian Press, the federal surroundings minister known as the remarks disappointing, saying Suncor’s CEO was “principally disengaging from local weather change and sustainability, that he’s going to deal with short-term revenue.”

Kruger, a former CEO of Imperial Oil and beforehand an govt with Exxon Mobil, identified that Suncor spent $540 million final yr on its decarbonization initiatives. Suncor can also be a part of a gaggle of six oilsands producers working collectively to achieve net-zero emissions by 2050.

Throughout Monday’s hearings, Liberal MP John Aldag pointed to the business’s hefty earnings and famous the elevated impact of local weather change, together with wildfires that raged all through elements of Canada this yr.

“It looks as if you’re sort of doubling down proper now and attempting to get each final greenback out of that oil and fuel sector,” he mentioned.

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Suncor made about $9 billion in earnings over the previous three years whereas paying about $10 billion in earnings taxes and royalties to the provincial and federal governments, Kruger replied.

The corporate has earmarked about $1.5 billion at present to interchange two older coke-fired boilers at its oilsands base plant with two high-efficiency cogeneration items, which can scale back emissions.

“I agree with among the testimony that the oil and fuel sector has contributed significantly to the Canadian financial system, however I’ll say it’s been many years since we’ve recognized that it is usually boiling our planet,” mentioned Heather McPherson, the NDP MP for Edmonton Strathcona.

“You chop contracts with Canadian firms final yr and are shedding one other 1,500 staff this yr.”

Through the hour-long session, Bloc Quebecois MP Mario Simard requested in regards to the prices to shoppers on the pumps to assist decarbonize, whereas NDP MP Charlie Angus questioned Kruger about his earlier expertise working with Exxon Mobil.

“How a lot duty is your business prepared to take for the destabilized local weather and the local weather disaster that has compelled 200,000 individuals out of their properties this summer season,” Angus mentioned.

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For Conservative members of the committee, the listening to gave it an opportunity to blast the Trudeau authorities for its power insurance policies, pointing to final week’s courtroom ruling on the Affect Evaluation Act.

Alberta MP Shannon Stubbs famous the choice on the cornerstone piece of laws governing federal oversight of main useful resource tasks “demonstrates simply how a lot uncertainty has been created within the final eight years of this authorities.”

In the meantime, Environmental Defence, which held a photograph op earlier than the listening to in Ottawa — with demonstrators holding indicators that learn Make Polluters Pay — issued a information launch as soon as the session wrapped up, saying: “Parliamentarians must see by the oil and fuel greenwashing and maintain business accountable.”

For Suncor’s CEO, Monday was a reminder of simply how polarized and politicized these points have grow to be, at the same time as the corporate reiterates its dedication to reaching net-zero emissions.

“I suppose the lesson realized for me in that is if something I’ve mentioned is misinterpreted I’ve a duty . . . to make certain that we’re clear,” Kruger mentioned.

“And for readability, Suncor stays dedicated to lowering and decarbonizing its current hydrocarbon enterprise and being part of the longer-term power transition for the long run.”

Chris Varcoe is a Calgary Herald columnist.

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