(Toronto, ON, February 21, 2024) Suncor shareholders will vote on a proposal asking the company for better financial accounting related to the energy transition at its upcoming AGM in May. The proposal was filed by Investors for Paris Compliance (I4PC). Suncor CEO Rick Kruger has made mixed comments regarding the company’s commitment to the energy transition which has created uncertainty and confusion.
“Every oil company’s future earnings depends on how they navigate the energy transition, but we don’t yet see evidence that Suncor is taking this seriously,” said Duncan Kenyon, Director of Corporate Engagement at I4PC. “Getting left behind means lower future earnings and significant decreases to shareholder returns.”
Suncor shareholders require more robust financial disclosure as indicators of the energy transition are starting to proliferate. For example:
● The latest International Energy Agency World Energy Outlook projects a peak in demand for oil in this decade even under today’s climate policy settings (IEA’s Stated Policies Scenario), and more rapid peak and decline under more ambitious climate scenarios (IEA’s Announced Pledges and Net Zero by 2050 scenarios).
● Saudi Energy Minister Abdulaziz bin Salman recently said that Aramco suspended its capacity expansion plans because of the green transition. Note that Aramco produces oil much more cheaply and with far fewer upstream GHG emissions than Suncor.
The resolution is consistent with the investor-led Climate Action 100+ Climate Accounting and Audit Assessment which found that Suncor needs to improve its financial statements to reflect the financial effects of climate-related risk and the energy transition.
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