Sunoco 2002 Health, Environment & Safety Review and Ceres Report

HES Governance

Our Policies

HES Corporate Governance

The Board of Directors and executive management are informed about company HES activities through several different methods:

  • Annual HES Stewardship Report to the entire Board.
  • Board Public Affairs Committee updates.
  • Monthly HES highlights distributed to members of the Board and updates by the Vice President, HES Regulatory Affairs, to the CEO.
  • An executive-level Health, Environment and Safety Committee chaired by the CAO meets monthly to review performance, policies and strategies.
  • Quarterly HES performance reviews by senior business unit heads.

Sunoco began adopting HES related policies as early as 1960 (Product Safety). Over time, these have been revised and enhanced to keep pace with the changing environmental climate, including in 1993 when we issued Sunoco's Principles of Health, Environment and Safety. These principles, adapted from the CERES Principles, establish an environmental code of conduct that is applicable to all of Sunoco's facilities and operations.

At Sunoco, we believe that excellent performance in health, environment and safety (HES) goes hand-in-hand with operations excellence and financial performance. The foundation for Sunoco's success is set upon the base of HES excellence as embodied in our HES principles.

In the past decade, we made considerable progress in all areas of HES performance, but moving to the next level will necessitate further changes in our workplace culture. Leading HES indicators and employee interactive programs will be key as will the development and use of comprehensive management systems. These programs are designed to drive improved performance by integrating health, safety and environmental performance with operations management.

Sunoco is committed to being a responsible corporate citizen in all of our businesses and in the communities in which we operate. This requires continuous improvement in our HES performance as well as sensitivity and flexibility with the public.

Governance Award

Sunoco was one of five of the 500 companies in the Standard & Poor's 500 Index to earn the highest rating for corporate governance, according to GovernanceMetrics International. Governance Metrics utilizes a rating system that weighs 600 corporate characteristics across seven categories including board accountability, disclosure, executive compensation, shareholder rights, corporate behavior and social responsibility.

Corporate Governance principles adopted by the Sunoco Board of Directors can be found at www.sunocoinc.com.

Accountability

Accountability is a critical part of improving HES performance. Business unit leaders must review serious incidents at the monthly executive-level HES Committee meetings and provide the committee with quarterly HES performance reports. In addition, senior managers meet with their Senior Vice Presidents regularly to discuss critical HES issues.

Beginning in 2001, the company's Success Sharing Program was revised to require that certain HES targets be met. Targets are established each year at the company, business unit and facility/entity levels. Modifiers also are developed and approved by the Board Compensation Committee to determine the impact on success sharing awards should HES performance be better/worse than the established target.