Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Safety
• Community Investment

Environmental Achievements

• Improved fuel efficiency by 11.3% between 2016-2019 while doubling system capacity from 2015.
• Fleet modernization with Boeing 767 carrying twice the payload for the same fuel burn as Boeing 727, and Boeing 757 carrying one-third more payload for 60% of the fuel burn.
• Implementation of Fuel Optimization Program to increase fuel efficiency and reduce power setting takeoffs.

Social Achievements

• COVID-19 response including temporary daily cash allowance and additional benefits support for all employees, PPE distribution, temperature checks, and hero pay.
• Implementation of a robust Diversity & Inclusion Policy with mandatory training modules.
• Mentoring program ('Adopt a Base') connecting executive team with employees at various bases.
• Employee retention rate of 89.5%.

Governance Achievements

• Inclusion of ESG risk and opportunity oversight into the mandate of the Corporate Governance Committee.
• Updated ESG Policy reflecting commitment to sustainability.
• Code of Ethics reviewed and approved by the Board at each AGM.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on the aviation industry.
• Maintaining safety standards during the COVID-19 pandemic.
• Balancing the need for efficient operations with the goal of reducing emissions.

Mitigation Strategies

• Aspiring to net-zero GHG emissions by 2050.
• Implementing various fuel efficiency initiatives (engine washes, APU reduction, lighter containers, optimized flight planning).
• Developing and implementing a comprehensive COVID-19 response plan.
• Investing in employee training and development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG considerations included in supplier selection process.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• One of Canada’s 50 Best Managed Companies
• Shipper’s Choice Award for best Air Cargo Carrier in Canada

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions from Canada Post and Purolator operations since 2015.
• Improved fuel efficiency (pounds of cargo carried versus pounds of fuel consumed) while doubling system capacity since 2015.
• Participation in the international Carbon Offsetting and Reduction Scheme for International Aviation.

Social Achievements

• Commitment to employee health and safety through Occupational Health and Safety Program.
• Commitment to diversity and inclusion, aiming for a Board with at least one-third women.
• Community investment through support of various activities in business, sports, arts, culture, and community.

Governance Achievements

• Adoption of corporate governance best practices, including those recommended under National Policy 58-201.
• Adoption of a Code of Ethics, Diversity Policy, and other key governance policies.
• Regular evaluation of the performance and effectiveness of the Board and its committees.

Climate Goals & Targets

Environmental Challenges

• Significant environmental impact from jet fuel consumption.
• Managing risks associated with safe and efficient operations.

Mitigation Strategies

• Investments in fuel-efficient aircraft, technology, and processes.
• Initiatives to maximize fuel efficiency, reduce greenhouse gas emissions, and minimize energy use.
• Implementation of a Safety Management System (SMS) to identify, assess, and mitigate hazards.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Significant investments to maximize fuel efficiency, reduce greenhouse gas emissions, mitigate carbon footprint and minimize energy use across its fleet.
• Use of notice-and-access for shareholder meeting materials, reducing printing, paper and postage.

Social Achievements

• Creating working conditions that are safe, fair, and rewarding.
• Adopting a comprehensive framework for a safe and supportive environment that fosters employee commitment and advancement.
• Investing in infrastructure and people across Canada.
• Cargojet executives met with over 96% of all institutional investors in 2022.

Governance Achievements

• Adoption of comprehensive corporate governance policies and procedures, including a Code of Ethics, Majority Voting Policy, Clawback Policy, and Share Ownership Guidelines.
• Implementation of a formal process to assess the performance of the Board, its committees, and individual directors.
• Adoption of a Board and Executive Officer Diversity Policy.

Climate Goals & Targets

Environmental Challenges

• Maintaining employee, client, and business partner safety during the COVID-19 pandemic.

Mitigation Strategies

• Persistent extraordinary efforts by employees to maintain a safe environment while managing growth and strengthening the balance sheet.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Shipper’s Carrier of Choice Award (20th year)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Achieved a year-over-year reduction of 2.85% in emissions per flight hour and a reduction of 11.18% in emission per tonne of payload in 2023. Achieved an absolute reduction of 7.03% in Scope 1 emissions from aircraft operation in 2023.
• Fleet modernization program resulting in improved carbon intensity by reducing fuel burn per block hour per pound of payload.

Social Achievements

• Established an Occupational Health and Safety Program documented in the company’s Health & Safety Program Manual (HSPM).
• Implemented a Non-Punitive Safety Reporting system to track incidents and injuries.
• Mandatory Safety Management System (SMS) Training for all team members.
• Robust Diversity & Inclusion Policy with mandatory diversity training modules for all team members.
• Annual team engagement surveys to gather feedback on work environment, relationship management, career development and work engagement.

Governance Achievements

• Established a Regulatory Review Sub-Committee (RRSC) to monitor regulations and standards.
• Code of Ethics reviewed and approved by the Board at each AGM. All Cargojet Team Members are expected to review the Code of Conduct and sign off annually.
• Commitment to IFRS reporting standards for Sustainability (Standard S1) and Climate (Standard S2) in 2024.

Climate Goals & Targets

Environmental Challenges

• Lack of supply of Sustainable Aviation Fuel (SAF).
• Economic conditions affecting payload carried on routes, impacting carbon intensity improvements.
• Small-scale Carbon Capture Utilization and Storage (CCUS) technology still in the formative stage.

Mitigation Strategies

• Joined the Canadian Council for Sustainable Aviation Fuels (C-SAF) to accelerate SAF deployment.
• Fleet modernization program to improve fuel efficiency.
• Implementation of CCUS devices as they become available.
• Participation in CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) for carbon offsets.

Supply Chain Management

Responsible Procurement

• Corporate Sustainability requirements included in tender bids.

Climate-Related Risks & Opportunities

Opportunities

• Development and use of SAF

Reporting Standards

Frameworks Used: SASB, TCFD, IFRS S1 & S2 (planned for 2024)

Certifications: ISO:9001:2015