Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy intensity ratio to 0.08

Social Achievements

• Implemented a health and safety management system and completed a successful external audit (COR).

Governance Achievements

• No critical concerns communicated to the highest governance body during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Limited access to reliable data for DIRTT Experience Centers (DXCs)
• Not all data available for all DIRTT's facilities for carbon footprint calculation.
• No formal carbon emissions reduction target set.

Mitigation Strategies

• Working on expanding the scope of carbon footprint to include all facilities.
• Assessing equipment replacement opportunities to improve fuel consumption efficiency.
• Continuing facility management and utility analysis to improve operational efficiency.

Supply Chain Management

Supplier Audits: Completed a supply chain assessment of supplier locations to determine areas with potential human rights and environmental concerns.

Responsible Procurement

• Over 90% of materials sourced from North America.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: Certificate of Compliance (COR)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 100% of DIRTT's Construction Solutions are applicable for sustainable building design and construction certifications.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Health + Safety
• Employee Engagement
• Sustainable Product
• Community + Local Impacts
• Diversity, Equity + Inclusion
• Good Governance

Environmental Achievements

• Achieved 50% of our goal to reach 100% renewable energy for our operations
• Reduced external deficiencies by 20% since 2022
• Improved on-time-in-full delivery percentage from 89.4% in 2022 to 97.7% in 2023
• Reduced spend as a percentage of product revenue from over 50% to 35% since 2022
• Reduced energy-related emissions from core network equipment by over 80%, from 16 tonnes of CO2e per year to 3 tonnes.

Social Achievements

• Launched company-wide training on foundational DE+I concepts
• Achieved a total recordable incident frequency (TRIF) of 0.4, surpassing the Furniture & Related Product Manufacturing industry average by 89%
• Successfully completed holiday giving campaign raising over $20,000

Governance Achievements

• Respond and align to the TCFD framework in our 2023 report.
• Implemented a supplier qualification process that encompasses environmental criteria

Climate Goals & Targets

Environmental Challenges

• Extreme weather events disrupting manufacturing operations and supply chain
• Weather delays in construction schedules
• Supply chain disruptions due to weather events
• Unforeseen utility cost increases
• Fluctuations in energy prices
• Increased insurance premiums
• Worker safety concerns due to extreme heat or forest fire smoke
• Regulatory changes requiring investments in technology upgrades
• More stringent regulatory requirements
• Evolution of building codes
• Shifting demand for raw materials
• Global macroeconomic conditions impacting client demand

Mitigation Strategies

• Diversifying supplier base
• Implementing business continuity plans
• Conducting scenario analysis
• Investing in energy-efficient manufacturing processes and adopting renewable energy sources
• Collaborating with distributed manufacturing partners to implement climate-resilient practices

Supply Chain Management

Supplier Audits: Annual reviews of suppliers’ ESG criteria; approximately 70% of annual spend covered by master purchase agreements

Responsible Procurement

• Supplier qualification process encompassing environmental criteria, ISO certifications, and conflict mineral compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Weather delays in construction schedules
• Supply chain disruptions
• Unforeseen utility cost increases
• Increased insurance premiums
• Worker safety concerns

Transition Risks

• Regulatory changes
• Energy costs
• Legal Compliance
• Resource Demand Shifts
• Macroeconomic Conditions

Opportunities

• Green building trends
• Partnerships for resilience
• Energy efficiency and renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: SCS Indoor Advantage Gold Certified, Forest Stewardship Council™ Certified

Awards & Recognition

• Shortlisted for best ESG reporting (small cap)
• Excellence Awardee for Canada’s Safest Manufacturing Employer
• Canada’s Safety Leader of the Year
• Certificate of Recognition (COR)