Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Customer experience
• Data security and privacy
• Diversity and inclusion
• Employee health, safety and wellness
• Employee engagement
• Employee training and development
• Community engagement & philanthropy
• Network investments
• Ethical business practices and compliance

Environmental Achievements

• 23% reduction in scope 1 & 2 emissions compared to 2019
• 22% of suppliers by spend have set or committed to set science-based scope 1 & 2 emissions reduction targets.
• 84% reduction in emissions from employee commuting compared to 2019
• 7% reduction in emissions from the use of sold products compared to 2019
• 59% of Cogeco’s residential customers received electronic bills (20% increase compared to FY19)
• 25% of energy consumed was from renewable sources (51% increase vs 2019)

Social Achievements

• Zero founded privacy complaints.
• No cybersecurity incidents triggering general notification obligations.
• Broadband network availability >99.9% of the time.
• Global workforce engagement score increased 5 points compared to 2020, and 17 points compared to 2019 (31% improvement in fiscal 2021 vs fiscal 2019).
• Workplace incident frequency below industry averages.
• 35% of positions at the managerial level and above were occupied by women.
• Donated 2.9% of pre-tax profits ($16.7M in cash and in-kind donations).

Governance Achievements

• Remained in the top tier of Canadian family-controlled dual-class companies.
• 96% of employees completed Code of Ethics training.
• All fraud reports submitted through the Cogeco Ethics Line were investigated.
• 80% of top suppliers acknowledged Cogeco’s Supplier Code of Conduct or had approved CSR standards.

Climate Goals & Targets

Environmental Challenges

• Effects of extreme weather events on infrastructure, customers, and supply chain
• Increased energy costs and exposure to GHG emission pricing due to infrastructure expansion and data traffic
• Lack of diversity and inclusion impacting employee engagement, recruitment, and reputation
• System breach or data loss leading to legal proceedings and reputational/financial damage
• Failure to implement proper health & safety protocols causing harm to employees/contractors
• COVID-19 impacts on employee health and safety, business continuity, and economic uncertainty

Mitigation Strategies

• Science-based emissions reduction target (65% by 2030 from 2019)
• Supplier engagement to set science-based targets (50% by 2025)
• Diversity and Inclusion Leadership Committee and initiatives
• Comprehensive cybersecurity program aligned with NIST Cybersecurity Framework
• Joint workplace H&S committees, policies, and training
• Executive Crisis Management Committee and updated Business Continuity plans (2020)

Supply Chain Management

Supplier Audits: 80% of top suppliers acknowledged Cogeco’s Supplier Code of Conduct or had approved CSR standards by the end of fiscal 2021

Responsible Procurement

• Supplier Code of Conduct
• Integration of CSR criteria into RFP processes
• Partnerships with WBE Canada and RFAQ (supplier diversity)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise
• Chronic heat waves

Transition Risks

• Carbon pricing
• Mandatory energy efficiency standards
• Technology & market shifts

Opportunities

• Increased network resilience
• Reduced operating costs through resource efficiency
• Development of low-emission products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: PwC (limited assurance for scope 1 and 2 emissions and energy consumption)

Sustainable Products & Innovation

• EPICO IPTV system
• High-speed internet up to 1 Gbps
• Home mesh Wi-Fi solution
• WiFi your Way managed Wi-Fi

Awards & Recognition

• CDP A List (2021)
• Corporate Knights Global 100 Most Sustainable Corporations (2021)
• Corporate Knights Best 50 Corporate Citizens in Canada (2021)
• Jantzi Social Index
• ISS Quality-Score environmental badge
• Forbes Canada’s Best Employers (2020)
• HRH The Prince of Wales’ Terra Carta Seal
• SBTi approved targets
• Business Ambition for 1.5°C commitment
• Imagine Canada Caring Company Certification (2020 & 2021)
• UN Global Compact signatory (2021)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced absolute scope 1 & 2 emissions by 23% in fiscal 2021 vs. 2019 base year (35% of 65% target)
• Increased renewable energy consumption by 50% from 2019 to 2021
• Reduced emissions from the use of sold products by approximately 7% vs. 2019 base year (23% of 30% target)
• Reduced emissions from employee commuting by approximately 84% vs. 2019 base year (surpassing the 30% target by 2030)

Social Achievements

• Held its first 1Cogeco Community Involvement Day in the fall, in which trees were planted by employees
• Updated Supplier Code of Conduct to include expectations around measuring, managing and reducing environmental impacts and setting targets

Governance Achievements

• Board-level oversight of climate-related issues falls under the purview of the Corporate Governance Committee (CGC)
• Quarterly ESG updates to the Board of Directors starting in fiscal 2022
• Management-level oversight for assessing and managing climate-related risks and opportunities falls under the Corporate Social Responsibility (CSR) function

Climate Goals & Targets

Environmental Challenges

• Acute physical climate change risks from extreme weather events impacting networks and facilities
• Chronic physical climate change risks from long-term shifts in climate patterns
• Transition risks from technology and market changes, policy actions (carbon pricing, energy efficiency standards), and reputational damage from insufficient climate disclosures
• Increased fuel and energy costs due to carbon pricing

Mitigation Strategies

• Fleet fuel efficiency and electrification strategies
• Network maintenance, upgrades, and replacements to maximize system reliability and resilience
• Network redundancies in areas prone to outages
• Integration of water and natural disaster risks into annual environmental assessment
• Creation of a detailed facilities database to identify environmental risks
• Supplier engagement to set science-based emissions reduction targets
• Implementation of a procurement checklist with CSR criteria

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct with environmental impact expectations
• Incorporation of emissions reduction targets in supplier discussions and meetings
• Procurement checklist with CSR criteria

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks from extreme weather events
• Chronic physical risks from long-term climate shifts (sea level rise)

Transition Risks

• Technology and market changes
• Policy changes (carbon pricing, energy efficiency standards)
• Reputational risks from insufficient climate disclosures

Opportunities

• Increased network resilience
• Reduced operating costs through energy efficiency
• Revenue growth from low-emission products and services

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Third-party limited assurance review of fiscal 2019 and 2020 energy consumption and scope 1 emissions (over 90% coverage). 2021 assurance pending.

Sustainable Products & Innovation

• IPTV service (40% more energy efficient than non-IPTV set-top boxes)
• Self-installation and self-swap tools for customers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social Responsibility

Environmental Achievements

• 65% reduction target for Scope 1 and 2 emissions approved by SBTi by 2030
• 41% of electricity consumption from renewable sources in FY22 (up from 25% in 2019)
• 28.8% reduction in Scope 1 and 2 emissions from 2019 to 2022
• 32% reduction in Scope 3 emissions from 2019 to 2022

Social Achievements

• Supporting more than 600 local non-profit organizations
• Commitment to digital inclusion to reduce the digital divide

Governance Achievements

• ESG oversight responsibility elevated to the Board of Directors
• Portion of executive compensation linked to emissions reduction target achievement
• TCFD alignment across all eleven recommendations

Climate Goals & Targets

Environmental Challenges

• Increased frequency and intensity of extreme weather events (wildfires, windstorms, ice storms, flooding, extreme heat, sea level rise)
• Increasing fuel and electricity prices
• Evolving carbon regulations (carbon pricing)
• Rising insurance premiums
• Increased emissions from downstream delivery services

Mitigation Strategies

• Investing in network resilience and upgrades
• Implementing energy efficiency projects
• Decarbonization strategy (fleet electrification, renewable energy investments)
• Supplier engagement to set science-based targets
• Promoting employee engagement and reducing commuting emissions
• Providing energy-efficient products and services (IPTV)

Supply Chain Management

Supplier Audits: 24% of procurement spend with suppliers committed to science-based targets by end of FY22

Responsible Procurement

• Engagement with suppliers to set SBTi-approved emissions reduction targets

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Windstorms
• Ice storms
• Flooding
• Extreme heat
• Sea level rise

Transition Risks

• Fuel and electricity price increases
• Carbon pricing
• Rising insurance premiums

Opportunities

• Decarbonization solutions (renewable energy, energy efficiency)
• Resilient technologies
• Sustainable products

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Third-party limited assurance review (98.4% of Scope 1 and 2 emissions)

UN Sustainable Development Goals

• SDG 7
• SDG 13

Sustainable Products & Innovation

• IPTV

Awards & Recognition

• HRH The Prince of Wales’ Terra Carta Seal
• Corporate Knights’ 2022 Global 100 Most Sustainable Corporations