Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Performance
• Client Satisfaction
• Employee Well-being
• Community Engagement
• Environmental Stewardship
• Supplier Diversity
• Aboriginal Partnerships
• Greenhouse Gas Emissions Reduction
• Occupational Health and Safety
• Diversity and Inclusion

Environmental Achievements

• Achieved ANSI accreditation for greenhouse gas verification under ISO 14065
• Implemented and successfully registered an organization-wide environmental management system (EMS) to the ISO 14001:2004 standard
• Reduced paper use by switching to electronic paystubs
• Increased employee participation in the Cool Commute Challenge

Social Achievements

• Named one of Canada’s Ten Best Companies to Work For
• Wellness program won two ClearAdvantage corporate wellness program awards in the US
• Launched enhanced Supplier Diversity program
• Cash donations through Community Investment program totaled $901,000
• Expanded Dollars for Doers program to all offices

Governance Achievements

• Earned a spot on the Canadian Carbon Disclosure Leadership Index
• Included in the Jantzi Social Index since 2007
• Assigned an employee to the role of Director, Diversity and Inclusion

Climate Goals & Targets

Environmental Challenges

• Developing better systems for tracking nonfinancial data such as environmental metrics
• Building a workforce that includes regionally appropriate representation of women, visible minorities, and individuals with disabilities
• Developing more comprehensive and consistent methods of engaging with key stakeholders
• Challenges tracking sustainability projects resulting in underreporting of revenue

Mitigation Strategies

• Developing a more comprehensive diversity strategy
• Developing a more interactive database to streamline the collection and reporting of environmental data
• Engaging a third-party organization to facilitate a stakeholder advisory roundtable
• Exploring alternative methods for better defining and tracking sustainability business pursuits

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity program
• Use of ecologically friendly paper materials
• Green line of eco-friendly promotional items

Climate-Related Risks & Opportunities

Physical Risks

• Project interruptions or delays due to unexpected weather or environmental conditions

Transition Risks

• Increased underestimation of project costs due to inflated prices for increasingly scarce resources

Opportunities

• Increased demand for services addressing climate change challenges (GHG inventories, mitigation planning, adaptation strategies, energy-efficient design, etc.)

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001:2004, ISO 9001:2008, ISO/IEC 20000-1:2005

Third-party Assurance: Third-party assurance for GHG emissions inventory in 2012; stakeholder roundtable facilitated by CBSR

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best 50 Corporate Citizens in Canada
• Excellence in Corporate Responsibility Awards
• Canada’s Ten Best Companies to Work For
• Canada’s Top 100 Employers
• Alberta’s Top 50 Employers
• Canada’s Greenest Employers
• Canada’s Top Employers for Young People
• Climate Registered™
• CDP Carbon Disclosure Leader

Environmental Metrics

ESG Focus Areas

• Environment - Operational Efficiencies
• Community Investment
• Diversity
• Health & Safety

Environmental Achievements

• Achieved ISO 14001:2004 Certification
• Reduced paper usage by 14% per capita over 2011
• Ranked third on the Canadian Carbon Disclosure Leadership Index

Social Achievements

• Donated 1% of pre-tax profits to charity
• Developed Occupational Health & Safety Management System
• Initiated development of a new Company-wide diversity and inclusion initiative

Governance Achievements

• Incorporated sustainability objectives into the corporate strategic planning process

Climate Goals & Targets

Environmental Challenges

• Reducing energy use while operations are growing and the number of employees is increasing
• Finding an accurate way to track waste generation
• Accurately measuring, tracking, and achieving targets for environmental performance for GHG emissions, energy use, material use, and waste generation

Mitigation Strategies

• Re-evaluating energy use goal to focus on achieving meaningful per capita reductions
• Exploring options for conducting statistically meaningful sample audits for waste data
• Implementing comprehensive waste reduction strategies and programs, implementing education and awareness programs, and changing the types of systems for waste management

Supply Chain Management

Responsible Procurement

• Green purchasing guidelines for office supplies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changing market conditions

Opportunities

• Sustainable infrastructure services

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001:2004

Third-party Assurance: B Accountability (review), Bureau Veritas (2011 GHG data)

Awards & Recognition

• Canada’s Greenest Employers
• Ranked third on the Canadian Carbon Disclosure Leadership Index

Environmental Metrics

ESG Focus Areas

• Environment
• Community engagement
• Diversity
• Health and safety

Environmental Achievements

• More than 50 Stantec professionals earned their Envision™ Sustainability Professional (ENV SP) credential.
• More than 30 projects in climate change mitigation and adaptation were completed for clients.

Social Achievements

• Launched Stantec in the Community Day with 4,000+ employees volunteering
• Improved employee retention in Canada
• 1,313 blood donations in 2013 (109% of donation goal)

Governance Achievements

• Implemented a corporate Occupational Health and Safety Management System using the OHSAS 18001 framework.
• All employees completed annual business compliance training covering ethics, integrity, and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Continuing challenge to increase workforce diversity.
• Total recordable incident rate higher than expected.
• Increased employee turnover in the US.
• Energy consumption and GHG emissions reduction challenges due to being primarily a tenant.

Mitigation Strategies

• Developed robust programs and introduced an Occupational Health and Safety Management System using the OHSAS 18001 framework.
• Developing a Diversity and Inclusion Plan.
• Rolling out an updated onboarding program for new hires, better defining career streams, and creating more leadership development opportunities.
• Setting new environmental targets for 2017 (energy, GHG emissions, waste, paper).

Supply Chain Management

Responsible Procurement

• Green purchasing guidelines
• Use of Energy Star rated and EPEAT Gold standard laptops
• Box return program

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for environmental services, including sustainable building design, climate change mitigation, and adaptation plans.

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001:2004

Third-party Assurance: Bureau Veritas (GHG emissions), Ernst and Young LLP (financial statements), Canadian Business for Social Responsibility (report content and quality)

Sustainable Products & Innovation

• Sustainable building design
• Net zero energy projects
• Energy modeling and BIM integration tool

Awards & Recognition

• #21 Corporate Knights Top Corporate Citizens
• #13 Top 100 Green Design Firms - ENR
• Shell Safety Award

Environmental Metrics

ESG Focus Areas

• Health and safety
• Economic performance
• Diversity and inclusion
• Community engagement
• Operational efficiencies (energy, GHG, waste, paper use)
• Integrated sustainable infrastructure
• Ethics and integrity

Environmental Achievements

• Reduced paper use by 9.5% per employee
• Achieved goal of having 100+ Stantec professionals achieve their Envision Sustainability Professional (ENV SP) credential
• Achieved OHSAS 18001 certification, integrating it with ISO 9001 and ISO 14001

Social Achievements

• Donated approximately 1% of pre-tax profits to charity
• Held second annual Stantec in the Community Day with approximately 5,500 employees volunteering
• Made progress toward improving diversity and inclusion in the workforce; established a Company-wide Diversity and Inclusion (D&I) Plan

Governance Achievements

• All employees completed annual business compliance training covering ethics, integrity, and anti-corruption

Climate Goals & Targets

Environmental Challenges

• GHG emissions per employee (excluding business travel) increased 1.7% compared to 2013
• Per capita energy consumption increased slightly (0.5%)
• Total Recordable Incident Rate (TRIR) was 0.62, falling short of the target of below 0.60
• Employee turnover rate was 15.6%, up from 14.7% in 2013
• Low percentage of recycled content paper used (24.5%)

Mitigation Strategies

• Mandated use of a consolidated travel agency system and began tracking GHG emissions related to business travel
• Reinforced commitment to a culture of safety by beginning every internal meeting with a safety moment
• Added OHSAS 18001 to the Integrated Management System
• Developed a Company-wide D&I Plan with short- and long-term objectives
• Developing support and enforcement options to significantly improve recycled content paper usage

Supply Chain Management

Responsible Procurement

• Green purchasing guidelines
• Use of corporate vendors for office supplies

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise and shoreline erosion
• Floods, droughts, and wildfires
• Air and water quality degradation

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G4 comprehensive framework, UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO/IEC 20000-1

Third-party Assurance: Bureau Veritas (GHG emissions), Ernst & Young LLP (financial statements), Canadian Business for Social Responsibility (CBSR) (report review)

Awards & Recognition

• CDP’s Canadian Carbon Disclosure Leadership Index
• One of the Best 50 Corporate Citizens in Canada
• Jantzi Social Index
• Canada’s Greenest Employers
• #2 Top Green Building Architecture Firms by BD+C
• #22 in the Top 100 Green Buildings Design Firms by ENR

Environmental Metrics

ESG Focus Areas

• Health and safety performance
• Diversity and inclusion
• Environmental management and internal sustainability performance
• Community engagement
• Professional services
• Economic performance

Environmental Achievements

• Increased recycled content in paper to 39.2% (a 14.7% increase from 2014)
• Included airline business travel in Scope 3 GHG emissions
• 21% increase in Cool Commute Challenge participation from 2014

Social Achievements

• Established two Diversity & Inclusion councils in Canada and the US
• Stantec’s Leadership Development program was top-ranked in three categories by HR.com Leadership Excellence Awards
• Donated approximately 1% of pre-tax profits to charity
• Over 7,000 employees participated in the third annual Stantec in the Community Day

Governance Achievements

• Joined the United Nations Global Compact
• Implemented a subcontractor prequalification process
• All regular and contract employees completed Ethics and Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• An employee was fatally injured working on a construction administration project
• Total recordable incident rate (TRIR) was 0.67 (increase of just over 8% since 2014)
• Escalating economic challenges impacted Oil & Gas and Environmental Services business lines
• Divesting India operations resulted in increased turnover rate for International operations

Mitigation Strategies

• Established a scholarship in memory of the deceased employee
• Implemented a Stantec-wide Safety Pause and shared HSE lessons learned
• Reviewed and assessed current programs and training practices relating to work zone safety
• Focused 2016 Incident Prevention Program on specific hazards
• Improved and streamlined environmental footprint data collection process

Supply Chain Management

Responsible Procurement

• Choose corporate vendors that continually expand their range of green products
• Negotiate discounts on a list of core products that includes a number of green products

Climate-Related Risks & Opportunities

Physical Risks

• Sea-level rise and shoreline erosion
• Floods, droughts, and wildfires
• Air and water quality degradation

Transition Risks

• Climate change policies and programs

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 comprehensive framework

Certifications: ISO 9001: 2008, ISO 14001: 2004, OHSAS 18001: 2007, ISO/IEC 20000-1: 2011

Third-party Assurance: Ernst & Young LLP

Awards & Recognition

• #17 in the Top 100 Green Buildings Design Firms by Engineering News-Record (ENR)
• 6th consecutive year on CDP’s Canadian Carbon Disclosure Leadership Index
• 9th consecutive year listed on the Jantzi Social Index
• #14 in Best 50 Corporate Citizens in Canada
• #2 in Top Green Building Architecture Firms by Building Design + Construction (BD+C)

Environmental Metrics

ESG Focus Areas

• Diversity and inclusion
• Employment
• Skilled workforce retention
• Charitable investments
• Energy and emissions management
• Ethics
• Occupational health and safety
• Economic performance
• Sustainability in services

Environmental Achievements

• Reduced per-employee GHG emissions by more than 10% since 2013 baseline year
• Processed 59,420 kilograms (131,000 pounds) of equipment, recycled 750 cellphones, and redeployed 120 iPhones in 2016
• Replaced 85 older vehicles with 84 new vehicles offering lower emissions and better fuel economy in 2016

Social Achievements

• Launched a grassroots employee-led Diversity & Inclusion Lifts Us Higher campaign
• Held unconscious bias training for leadership team
• Career Development Program recognized with three Leadership Excellence and Development awards
• Contributed $3 million to community activities (arts, education, environment, health and wellness)
• 8,000 employees provided 16,000 hours of volunteer services during Stantec in the Community Day

Governance Achievements

• Added Marie-Lucie Morin to the board of directors, increasing its diversity
• Enhanced safety culture by developing the Safer Together program and incorporating security into the HSSE system
• Improved accuracy of environmental footprint calculations by changing data collection methods

Climate Goals & Targets

Environmental Challenges

• Increasing overall emissions and energy consumption due to company growth through acquisition
• Inaccurate activity data collection due to decentralized data sources
• Difficulty in accessing utility data from leased office spaces

Mitigation Strategies

• Streamlined activity data collection using centralized sources
• Collected additional data directly from landlords for larger offices
• Continued refining data collection process
• Exploring ways to improve data accuracy and reduce per-employee energy consumption

Supply Chain Management

Responsible Procurement

• Sustainability language in RFPs
• Sustainability features as standard reporting requirement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (core level)

Certifications: ISO 14001, OHSAS 18001

UN Sustainable Development Goals

• Clean Water and Sanitation
• Affordable and Clean Energy
• Decent Work and Economic Growth
• Industry Innovation and Infrastructure
• Sustainable Cities and Communities
• Climate Action

Stantec's business directly supports these SDGs

Awards & Recognition

• Three LEAD awards (Leadership Excellence and Development)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Betterment
• Responsible Governance

Environmental Achievements

• Total emissions (Scope 1, 2, and 3) per employee decreased by more than 4% in 2017
• Direct and indirect emissions (Scope 1 and 2) per employee decreased by more than 14%
• 30% reduction in paper costs and a significant reduction in paper use in US offices using ARC Document Solutions print management system

Social Achievements

• More than 5,000 employees participated in Stantec in the Community Week, working with over 400 community organizations across 6 continents
• In the United Kingdom, Stantec was named “Best Place to Work” and “Talent Champion”
• Increased the number of ERGs from 17 to 33 in North America

Governance Achievements

• Established an Executive ESG Committee to provide strategic leadership and guidance on internal sustainability
• Implemented a new Partner Code of Business Conduct program to minimize potential problems within the supply chain
• No critical concerns regarding economic, environmental, and social topics were reported to the board in 2017

Climate Goals & Targets

Environmental Challenges

• Most offices are leased in multi-tenant buildings, making separate metering of utilities difficult
• Legacy MWH employees tend to travel more than legacy Stantec employees, increasing Scope 3 emissions
• Increased global locations lead to more extensive travel

Mitigation Strategies

• Office consolidation to reduce space and energy use
• Real estate scorecard for new office selection considering sustainability features
• Initiatives to reduce overall travel, including increased scrutiny of travel requests and budget restrictions

Supply Chain Management

Supplier Audits: 1,200+ supplier sustainability assessments

Responsible Procurement

• Green procurement approaches evaluating vendors' sustainability features

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Certifications: ISO 14001:2015 (Environmental Management System), OHSAS 18001:2007 (Occupational Health and Safety Management System)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• All 17 UN Sustainable Development Goals

Examples of Stantec's positive impact in creating a sustainable world are provided for each SDG

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Engineering News-Record awards
• Building Design+Construction awards
• Best Place to Work (UK)
• Talent Champion (UK)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Set new emission goals grounded in science-based target principles
• Signed the American Institute of Architects’ 2030 Challenge to work toward carbon-neutral design of new buildings and renovations by 2030
• Recognized by CDP for corporate climate leadership (A– score)

Social Achievements

• Invests approximately $3 million per year to fund employee creativity and innovation
• Donated more than $20 million to charity since 2007
• Supports the success of Indigenous communities through Indigenous Business Partnerships

Governance Achievements

• Operates an internationally certified integrated management system
• Guided by a board of directors comprising 40% women directors
• Incorporates environmental, social, and governance considerations, including climate change, in our Company strategy

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, ISO/IEC 20000-1:2011

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Sustainable Development Goals Leadership Award from the Canadian network of the United Nations Global Compact
• Top 50 Best Corporate Citizens in Canada (Corporate Knights)

Environmental Metrics

ESG Focus Areas

• Environmental protection and enhancement
• Social responsibility
• Good governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions per employee by 4% from 2018 and by 39% against the 2013 baseline
• Rolled out a print management program in the United States that is reducing paper usage by more than 35%
• Established low-waste programs in Italy, the Netherlands, and the United Kingdom

Social Achievements

• Reduced injury rate (TRIR) by 15% since 2018
• Created a new C-suite position focused on innovation and annually invest approximately $3 million to support innovation
• Hosted the seventh annual Company-wide volunteer event, Stantec in the Community Week, and annually donate approximately $3 million to charities
• Supported Indigenous communities through business partnerships, capacity building, and philanthropy

Governance Achievements

• Governed by executive- and board-level sustainability committees
• Further strengthened and embedded sustainability, including climate action, into our strategic plan
• Advanced gender equity (44% of the board and 20% of the executive officers were female)
• Operated an Integrated Management System that includes internationally certified environmental, health and safety, quality, and IT management systems

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Centralized e-procurement system
• Sustainability considerations in RFPs
• Increased spending on small and disadvantaged subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Coastal resilience
• Ecosystem restoration
• Smart cities and urban places
• Energy transition

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Apex Companies (previously Bureau Veritas Group), ISOS Group, Inc.

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 15

Stantec's project work supports these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• One of the 100 Most Sustainable Companies in the World (Corporate Knights)
• 50 Best Corporate Citizens in Canada (Corporate Knights)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Inclusion, and Equality
• Governance
• Social Justice
• Pandemic Preparedness
• SDG Contributions
• Resource Conservation
• Emissions
• Ethical Behavior
• Financial Health
• Health, Safety, and Security
• Innovation
• Indigenous Connections
• Project Execution and Delivery
• Risk Management
• Talent Attraction and Retention
• Training and Education
• Cybersecurity and Privacy

Environmental Achievements

• Reduced Scope 1 and 2 per-person emissions by 49% since 2013 baseline.
• Reduced Scope 3 emissions per employee by 54% against the 2018 baseline

Social Achievements

• Reported a voluntary turnover that is 2% to 3% better than the industry average (8%).
• Reduced injury rate (TRIR) by 32% since last year, from 0.37 to 0.25.
• Contributed $3.2 million to philanthropic endeavors in 2020; aim to invest another $30 million by 2030.

Governance Achievements

• Supported from the top with board and executive-level ESG committees.
• Advanced executive-level gender equity (38% of both the board and C-Suite were female).
• Updated global Privacy Policy to keep pace with changing privacy laws around the world, including GDPR.
• Follow ISO-certified environmental, health and safety, quality, and IT management systems.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic requiring a shift to remote work.
• Natural disasters impacting employees.
• Racial and social inequity.

Mitigation Strategies

• Activated Pandemic Response Plan and shifted to remote work.
• Introduced the Stantec BetterTogether Fund.
• Developed a multi-tiered plan to increase industry advocacy, enhance internal programs, and directly support underrepresented students.

Supply Chain Management

Responsible Procurement

• Partner Code of Business Conduct
• Sustainability considerations in RFP process
• EPEAT and Energy Star-rated equipment

Climate-Related Risks & Opportunities

Opportunities

• Coastal Resilience
• Ecosystem Restoration
• Smart Cities and Urban Places
• Energy Transition

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN Women’s Empowerment Principles

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 20000-1

Third-party Assurance: ISOS Group, Inc. (GRI Standards review); Apex Companies (Greenhouse gas emissions inventory)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 6 (Clean Water and Sanitation)
• SDG 5 (Gender Equality)

Stantec's initiatives contribute to these goals through project work, innovation, philanthropy, and strategic growth.

Awards & Recognition

• Corporate Knights 5th most sustainable company in the world
• CDP Climate Leader (A-)
• Forbes World’s Best Employers, Canada’s Best Employers, America’s Best Employers for Women
• Top 50 Workplaces for Indigenous STEM Professionals
• Bloomberg Gender-Equality Index

Environmental Metrics

ESG Focus Areas

• Climate change
• Gender equality
• Social equity
• Environmental sustainability

Environmental Achievements

• Real Estate Strategy on track for 30% reduction in real estate footprint relative to 2019, materially reducing carbon emissions
• Commitments to reduce absolute scope 1 and 2 GHG emissions by 47% by 2030 from a 2019 base year and to reduce absolute scope 3 GHG emissions from business travel by 47% within the same timeframe validated by the Science Based Targets initiative as being in line with a 1.5°C trajectory

Social Achievements

• Improved employee engagement by 6% relative to pre-pandemic levels
• Included in the 2022 Bloomberg Gender-Equality Index (GEI)
• Growth in Employee Resource Groups with 67 chapters worldwide

Governance Achievements

• Sustainability-linked loan structure incorporating Stantec’s emissions targets and Bloomberg Gender-Equality Index score
• First organization globally to incorporate the Bloomberg Gender Equality Index score as a metric in a sustainability-linked loan
• First in Canada to commit to directing proceeds from our sustainability-linked loan back into our communities to further climate action and social equity

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on project execution, operations, and financial performance
• Slower than expected office remobilization due to changes in public health guidance
• Increased competition during an economic decline
• Cybersecurity breaches
• Failure to attract, retain, and mobilize skilled employees
• Economic downturns and reductions in government and private sector spending
• Difficulties in integrating acquired companies
• Climate change related risks (extreme weather, new regulations)
• New or changing policies, regulations, and standards

Mitigation Strategies

• Rigorous project execution and disciplined discretionary spending
• Reliable business continuity and collaboration systems
• COVID-19 vaccination policy
• Prudent cost management and strong balance sheet
• Diversification across geographies, business lines, and clients
• Acquisition and integration program
• Strong business continuity program
• Programs related to renewable energy, climate change adaptation, resiliency, sustainable buildings and infrastructure, environmental preservation, carbon capture and storage

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• New environmental regulations, laws, and policies

Opportunities

• Renewable energy, climate change adaptation, resiliency, sustainable buildings and infrastructure, environmental preservation, carbon capture and storage

Reporting Standards

Frameworks Used: Bloomberg Gender-Equality Index (GEI), Science Based Targets initiative, UN Sustainable Development Goal (SDG) framework

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO/IEC 20000-1:2018, ISO/IEC 27001:2013

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Flood Plain Predictor
• Automated Design Tool
• Debris flow simulator

Awards & Recognition

• #1 most sustainable engineering firm in the world (Corporate Knights 2022 Global 100)
• #17 most sustainable corporation in the world (Corporate Knights 2022 Global 100)
• America’s Best Employers for Diversity (Forbes 2021)
• World’s Top Female Friendly Companies (Forbes 2021)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Environmental Health
• Social Value
• Economic Opportunities
• Inclusion, Diversity, Equity
• Corporate Governance
• Ethics and Compliance

Environmental Achievements

• Achieved operational carbon neutrality by reducing emissions, purchasing renewable energy, and balancing residual emissions with carbon offsets.
• Reduced emissions by 47% in Absolute Scope 1+2 (market-based) and Scope 3 (business travel).

Social Achievements

• Increased to 60% revenue from work directly supporting the SDGs.
• Named as an actor partner in the UN Decade on Ecosystem Restoration.
• Signed Workplace Pride’s Declaration of Amsterdam for LGBTQ+ inclusion.
• Retained position as a top employer and partner for Indigenous peoples.
• Donated more than $5.2 million to organizations supporting sustainability.

Governance Achievements

• Updated materiality assessment to cover the full value chain.
• Issued a sustainability-linked loan (SLL) tied to emissions reduction targets and Bloomberg Gender Equality Index score.
• Achieved 98% employee completion of annual ethics and compliance training.

Climate Goals & Targets

Environmental Challenges

• Employee turnover (13.3% voluntary turnover rate)
• Supply chain disruptions (not explicitly stated, but implied through materiality refresh)

Mitigation Strategies

• Implemented various initiatives to enhance employee engagement and retention (e.g., BetterTogether Fund, Insights Discovery, paid family leave).
• Centralized indirect procurement teams and implemented sustainable procurement practices.

Supply Chain Management

Supplier Audits: Not yet implemented company-wide

Responsible Procurement

• Partner Code of Business Conduct
• Sustainable procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact, UN Women’s Empowerment Principles

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Apex Companies

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 9
• SDG 11
• SDG 13
• SDG 14
• SDG 15

Stantec's project work and initiatives contribute to these goals through various services and programs.

Sustainable Products & Innovation

• CataVAULT
• Insight Analytics
• Digital tools for carbon accounting, climate hazard assessment, emissions monitoring

Awards & Recognition

• Canada’s Most Powerful Women
• Engineering Role Model
• Canadian Consulting Engineering Award of Excellence
• Corporate Knights Global 100
• CDP Climate Leader
• Bloomberg GEI
• Mind Workplace Well-being Award
• AISES Top STEM Workplace
• AISES Corporate Partner Service Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity, and Inclusion
• Governance
• Community Investment
• Indigenous community support

Environmental Achievements

• Operationally carbon neutral
• Ranked #1 among industry peers in Corporate Knights' 2024 Global 100 Most Sustainable Corporations
• Received a CDP A- rating for the fifth consecutive year
• Ecosystems restoration teams worked on over 68,630 acres of land restoration in the US

Social Achievements

• Maintained one of the lowest voluntary turnover rates among peers
• Hired a record number of new employees, growing the workforce organically by approximately 5%
• 50% of the Board and 43% of the C-suite are women
• Donated sustainability-linked loan proceeds to Indigenous non-profits addressing climate change

Governance Achievements

• Strong governance practices recognized by Corporate Knights
• Sustainability-linked loan structure aligns borrowing costs with GHG emissions and gender equality targets

Climate Goals & Targets

Environmental Challenges

• Competition for skilled employees
• Geopolitical events
• Project workplace safety
• Climate change (transition and physical risks)
• Cybersecurity breaches
• Maintaining effective operational management practices
• Compliance requirements as a government contractor
• Reduced demand for services
• Unavailability of third-party insurance coverage
• Violations of anti-corruption laws
• Impairment of long-lived assets or restructuring activities
• Inadequate tax planning
• Fluctuations in pension plan surplus/deficit
• Competition in a highly competitive industry
• Failure to adopt and utilize innovations and new technologies
• Deficiencies in internal controls over financial reporting

Mitigation Strategies

• Robust business continuity plan
• Geographic and service diversification
• Disciplined cost management
• ESG advisory services
• Strong vetting processes for third-party systems
• Global Management System (GMS) and Project Management Framework
• Comprehensive IT security program
• Risk Management team and structured risk assessments
• Various insurance policies
• Acquisition and integration program
• Hybrid model of on-site and remote work
• Disciplined capital allocation strategy
• Anti-bribery laws compliance training and policies
• Periodic review of internal controls

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Fires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• ESG advisory services

Reporting Standards

Frameworks Used: CDP, UN Sustainable Development Goals

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO/IEC 20000-1:2018, ISO/IEC 27001:2013

Awards & Recognition

• Corporate Knights' 2024 Global 100 Most Sustainable Corporations
• Corporate Knights’ Best 50 Corporate Citizens in Canada

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability
• Governance
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Achieved approximately 95% renewable electricity.
• Investing in sustainable aviation fuel.
• Developing a zero-emissions vehicle program.
• Reduced absolute scope 1 and 2 GHG emissions by 47% by 2030 from a 2019 base year (target).
• Reduced absolute scope 3 GHG emissions from business travel by 47% by 2030 from a 2019 base year (target).

Social Achievements

• Implemented a global policy for office closures during severe climate events to safeguard employee health and safety.
• Tracking financial risk exposure to prioritize actions to mitigate future risk (assessing field work conditions, reviewing office locations, updating HSSE protocols, reviewing employee assistance fund).
• Increased internal mindfulness of the importance of climate risks and their role in Stantec's consulting services.

Governance Achievements

• Link executive pay to ESG progress, including KPIs specific to achieving near-term SBTs and carbon neutral/net zero pledges.
• Sustainability-linked loan with KPIs related to progressing near-term SBTs.
• Established an enterprise-wide standard of care for discussing climate risk with clients.

Climate Goals & Targets

Environmental Challenges

• Maintaining net zero trajectory as growth through acquisition continues.
• Increasing frequency and severity of climate events.
• Lack of consistency across codes and standards in establishing a standard of care for climate risk assessments.
• Evolving regulations increasing the need for human rights- and ESG-related risk management within the supply chain.

Mitigation Strategies

• Collaboration between corporate sustainability team and internal subject matter expertise in ESG advisory, nature-based solutions, energy transition, and climate science.
• Pre-determined global policy for office closures during severe climate events.
• Tracking financial risk exposure to prioritize mitigation actions.
• Enterprise-wide software tool for collecting supplier GHG emissions data.
• Internal 'Standard of Care and Climate Change' guidance for informing clients of potential increased risk due to climate change.

Supply Chain Management

Responsible Procurement

• Partner Code of Business Conduct
• Sustainability considerations in supplier evaluation process
• Requesting emissions data and climate impacts from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Flooding
• Extreme heat/cold

Transition Risks

• Evolving regulations
• Client demand for net-zero commitments

Opportunities

• Strategic growth of consulting services in climate transition sectors
• Increased client awareness and demand for climate action services

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), SASB, CDP, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001

UN Sustainable Development Goals

• Various SDGs

Aligns with Stantec's commitment to supporting the United Nations Sustainable Development Goals (SDGs).