Climate Change Data

EXFO Inc.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2,419.05 mtCO2e (location-based) / 2,426.07 mtCO2e (market-based)
Scope 1 Emissions:143.35 mtCO2e
Scope 2 Emissions:2,419.05 mtCO2e (location-based) / 2,426.07 mtCO2e (market-based)
Carbon Intensity:1.26 mtCO2e per full-time equivalent employee

ESG Focus Areas

  • Climate Change/Energy Efficiency
  • Product Lifecycle Management
  • Procurement Practices/Material Sourcing
  • Information Security
  • Data Privacy
  • Product Security
  • Well-being and Mental Health
  • Talent Development and Education
  • Diversity, Equity, and Inclusion (DEI)

Environmental Achievements

  • Improved climate change data management, refining the collection of Scope 1 and 2 GHG emissions at 14 major sites.
  • Reduced the amount of paper shipped with products by nearly 95% since 2016.
  • Increased the ratio of recycled or sustainable sources in packaging from 20% in 2020 to 70%.
  • Opened a new manufacturing facility in Querétaro, Mexico to reduce Scope 3 carbon footprint.

Social Achievements

  • Formalized a framework for hybrid work arrangements.
  • Developed a program offering employees the opportunity to work from anywhere for up to four weeks per year.
  • Held workshops with managers on effective communication in virtual and hybrid settings.
  • Launched Move the World, EXFO! challenge, resulting in donations to Khan Academy and local charities.
  • Introduced a global framework for new employee onboarding experience.
  • Presented DEI commitment to hire, promote and engage a diverse workforce and offer a workplace free from discrimination.

Governance Achievements

  • Conducted a thorough analysis of ESG risks and assigned risk bearers for each category.
  • Established an ESG Data Committee to define KPIs and create dashboards to track progress.
  • Implemented a comprehensive security program aligned with ISO 27001 standards.
  • Initiated the “Don’t Take the Bait” campaign on phishing tactics and implemented continuous cybersecurity awareness training.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050.
Medium-term Goals:
  • Onboard all new suppliers using new qualification tools and progressively integrate existing Tier 1 suppliers.
  • Conduct a product lifecycle assessment of select existing products and use them to define new design directives.
  • Harmonize manufacturing with customers’ recycling regulations.
  • Improve compliance with data privacy legislation.
Short-term Goals:
  • Reduce Scope 1 and 2 emissions based on 2023 inventory results.
  • Measure Scope 3 GHG emissions related to purchased goods, transportation, and waste.
  • Identify action plans to reduce Scope 3 emissions.
  • Define EXFO’s DEI vision and strategy, launch a DEI awareness campaign, and introduce a DEI component into the Leadership Development Program.

Environmental Challenges

  • Reducing Scope 3 emissions (significantly higher than Scope 1 and 2).
  • Improving the representation of women and other underrepresented groups.
  • Ensuring compliance with data privacy legislation.
  • Preventing security vulnerabilities in EXFO equipment and solutions.
Mitigation Strategies
  • Identifying actions to reduce waste from operations and partnering with suppliers to reduce waste and improve material efficiency.
  • Establishing recruitment partnerships with organizations and universities representing diverse groups, conducting a DEI survey, and creating a mentorship program.
  • Continuously aligning data privacy practices to comply with current and future legislation.
  • Implementing a strategy focused on improving development practices, fostering a security-conscious culture, and maintaining active vigilance.

Supply Chain Management

Responsible Procurement
  • Agent code of conduct
  • Supplier terms and conditions
  • Conflict minerals policy
  • Policy on modern slavery and combating trafficking in persons

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 27001

Sustainable Products & Innovation

  • Swap-out optical ports in D-Series OTDRs
  • Centralized testing, monitoring, and analytics solutions