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