Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics
• Labour
• Environment
• Occupational Health & Safety
• Giving

Environmental Achievements

• 80% of waste diverted from landfill in Toronto site in 2009
• 40,000 cubic meters of water saved in Dongguan, China in 2009

Social Achievements

• Over 395,000 volunteer hours
• 85% of employees believe Celestica is a leader in corporate social responsibility
• Employees may volunteer for 2 days per year through our Time Off to Volunteer program

Governance Achievements

• Established a global Ethics Hotline
• Implemented Business Conduct Governance (BCG) Policy, reviewed and signed by all employees annually
• Participation in the Electronics Industry Citizenship Coalition’s (EICC) Code of Conduct

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• E-TASC Self Assessment Questionnaire (SAQ) to assess risks among preferred suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EICC Code of Conduct

Certifications: ISO 14001 (all manufacturing sites), OHSAS 18001 or equivalent (some manufacturing sites)

Awards & Recognition

• Spirit Award for Best United Way Leadership Campaign in Greater Toronto area

Environmental Metrics

ESG Focus Areas

• Employee Sustainability
• Environmental Sustainability
• Material Stewardship
• Sustainable Solutions
• Sustainable Communities

Environmental Achievements

• Total CO2e emissions decreased by approximately 3% compared with the previous year.
• 88% waste diversion rate.
• Water consumed decreased by 3.5% since 2014.

Social Achievements

• Global voluntary turnover rate was 30.4%, down from 35.5% in 2014 and 40.7% in 2013.
• 7% of employees participated in the Time Off to Volunteer program.
• Launched the Sustainable Workspace program, increasing participation to 25% from 3% in 2014.

Governance Achievements

• Received EcoVadis’ gold rating; scored 67/100, an improvement over 2014's 63/100.
• Named to the Canada Climate Disclosure Leadership Index (CDLI) by CDP, scoring 98 B.
• Celestica’s Oradea, Romania and Laem Chabang, Thailand sites were recognized by the Electronic Industry Citizenship Coalition for successful completion of an EICC audit.

Climate Goals & Targets

Environmental Challenges

• Management of electronic waste (eWaste) from operations.
• Reducing excessive working hours to achieve 100% compliance with EICC best practices by 2016.
• High voluntary turnover, historically higher in Asia.

Mitigation Strategies

• Implementation of new centralized sorting facilities for eWaste.
• Development and implementation of specific site action plans to improve excessive overtime.
• Development and implementation of programs to drive employee engagement and reduce turnover; launching the “Your Voice” employee engagement survey in 2016.

Supply Chain Management

Supplier Audits: 10% of MSL suppliers had high-risk activity identified through EICC risk assessment; Verification Visits conducted.

Responsible Procurement

• Alignment of preferred suppliers with the EICC Code of Conduct
• RoHS and REACH compliance verification for components
• Conflict Minerals Policy compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI® G4 Guidelines, Core Option

Certifications: ISO 14001 (at most manufacturing sites), ISO 50001 (Oradea, Romania and Valencia, Spain)

Third-party Assurance: SGS (for Scope 1 and Scope 2 GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Global 100 Most Sustainable Corporations in the World
• Canada’s Best 50 Corporate Citizens
• 2015 Green Supply Chain Award
• EICC recognition for Oradea and Laem Chabang sites

Environmental Metrics

ESG Focus Areas

• Employee Sustainability
• Environmental Sustainability
• Material Stewardship
• Sustainable Solutions
• Sustainable Communities

Environmental Achievements

• Improved waste diversion rate from 84.9% in 2013 to 90.8% in 2016
• Decreased absolute greenhouse gas emissions by 4.5% since 2012
• Reduced GHG emissions by 4,077 metric tonnes of CO2e through 19 projects

Social Achievements

• Increased global employee Time Off to Volunteer rate from 4% in 2014 to 14% in 2016
• Reduced percentage of employees working more than 60 hours per week by 87.4% since 2012
• Increased participation in the Sustainable Workspace program from 3% in 2014 to 37% in 2016

Governance Achievements

• 100% of employees received anti-bribery training
• Established a Labour and Ethics Management System
• Implemented a robust environmental compliance program

Climate Goals & Targets

Environmental Challenges

• Increased energy usage due to increased manufacturing requirements and revenue growth
• Increased Scope 3 emissions due to increased inbound logistics and employee travel
• Achieving 100% compliance with EICC best practices on working hours

Mitigation Strategies

• Implemented 19 projects to reduce GHG emissions
• Expanded Scope 3 reporting for greater transparency
• Developed and implemented site action plans to reduce excessive overtime

Supply Chain Management

Supplier Audits: 107 SAQs performed for 81 suppliers

Responsible Procurement

• EICC Code of Conduct
• RoHS and REACH compliance
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines, Core Option

Certifications: ISO 14001 (74% of manufacturing sites), ISO 50001 (some sites)

Third-party Assurance: SGS (for Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Canada’s Best 50 Corporate Citizens (3 years in a row)
• Cisco’s Excellence in Sustainability award
• 2016 Green Supply Chain Awards (two awards)

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Waste Diversion
• Employee Engagement
• Community Giving
• Energy Efficiency
• Renewable Energy
• Occupational Health and Safety
• Diversity and Inclusion
• Compliance and Ethics
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scope 1 & 2 greenhouse gas emissions by 57.4% from 2018.
• Achieved 92.7% waste diversion rate.
• Increased renewable energy use to 56.2% of total electricity consumption.
• Averted an estimated 6,082 metric tonnes of CO2e through renewable energy projects.

Social Achievements

• More than 16,700 employees completed the Sustainable Workspace Pledge.
• Employees volunteered nearly 27,000 hours in local communities.
• Maintained low accident and injury rates (lost workdays rate of 0.84 and lost time incident rate of 0.05).

Governance Achievements

• Received a platinum rating from EcoVadis.
• Completed approximately 11,000 hours of compliance training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to unforeseen business closures impacting compliance with working hour regulations.
• Climate-related risks such as extreme weather events potentially disrupting operations and increasing costs.

Mitigation Strategies

• Implemented energy savings projects (reducing approximately 4,550 metric tonnes of CO2e).
• Logistics optimization project reduced diesel consumption (nearly 2,000 metric tonnes CO2e reduction).
• Business Continuity Planning (BCP) policy to minimize business disruptions.
• Insurance coverage for damage to sites and operational interruptions due to natural disasters.

Supply Chain Management

Supplier Audits: 216 suppliers screened using environmental and social criteria

Responsible Procurement

• Supplier scorecards with environmental and social performance requirements; RBA Code of Conduct; Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001 (58% of manufacturing locations), ISO 50001 (9 sites)

Third-party Assurance: Third-party assurance of GHG emissions (since 2013)

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

Celestica's initiatives align with these SDGs through various programs and partnerships.

Sustainable Products & Innovation

• Energy-efficient products; products with high recoverability for reuse, remanufacturing, or recycling; smart trash receptacles

Awards & Recognition

• EcoVadis Platinum rating; Canada’s Best 50 Corporate Citizens; Caring Company Award (Hong Kong); Manufacturer of the Year Award (Newmarket); Triple Challenge Award (Tucson)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity and Inclusion
• Greenhouse gas emissions reduction
• Waste diversion
• Renewable energy use
• Community engagement
• Supplier sustainability
• Board diversity

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 GHG emissions by 70% from 2012 levels (exceeding the 30% target)
• Achieved a 21.3% reduction in Scope 1 & 2 GHG emissions from 2019
• Achieved 92.5% waste diversion rate, diverting over 12,600 metric tonnes of waste from landfill
• Increased renewable energy use to 64.4% of total electricity consumption
• Averted an estimated 10,000 metric tonnes of CO2e emissions through renewable energy projects

Social Achievements

• 89% of eligible employees participated in the Sustainable Workspace program
• 20% of employees participated in the Time Off to Volunteer program
• Launched the Customer Focused Team (CFT) Academy for operations leaders
• Revitalized the Women in Action program
• CEO signed the CEO Action for Diversity & Inclusion Pledge
• Board adopted a Board Diversity Policy with a target of 30% women by 2023

Governance Achievements

• Embedded board-level strategy and oversight of ESG into the management system
• Included ESG elements in financial disclosures
• Conducted a board diversity survey
• Enhanced supplier scorecards to incorporate new environmental and social performance criteria

Climate Goals & Targets

Environmental Challenges

• Increased Scope 3 emissions from purchased goods and services due to supplier emissions increase
• Increase in single-use PPE due to the COVID-19 pandemic
• Challenges in measuring emissions from home offices due to increased remote work
• Variability in waste disposal due to factors like reduced operations from COVID-19 and local droughts

Mitigation Strategies

• Setting science-based targets for GHG emissions reduction
• Implementing energy efficiency projects and increasing renewable energy use
• Analyzing opportunities to recycle PPE
• Transitioning to waste-to-energy vendors
• Strengthening internal procurement, supplier, and customer relationships to reduce packaging

Supply Chain Management

Supplier Audits: 37 RBA supplier audits completed

Responsible Procurement

• RBA Code of Conduct
• Conflict Minerals Policy
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Shifting markets and product diversification

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Third-party assurance of GHG emissions (details in CDP submission)

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Celestica's initiatives contribute to these goals through various programs and actions detailed in the report.

Sustainable Products & Innovation

• Energy-efficient products for data centers, networking, and edge deployments
• High-power electric vehicle charging stations

Awards & Recognition

• EcoVadis Platinum rating
• Canada's Clean50 Awards
• Canada’s Best 50 Corporate Citizens (5th place)
• Kimberly Clark Award
• Best Work Environment Employer Award (Suzhou)
• Lam Research Supplier of the Year Award (CSR award)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Sustainability
• Community Engagement

Environmental Achievements

• Reduced Scope 1 and Scope 2 greenhouse gas emissions by 63% from 2018 baseline.
• Reduced Scope 3 emissions by 11.2% year-over-year.
• Achieved 57.8% renewable energy share of total electricity consumption.
• Diverted over 12.6 metric tonnes of waste from landfill (85.6% waste diversion rate).

Social Achievements

• 96% of employees completed Diversity & Inclusion training.
• Launched four Employee Resource Groups (ERGs).
• Over 19,000 employee volunteer hours through Time Off to Volunteer (TOV) program.
• Launched Supplier Management Playbook to improve supplier sustainability.

Governance Achievements

• Expanded ESG practices throughout the business; in-depth reports and key risks provided regularly to the Board.
• Senior executive compensation tied to achieving sustainability targets.
• Formalized a global energy management system (ECRR).

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 emissions due to generator installation at a site with frequent power outages.
• Increased Scope 3 emissions from upstream and downstream transportation due to supply chain constraints.
• Inaccurate Scope 3 emissions data due to remote work and increased cloud storage.
• Water scarcity in regions where nine Celestica facilities operate.

Mitigation Strategies

• Implementing energy-saving projects through ECRR.
• Launching a Supplier Emissions Program in 2022 to address Scope 3 emissions.
• Improving data collection methods for waste and water.
• Integrating evidence-based industry best practices into water management systems.
• Encouraging supply chain disclosure of water management practices.

Supply Chain Management

Supplier Audits: 41 RBA supplier audits completed in 2021

Responsible Procurement

• RBA Code of Conduct
• Conflict Minerals Policy
• RoHS/REACH compliance
• Supplier Management Playbook
• Supplier Performance Tool (SPoT)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Power outages

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Shifting markets
• Product diversification

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Celestica's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Energy-efficient products (e.g., solar inverters, EV charging stations)

Awards & Recognition

• EcoVadis Platinum rating
• Gold Certification, City of Gresham Green Business
• 26th spot among Canada’s best corporate citizens

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 47% from 2021 and 81% from the 2018 baseline, surpassing the 30% reduction goal by 2025.
• Expanded renewable energy use to 75.1% of total electricity consumption through on-site solar, utility procurement, and Energy Attribute Certificates (EACs), averting approximately 115,000 metric tonnes of CO2e emissions.
• Achieved a global waste diversion rate of 89.6%, diverting nearly 1.4 million products and over 1.2 million kilograms of material from landfill.

Social Achievements

• Expanded employee-led resource groups to five, each championed by a senior leader.
• Delivered over 3 million training hours globally and provided over 720 internship positions.
• Launched the third generation of the Women in Action program.

Governance Achievements

• Received a Platinum rating from EcoVadis with an overall score in the top 1% and a “Leader” ranking in the Carbon Action Module.
• Integrated ESG factors into every aspect of the business, including board oversight and executive compensation linked to sustainability targets.
• Launched a Sustainability Committee to increase stakeholder input and collaboration.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 3 emissions due to significant revenue growth.
• Supply chain disruptions and COVID-19 outbreaks impacting employee schedules.
• Data limitations in measuring emissions from home offices and cloud-based storage.

Mitigation Strategies

• Launched a Supplier Emissions Program to improve data accuracy and quality.
• Cross-trained employees to manage workload distribution and maintain compliance with working hour requirements.
• Enhanced emissions inventory to track criteria air contaminants, hazardous air pollutants, and persistent organic pollutants.

Supply Chain Management

Supplier Audits: 74 RBA supplier audits completed in 2022

Responsible Procurement

• Supplier Management Playbook
• Compliance with industry standards (RBA, conflict minerals, REACH, RoHS, RMAP)
• Supplier Emissions Program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Shifting markets and product diversification

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Celestica's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Energy-efficient products (HPS business, >80% using titanium instead of platinum; 96% power efficiency target)

Awards & Recognition

• EcoVadis Platinum rating
• Canada’s Best 50 Corporate Citizens (30th spot)
• Bihor Community Gala, Team of the Year (Romania)

Environmental Metrics

ESG Focus Areas

• Climate change
• Water
• Diversity & Inclusion

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 87% compared to 2018 baseline.
• Avoided 6,819 mt CO2e through 60 energy reduction projects in 2023.
• 89.1% of waste diverted from landfill globally in 2023.

Social Achievements

• Launched Supplier Management Playbook in 2021 to improve supply chain sustainability.
• Enhanced supplier scorecards in 2022 to incorporate new environmental and social performance criteria.
• Maintained a Diversity Policy with a goal of at least 30% women on the Board.

Governance Achievements

• Board-level oversight of environmental issues.
• Management-level responsibility for environmental issues.
• Monetary incentives for management of climate change issues.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Lack of internal resources for scenario analysis.
• Data access and capturing limitations for Scope 3 emissions.
• Limited control over suppliers and materials sourced.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Collaborating with subject matter experts and consultants to complete a climate-related scenario analysis.
• Improved data collection methods for Scope 3 emissions.
• Launched supplier emissions assessment program in 2022.
• Enhanced supplier scorecards to incorporate new environmental and social performance criteria.

Supply Chain Management

Supplier Audits: Annual RBA SAQ for major suppliers

Responsible Procurement

• RBA Code of Conduct
• Supplier sustainability requirements
• Supplier scorecard program (SPoT)

Climate-Related Risks & Opportunities

Physical Risks

• Increased energy demand for HVAC systems due to rising temperatures
• Risks associated with electrical grids not designed for additional load or changing weather conditions

Transition Risks

• Changing customer behavior and increasing pressure to improve sustainability performance

Opportunities

• Increased sales of existing products and services in the smart energy sector
• Reputational benefits resulting in increased demand for products/services
• Use of renewable energy sources
• Increased efficiency of production and/or distribution processes

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UNGC, UN SDGs, RBA

Certifications: ISO 14001, ISO 50001

Third-party Assurance: VOS

UN Sustainable Development Goals

• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 12
• 13

Celestica has adopted 10 of the UN SDGs to implement within our operations to help meet global climate targets in alignment with the Paris Agreement.

Sustainable Products & Innovation

• Power converters
• Electric vehicle charging stations
• Smart meters
• Self-driving vehicle technology (LiDAR)
• Solar inverters