Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 11% compared to 2008
• Increased purchases of Gold and Gold Plus environmentally preferable papers from 22% to 49%
• Achieved triple certification (FSC/SFI/PEFC) for paper procurement at all 45 Canadian and U.S. operations
• LEED Silver certification for new San Francisco Chronicle printing facility

Social Achievements

• Employee training investment of $3,004,439
• Community donations and sponsorships totaling $5,677,755
• Improved employee health, safety, and wellness programs
• Reduced accident frequency rate to 1.08 (from 1.3 in 2008)

Governance Achievements

• Established a Sustainable Development Steering Committee
• Published the first-ever Sustainability Report
• No recorded incidents of non-compliance with advertising, promotion, and sponsorship regulations or breaches of customer privacy

Climate Goals & Targets

Environmental Challenges

• Global recession impacting client advertising budgets
• Adaptation to the rise of digital platforms in the print and communications industry
• High accident severity rate (44.58)

Mitigation Strategies

• Reduced labor costs and production levels
• Secured $888 million in financing agreements
• Implemented cross-training initiatives to increase employee marketability
• Set a target accident severity rate of 28 days for 2010

Supply Chain Management

Responsible Procurement

• Paper Purchasing Policy prioritizing recycled fiber and sustainably managed forests

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: LEED Silver (San Francisco Chronicle facility), FSC/SFI/PEFC (paper procurement)

Environmental Metrics

ESG Focus Areas

• People
• Prosperity
• Environment
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 29% relative to 2008
• Reduced energy consumption by 20.3% since 2008 in printing operations
• Increased Gold and Gold Plus paper purchases to 55%
• Decreased Bronze paper purchases to 6%
• Recycled over 94% of waste generated at printing facilities

Social Achievements

• Improved lost time accident frequency rate to 0.88 from 0.94
• Improved lost time accident severity rate to 24.81 from 31.99
• Increased the number of women in senior management roles to 22% from 18%
• Launched Innovation Challenge tournament with over 1500 participants
• Donated $4.5 million to community initiatives

Governance Achievements

• Maintained a balanced Board of Directors with at least 2/3 independent members
• Increased the number of women on the Board of Directors to 27%

Climate Goals & Targets

Environmental Challenges

• Changes in print and publishing industries
• Supply chain disruptions due to mountain pine beetle infestation
• Shortage of recyclable fibers for quality paper
• Need to reduce VOC content in printing chemicals

Mitigation Strategies

• Investing in new equipment and reducing environmental impacts
• Implementing energy efficiency initiatives
• Developing alternative sourcing strategies for paper
• Testing lower VOC content products

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Paper Purchasing Policy
• Chain of custody certification

Climate-Related Risks & Opportunities

Physical Risks

• Mountain pine beetle infestation

Transition Risks

• Cap and trade legislation

Opportunities

• Energy efficiency projects
• Renewable energy sources

Reporting Standards

Frameworks Used: GRI

Certifications: LEED (San Francisco Chronicle printing facility), EcoLogo (five printing facilities), Chain of Custody (FSC, SFI, PEFC)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ancient Forest Friendly™ Award
• Listed on Jantzi Social Index®
• Canada's top 50 corporate citizens (Corporate Knights)

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Environment

Environmental Achievements

• Increased ecoresponsible paper purchases from 67% to 95% in three years.
• Achieved a 93.9% waste recovery rate.
• Reduced energy consumption by 6% compared to 2014.
• Reduced combined Scope 1 and 2 GHG emissions by 13% since 2012.

Social Achievements

• 30% increase in internal references through the Talent Scouting Club initiative.
• 100% of succession candidates had a 70-20-10 development plan implemented.
• 44% of executive and senior management succession candidates assigned to cross-functional projects.
• Reduced lost time accident frequency rate by 38% (0.45 accidents per 200,000 worked hours).
• Reduced lost time accident severity rate by 44% (10.59 lost days per 200,000 worked hours).
• Donated $2.7 million (1.0% of adjusted EBIT) to over 350 organizations.

Governance Achievements

• Isabelle Marcoux, Chair of the Board, received the Mercure Leadership, Germaine-Gibara Award.
• Ranked as one of the Best 50 Corporate Citizens in Canada by Corporate Knights.

Climate Goals & Targets

Environmental Challenges

• Integration of Transcontinental Ultra Flex Packaging increased VOC emissions due to solvent-intensive processes.
• Developing viable recovery streams for multi-material laminates and plastic films in packaging.
• Sale of consumer magazines decreased donations.

Mitigation Strategies

• Program to ensure incinerators are adequately maintained to preserve VOC destruction efficiency.
• Actively participating in the pursuit of other recovery options and promoting sustainable practices in flexible packaging.
• Continued support for health and education organizations despite the decrease in donations.

Supply Chain Management

Responsible Procurement

• 2012 Paper Purchasing Policy prioritizing 100% recycled fiber or FSC®, SFI®, or PEFC certified fibers.
• Tracking plastic purchases and striving to develop sustainable and responsible practices in flexible packaging.

Climate-Related Risks & Opportunities

Awards & Recognition

• Mercure Leadership, Germaine-Gibara Award (Isabelle Marcoux)
• Best 50 Corporate Citizens in Canada (Corporate Knights)
• Safe Quality Food Level 3 certification (Transcontinental Capri)

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Prosperity
• Environment

Environmental Achievements

• Reduced natural gas consumption by 1,330,000 m3 annually at Transcontinental Interglobe and Transcontinental Saint-Hyacinthe plants through heat exchanger installation, resulting in $375,000 savings and a reduction of 2,582 tonnes of greenhouse gas emissions.
• Increased waste recovery rate to 97%
• Increased purchases of Gold and Gold Plus papers to 96%

Social Achievements

• Donated $2.4 million to over 400 organizations.
• Maintained commitment to Centraide of Greater Montreal with a $420,000 donation.
• Supported the Rémi Marcoux Entrepreneurial Track at HEC Montréal, fostering entrepreneurial spirit among students.
• Implemented Leadership Journey program, with 151 leaders participating in Leadership Camp in 2017.

Governance Achievements

• Integrated oversight of the three-year CSR plans into the mandate of the Corporate Governance Committee.
• Board of Directors with almost 40% women representation.

Climate Goals & Targets

Environmental Challenges

• Impact of digital product development and adoption on demand for retailer-related services (printed flyers).
• Impact of digital product development and adoption on demand for other printed products (newspapers, magazines).
• Increase in foreign competition in the Canadian market.
• Ability to properly identify opportunities and complete acquisitions in packaging.
• Ability to generate growth in the packaging division due to long sales cycles.
• Competition in the packaging industry from larger companies with more resources.
• Change in consumption habits or loss of a major customer.
• Impact of customer consolidation on packaging operations.
• Integration of acquisitions.
• Cybersecurity and data protection.
• Operational disruptions affecting ability to meet deadlines.
• Difficulty attracting and retaining key employees.
• Inability to maintain or improve operational efficiency.
• Compliance with governmental regulations.
• Safety and quality of packaging products for the food industry.
• Environmental risks (regulations, consumption habits).
• Litigation.
• Significant increase in the cost of raw materials and energy consumed.
• Respect of privacy and copyrights.
• Impact of economic cycles on demand for products.
• Credit risk from certain customers.
• Liquidity – availability of capital at a reasonable cost.
• Interest rate increases.
• Exchange rate fluctuations.
• Disputes with tax authorities or amendments to statutory tax rates.

Mitigation Strategies

• Remaining alert to consumer trends and investments in e-commerce; developing and enhancing offerings to retailers; improving operational efficiency.
• Optimizing platform based on the rate of decrease in printing volume.
• Improving operational efficiency; securing customer relationships through long-term contracts; improving product quality.
• Relying on an experienced team dedicated to the development of opportunities; strong support from senior management.
• Investing in North American sales force; recruiting talents with experience in different verticals.
• Investing in new capacity, sales force, and talent acquisition.
• Maintaining solid, long-term relations with main customers; renewing significant contracts preemptively.
• Renewing significant contracts preemptively; qualifying packaging products; being temporarily protected by the length of the sales cycle.
• Relying on strict acquisition criteria; experienced due diligence teams; rigorous integration methods.
• Maintaining a quality and reliable technology environment; adjusting security policy; deploying security measures; investing in computer infrastructure; vulnerability mapping; simulation tests; periodic assessment of computer controls; employee training.
• Implementing contingency plans; holding insurance policies.
• Establishing development plans for high-potential managers; providing operational growth opportunities; conducting leadership review.
• Improving operational efficiency at most productive plants.
• Increasing workforce and compensation; investing in raw materials or equipment; government subsidy programs.
• Using appropriate materials; ensuring controls and processes are in place; maintaining civil liability insurance coverage; ensuring compliance with regulations; working with customers to provide information and minimize risk; SQF, AIB International, and GMI certifications.
• Being at the forefront of industry commitment to environmental protection; implementing initiatives to reduce environmental footprint; environmental policy (1993); paper purchasing policy (2007, 2012); membership in the Sustainable Packaging Coalition; participation in the Carbon Disclosure Project.
• Establishing provisions for litigation.
• Agreements with customers providing for sales price indexation; improving operational efficiency; consolidating paper, ink, and resin suppliers.
• Implementing strict controls; maintaining strict controls on credit; regularly analyzing and examining the financial position of customers; establishing specific credit limits; credit insurance policy.
• Good financial position; generating significant cash flows from operations; access to revolving credit facility.
• Matching cash inflows and outflows in the same currency; currency hedging program.
• Believing that all expenses claimed are reasonable and deductible; ongoing audits by tax authorities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Paper purchasing policy (2007, 2012)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: SQF (Safe Quality Food), AIB International, GMI (Graphic Measures International)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Corporate Knights' Best 50 Corporate Citizens in Canada (22nd position in 2017)
• Canopy's Blueline ranking of sustainability performance (4th position in 2017)

Environmental Metrics

ESG Focus Areas

• Health and safety
• Gender diversity
• Talent development
• Greenhouse gas emissions reduction
• Waste management
• Food safety
• Sustainable materials
• End-of-life product design
• Product R&D
• Community investment
• Employee engagement

Environmental Achievements

• Reduced total incident rate (incidents per 200,000 worked hours) by approximately 9% in Printing and Packaging sectors.
• 90% diversion rate for non-hazardous operational waste.
• 97% recycling rate in Printing sector.
• Reduced VOC emissions by 200 tonnes.

Social Achievements

• Exceeded target for female representation on the Board of Directors (39%).
• Met target of three women on the Executive Committee.
• Increased proportion of women in the company to 25%.
• 100% of salaried employees completed annual performance reviews.
• Launched Leading and Growing Together leadership development program.
• All business units participated in at least one community initiative.

Governance Achievements

• Corporate social responsibility strategy and objectives overseen by the Governance and Social Responsibility Committee of the Board of Directors.
• Joined the United Nations Global Compact.

Climate Goals & Targets

Environmental Challenges

• Increasing greenhouse gas emissions due to growth in Packaging sector.
• Limited recycling solutions for multilayer plastic products.
• Need to increase post-consumer recycled content in plastic packaging.

Mitigation Strategies

• Implemented energy efficiency projects (heat recovery, regenerative thermal oxidizer).
• Measuring greenhouse gas emissions intensity based on finished product volume.
• Developing projects to reduce energy consumption in Packaging sector.
• Exploring more renewable electricity sources.
• Launched Green Teams program to promote waste reduction.
• Established a Recycling Group within TC Transcontinental Packaging to increase post-consumer recycled content.

Supply Chain Management

Supplier Audits: Evaluation process started in 2019 using EcoVadis platform.

Responsible Procurement

• Paper purchasing policy (99% from certified or recycled sources).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, UN Global Compact

Certifications: FSC® C011825, SFI®, PEFC, GFSI (13 of 17 direct-food contact packaging plants)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 15

Seven UN SDGs are aligned with the targets of the three-year Acting Together plan.

Sustainable Products & Innovation

• vieVERTe sustainable product portfolio (compostable and recyclable products, products containing post-consumer resins)
• New Publisac made from 100% recycled plastic

Awards & Recognition

• Canopy’s Blueline Report (ranked 4th)
• Gold Award in Sustainable Development category at Flexible Packaging Achievement Awards
• All awards in Sustainable Packaging category at Packaging Association of Canada's Leadership Awards

Environmental Metrics

ESG Focus Areas

• Diversity
• Environment
• Health & Safety
• Social Responsibility
• Sustainability

Environmental Achievements

• Industry leader in sustainable procurement of certified paper.
• Committed that, by 2025, 100% of its plastic packaging would be reusable, recyclable or compostable, on top of achieving a 10% use of post-consumer recycled content on average by weight, across all plastics in its product basket.

Social Achievements

• Published its 2016-2018 Corporate Social Responsibility Report and its 2019-2021 Corporate Social Responsibility Plan.
• Aims for a significant representation of women throughout the organization, including at the senior executive and Board of Directors levels.
• In 2019, 34.5% of senior executives were women.

Governance Achievements

• 62% of the proposed nominees as directors are independent.
• All nominees are presently directors of the Corporation.
• Board meetings attendance 100%
• Committee meetings attendance 100%

Climate Goals & Targets

Environmental Challenges

• Lower number of women in senior executive positions in its manufacturing operations in certain countries.

Mitigation Strategies

• Implementing programs aimed at ensuring that a talent pool, composed of an adequate number of women who may occupy other senior management roles, exists by offering talented women opportunities to join the Corporation where they may develop and progress.

Supply Chain Management

Responsible Procurement

• Paper Purchasing Policy

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• eco-responsibility packaging solutions

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced emissions by 9.0% compared to the previous year (mainly due to COVID-19 impact and temporary closure of printing facilities). Achieved a 5% reduction in Scope 1+2 emissions from 2018 to 2021.
• Increased renewable energy share from 22.4% in 2019 to 23.17% in 2020.

Social Achievements

• Launched the vieVERTe sustainable product portfolio, including compostable and recyclable products and applications containing post-consumer resins.
• Joined Ellen MacArthur Foundation’s New Plastics Economy Global Commitment and committed to making 100% of plastic packaging reusable, recyclable, or compostable by 2025, and achieving 10% use of post-consumer recycled content by weight.

Governance Achievements

• Board-level oversight of climate-related issues through the Corporate Governance and Social Responsibility Committee.
• Incentives for management of climate-related issues linked to annual performance assessments and monetary rewards for emissions reduction projects.

Climate Goals & Targets

Environmental Challenges

• Increased cost of raw materials due to oil price increases and GHG regulatory frameworks (potential financial impact of $185.9M).
• Shifts in consumer preferences and potential regulations impacting demand for certain products (potential financial impact of $1.979B).
• Increased severity and frequency of extreme weather events impacting operations (potential financial impact of $2.34B).

Mitigation Strategies

• Passing increased raw material costs to customers, focusing on cost reduction through automation and efficiency, increasing recycled plastics.
• Advocacy, consumer education, customer engagement, R&D investment in sustainable packaging.
• Business continuity strategy, diverse supply chain, adequate inventories, contingency plans.

Supply Chain Management

Supplier Audits: 5% of suppliers by number, 54% of total procurement spend

Responsible Procurement

• Integrating environmental, social, and ethical criteria into purchasing processes.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods, wildfires)
• Heatwaves
• Sea-level rises

Transition Risks

• Increased cost of raw materials
• Changes in consumer demand
• New regulations on plastic packaging

Opportunities

• Growing demand for low-carbon products
• Access to new markets
• Resilience to major disruptions

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, SASB, TCFD

Sustainable Products & Innovation

• vieVERTe sustainable product portfolio
• Packaging with up to 50% post-consumer recycled content

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Diversity and Inclusion
• Employee Development
• Environmental Footprint Reduction
• Circular Economy
• Community Investment

Environmental Achievements

• Reduced greenhouse gas emissions by 10% since 2018 and by 3.3% in 2021 alone.
• Achieved 90% reclamation rate of non-hazardous operational waste.
• All food contact packaging facilities obtained GFSI certification.
• 42% of products marketed are sustainable packaging (recyclable, compostable, or made from recycled resins).

Social Achievements

• Exceeded targets for employee health and safety, reducing incident frequency rate by more than half.
• Increased female representation in leadership positions to 33% in executive and management, and 39% on the Board of Directors.
• Launched a new community engagement program across all regions.
• Achieved 76% employee engagement rate.
• Implemented a new integrated health platform (Dialogue).

Governance Achievements

• 62% independent directors on the Board.
• Obtained a Sustainability Linked Loan with rate adjustment based on ESG targets.
• Expanded diversity and inclusion programs to include ethnic diversity and LGBTQ+ communities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and community engagement.
• Challenges in data collection for Scope 3 emissions.
• Need to increase post-consumer recycled content in plastic packaging.

Mitigation Strategies

• Implemented rigorous health and safety measures to protect employees during the pandemic.
• Conducted a preliminary assessment of Scope 3 emissions using Quantis and will develop an action plan.
• Investing in Transcontinental Recycling Montréal to increase access to recycled resin and achieve 10% post-consumer recycled content by 2025.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 100% of paper purchases from third-party certified or recycled sources.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: FSC®, SFI®, PEFC (paper), GFSI (food safety)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• VieVERTe® line of recyclable, compostable, or recycled-content packaging

Awards & Recognition

• 16th most responsible company in the world (Corporate Knights)

Environmental Metrics

ESG Focus Areas

• Greener Growth
• Innovative and Sustainable Products
• Inclusive and Safe Environment
• United with Our Communities
• Governance & Responsible Business Practices

Environmental Achievements

• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 1.6% compared to 2021.
• Achieved an 89% recovery rate for non-hazardous operational waste.
• 42% of plastic packaging is now recyclable or compostable.

Social Achievements

• Achieved a 17% reduction in recordable incidents in 2023 compared to 2022.
• 45% female representation on the Board of Directors (exceeding the 2025 target of 35%).
• 42% of women in management positions.
• Donated approximately $1.5 million to over 100 organizations.

Governance Achievements

• Updated Supplier Code of Conduct to reinforce human rights provisions.
• Integrated ESG criteria into the sourcing process.
• Developed a report on fighting forced labor and child labor.
• Implemented a cybersecurity incident response preparedness strategy.

Climate Goals & Targets

Environmental Challenges

• Challenges persist in regions lacking recycling services, hindering the 100% waste recovery target.
• Slower than anticipated demand for PCR content by customers.
• Data limitations in some indicators requiring estimations.

Mitigation Strategies

• Rolling out energy efficiency projects.
• Obtaining validation of GHG target by SBTi.
• Updating environmental improvement plans based on self-assessment and external audits.
• Working with customers to increase demand for PCR content.
• Using estimations aligned with industry standards where data is limited.

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct
• Integration of ESG criteria into sourcing process
• Responsible sourcing program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: FSC®, SFI®, PEFC

Sustainable Products & Innovation

• Recyclable and compostable products
• raddar™ sustainable flyer
• Recyclable PE packaging
• Shrink film containing 50% PCR
• Poultry PCR forming/non-forming package
• Non-dairy cheese slice package with 35% PCR

Awards & Recognition

• 26th on Corporate Knights’ 2023 Best 50 ranking

Environmental Metrics

ESG Focus Areas

• Greener growth
• Inclusive and safe environment
• Innovative and sustainable products
• United with its communities
• Governance and responsible business practices

Environmental Achievements

• Reduced paper and energy consumption through notice-and-access delivery of meeting materials.
• Investments in research and development and partnerships to create a circular plastics economy.

Social Achievements

• Exceeded Board of Directors diversity target of 30% for female representation.
• Increased proportion of women in management positions to 44.4% in 2023 from 37.8% in 2022.
• Launched initiatives to promote the progress of members of designated groups within the organization.
• Dollars for Doers program encouraging employee community involvement.

Governance Achievements

• Majority of directors are independent (7 out of 10 proposed nominees).
• All Board committees are composed entirely of independent directors.
• Annual election of directors.
• Formal evaluation processes for the Board, its committees, and the Executive Chair of the Board.
• Code of Conduct applies to all employees and directors.

Climate Goals & Targets

Environmental Challenges

• Concerns of certain proxy advisors and analysts regarding dual-class share structure.

Mitigation Strategies

• Board of Directors is comprised of a majority of independent directors.
• All committees of the Board of Directors are composed entirely of independent directors.
• Capital structure provides for a time when both categories of shares will cease to exist.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Climate change
• New regulations related to plastics

Reporting Standards

Frameworks Used: UN Sustainable Development Goals