Climate Change Data

Environmental Metrics

Social Achievements

• Cineplex was named by Waterstone Human Capital one of Canada’s 10 Most Admired Corporate Cultures in the large enterprise category for 2018.
• Cineplex was recognized by Brand Z as one of the Top 40 Most Valuable Canadian Brands and honoured with the Best Brand Experience Award.
• Cineplex held its ninth annual Community Day, raising over $175,000 in support of the Boys and Girls Clubs of Canada.

Climate Goals & Targets

Environmental Challenges

• Poor film product and unauthorized copying.
• Risks associated with national and world events, including war, terrorism, international conflicts, natural disasters, extreme weather conditions, infectious diseases, criminal acts, changes in income tax legislation; and general economic conditions.

Mitigation Strategies

• Cineplex continues to innovate and pursue cost savings in order to deliver an affordable out of home entertainment experience.
• Cineplex offers the SCENE loyalty program, which rewards guests for their patronage with special offers as well as the ability to earn and redeem points.
• Cineplex monitors customer needs to try and ensure that its entertainment experiences meet the anticipated needs of key demographic groups.
• Cineplex is differentiating the movie-going experience by providing premium alternatives such as UltraAVX, VIP, 4DX, ScreenX, Cineplex Clubhouse and D-BOX seating.
• Cineplex continues to improve the quality of its theatre assets through ongoing renovations and theatre recliner retrofits.
• Cineplex monitors customer satisfaction through surveys, mystery shops and focus groups and maintains a guest services department to address customer concerns.
• Cineplex monitors commentary on social media in order to respond quickly to potential social media misinformation or service issues.
• Cineplex developed its Cineplex Store in response to the risk created by new in-home and on-the-go entertainment offerings.
• Cineplex monitors performance metrics for electronic delivery in order to proactively manage any potential customer satisfaction issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather incidents

Awards & Recognition

• Canada’s 10 Most Admired Corporate Cultures
• Top 40 Most Valuable Canadian Brands
• Best Brand Experience Award

Environmental Metrics

ESG Focus Areas

• Business Ethics and Values
• Environmental Sustainability
• Community Partner

Environmental Achievements

• Reduced paper waste by eliminating Cineplex Magazine
• Increased landfill diversion rate
• Implemented LED lighting retrofits and building automation systems to improve energy efficiency
• Maximized use of Forest Stewardship Council (FSC) certified paper in popcorn bags and drink cups
• Prioritized purchasing of eco-friendly goods and services, including biodegradable straws and packaging

Social Achievements

• Raised money for Food Banks Canada by donating $1 from every transaction on Cineplex Store in December 2020
• Supported local communities across Canada during COVID-19
• Supported Canadian entertainment and media industries, including film festivals
• Launched ‘Understanding Black Stories’ collection on Cineplex Store, featuring Black filmmakers and artists
• Offered Sensory Friendly Screenings in partnership with Autism Speaks Canada
• Recognized as one of Canada's Most Admired Corporate Cultures in 2018 and 2019

Governance Achievements

• Code of Business Conduct and Ethics implemented, requiring annual review and sign-off by all employees
• Supplier Code of Conduct adopted, outlining ethical standards for suppliers
• Board Diversity Policy and corporate Diversity Policy in place
• 30% of the Board of Directors identify as women and 40% identify as ethnic minorities

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and community engagement

Mitigation Strategies

• Adapted fundraising strategies during COVID-19, such as online donations
• Continued support for local communities through alternative methods

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Awards & Recognition

• Canada's Most Admired Corporate Cultures (2018, 2019)

Environmental Metrics

ESG Focus Areas

• Business Ethics and Values
• Environmental Sustainability
• Community Partnership

Environmental Achievements

• Increased landfill diversion rate
• Recycles paper, plastic, 3D glasses, and electronic waste
• Uses compostable packaging where supported
• LED lighting retrofits and building automation systems for energy efficiency
• Maximizing use of FSC-certified paper

Social Achievements

• Contributed tens of millions of dollars to various charities
• Provided over 20,000 meals to families in need
• Supported local community events and initiatives
• Supported Canadian entertainment and media industries (including film festivals)
• Inclusive hiring practices and diversity & inclusion training
• Sensory Friendly Screenings for individuals with autism or sensory sensitivities
• Donated to The Black Academy and imagineNATIVE

Governance Achievements

• Code of Business Conduct and Ethics with annual training and sign-off for all employees and contractors
• Supplier Code of Conduct
• Board Diversity Policy and overall corporate Diversity Policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and community needs

Mitigation Strategies

• Continued community support and charitable contributions despite closures
• Leveraged network of theatres and offices for fundraising

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (includes ethical business practices, responsible sourcing, subcontracting, information security, human rights, labor standards, safe work environments, and diverse and inclusive culture)

Climate-Related Risks & Opportunities

Awards & Recognition

• Canada's Most Admired Corporate Cultures (Waterstone Human Capital, three times)

Environmental Metrics

ESG Focus Areas

• Waste Management
• Energy Efficiency
• Eco-Friendly Materials

Environmental Achievements

• Converted 80% of locations to LED lighting, resulting in lower energy consumption and landfill waste.
• Integrated building automation systems into 45% of theatres, improving temperature and lighting control and saving energy.
• Reduced overall emissions by preserving ancient forests and using recycled paper through Canopy Planet-endorsed Paper Procurement Policy.
• Three recently constructed facilities are LEED certified.

Social Achievements

• Not disclosed

Governance Achievements

• Transitioned sustainability programs to have direct board oversight to establish meaningful targets.

Climate Goals & Targets

Environmental Challenges

• Need for better disclosure of sustainability initiatives to the public and investors.
• Lack of specific targets on initiatives.

Mitigation Strategies

• Transitioned programs to have direct board oversight with the intent of establishing meaningful targets.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Uses recycled content paper sourced from sustainable suppliers (Canopy Planet endorsed).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED (for three recently constructed facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Good Governance
• Environmental Sustainability
• Business & Social Responsibility

Social Achievements

• Celebrated Community Day on November 4, 2023 with a morning of free, family-friendly movies with select discounted concessions, where one dollar from every concession order of select items, XSCAPE Play Card and food and beverage orders and game bands at LBE venues were donated to BGC Canada.

Governance Achievements

• Currently, four female members constitute 44% of the Directors or 50% of the independent Directors, while four members of underrepresented communities make up 44% of the Directors.

Climate Goals & Targets

Environmental Challenges

• Content supply challenges (writers’ and actors’ strikes)
• Competition for guests’ entertainment time and spending
• Business continuity risk (terrorist threats, severe weather, fear of gatherings)
• Customer risk (competition from other entertainment options, price sensitivity)
• Film entertainment and content risk (dependence on film product and performance)
• Exhibition industry risk (competition from other exhibitors)
• Media risk (sensitivity to economic conditions, customer churn)
• Amusement and LBE risk (competition from other entertainment venues)
• Technology risk (piracy, technological advancements in home entertainment)
• Cybersecurity and information management risk (data breaches)
• Real estate risk (acquisition and development costs, lease obligations)
• Sourcing risk (dependence on a small number of suppliers)
• Human resources risk (retention of senior management, wage inflation, labor shortages)
• Health and safety risk (food safety, alcohol consumption, product handling, pandemics)
• Financial and markets risk (access to capital, interest rate risk, inflation risk)
• Foreign currency risk
• Interest rate risk
• Inflation risk
• Legal, regulatory, taxation, and accounting risk
• Litigation arising out of the Cineworld transaction and bankruptcy
• Competition Bureau's allegation that Cineplex's online booking fee constitutes misleading advertising and drip pricing
• Class action lawsuits alleging misleading online booking fees

Mitigation Strategies

• Implemented measures aimed at enhancing operational efficiency, ensuring disciplined capital allocation, revitalizing theatrical exhibition offerings, and driving growth within diversified businesses
• Sale of amusement solutions business to deleverage and execute a comprehensive refinancing plan
• Diversification into other businesses (digital media, location-based entertainment)
• Investment in premium offerings (VIP, UltraAVX, IMAX, ScreenX, 4DX)
• Scene+ loyalty program and CineClub membership program
• Alternative content strategy and international programming initiatives
• Mobile concession ordering
• Enhanced web experience and new mobile app
• Procedures to manage business continuity risks
• Insurance coverage
• Pricing strategies and loyalty programs
• Ongoing renovations and theatre recliner retrofits
• Monitoring social media commentary
• Diversification of entertainment offerings
• Maintaining good relations with film distributors
• Continuously updating amusement offerings
• Leveraging core competencies in food service execution, Scene+ partnership, and knowledge of amusement and gaming trends
• Addition of new technologies and experiences to enhance the out-of-home experience
• Operation of the Cineplex Store
• Upgrading systems and infrastructure, implementing best practices
• Adherence to industry standards for data security
• Team of technology and cybersecurity professionals
• Additional security measures (training, monitoring, testing, contingency plans)
• Lease optimization strategies
• Actively monitoring and managing relationships with key suppliers
• Long-term incentive programs and succession planning
• Expanding automation and leveraging technological efficiencies
• Programs to mitigate health and safety risks
• Hedging interest rates
• Strong ethical culture, in-house counsel, and third-party experts
• Systems and controls to ensure efficient and orderly operations
• Disclosure controls and internal controls over financial reporting

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather incidents