Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity
• Quality
• Accountability
• Environmental Responsibility
• Ethics and Integrity
• Wellness

Environmental Achievements

• Improved fuel efficiency by 16% since 2010 (Jazz)
• 60% of Jazz fleet composed of larger gauge, more fuel-efficient aircraft by end of 2019 (vs. 13% in 2010)
• 44% reduction in ground equipment fuel consumption
• 25% engine idle reduction through Engine Idle Reduction Program
• 45% of tractor fleet are electric baggage tractors
• Over 60% of ground power units are electric powered
• 30% and 55% energy consumption reductions in Halifax and North Bay facilities respectively through LED lighting
• Repurposed over 6,800 aircraft parts and recycled aircraft aluminum hull
• Donated unusable leather seat covers for repurposing

Social Achievements

• Named one of Canada’s Safest Employers 2019 (Jazz)
• Received Bombardier’s 2018 Airline Reliability Performance Awards (Jazz)
• Implemented Corporate Diversity and Inclusion Strategy
• Hosted the third annual Creating Inclusive Skies conference
• Participated in the International Day of Pink anti-bullying campaign
• Partnered with Not Myself Today program for workplace mental health
• Launched Jazz Aviation Pathways Program for Flight Attendants
• Offered over $150,000 in scholarships
• Sponsored the first annual Indigenous Youth Aviation Camp

Governance Achievements

• Adopted a Code of Ethics and Business Conduct (updated March 2019)
• Established an Ethics Reporting Policy with an external service provider
• Implemented Anti-Bribery and Anti-Corruption Policy
• Implemented Anti-Money Laundering and Anti-Terrorist Policy
• Voyageur Aviation is a signatory to the United Nations Global Compact
• Implemented a multifactor authentication program and enhanced data protection policies

Climate Goals & Targets

Environmental Challenges

• Increase in Lost Time Injuries per 100 FTE employees in 2019 (due to operational growth, new employees, and weather patterns)
• Maintaining a diverse workforce, particularly in Maintenance and Flight Operations

Mitigation Strategies

• Focusing on reducing employee injuries through awareness campaigns and enhanced training
• Working with an external service provider to address back injuries
• Expanding the definition of workplace hazards to include stress, trauma, and fatigue
• Working with aviation colleges to increase female entrants, providing scholarships, and hosting awareness events

Supply Chain Management

Responsible Procurement

• Green Procurement Procedure (adopted 2018)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: IOSA

Awards & Recognition

• Canada’s Safest Employers 2019 (Jazz)
• Bombardier’s 2018 Airline Reliability Performance Awards (Jazz)

Environmental Metrics

ESG Focus Areas

• Safety
• Employee Well-being
• Diversity and Inclusion
• Environmental Sustainability (GHG emissions)
• Financial Sustainability

Environmental Achievements

• Modernized Jazz fleet with fuel-efficient CRJ900 aircraft, resulting in 70% of the fleet being larger gauge, more fuel-efficient aircraft by the end of 2020.
• Chorus Aviation Capital (CAC) portfolio focused on young, fuel-efficient aircraft with an average age of less than five years, with over 75% being current generation turboprop aircraft.
• Voluntary participation in Canada’s Action Plan to Reduce Greenhouse Gas Emissions from Aviation and participation in CORSIA (Jazz).

Social Achievements

• Implemented Air Canada CleanCare+ program on all Jazz Air Canada Express flights to reduce COVID-19 risk.
• Enhanced flexible work options and provided technology for remote work where feasible.
• Developed online training materials for pilots and flight attendants to continue training remotely.
• Introduced a new diversity committee (Black and Afro-descendant Employee Resource Group) at Jazz.
• Implemented voluntary Listening Forums as part of the BlackNorth Initiative CEO Pledge.
• Rolled out an Inclusive Leadership learning series for senior management.
• Achieved and maintained at least 30% women representation on the Board of Directors since 2018.
• Jazz named one of Canada’s Best Diversity Employers for the tenth consecutive year in 2021.
• Established a Human Rights Policy outlining commitment to human rights protection.
• Provided mental health support and resources through the Not Myself Today program and employee assistance programs.

Governance Achievements

• Assigned primary responsibility for ESG oversight to the Board’s Governance, Safety and Sustainability Committee.
• Established a Corporate Sustainability Steering Committee and a Corporate Sustainability Working Group to manage ESG strategy and initiatives.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly reduced passenger travel demand, impacting Jazz operations and aircraft leasing customers.
• Travel restrictions challenged the ability to transition Voyageur crews.
• Social distancing impacted mandatory annual recurrent training for Jazz pilots and flight attendants.
• Travel restrictions made onsite safety audits unfeasible.
• Necessity to lay off many employees due to reduced air travel demand.

Mitigation Strategies

• Implemented pandemic business continuity plans at Jazz and Voyageur.
• Developed and implemented remote auditing processes.
• Developed online training materials for remote delivery.
• Enhanced flexible work options and split critical functions into groups working from different locations.
• Participation in the Canada Emergency Wage Subsidy (CEWS).
• Implemented voluntary separation programs, voluntary unpaid special leaves of absence, and job sharing.
• Increased employee communications and mental health support initiatives.
• Obtained a US$100 million unsecured revolving credit facility.
• Entered into a loan repayment deferral program.
• Suspended dividend payments.
• Reduced workforce to match operational demand.
• Implemented pay reductions for executive, management, and administrative teams and Board of Directors.
• Concluded a four-year collective agreement with Unifor (Jazz).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Jazz named one of Canada’s Best Diversity Employers (10 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Equity, Diversity and Inclusion (EDI)
• Health and Safety
• Business Ethics
• Emissions
• Energy
• Waste

Environmental Achievements

• 60% reduction in GSE fuel consumption since 2012.
• 324,000 kWh annual energy consumption reduction through LED lighting.
• 10% energy conservation through HVAC system improvements.
• 30,000 lbs of aluminum recycled.
• Voyageur diverted 91% of its waste generated in 2021.

Social Achievements

• Jazz named one of Canada’s Safest Employers (5th consecutive year).
• 98% of Canada-based employees vaccinated against COVID-19.
• Implementation of a hybrid work arrangement.
• Formation of a Black Employee Resource Group.
• Development of a mental health vision and strategy.
• Over $25,000 raised for Movember.

Governance Achievements

• Established a formal ESG program.
• Aligned with GRI Standards: Core Option and seven UN SDGs.
• Developed a Board Diversity Policy, achieving 30% women on the board.
• Joined 30% Club Canada and committed to the BlackNorth CEO Pledge.
• Implemented an Ethics Reporting Policy with a 24/7 hotline.
• Completed an enterprise risk assessment.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions.
• Fluctuating demand due to the pandemic.
• Need to quantify emissions across the entire organization.

Mitigation Strategies

• Adapting to new ways of working (remote processes for safety audits).
• Leveraging technology to improve quality (remote observation methods).
• Providing new training methods (bow-tie risk assessment).
• Strengthening risk management process (Embraer 175 fleet integration).
• Implementing a GHG Emissions Reporting Program aligned with the Greenhouse Gas Protocol.

Supply Chain Management

Responsible Procurement

• Green Procurement Procedure

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Potential order of up to 200 electric vertical take-off and landing (eVTOL) aircraft

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UN SDGs

UN Sustainable Development Goals

• 3
• 5
• 8
• 10
• 12
• 13
• 17

The ESG program is focused on these seven UN SDGs where Chorus believes it can have the greatest impact.

Awards & Recognition

• Canada’s Safest Employers (Jazz Aviation)

Environmental Metrics

ESG Focus Areas

• Safety
• Quality
• Ethics & Integrity
• Wellness
• Accountability
• Diversity
• Emissions Management
• Economic Performance
• Equality, Diversity & Inclusion
• Strategic Risk Management
• Employee Development & Retention

Environmental Achievements

• Recycled 100% of all aircraft metal from Voyageur facilities
• Set a net-zero greenhouse gas emissions objective by 2050
• Began tracking and reporting GHG emissions from all three scopes for the first time

Social Achievements

• Jazz was named one of Canada’s Safest Employers for the sixth consecutive year
• Jazz was named one of Canada’s Top Employers for Young People, one of the Best Places to Work by Glassdoor Canada and one of Canada’s Best Diversity Employers.
• Jazz improved its lost-time injury frequency rate by 5% versus 2021
• Increased the percentage of women in senior leadership from 24% to 29%
• Contributed over $150,000 for more than 25 charitable causes

Governance Achievements

• Established a robust governance structure to oversee its ESG program
• Revised its annual incentive plan to include the achievement of ESG objectives
• Added a Director of Sustainability to focus on ESG data collection and reporting

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions in the aviation industry
• Attracting and retaining talent in a competitive market
• Climate change-related risks (legal, technological, reputational, market-based, and physical risks from extreme weather events)

Mitigation Strategies

• Investing in Electric Aviation Group (hydrogen-electric aircraft) and signing a letter of intent for up to 200 eVTOLs
• Implementing a robust safety management system and ongoing safety training
• Establishing five-year diversity targets and implementing EDI initiatives
• Implementing an Enterprise Risk Management (ERM) program to manage climate-related risks
• Integrating climate risk into its risk assessment and acting on TCFD recommendations

Supply Chain Management

Responsible Procurement

• Expect suppliers and other third parties to maintain a code of ethics and demonstrate a commitment to human rights, inclusion, equity, ethics and integrity

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Legal, policy, and market impacts

Opportunities

• Development of low-carbon aviation technology

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 17
• Goal 3

Chorus's ESG program aligns with these SDGs through various initiatives described in the report.

Awards & Recognition

• Canada’s Safest Employers (Jazz)
• Canada’s Top Employers for Young People (Jazz)
• Glassdoor Employee’s Choice Award (Jazz)
• Canada’s Best Diversity Employers (Jazz)

Environmental Metrics

ESG Focus Areas

• Safety
• Quality
• Ethics & Integrity
• Diversity
• Accountability
• Wellness
• Environmental Responsibility

Environmental Achievements

• Joined Aircraft Leasing Ireland (ALI) Sustainability Charter to increase transparency of GHG reporting.
• Implemented a new Supplier Code of Ethics and Human Rights Policy to address forced and child labor and respect for human rights.
• Updated emission factors and began reporting on a wider set of environmental metrics.

Social Achievements

• Increased the percentage of women in the workforce from 37% to 38.5%.
• Launched the Black, Indigenous, and People of Colour (BIPOC) Pathway Program.
• Launched Cygnet Aviation Academy, a pilot training academy.
• Donated nearly $150,000 to charitable causes.

Governance Achievements

• Amended annual incentive plan to include progress against ESG objectives.
• Published a new Human Rights Policy.
• Established the foundation of an anti-modern slavery program.

Climate Goals & Targets

Environmental Challenges

• Reducing carbon emissions in the aviation sector.
• Meeting evolving climate-related reporting and regulatory obligations.
• Managing climate-related risks (transition and physical risks).

Mitigation Strategies

• Participation in ICAO's CORSIA program.
• Support for Canada's Aviation Climate Plan.
• Implementation of an Enterprise Risk Management (ERM) program to identify, assess, mitigate, and manage principal risks.
• Ongoing energy efficiency initiatives (e.g., Jazz Idle Reduction Program).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Ethics: avoidance of bribery, extortion, corruption, fraud; maintenance of health and safety standards; prohibition of forced or child labor; use of information security policies; avoidance of unnecessary emissions, energy, and water use.

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity and frequency of extreme weather events
• Sea level rise and coastal intrusion

Transition Risks

• Emerging regulation (mandates on and regulation of existing products and services; enhanced emissions-reporting obligations)
• Technology (substitution of existing products and services with lower emissions options)
• Reputation (shifts in consumer preferences; stigmatization of sector)
• Market (counterparty risk)

Opportunities

• Development of new products or services through R&D and innovation (e.g., eVTOL aircraft)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 10: Reduced Inequalities
• Goal 17: Partnerships for the Goals

Chorus focuses on SDGs where it can make the most significant contributions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Jazz: Canada’s Safest Employers (7th consecutive year); Canada’s Best Diversity Employers (12th time); Atlantic Canada’s Top Employers (12th consecutive year); Canada’s Top Employers for Young People (11th time); Inaugural EEAA Indigenous Reconciliation Award.
• Voyageur: Zero high-consequence injuries.