Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and health
• Diversity and inclusion
• Career opportunities
• Employee engagement
• Corporate citizenship and volunteerism
• Climate change
• Energy efficiency
• Construction waste
• Sustainable infrastructure projects
• Environmental management and biodiversity
• Indigenous relations
• Community investment and philanthropy
• Integrity and transparency
• Risk management
• Board composition
• Shareholder/stakeholder engagement
• Responsible supply chain
• Economic performance

Environmental Achievements

• Expanded greenhouse gas inventory to include emissions from manufacturing, production facilities, and project sites.
• Optimized fleet management, reducing fuel consumption and costs.
• Improved soil management on the Eglinton Crosstown LRT project, preventing the disposal of over 41,000 m³ of soil and saving over $1.4 million.
• Pilot-tested new technology to reduce fuel consumption of crushers by 15-20%.

Social Achievements

• Conducted first diversity self-identification census.
• Launched Aecon Diversity in Trades program to support racialized workers.
• Launched Aecon Career Centre online platform for employee career development.
• Continued Aecon Women in Trades program, graduating a third cohort.
• Donated $700,000 to charities and nonprofits; employees raised an additional $228,000.

Governance Achievements

• Expanded anti-bribery and anti-corruption training.
• Strengthened risk management approach with international partners.
• Initiated adoption of a third-party ethics hotline platform for anonymous reporting.
• 25% of executive officers were women in 2020.
• 30% of Board seats held by women.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Increased compliance costs due to new regulatory schemes targeting climate change.
• Materially higher insurance premiums and changes in underwriting criteria.
• Market-changing client behaviour due to changes in project funding or public perception.
• Increased costs due to technological shifts in products and services.
• Reputational risk due to clients' climate change concerns.
• Operational disruption from severe weather events.
• Reduced revenue from business disruption due to extreme weather events.
• Costs related to repairing damaged projects.
• Increased costs related to cooling and heating needs due to changing temperatures.
• Extreme variability in weather patterns.

Mitigation Strategies

• Proactive engagement with governments, regulators, and industry organizations.
• Regular monitoring of regulatory trends and adequate compliance preparation.
• Identifying changing market demands to reposition risks as opportunities.
• Forming strategic partnerships and pursuing sustainable innovations.
• Efforts in operational continuous improvement, sustainable innovation, planning, and strategy.
• Seeking advice from expert consultants, adoption of a formal ESG framework, and committing to reporting on emissions.
• Contractual mitigation and insurance.
• Building in additional schedule time to consider short-term weather impacts.
• Incorporating energy efficiency and energy procurement considerations into due diligence for new office locations.
• Developing operational innovations.
• Contractual mitigation.

Supply Chain Management

Supplier Audits: 10 suppliers screened for ethical compliance; 100% of preferred suppliers screened using environmental criteria.

Responsible Procurement

• Supplier Code of Conduct
• ESG screening questionnaire (planned for 2021)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Increased costs related to cooling and heating
• Extreme variability in weather patterns

Transition Risks

• Increased compliance costs
• Higher insurance premiums
• Market-changing client behaviour
• Increased costs due to technological shifts
• Reputational risk

Opportunities

• Construction of energy storage solutions
• Deployment of carbon capture technology
• Delivery of resilient infrastructure
• Flood diversion
• Deployment of hydrogen technology
• Transition to a net-zero carbon economy
• Provision of renewable energy services

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs

UN Sustainable Development Goals

• 5. Gender Equality
• 7. Affordable and Clean Energy
• 8. Decent Work and Economic Growth
• 9. Industry, Innovation and Infrastructure
• 11. Sustainable Cities and Communities
• 17. Partnerships for the Goals

Aecon's work aligns with these SDGs through various initiatives such as promoting gender equality, supporting renewable energy projects, fostering economic growth, delivering sustainable infrastructure, and engaging in partnerships with Indigenous communities.

Sustainable Products & Innovation

• Geoexchange energy systems
• Improved asphalt repair
• Vehicle solar panels
• Pole wraps for improved safety
• Spot hole covers

Awards & Recognition

• MarCom Platinum Award for 2019 Sustainability Report
• P3 Gold Award for ESG Performance of the Year for Gordie Howe International Bridge project

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Integrity and Transparency
• Sustainable Infrastructure Projects
• Risk Management
• Construction Waste reduction and responsible management

Environmental Achievements

• 15% year-over-year reduction in GHG intensity by revenue
• Pilot testing of electric, solar, and biodiesel-fueled construction equipment
• First Canadian construction company to adopt a sustainability-linked credit facility

Social Achievements

• Launched Green Home Energy Services group, delivering clean energy solutions to residences
• Increased participation rate in diversity census to 65%
• Indigenous goods and services procured: $121M

Governance Achievements

• 30% Board level gender diversity
• Launched a third-party ethics hotline platform
• Zero monetary losses from bribery and corruption, and zero monetary losses from anti-competitive practices in 2021

Climate Goals & Targets

Environmental Challenges

• Increased compliance costs due to new regulatory schemes targeting climate change
• Materially higher insurance premiums and changes in underwriting criteria and coverage
• Market-changing client behaviour
• Risk of increased costs due to technological shifts
• Reputational risk due to clients’ climate change concerns
• Operational disruption from severe weather events
• Reduced revenue from business disruption due to extreme weather
• Increased costs related to cooling and heating needs due to changing temperatures
• Extreme variability in weather patterns

Mitigation Strategies

• Proactive engagement with governments, regulators and industry organizations
• Regular monitoring of regulatory trends and adequate compliance preparation
• Identifying changing market demands to reposition risks as opportunities, forming strategic partnerships and pursuing sustainable innovations
• Efforts in operational continuous improvement, sustainable innovation, planning and strategy
• Seeking advice from expert consultants, adoption of a formal ESG framework and committing to reporting on our emissions
• Contractual mitigation and insurance
• Building in additional schedule time
• Incorporating energy efficiency and energy procurement considerations
• Contractual mitigation

Supply Chain Management

Supplier Audits: 25 in 2021

Responsible Procurement

• Supplier Code of Conduct
• ESG screening requirements

Climate-Related Risks & Opportunities

Physical Risks

• Operational disruption from severe weather events
• Reduced revenue from business disruption
• Increased costs related to cooling and heating needs
• Extreme variability in weather patterns

Transition Risks

• Increased compliance costs due to new regulations
• Higher insurance premiums
• Market-changing client behaviour
• Increased costs due to technological shifts
• Reputational risk

Opportunities

• Construction of energy storage solutions
• Deployment of carbon capture technology
• Delivery of resilient infrastructure
• Flood diversion
• Deployment of hydrogen technology
• Transition to a net zero carbon economy
• Provision of renewable energy services
• Fuel reduction initiatives

Reporting Standards

Frameworks Used: TCFD, SASB, Expert Panel on Sustainable Finance, UN SDGs, GRI

Certifications: PAR (Progressive Aboriginal Relations) - Committed level

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12

Aecon's work aligns with these SDGs through various initiatives described in the report.

Sustainable Products & Innovation

• Green Home Energy Services

Awards & Recognition

• Platinum MarCom Award
• Envision Platinum Award
• John M. Beck Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Indigenous Relations
• Sustainable infrastructure projects
• Health and safety
• Integrity and transparency
• Reduction and responsible management of construction waste

Environmental Achievements

• 14% year-over-year reduction since 2020 in scope 1 and 2 emissions based on revenue intensity
• 925,000 tons of road base material reused on Highway 401 project
• 5,000 pounds of PVC pipe recycled at Finch West LRT project site

Social Achievements

• Total procurement from the Indigenous economy exceeded $200 million
• Released first Reconciliation Action Plan
• Over 150 women brought into trades roles through the AWIT Program

Governance Achievements

• Oversight of sustainability matters moved from the Risk Committee to the entire Board
• Zero monetary losses from bribery and corruption
• Zero monetary losses from anti-competitive practices

Climate Goals & Targets

Environmental Challenges

• Increased compliance costs due to new regulatory schemes targeting climate change
• Materially higher insurance premiums and changes in underwriting criteria and coverage
• Operational disruption from severe weather events
• Reduced revenue from business disruption due to extreme weather
• Increased costs related to cooling and heating needs due to changing temperatures

Mitigation Strategies

• Proactive engagement with governments, regulators and industry organizations
• Regular monitoring of regulatory trends and adequate compliance preparation
• Identifying changing market demands to reposition risks as opportunities, forming strategic partnerships and pursuing sustainable innovations
• Contractual mitigation and insurance
• Building in additional schedule time
• Incorporating energy efficiency and energy procurement considerations

Supply Chain Management

Supplier Audits: 175 suppliers screened for ethical compliance in 2022

Responsible Procurement

• Supplier Code of Conduct
• ESG screening requirements

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Flooding
• Extreme variability in weather patterns

Transition Risks

• Increased compliance costs
• Higher insurance premiums
• Market-changing client behaviour
• Increased costs due to technological shifts
• Reputational risk

Opportunities

• Construction of energy storage solutions
• Deployment of carbon capture technology
• Delivery of resilient infrastructure
• Deployment of hydrogen technology
• Provision of renewable energy services
• Resource Efficiency
• Fuel reduction initiatives

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13

Aecon's work and priorities are aligned with these SDGs through infrastructure development, resource management, and emissions reduction initiatives.

Sustainable Products & Innovation

• Low-carbon concrete
• Green Home Energy Services

Awards & Recognition

• Sustainable Infrastructure Company of the Year – Canada
• One of Canada’s Best 50 Corporate Citizens
• Best of the Best Award in the Green Building Culture Award category
• Platinum recognition from ReNew Canada

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 85% of Aecon’s 2023 scope 1 and 2 emissions were calculated using actual primary data.

Climate Goals & Targets

Environmental Challenges

• Data gaps in GHG inventory requiring estimation using spend data, partial year data, industry benchmarks or fuel/energy consumption from similar project types.

Mitigation Strategies

• Strive to increase data coverage year over year.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: The Greenhouse Gas Protocol (GHG Protocol), ISO 14064-1:2018