Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impacts
• Driver Working Conditions
• Safety and Accident Management
• Talent Development
• Diversity and Inclusion
• Business Ethics
• Cybersecurity

Environmental Achievements

• Upgraded to energy-efficient shop lighting (LEDs or T5s) where possible.
• Installed automatic lighting shutoff systems at certain offices.
• Reduced energy consumption by upgrading heating and cooling systems.
• Implemented recycling programs for various materials.
• Over 1 million annual kilometers eliminated through route optimization strategies by TForce Logistics.
• 70% average fleet profile with gas and dual propane and gas model engines at Canpar, ICS Courier and Loomis Express.
• 100% of CFI-owned equipment is Smartway certified and CARB approved.

Social Achievements

• Expanded employee assessment process with a bi-annual performance management program.
• Undertook a salary and role-based benchmarking assessment to ensure competitive wages.
• Maintained a low turnover rate compared to industry average (78% vs 90% in US Truckload).
• Implemented diversity and inclusion committees and training programs in several operating companies.
• TF Dedicated Logistics launched a Customer Diversity Supplier program aiming for at least 20% revenue from women and/or minority-owned businesses.

Governance Achievements

• Established compliance and risk management programs covering Code of Ethics, Disclosure policy, Privacy Policy, Insider trading Policy, Whistleblower Protection, etc.
• Implemented a Whistleblower Policy with safeguards to protect those raising concerns.
• Adopted a Board Diversity Policy.
• Maintained robust cybersecurity measures aligned with ISO 27001:2013 & 27002 and NIST frameworks.
• Conducted regular third-party security audits and testing.

Climate Goals & Targets

Environmental Challenges

• Potential environmental risks and liabilities associated with acquisitions.
• Maintaining safety and working conditions for drivers.
• Ensuring compliance with various regulations and standards.
• Addressing potential cybersecurity threats.

Mitigation Strategies

• Rigorous due diligence processes for acquisitions, including environmental site assessments.
• Ongoing site inspections, corporate audits, and investment in preventative maintenance programs.
• Implementation of safety technologies in vehicles and comprehensive driver training programs.
• Multi-layer technology stack, strict security protocols, and regular third-party security audits for cybersecurity.

Supply Chain Management

Responsible Procurement

• TF Dedicated Logistics' Customer Diversity Supplier program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

Certifications: ISO 9001:2015 (some operating companies)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Highly competitive market conditions
• Ability to recruit, train and retain qualified drivers
• Fuel price variations
• Foreign currency fluctuations
• Impact of environmental standards and regulations
• Changes in governmental regulations
• Adverse weather conditions
• Accidents
• Market for used equipment
• Changes in interest rates
• Cost of liability insurance coverage
• Downturns in general economic conditions
• Credit market liquidity
• Ability to identify, negotiate, consummate and successfully integrate business acquisitions
• Geopolitical risk (e.g., war in Ukraine)
• Tight labor market conditions
• Policy changes surrounding international trade
• Environmental mandates
• Changes to the tax code

Mitigation Strategies

• Disciplined approach to operations
• Vigilant monitoring for new potential risks
• Lean cost structure
• Focus on profitability, efficiency, network density, customer service, optimal pricing, driver retention, and capacity rationalization
• Synergy opportunities from acquisitions
• Opportunities to enhance performance within operations
• Strong financial foundation and cash flow for strategic investment
• Conservative balance sheet with a high portion of attractive fixed-rate spreads and limited near-term debt maturities

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products