2018 ENVIRONMENTAL FOOTPRINT SUMMARY Corporation, Limited

Our Approach to Environmental Sustainability Highlights of the 2018 GHG Footprint Progress to 2022 Targets

Our environmental sustainability strategy focuses In 2018, absolute GHG emissions from our entire value In 2018, emissions from buildings and

on innovation and aims to achieve productivity chain totalled 3.96 Mt CO2e, down 3.5% from 2017. operations were 5.5% lower than our 2011

gains and economic benefits together with GHG intensity, defined as total emissions in kg CO2e baseline. The colder winter in 2018 caused enhanced environmental and social outcomes by per $1,000 consolidated revenue was 281.56, down natural gas consumption to increase over 2017, integrating sustainability into business operations. 7.8% from 2017. which outpaced the GHG savings from our Our approach engages our entire family of efficiency initiatives, resulting in less GHG For a detailed breakdown of emissions and intensity by companies in the following areas: savings over our 2011 baseline than realized in business segment, please refer to Appendices 1 & 2, the prior year. Products: Working with our owned brands and respectively. Detail on methodologies, factors and vendors to ensure our products are safe, well percent actual versus modelled data used in the made and responsibly packaged. preparation of the 2018 Environmental Footprint can be found on pages 6 – 8 of this document. Our footprint Transportation: Driving efficiencies across our and GHG emission reduction targets do not include entire network and finding new ways of . Please refer to page 9 of this document. transporting more goods while consuming less GHG Emissions by Segment of the Value-Chain 1 energy.

Buildings: Continuously improving our energy Product & Packaging efficiency in our real estate portfolio and

incorporating innovative new technologies into Product Transportation our store prototypes.

Waste: Increasing our diversion rate and reducing Buildings and Operations waste generated to lessen our impact on the In 2018, emissions from transportation were 0 2 4 environment. 2018 2017 11% higher than our 2011 baseline. A higher- MTCO2E than usual dependence on road carriers to move 2022 Targets Emissions from product and packaging decreased by product that would normally have been sent by We have set greenhouse gas (GHG) emission 5.3% in 2018, while emissions from product rail was the primary driver of the increase. The reduction targets that we aspire to reach in 2022: transportation and buildings and operations increased by 10.1% and 3.8%, respectively. switch from rail to road was due to the closure of • 22% emissions reduction from buildings and certain rail corridors and the impact of labour Forward Looking Statements operations compared to 2011 action at one of our rail carriers. GHG emission reduction targets are forward looking and • Flat transportation emissions compared to may constitute “forward-looking” information within the In the absence of these factors, our emissions 2011, despite growth in eCommerce meaning of applicable securities legislation. Refer here. from transportation would have remained relatively flat.

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2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

Energy Consumption (GJ) by Segment of the Value-Chain Product & Packaging: We measure the energy consumption and emissions associated with the manufacturing and finishing of our product and packaging to identify the categories

that are the most energy/GHG intensive and track changes over time. In 2018, energy

consumption embedded in product and packaging we received decreased 5.7% compared to 2017. The decrease was partly due to a lower dollar value of product received in 2018 but also reflected decreased intensity in certain product categories such as plastic containers and conventional oil.

GHG emissions from product and packaging decreased 5.3% year over year. Notably, the petroleum side of the business saw a decrease of 8.1% in well-to-pump emissions from

2017 due to increased sales of ethanol-blended fuel and lower emission factors.

Product Transportation: Energy consumption increased 7.7% over 2017 owing to higher

dependence on road carriers, which is one of the most energy intensive modes of transportation. Where possible, CTC strives to move product by rail. However, our ability to do so in 2018 was impacted by closures of certain rail corridors and labour action at one

of our rail carriers. While overall tonne-kilometres remained flat, emissions increased 2 10.1% over 2017 primarily due to the shift from rail to road.

We will continue to execute existing initiatives that increase productivity and work with our GHG Emissions (t CO2e) by Segment of the Value-Chain carriers and other partners on initiatives that will reduce transportation emissions as we

work towards achieving our 2022 target of flat emissions against our 2011 baseline.

Buildings & Operations: Energy consumption and emissions increased by 13.8% and 3.8% respectively year over year due to increased demand for natural gas, primarily at Canadian Tire Retail (CTR) locations. As noted in the methodology section of Appendix 2

below, emissions from our buildings are calculated from energy data derived from a sampling strategy where no primary data is available. Within the CTR segment,

approximately 50% of emissions were calculated using primary data predominantly from and Quebec, which may have disproportionately affected the sample.

While the recently certified LEED® Gold Bolton DC became fully operational in 2018 and caused emissions within the DC segment of the building footprint to increase, the sustainable features in the DC’s design enable it to reduce energy consumption by 46% and avoid over 1,700 tonnes of greenhouse gas emissions annually.

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2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

Organizational Boundary GHG Emissions (t CO2e) by GHG Protocol Scope

CTC’s greenhouse gas footprint is prepared in accordance with GHG Protocol Corporate and Scope 3 Standards. CTC follows the operational control organizational

boundary approach, defined as having the full authority to introduce and implement operating policies at the operation.

As shown in the table, the vast majority of emissions are from activities outside of the Company’s operational control (Scope 3). For a complete breakdown of emissions by GHG Protocol category, please refer to Appendix 2.

Corporate Waste Management

In 2018, CTC continued to expand upon its waste recycling program for corporate locations. Absolute waste generated and waste intensity increased following our new Bolton DC becoming fully operational, however the expansion of our corporate waste 3 management program was effective in increasing our diversion rate. Corporate Waste Generation and Diversion (t)

The GTA DCs continued to achieve excellence with a 93% diversion rate as a result of the efforts at our Resource Recovery Centre. The overall corporate waste diversion

rate increased slightly year over year to 78.6%.

Assurance and Verification

DNV GL Business Assurance USA, Inc was retained to conduct an independent verification of CTC’s 2018 environmental footprint claims and assertions. The limited assurance statement is available here.

corp.canadiantire.ca/sustainability/ 2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

Appendix 1

CTC’s Corporate and Supply Chain Energy Use and GHG Emissions by Segment of the Value Chain

Baseline Year Baseline Year 2018 2018 Change (2017) Change (2017) Greenhouse Gas Energy Use (B) / W Greenhouse Gas (B) / W By Value-Chain Segment: Energy Use Emissions Comments Emissions (GJ) (GJ) (GJ) % (t CO₂e) (t CO₂e) (t CO₂e) %

Overall embedded energy use and GHG emission decrease year over year because of lower a lower dollar value of product received in 2018 PRODUCT & All retail banners (Canadian Tire, PartSource, 45,360,405 48,079,725 (2,719,320) (5.7%) 3,344,399 3,531,723 (187,325) (5.3%) and a decrease in energy/GHG emissions intensity in certain product PACKAGING Mark's, Sportchek, Petroleum) categories. CTP product footprint decreased year over year as a result of more ethanol-blended fuel sold and decreased emissions factors.

Energy use and GHG emissions decreased year over year due to Corporate - CTC Fleet and PartSource 232,284 251,056 (18,772) (7.5%) 16,403 17,730 (1,326) (7.5%) increased utilization of electric vehicles at PartSource and fewer Commercial Deliveries kilometres driven by the CTC fleet. While overall tonne-kilometres remained flat year over year, the switch 3rd Party Road, Rail, Ocean and Air (Canadian from rail to road due to corridor closures and labour action caused 4,254,162 3,915,100 339,062 8.7% 341,175 307,033 34,142 11.1% PRODUCT Tire and Petroleum) energy use and emissions to increase as road is significantly more TRANSPORT energy and emissions intensive per tonne-kilometre than rail.

Emissions from business air travel increased due to more trips booked Emissions related to business air travel 74,922 67,985 6,938 10.2% 5,090 4,619 471 10.2% 4 and long--haul flights.

Overall increase primarily attributable to increased dependence on Sub-Total 4,561,368 4,234,140 327,228 7.7% 362,668 329,382 33,287 10.1% 3rd-party road due to the conversion of rail to road. Offices and Distribution Centres (DCs) (Canadian 918,584 821,562 97,021 11.8% 43,763 41,415 2,348 5.7% Tire, PartSource, Mark's, Sportchek, Petroleum) Overall energy consumption and GHG emissions increase due to increased natural gas consumption as a result of a colder winter and Corporate 686,733 594,488 92,246 15.5% 30,182 26,427 3,755 14.2% Bolton DC becoming fully operational; partially offset by energy efficiency projects at Calgary and GTA DCs. 3rd Party Operated Offices and DCs 231,850 227,075 4,775 2.1% 13,581 14,988 (1,407) (9.4%) Stores (Canadian Tire, PartSource, Mark's, 4,189,771 3,683,326 506,445 13.7% 196,383 182,217 14,166 7.8% Sportchek, Petroleum) Overall energy consumption and GHG emissions increase due to increased natural gas consumption at CTR locations as a result of a BUSINESS Corporate 842,358 830,477 11,881 1.4% 49,376 51,135 (1,758) (3.4%) colder winter; partially offset by energy efficiency projects across all & Dealers, Franchises and Agents 3,347,413 2,852,849 494,564 17.3% 147,007 131,082 15,925 12.1% banners and lower emissions factors in some provinces. RETAIL OPERATIONS Overall energy consumption and GHG emissions increase due to CTREL and Petroleum investment properties 93,075 67,243 25,832 38.4% 4,048 3,310 737 22.3% increased natural gas consumption as a result of a colder winter. Emissions related to electricity transmission and GHG emissions from T&D decreased year over year due to lower N/A N/A N/A N/A 7,079 15,126 (8,047) (53.2%) distribution (T&D) loss emission factors in most provinces.

Overall increase primarily attributable to increased natural gas Sub-Total 5,201,430 4,572,131 629,299 13.8% 251,273 242,068 9,205 3.8% consumption at CTR locations and Bolton DC becoming fully operational; partially offset by energy efficiency projects.

Overall energy consumption and GHG emissions decrease due to a smaller product footprint, which was partially offset by increased TOTAL Corporation and Supply Chain 55,123,203 56,885,996 (1,762,793) (3.1%) 3,958,340 4,103,174 (144,834) (3.5%) dependence on road carriers for product transportation and natural gas consumption at CTR.

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Appendix 2

CTC’s Corporate and Supply Chain Energy and GHG Contribution and Intensity by Footprint Segment

Baseline Year Change Baseline Year Change By Value-Chain Segment: Energy Contribution & Intensity 2018 GHG Contribution & Intensity 2018 (2017) % (2017) %

Energy usage as % Total Corporate & Supply Chain Energy usage 82.3% 84.5% -2.6% GHG emissions as a % of Total Corporate and Supply Chain Footprint 84.5% 86.1% -1.8% PRODUCT & PACKAGING Energy usage per $1,000 banner revenues1 (GJ) 3.6 4.0 -8.1% GHG emissions per $1,000 banner revenues1 (kg CO2e/$1,000 revenue) 268.3 290.9 -7.8%

Energy usage as % Total Corporate & Supply Chain Energy usage 8.3% 7.4% 11.2% GHG emissions as a % of Total Corporate and Supply Chain Footprint 9.2% 8.0% 14.1%

PRODUCT TRANSPORT Energy usage per cubic metre shipped (GJ/m3) 0.599 0.603 -0.6% GHG emissions per cubic metre shipped (kg CO2e/m3) 47.6 46.9 1.6%

Energy usage per tonne-kilometre (GJ/ tkm) 0.00038 0.00036 6.4% GHG emissions per tonne-kilometre (kg CO2e/tkm) 0.0306 0.0281 8.7%

Energy usage as % Total Corporate & Supply Chain Energy usage 9.4% 8.1% 17.4% GHG emissions as a % of Total Corporate and Supply Chain Footprint 6.3% 5.9% 7.6% BUSINESS & RETAIL OPERATIONS Energy usage per square metre (GJ) 0.84 0.73 14.4% GHG emissions per square metre (kg CO2e) 40.4 38.7 4.4%

Energy Usage Intensity GHG Emissions Intensity TOTAL 3.9 4.2 -7.4% 281.6 305.4 -7.8% (GJ/$1,000 Consolidated revenue) (kg CO2e /$1,000 Consolidated revenue) 5

CTC’s Corporate and Supply Chain GHG Footprint by Greenhouse Gas Scope 1 & 2 Emissions by Gas: Baseline 2018 % Change Year (2017)

Carbon Dioxide (t CO2) 95,003 94,277 0.8%

Methane (t CH4) 3.78 5.01 -24.5%

Nitrous Oxide (t N2O) 2.78 2.83 -1.6%

Carbon Dioxide Equivalent (t CO2e) 95,962 95,291 0.7%

CTC’s Corporate and Supply Chain GHG Footprint by GHG Protocol Category Total Emissions by Scope: Baseline Year 2018 % Change Comments (2017)

Scope 1 Emissions (t CO2e) 53,022 49,242 7.7% Scope 1 emissions increased due to increased consumption of natural gas as a result of colder temperatures.

Scope 2 Emissions (t CO2e) 42,939 46,049 -6.8% Scope 2 emissions decreased due to energy efficiency projects and lower emission factors.

Scope 3 Emissions (t CO2e) 3,862,379 4,007,883 -3.6% Scope 3 emissions decreased due to a lower dollar value of product received and lower supplier emission intensities.

1 Only revenues from banners included in the Product & Packaging Energy Use and GHG Footprint are included (Canadian Tire, SportChek, Mark’s and Petroleum) corp.canadiantire.ca/sustainability/

2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

2018 Percentage of Greenhouse Justification of By GHG Protocol Category: Description Methodologies and factors used primary data Gas exclusions used emissions CO2e Tonnes

Emissions from fuel used by 88 fleet tractors and 385 PartSource commercial delivery HFCs and PFCs from Scope 1 vehicles. Emissions from on-site fuel used by 89% 53,022 refrigeration units; Buildings & Operations calculations are derived from a sampling strategy. A statistically representative sample of energy 691 corporate stores, 24 offices and 20 DCs, deemed non-material. data was collected by business unit, type of building and regional area to estimate the overall Business & Retail Operations depot or storage facilities. energy usage. Where no actual data is readily available, energy usage is estimated based on building size and type. CORPORATE Canadian Tire fleet and PartSource commercial delivery vehicle calculations are derived from a fuel volume-based EMISSIONS methodology. Emission factors from Environment Canada National Inventory 1990-2017 Report were used. Emissions from electricity used by 691 IPCC 5th Assessment Report, 100 years, Global Warming Potentials (GWP) were used. Scope 2 corporate stores, 24 offices and 20 DCs, 76% 42,939 No known gaps depot or storage facilities.

Financial Services, Emissions associated with the extraction, Canadian Tire, PartSource, SportChek and Mark's calculations are derived from the Economic Input-Output Life Cycle Gas + kiosk and production and transportation (cradle-to gate) Analysis (EIO-LCA) Model developed by Trucost. Canadian Tire non- Purchased Goods and Services of products purchased for sale under Petroleum calculations are derived from the US Department of Energy GREET 2018 Model (http://greet.es.anl.gov) and the 32% 3,344,399 corporate products Canadian Tire, SportChek, Mark's, Petroleum GHGenius 5.0 Model (http://www.ghgenius.ca). (FMA); deemed non- and PartSource banners. IPCC 5th Assessment Report, 100 years, Global Warming Potentials (GWP) were used. 6 material.

Capital goods are not Emissions associated with the extraction, included due to data Capital Goods production and transportation (cradle-to gate) N/A N/A N/A unavailability and of capital goods purchased. materiality assessment.

Emissions associated with the extraction, Electricity transmission and distribution loss is calculated based on electricity consumption and emission factors from Items a) and b) are Fuel and Energy related activities production and transportation of a) fuels UPSTREAM Environment Canada National Inventory 1990-2017 Report. 48% 7,079 not included due to (not included in scope 1 & 2) consumed b) electricity consumed c) EMISSIONS IPCC 5th Assessment Report, 100 years, Global Warming Potentials (GWP) were used. data unavailability. (Scope 3) electricity transmission and distribution loss

Emissions from SportChek, Mark's, Gas+ kiosk, less than Canadian Tire and Petroleum third-party transportation calculations are derived from a distance-weight methodology. 10% of Canadian Tire Emission factors from (i) US Environmental Protection Agency Emission Factors for Greenhouse Gas Inventories, March 9, activity, Canadian Tire Emissions associated with third-party 2018, (ii) the International Marine Organization (IMO), Second GHG Study 2009, and (iii) Environment Canada National non-corporate transportation of products from tier 1 suppliers Inventory 1990-2016 Report. Energy conversion factors were also used for pipeline transportation from the National Energy Upstream Transportation and products (FMA), some to Distribution Centres (DCs) and from DCs to Technology Laboratory; Development of Baseline Data and Analysis of Life Cycle Greenhouse Gas Emissions of 100% 354,356 Distribution Canadian Tire stores. This category also includes emissions Petroleum-Based Fuels. packaging weight, from third-party operated DCs. Third-party operated DCs fall under the Business & Retail Operations segment and therefore follow the same methodology HFCs and PFCs from when energy use data is unavailable. See methodology on scope 1&2 for further detail. pipeline leakages and IPCC 5th Assessment Report, 100 years, Global Warming Potentials (GWP) were used. refrigerated trucks are not included due to data unavailability.

corp.canadiantire.ca/sustainability/ 2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

2018 Percentage of Greenhouse Justification of By GHG Protocol Category: Description Methodologies and factors used primary data Gas emissions exclusions used CO2e Tonnes

Emissions from waste Emissions from 3rd-party generated in operations disposal and treatment of Waste Generated in Operations N/A N/A N/A are not included due to waste generated through data unavailability and business operations. materiality assessment.

Emissions from business CTC business air travel emissions are derived from a distance-passenger methodology. Emissions from business travel using modes other Business Travel Emission factors from the World Resources Institute GHG Protocol tool for mobile combustion, version 2.6 (2015) were used. 100% 5,090 UPSTREAM travel. than air are not included IPCC 5th Assessment Report, 100 years, Global Warming Potentials (GWP) were used. EMISSIONS due to data unavailability. (Scope 3) (Cont’d) Emissions from employee commuting are not Emissions from employee Employee Commuting N/A N/A N/A included due to data commuting. unavailability and materiality assessment. 7 Emissions associated with the operation of three HFCs and PFCs from Upstream leased assets fall under the Business & Operations segment and therefore follow the sampling strategy methodology. Upstream Leased Assets leased offices which do not 0% 400 refrigeration units; deemed See methodology on scope 1&2 for further detail. fall under the Company's non-material. operational control. Emissions from Emissions associated with downstream transportation Downstream Transportation and the transportation of sold N/A N/A N/A and distribution are not Distribution products from retail stores included due to data to customers' homes. unavailability.

Emissions associated with Processing of Sold Products the processing of sold N/A N/A N/A Not applicable DOWNSTREAM products. EMISSIONS (Scope 3) Emissions associated with Emissions from the usage of sold products downstream use of sold Use of Sold Products N/A N/A N/A that directly consume products are not included energy. due to data unavailability. Emissions from Emissions associated with downstream end-of-life End-of-Life Treatment of Sold the disposal of consumer N/A N/A N/A treatment of sold products Products products sold at all are not included due to business units. data unavailability.

corp.canadiantire.ca/sustainability/ 2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

Percentage of 2018 Greenhouse Justification of By GHG Protocol Category: Description Methodologies and factors used primary data Gas emissions exclusions used CO2e Tonnes

Emissions associated with 73 Downstream leased assets fall under the Business & Operations segment and therefore follow the sampling strategy HFCs and PFCs from Downstream Leased Assets investment properties (buildings owned methodology. See methodology on scope 1&2 for further detail. 0% 4.048 refrigeration units; but not operated by CTC). deemed non-material.

Emissions associated with the DOWNSTREAM operations of 1,050 non-Corporate EMISSIONS HFCs and PFCs from stores including Canadian Tire dealer Franchises fall under the Business & Operations segment and therefore follow the sampling strategy methodology. (Scope 3) (Cont’d) Franchises 44% 147,007 refrigeration units; stores, Marks, SportChek and See methodology on scope 1&2 for further detail. deemed non-material. PartSource franchise stores and Petroleum agent sites. Emissions from investment are not Emissions associated with equity and Investments N/A N/A N/A included due to data debt investments and project finance. unavailability and materiality assessment. 8

corp.canadiantire.ca/sustainability/ 2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

CTC Statement of Measurement Gaps & Environmental Footprint Glossary

AREA OF MEASUREMENT DEFINITIONS MAIN GAPS

Environmental impacts and resources used throughout Canadian Tire’s extended value-chain from raw material acquisition, product manufacturing, Corporate & Supply Chain Emissions related to non-retail products and waste; Employee commuting; Product use and product transportation, buildings operations, business travel, product use and product end-of-life. Metrics currently measured are energy, carbon and Environmental Footprint product end-of-life. Recent acquisitions, such as Helly Hansen excluded. water embedded within product & packaging, and energy/carbon from product transportation and buildings & operations.

Energy used and GHG emissions from raw material acquisition and processing, transport to manufacturing site and manufacture of retail products. Gas+ kiosk products, Canadian Tire non-corporate products (products ordered directly from Energy used (GJ) and GHG This includes all consumer units of Canadian Tire, PartSource, Mark's and SportChek retail products received in a given year by a store, distribution vendors by stores), Financial Services products, SportChek product shipped direct to stores, emissions from Products centre or 3rd-party warehouse on the Company’s behalf. Energy used and GHG emissions from crude oil extraction, transport to refining sites and baseline year Pro Hockey Life purchases since data prior to Dec 29, 2013 acquisition refining of fuels sold at Petroleum sites in a given year. unavailable. Helly Hansen products sold outside SportChek channels.

Petroleum, Gas+ kiosk products, Canadian Tire non-corporate products (products ordered Water consumed from raw material acquisition and processing, transport to manufacturing site and manufacture of retail products. This includes all directly from vendors by stores), Financial Services products, SportChek product shipped Water used (m3) from Products consumer units of Canadian Tire, PartSource, Mark's and SportChek retail products received in a given year by a store, distribution centre or 3rd-party direct to stores, Pro Hockey Life purchases since data prior to Dec 29, 2013 acquisition warehouse on the Company’s behalf. 9 unavailable. Helly Hansen products sold outside SportChek channels.

Energy used and GHG emissions from Canadian Tire fleet trucks and vehicles for the transport of Canadian Tire and PartSource products. Energy SportChek, Mark's, Gas+ kiosk and Helly Hansen product transport. Less than 10% of CTR Energy used and GHG emissions used and GHG emissions from 3rd party vendors to transport CTR and PartSource retail products from the manufacturing vendor (Freight-on-Board transport activity. Canadian Tire shipping consumable weights. CTR non-Corporate product from Product Transport (FOB) Point) to the store. Energy used and GHG emissions from 3rd party vendors to transport Petroleum fuels from refining sites to stations. transport. HFCs and PFCs from pipeline leakages and refrigerated trucks.

Energy used and GHG emissions Energy used and GHG emissions from the operation of CTC’s buildings, equipment, and owned & leased vehicles such as yard trucks, company cars HFCs and PFCs from refrigeration at Corporate and non-corporate locations. Canadian Tire from Business and Retail and service vans (excluding product transport captured separately). This includes all operations across Canada including offices, distribution centres, and Petroleum fuel leakages. Recent acquisitions, such as Helly Hansen excluded. Operations Corporate/Franchise/Dealer/Agent stores within CTC, Canadian Tire, PartSource, Financial Services, Mark's, SportChek and Gas+ sites.

Canadian Tire stores, Sport Expert and Mark’s franchise locations, retail locations found in Waste generated from the operation of Corporate locations and Toronto Distribution Centres for which waste data was available. This includes offices, Waste Generated at Corporate shopping malls where waste is consolidated, some Petroleum locations. Petroleum, PartSource, Mark’s and SportChek stores. Full year waste data was available for the DCs while data for retail locations and offices covered Locations Hazardous waste at the DCs, waste at non-GTA DCs. Recent acquisitions, such as Helly 6 months of 2013 and was extrapolated using 2014 insights to estimate the remainder of the year. Hansen excluded.

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AREA OF MEASUREMENT DEFINITIONS MAIN GAPS

Waste Diverted All waste streams that were disposed of in a manner excluding landfill. This includes recycling, incineration and organic waste composting. No known gaps

Direct emissions from the combustion of on-site and mobile fuels that occur at, or are associated with, facilities and operations under the Company's Scope 1 emissions HFCs and PFCs from refrigerated units. operational control.

Indirect emissions that occur off-site from the production of energy, such as electricity, which is then purchased for use at facilities and operations under the Scope 2 emissions No known gaps Company's operational control.

Other indirect emissions from the Company's supply chain, such as emissions from non-corporate locations (Dealer/Franchise/Agent stores), product See Energy used and GHG emissions from products, product transport and business & Scope 3 emissions transport by 3rd party and product manufacture by 3rd party. retail operations comments.

SUSTAINABILITY TERMS

TERM DEFINTIONS

An innovation strategy that aims to achieve productivity gains and economic benefits from enhanced environmental and social outcomes by integrating sustainability into business operations. Through its Business Sustainability strategy, the Business Sustainability Company aims to serve its customers, communities, employees and shareholders, both now and in the future.

Carbon dioxide equivalent expresses all greenhouse gases in the measurement of carbon dioxide by adjusting other types of greenhouse gases (methane, nitrous oxide, sulphur, hexafluoride, hydrofluorocarbons, and perfluorocarbons) to CO₂e their carbon dioxide equivalent based on their relative Global Warming Potential (GWP). 10 Cradle-to-gate Cradle-to-gate is a portion of a product's lifecycle, starting with raw material acquisition and ending at the shipping or receiving gate of a company.

Emission Factors Calculation factor used to measure greenhouse gases (GHG) released from the production/use of raw material/energy.

Greenhouse Gas (GHG) Represents one or a combination of the following gases: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), sulphur hexafluoride (SF₆) hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).

corp.canadiantire.ca/sustainability/ 2018 ENVIRONMENTAL FOOTPRINT SUMMARY Canadian Tire Corporation, Limited

SUSTAINABILITY TERMS

TERM DEFINTIONS

A multi-stakeholder collaboration facilitated by the World Business Council on Sustainable Development (WBCSD) and the World Resources Institute (WRI) to establish and promote business standards for GHG accounting and reporting. GHG Protocol CTC’s Sustainability Reporting follows the GHG Protocol Corporate, Project and Value-Chain (Scope 3) Accounting Standards.

Global Warming Potential (GWP) Calculation factor used to measure CO₂e from different greenhouse gases. A relative measure of how much heat a greenhouse gas traps in the atmosphere.

Intergovernmental Panel on Climate Change The leading international body for the assessment of climate change established to provide the world with a clear scientific view on the current state of knowledge on climate change and its potential environmental and socio-economic (IPCC) impacts.

Environmental Protection Agency (EPA) A branch of the United States’ Federal Government in charge of protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress.

World Resource Institute (WRI) A global environmental think tank that works with governments, companies, and society to build solutions to urgent environmental challenges.

OTHER TERMS TERM DEFINTIONS

Canadian Tire Refers to the Company’s general merchandise retail business. 11 Canadian Tire Real Estate Limited (CTREL) A wholly owned subsidiary of CTC.

Canadian Tire REIT (CT REIT) Refers to the business carried on by CT Real Estate Investment Trust (“CT REIT” or the “REIT”) and its subsidiaries, including CT REIT Limited Partnership (“CT REIT LP”). CTC”, “Company”, “Corporation”, Canadian Tire Corporation Limited. “Enterprise” Financial Services Refers to the business carried on by the Company’s Financial Services subsidiaries, namely Canadian Tire Bank (“CTB” or “the Bank”) and CTFS Bermuda Ltd. (“CTFS Bermuda”), a Bermuda reinsurance company.

Gigajoules (GJ) A unit of measurement for energy use.

Helly Hansen (HH) Refers to the international wholesale and retail businesses that operate under the Helly Hansen and Musto brands.

Mark's Refers to the retail and commercial wholesale businesses carried on by Mark’s Work Wearhouse Ltd., and “Mark’s stores” including stores operated under the Mark’s, Mark’s Work Wearhouse, and L’Équipeur names and trademarks.

PartSource (PS) Refers to stores operated under the PartSource name and trademarks.

Petroleum Refers to the retail petroleum business carried on under the Canadian Tire and Gas+ names and trademarks.

SportChek Refers to the retail business carried on by FGL Sports Ltd., including stores operated under the SportChek, , Atmosphere, National Sports, Sports Rousseau, and Hockey Experts names and trademarks. Measurement of the buildings functional area. Canadian Tire retail store functional area includes ground coverage, mezzanine areas, other floors, and second level racking system. Garden Centres are excluded. For Canadian Tire Petroleum Square metres stations this includes convenience kiosks, gas bar canopies, car washes, and Pit-Stops. For Mark's, SportChek, PartSource and Financial Services locations, functional area is the equivalent of the gross leasable area. Tonne-kilometres Distance travelled from vendor to stores in kilometres multiplied by weight of products and related equipment in metric tonnes. Used in the calculation of the product transport carbon and energy footprint.

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