2018 ANNUAL & SUSTAINABILITY REPORT VANCOUVER AIRPORT AUTHORITY ABOUT THIS REPORT ABOUT VANCOUVER AIRPORT The YVR 2018 Annual & Sustainability Report provides AUTHORITY an in-depth look at Vancouver Airport Authority and Vancouver Airport Authority is the community-based, Vancouver International Airport (YVR), continuing a not-for-profit organization that manages Vancouver tradition of honest and transparent reporting under International Airport (YVR). We have no shareholders our sustainability pillars: Governance, Economic, and we reinvest all profits back into airport operations Environment and Social. It presents a broad view of and development—providing social and economic the Airport Authority’s activities from 2018, identifying benefits for the region, while inspiring airports around key priorities and challenges, while also tracking the world and improving YVR for everyone. We strive to performance. Driving this narrative is our commitment make YVR an airport that British Columbia can be proud to improvement, which—for the first time—aligns our of and we do this, every day, through our commitment reporting in accordance with the Global Reporting to excellence and our focus on serving passengers, Initiative (GRI). partners and communities. WHAT IS GRI? “GRI helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as climate change, human rights, governance and social well-being. This enables real action to create social, environmental and economic benefits for everyone. The GRI Sustainability Reporting Standards are developed with true multi-stakeholder contributions and rooted in the public interest.” —globalreporting.org For more information on how we approach GRI, see page 157. MISSION VALUES VISION Connecting Safety, A world-class, British Columbia Teamwork, sustainable hub Proudly to the Accountability, airport World Innovation 1 2018 ANNUAL & SUSTAINABILITY REPORT MISSION / VISION / VALUES On December 18, YVR welcomed its 25 millionth passenger—two years ahead of forecast. We are experiencing unprecedented growth and, as this report demonstrates, we couldn’t 25 have achieved our many milestones without the support MILLION of our passengers, partners, communities and the team of over 24,000 people who work on Sea Island. 2 2018 ANNUAL & SUSTAINABILITY REPORT 25 MILLION 2018 AWARDS AND RECOGNITION 9 Best Airport in North America for nine consecutive Airport Efficiency Excellence Award years. And this just in: 2019 Best Airport in North (15 – 25 million passengers category) America for a record 10 years! Air Transport Research Society Accessibility Certified Gold Canada’s Best Diversity Employers First airport in North America Employment Equity Achievement Awards Employment Equity Champion—Craig Richmond 1st Place – Corporate Challenge Competition Employment Equity Achievement (sector distinction) Tree for Life Award 12 years in a row North Airfield Upgrades Project Highest sales per enplaned passenger in North America Cake of the Week—Air Canada: Vancouver to Paris 3 2018 ANNUAL & SUSTAINABILITY REPORT 2018 AWARDS AND RECOGNITION 2018 AWARDS AND RECOGNITION Best Retail Program Large Airport—3rd place Marketing and Communications Awards ACI–NA Conference and Awards 1st Place: Overall Public Relations Program for YVR’s “More” Best New Food and Beverage (Full Service Concept): construction campaign Lift Restaurant—2nd place Honourable Mention: Partnering with Carriers for ACI–NA Conference and Awards YVR’s Expedia hub building campaign Environmental Achievement Award Honourable Mention: Community Education and YVR’s Waste Management Program Outreach for Beyond, Every Day video series Level 3 Carbon Accreditation Honourable Mention: Print Communications for Skytrax 9 campaign Honourable Mention: Video and Film Production for Bigfoot Gets a Job at YVR Honourable Mention: Overall Marketing Programs (Medium Airport) for Rumble at YVR with Jackie Chan and Hong Kong Airlines 4 2018 ANNUAL & SUSTAINABILITY REPORT 2018 AWARDS AND RECOGNITION CONTENTS 6 Message from Mary Jordan: 51 OUR BUSINESS Chair, Board of Directors 52 Air Services and Connections 7 Message from Craig Richmond: 60 Customer Care President & CEO 68 Direct Economic Impact 75 Business Units 8 2018 HIGHLIGHTS 10 Building the Hub 77 OUR ENVIRONMENT 12 Speed and Ease of the Hub 79 Reducing Air Emissions 14 Outstanding Customer Experience 86 Reducing Waste 16 Exceptional Foundation 93 Reducing Energy Use 98 Reducing Water Use 104 Ground Transportation 18 DETERMINING REPORT CONTENT 109 Protecting Ecosystem Health 19 Stakeholder Engagement 115 Managing Noise 23 United Nations Sustainable Development Goals 26 Material Topics 119 OUR COMMUNITY 120 Employment Practices 127 Employee Health and Safety 33 OUR LEADERSHIP 131 Diversity and Equal Opportunity 34 Board of Directors 137 Security and Safety 39 Executive Team 142 Indirect Economic Impact 40 Executive and Board Compensation 147 Local Communities 43 Business Ethics 154 Communications 157 APPENDIX 5 2018 ANNUAL & SUSTAINABILITY REPORT CONTENTS MESSAGE FROM MARY JORDAN Chair, Board of Directors 2018 was a historic year. We completed key milestones, strengthened our community relationships and further developed YVR—as a world-class hub that benefits everyone. Vancouver Airport Authority is committed to serving the House, the Pacific Salmon Foundation, British Columbia needs of our region. Through our unique governance Mobility Opportunities Society and more. In addition, we model, we reinvest all profits back into the airport, received Level 3 Carbon Accreditation from Airports constantly improving it while providing social and economic Council International and we diverted 51 per cent of our benefits for our communities. We truly believe in this model terminal waste from landfill, a key 2020 goal—for the and, as 2018 demonstrated, we’re very proud of the results. third year in a row. We were pleased to share the new, YVR 2037 Master Plan I was very proud to see that, for the first time, Vancouver in 2018. This plan will guide YVR’s land use and includes Airport Authority was named one of Canada’s Best Diversity our future vision, outlining a range of transportation and Employers in 2018. This award demonstrates, more than terminal enhancements. Most importantly, it’s the anything, that our unique model has created an airport result of a multi-phased and multi-year consultation that represents the communities we serve. British process and will bring many of your ideas to life—from Columbia’s communities are an integral part of our creating more community connections to improving the story as a world-class hub. airport experience. And I am pleased to announce that we have aligned our We celebrated the first year of the historicMusqueam story with the Global Reporting Initiative. We worked with Indian Band - YVR Airport Sustainability & Friendship key stakeholders to identify topics that are important to Agreement, a 30-year collaboration that ensures we them and, through this report, we tell the story of how YVR work together to create a thriving airport. We made strives to improve. I hope you enjoy reading it and, most of great progress, providing numerous scholarship and job all, I want you to know that YVR couldn’t succeed without opportunities for our Musqueam friends, while launching your support. Thank you. environmental and cultural projects together. We also continued to strengthen our community and Mary Jordan environmental initiatives. This included donating over $1 Chair, Board of Directors million to more than 50 organizations such as Covenant Vancouver Airport Authority 6 2018 ANNUAL & SUSTAINABILITY REPORT MESSAGE FROM MARY JORDAN MESSAGE FROM CRAIG RICHMOND President & CEO 2018 was a big success, thanks to the support of our partners and our amazing team, which delivered an exceptional airport experience—in the midst of unprecedented growth. YVR continued to connect B.C. proudly to the world in We continued to improve the terminal experience 2018, a year that ended strong with our 94th month of while upholding the highest safety standards. Our consecutive growth. There were many big moments airside teams conducted annual runway and taxiway throughout the year including one of our most maintenance and started building Runway End Safety celebrated milestones on December 18, when YVR Areas on our North Runway. Meanwhile, we launched welcomed its record 25 millionth passenger. our new CHECKITXPRESS™ product, the world’s most accessible and intuitive self-service bag drop. And our Our growth was ahead of schedule thanks to our friendly green coat volunteers continued to deliver innovative approach to business and the great work of exceptional customer care. our partners, who gave passengers more destinations to choose from. Air Canada started new services to These efforts led to YVR’s biggest achievement to date: Zurich, Paris, Sacramento and Lihue—and expanded its being named Best Airport in North America for a record services to Delhi, London-Heathrow and Melbourne. We nine years in a row. This award, voted on by over 13 million also welcomed Lufthansa’s new Airbus A350—a first for passengers worldwide, shows that we are on the right path. Canada—and new airline partner Hainan Airlines, with And it’s all thanks to our incredible team—a community service to Shenzhen. of over 24,000 people who work on Sea Island, every day, to connect our airport proudly to the world. I want At the same time, we broke ground on our ambitious to thank this