Meet Our People Discover Our Values Snc-Lavalin2011 Sustainability Report 1
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2011 SUSTAINABILITY REPORT MEET OUR PEOPLE DISCOVER OUR VALUES SNC-LAVALIN2011 SUSTAINABILITY REPORT 1 (COVER) A GROUNDWATER SAMPLING AND ANALYSIS STUDY IN CANADA A PUBLIC OUTREACH PROGRAM DURING THE ARGHANDAB IRRIGATION PROJECT IN AFGHANISTAN One of the leading engineering and construction groups in the world, SNC-Lavalin is also a major player in the ownership of infrastructure and in the provision of operations and maintenance services — all delivered locally to clients anywhere in the world through an—extensive international network of offices, partners and suppliers. SNC-Lavalin has its—headquarters in Montreal, Canada, and projects in some 100—countries. For more information about SNC-Lavalin, visit—www.snclavalin.com. At a Glance ˜ Corporate Governance ˛ CEO’s Message ˝ Employees ˙ Health & Safety ˆ Communities ˇ˘ Environment ˇ˜ Quality ˇ˛ One Year to Celebrate ‹›› ˇ˙ ‹›› Acts of WE CARE ˇ ‹›› Ways in Which WE CARE ˇˆ Sustainable Solutions ˜˘ (COVER) THE MCGILL UNIVERSITY HEALTH Project planning ˜ˇ CENTRE’S GLEN CAMPUS PROJECT IN CANADA Design and engineering ˜ Procurement andconstruction ˜ MINING RECLAMATION STUDIES Operations andmaintenance ˛ IN CANADA’S TSE KEH NAY TRADITIONAL TERRITORY Retrofitting ˝ Decommissioning andclosure GRI Index Source: Province of British Columbia 2 SNC-LAVALIN2011 SUSTAINABILITY REPORT ENVIRONMENT reclamation; MINING &METALLURGY Our expertise ecological and We provide project management, process and includes social and human health risk detailed engineering, procurement, construction, environmental impact assessment; waste construction management, and ongoing assessments and management; water sustaining capital services for all mineral and studies; community resources planning, metal recovery processes to our global and engagement; development, regional clients. Our services include mine site assessment, supply, treatment infrastructure development, mineral processing, remediation and andsanitation; smelting, refining, mine closure and reclamation, marine and coastal and mine and tailings management. We also management; have specialized expertise in customized operator geoenvironmental training simulation software andequipment. services; climate At aGlance change; air quality and acoustics; environmental management; geographic information systems; AMBATOVY NICKEL PROJECT, and agriculture and MADAGASCAR ruraldevelopment. DAHLA DAM IRRIGATION PROJECT, AFGHANISTAN INFRASTRUCTURE We build various types of infrastructure Source: AIRP for the public and private sectors including airports; buildings; health care, educational and recreational facilities; seaports; marine and ferry terminals; flood control systems; urban transit systems; railways; roads and bridges; and water and waste water treatment/distributionfacilities. SOUTHCENTRAL THERMAL PLANT, USA CALGARY WEST LRT PROJECT, HYDROCARBONS offshore oil and gas; CANADA & CHEMICALS upgrading and refining; Source: The City of Calgary In this sector, we offer petrochemicals, feasibility studies, chemicals, biofuels FEED, FEED validation, and green chemicals; detailed engineering, gas processing; procurement, LNG plants and construction, re-gasification commissioning and terminals; coal SUNCOR ongoing sustaining gasification; REFINERY POWER FEED for project capital services in carbon capture, PROJECT, Our areas of activity feasibility, detailed the areas of bitumen transportation and CANADA include hydro, thermal design, construction, production; heavy storage; and pipelines, and nuclear power commissioning and and conventional oil terminals and generation, energy operation of power production; onshore/ pumpstations. from waste, green facilities. We also energy solutions offer unique expertise and transmission in the application and distribution of information projects. We offer technologies and in end-to-end project telecommunications services, including and networkdesign. SNC-LAVALIN2011 SUSTAINABILITY REPORT 3 WORKER ACCOMMODATIONS AGRIFOOD INDUSTRIAL many others. Our AT SURMONT We provide solutions Our areas of activity expertise includes PROJECT, process development CANADA covering the full include glass, life cycle, from food lubricants, sugar, and design, processing, packaging cement, automobile instrumentation and and handling, to and aircraft assembly, automation, e-learning distribution and cosmetics, filling and simulation, storage, for companies and packaging construction, project of all sizes in their lines, sulphuric and management, plant domestic markets phosphoric acid, commissioning and and internationally. fertilizers, green start-up, and a full We have expertise in chemistry and range of technical and OPERATIONS designing and building advisoryservices. &MAINTENANCE agrifood facilities, We provide operations, maintenance quality systems GROUPE and logistics solutions for buildings, and compliance, SALIN’S power plants, water supply and EVAPO- plant modifications, CRYSTALLIZATION treatment systems, desalination plants, retrofitting UNIT, postal services, broadcasting facilities, andautomation. FRANCE highways, bridges, light rail transit systems, airports, ships and camps for construction sites and themilitary. ST MICHEL Source: PILOT PLANT, GEA Process Engineering FRANCE INFRASTRUCTURE CONCESSIONINVESTMENTS (ICI) We invest in ICI in various industry sectors and assume full or partial ownership of infrastructure which we often also design, build, operate and maintain. We also have the breadth of expertise to arrange short-term or long-term financing, participate in economic aspects of feasibility studies, negotiate legal agreements, prepare financial models, perform due diligence and manage ICI. MONTREAL’S MAISON SYMPHONIQUE, CANADA CEVA PRODUCTION FACILITY, USA PHARMACEUTICALS &BIOTECHNOLOGY We provide full-service solutions for the pharmaceutical, biotechnology and life sciences sectors including engineering, construction, automation, commissioning and validation. We also have international expertise in biotechnology Source: and pharmaceutical process engineering and Stéphane Brügger regulatorycompliance. 4 SNC-LAVALIN2011 SUSTAINABILITY REPORT Corporate Governance A year that tested our resolve, and made us stronger Following the receipt of some allegations of inappropriate conduct, the Board launched an Since the appearance independent review under the direction of the Audit Committee. We released a report in of SNC-Lavalin’s2010 March2012, which publicly gave an account of the issues and recommended measures aimed at reinforcing our standards of conduct, strengthening and improving our internal controls and sustainability report, processes, and reviewing our complianceenvironment. our resolve and Within three months of the initial report, we had implemented almost all of the Audit Committee’s recommendations, and taken certain additional actions. Among the remedial commitment on the measures were revisions to some aspects of the company’s reporting structure; improved third-party reporting mechanisms for employees; an enhancement of the Agents’ Policy to corporate governance strengthen due diligence procedures related to the hiring and retention of agents; and a more comprehensive Code of Ethics and Business Conduct. Thisincludes a new training program for front has been tested, all employees, along with several measures for supporting and monitoring compliance of the given the well-known Code. We will make further structural and procedural improvements over the months to come, and are committed to an ongoing review and update of all our governancepractices. issues which came to These recent events have provided us an opportunity to take a hard look at our company. Ifthere are areas where we can do a better job than we are currently doing, we want to address light in early 2012. them. Our more than 28,000employees around the world who serve our clients with skill and dedication want to work for a company that meets thehighest standards of corporate SNC-Lavalin is a company that governance, and the measures we are taking will help us ensure SNC-Lavalin continues to do so, prides itself on its adherence to the now and in thefuture. principles of corporate governance, Nothing can diminish the fundamental values of our company, values that are encompassed so when we learned of these by our WE CARE philosophy. WE CARE touches areas of our business to which we are most issues, we took immediate and committed and allow nocompromise: decisive•action. • Health andSafety • Commitment to ouremployees • Sustainable development of the communities where we live andwork • Protection of theenvironment • The quality of ourwork We have made these decisions because we care, and we will continue to do the right things to grow the profitability and reach of this strong Canadian company. Going forward, wewill use our well-known capacities to be strategic and innovative. We will find solutions so we can continue to allow what works to work well and continue toimprove. As is often the case in situations like these, we can confidently say that we believe these events are making SNC-Lavalin a stronger company. Most of all, they have demonstrated our commitment to doing the right thing for all ourstakeholders. SNC-LAVALIN2011 SUSTAINABILITY REPORT 5 CEO’s Message SNC-Lavalin: a sustainability solutions provider The engineering profession has always valued the principles of sustainability. Even as early as 1911, the year SNC-Lavalin was founded, engineers were conscious of the need to be efficient in their use of resources, striving to limit