Sustainability Report 2020 ABOUT THIS REPORT

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Sustainability Report 2020 ABOUT THIS REPORT Sustainability Report 2020 ABOUT THIS REPORT This Sustainability Report highlights Reporting Frameworks In Accordance Option Review our contributions to and focus on • Global Reporting Initiative (GRI) This report has been prepared in Stantec’s sustainability disclosures sustainability for our key stakeholders, Sustainability Reporting Standards accordance with the GRI Standards: and data underwent internal quality including employees, investors, clients, (Appendix A) Core Option. Additional disclosures checks and are factual to the best of and the communities where we work beyond the criteria for Core are our knowledge at the time of reporting. and live. The report identifies and • Engineering and Construction reported to provide a more detailed The report underwent a formal review provides information about Stantec’s Services Standard of the and comprehensive report. and approval process by senior material environmental, social, Sustainability Accounting Standards management from each functional area, and governance (ESG) issues and Board (SASB) (Appendix B) The GRI Content Index (Appendix A) the Executive ESG Committee, and the achievements. contains three years of detail to enable C-Suite. Additionally, the board-level • Recommendations of the Task trend comparisons. Also included are Sustainability and Safety Committee Reporting Period Force on Climate-related Financial links to management approaches for reviewed the report before its release. January 1, 2020 – December 31, 2020 Disclosures (TCFD) of the Financial each of our material topics (a summary Stability Board (Appendix C) of all management approaches is Additional information is available in Report Cycle provided as Appendix F). our Annual Report dated February Issued annually since 2006 • United Nations Global Compact 24, 2021; our Annual Information (Appendix D) Independent Assurance Form dated February 24, 2021; our Report Boundaries Our consolidated financial statements Management Information Circular dated Company-wide operations • United Nations Women’s were audited by Ernst & Young LLP March 17, 2021; our CDP Disclosure Empowerment Principles (Appendix E) Chartered Professional Accountants. dated August 21, 2020; and on our Currency References website, stantec.com. Combined, Canadian dollars Our greenhouse gas emissions these resources provide transparency (unless otherwise stated) inventory was independently verified regarding Stantec’s ESG performance. by Apex Companies. This report, past reports, and ISOS Group, Inc. conducted a third- future updates can be accessed party review of this report to confirm at stantec.com/sustainability. it was prepared in accordance with We welcome your comments and the requirements of the Core report questions about our sustainability option of the GRI Sustainability efforts. Please direct them to Reporting Standards. [email protected]. Climate Resilient Port Republic of Kiribati ABOUT THIS REPORT Report Narrative UN Sustainable Development Goals Stantec’s 2020 sustainability performance is The UN Sustainable Development Goals (SDGs) permeate summarized in this narrative. This includes Stantec’s focus on sustainability in our operations and project accomplishments, works in progress, and areas of work. SDG references are included throughout this document. improvement. Company-wide actions are followed For more information on the SDGs, please reference the guides by geographic-specific actions and presented in made available through the United Nations Department of the order of country listings in the Our Employee Economic and Social Affairs. Locations section of this report. Below is a listing of the 17 SDGs: Management Approaches In the interest of keeping this document concise and easy to navigate, a separate set of documents No Poverty Clean Water Sustainable Cities Peace, Justice and Sanitation and Communities and Strong Institutions summarize the management approaches for each material topic. These documents provide an overview of Stantec’s policies and practices. A short summary of Zero Hunger Affordable and Responsible Partnerships each management approach is provided in this report, Clean Energy Consumption for the Goals with a link to the full document, as shown below. and Production MANAGEMENT APPROACH Good Health Decent Work and Climate Action and Well-being Economic Growth Management approach summary. Quality Education Industry, Innovation Life Below Water and Infrastructure Gender Equality Reduced Inequalities Life on Land TABLE OF CONTENTS Introduction 1 Global Citizenship 29 Appendixes 66 Message from Our President and CEO 2 Pandemic Preparedness 30 Appendix A: GRI Content Index Message from Our Board 3 Climate Action 32 Appendix B: SASB Standards At a Glance 4 Social Justice 33 Appendix C: TC FD Recommendations SDG Contributions 35 Appendix D: UN Global Compact Stantec Snapshot 5 Communication on Progress Who We Are 6 Environmental Stewardship 37 Appendix E: UN Women’s Empowerment Our Vision 7 Environmental Management 38 Principles Progress Our Value Creators 8 Reducing Emissions 39 Appendix F: Summary of Management Our Employee Locations 9 Resource Conservation 41 Approaches Our Value Chain 10 Appendix G. Ca utionary Note Regarding Our ESG Accolades 10 Social Betterment 42 Forward-Looking Statements Our ESG Rankings 11 Our People 43 Our ESG Pledges 11 Inclusion and Diversity 44 What We Do for Our Clients 12 Talent Attraction 47 Infrastructure 13 Talent Retention 48 Buildings 14 Organizational Development 50 Water 15 Employee Engagement 51 Environmental Services 16 Health, Safety, and Security 52 Energy & Resources 17 Indigenous Connections 53 Charitable Investments 55 Sustainability at Stantec 18 Program Approach 19 Responsible Governance 56 Sustainability Governance 20 Corporate Governance 57 Materiality 21 Ethics and Compliance 59 Stakeholder Feedback 23 Integrated Management System 60 Targets 24 Project Delivery 61 Strategy 25 Cybersecurity and Privacy 63 Innovation 27 Risk Management 64 Human Rights 64 Sustainable Supply Chain 65 Toronto-York Spadina Subway Extension Toronto, Ontario, Canada Introduction IN THIS SECTION Message from our President and CEO Message from our Board At a Glance Urban Sewage Discharge Improvement Project Taoyuan City, Taiwan TABLE OF CONTENTS INTRODUCTION STANTEC SNAPSHOT SUSTAINABILITY AT STANTEC GLOBAL CITIZENSHIP ENVIRONMENTAL STEWARDSHIP SOCIAL BETTERMENT RESPONSIBLE GOVERNANCE APPENDIXES 2020 STANTEC SUSTAINABILITY REPORT | 1 MESSAGE FROM OUR PRESIDENT AND CEO 2020 was a paradigm-shifting year. Beyond the pandemic, natural Leading the Charge And we’re always raising the bar. We Stantec’s longstanding focus on disasters made headlines around the to a Sustainable Future endorsed the Women’s Empowerment sustainability has helped us deliver our world in 2020. To directly support For years, Stantec’s corporate Principles and are taking action to best while weathering the worst. employees enduring these and other sustainability performance has been advance gender parity, we are setting crises, we introduced the Stantec recognized by independent parties, 1.5oC science-based emissions Responding to COVID-19 BetterTogether Fund. including CDP, who awarded us an reduction targets, and we pledged to Early in 2020, we activated our A- score for three years in a row; ISS, achieve carbon neutrality by 2022 and Pandemic Response Plan and shifted Advocating for Racial who awards us prime status in their net-zero by 2030. Stantec continues to remote work, keeping our people and Social Equity ESG Corporate Rating as well as to be a premium supporter of the UN safe and connected. And we answered Longstanding racial and social QualityScores of “1” in the E, S, and G Global Compact and are partners the call of clients and communities inequity spurred calls for action categories; and Sustainalytics, who in driving change. We also believe Gord Johnston around the world in the fight against around the world. We invited rates our ESG risk as Low—all top of in the value of the UN Sustainable President and CEO COVID-19. employees to work with our Inclusion class and higher than our peers. Development Goals and are publicly Stantec and Diversity Councils to more disclosing financials associated with Doing What Is Right for Our People proactively help Stantec make a Late in 2020, Corporate Knights named our core goals. With proof we could successfully difference in the communities we us the most sustainable company operate virtually, we assessed our serve. The resulting multi-tiered plan in North America and the fifth most I’m optimistic about our future. I hope people’s preferred post-pandemic increases our industry advocacy, sustainable in the world—the only our accomplishments inspire you work style and developed a new enhances internal programs, and engineering and design firm in the as much as they inspire me, and I Flexible Workplace Strategy to rethink directly supports underrepresented top 100. Like the other rankings, this challenge all of us to take bold action. our approach to office space. The students pursuing education in reflects our industry-leading corporate new practice allows employees more STEAM fields. sustainability actions, but also personal and professional flexibility, recognizes the positive ESG effect of enables our emissions reduction our project work and investment in strategy, and reduces operational costs. innovation. TABLE OF CONTENTS INTRODUCTION STANTEC SNAPSHOT SUSTAINABILITY AT STANTEC GLOBAL CITIZENSHIP ENVIRONMENTAL STEWARDSHIP SOCIAL BETTERMENT
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