SUSTAINABLE MOBILITY REPORT 2017 WORKING TOGETHER TOWARDS A SUSTAINABLE FUTURE 2017 HIGHLIGHTS

INCREASED NUMBER OF PASSENGER TRIPS 4.39 million total trips taken, with a 11% increase in ridership within the Quebec City – Windsor corridor, reaching 4.39 million trips

INCREASED INTER-MODAL RIDERSHIP +97% increase in passenger volume WORKING from inter-modality since 2012 REDUCTION IN GHG EMISSIONS TOGETHER -34% reduction in greenhouse gas TOWARDS A SUSTAINABLE FUTURE emissions per passenger-kilometre since 2005 as a result of various energy efficiency and reduction initiatives At VIA Rail, we are playing our part in shaping the future of mobility. INVESTMENT IN SAFETY Our vision is to be the smarter way to move people by making cities AND EFFICIENCY and communities more accessible, connected and sustainable. To make our vision a reality, we must work together – with the $88.4M including capital investments in government, cities, and the private sector as well as our rail industry the fleet, equipment and major partners and the public – to create an integrated transportation infrastructure projects system that promotes Canada’s economic prosperity, enables healthier IMPROVEMENT IN LOWERING communities and makes mobility greener and more efficient. TRAIN INCIDENTS -77% reduction in our train incident ratio per million train-miles since 2014 as a result of our strengthened safety culture

INCREASED AVERAGE HOURS OF TRAINING CONTENTS 02 In Conversation with the President 14 Providing the Best Customer Experience 58 Data Summary Table 46 hours 04 VIA Rail At-a-Glance 22 Supporting Socio-Economic Development 60 GRI Index training per employee, up 06 Working Together to Be the 28 Operating Safely and Securely 64 About this Report 48% from 2014 as a result of Smarter Way to Move People 36 Reducing Our Impact on the Environment investments in technical skill 08 Sustainable Mobility at VIA Rail 44 Being an Attractive Employer courses and leadership training 10 Ensuring Performance 52 Managing Our Business Responsibly 12 2020 Sustainable Mobility Strategy

SUSTAINABLE MOBILITY REPORT 2017 01 THE POWER We did the same thing with the trains and A new fleet is an opportunity to greatly customer journey. We looked at how we enhance the customer experience and also can make the trip-selection, on-boarding enhance the employee experience in OF LISTENING and disembarking simpler, easier, and servicing our passengers and maintaining 2017 seamless for all Canadians regardless of the equipment. IN CONVERSATION WITH THE PRESIDENT RECOGNITION physical ability. HIGHLIGHTS I think trains, when compared to any other We also considered our maintenance mode of transport is likely the most sociable Most Socially Responsible centres to better understand how we could environment. It is a unique opportunity for Transportation Company manage the work in a safer way for people of different backgrounds to come in Canada – A 2017 Canadian employees, but also in a more sustainable together and learn about each other in a way public opinion study by Dalhousie University in Nova Scotia, ranked way in terms of selecting better products, that facilitates social cohesion. Yves Desjardins-Siciliano VIA Rail the highest among and disposing of them more safely. six transportation companies I’m very aware that in the next few years, PRESIDENT AND CHIEF EXECUTIVE OFFICER on trustworthiness, social and So, for us, 2017 was really about creating the next generation will be in charge of environmental responsibility, the blueprint that we will follow between this country. Therefore, our job is to “set and ethical practices. now and 2025. the table” so that the business they inherit Safety award for innovative at VIA Rail, and the experience they have electronic tables for WHAT DO YOU ENVISION FOR on VIA Rail trains is in line with their Locomotive Engineers – The 2018 AND BEYOND? Railway Association of Canada appreciation of the universe, which is greener hearts, connectivity, a better recognized the safety of our The challenge I want to set for myself is to locomotive engineer electronic appreciation for the human condition and HOW IS SUSTAINABLE MOBILITY WHAT STANDS OUT IN YOUR MIND enhance the human experience. TIED TO VIA RAIL’S SUCCESS AS THE BIGGEST ACHIEVEMENTS tablets for helping eliminate an openness of mind to the world. risks of injury, while allowing for AS A BUSINESS? IN 2017? Buying a new 21st century fleet for the enhanced communication and What I hope is that we are creating a real-time information updates. Québec City – Windsor corridor to replace CREATING POSITIVE Today, more than ever, sustainable mobility We had a strong and successful year legacy of leadership by listening to our IMPACTS THROUGH the equipment that we have will help with is at the essence of why VIA Rail exists and in 2017. Our revenues grew for the fourth Most Supportive Employer of passengers and transforming our business, THE GLOBAL GOALS the Canadian Armed Forces – that a lot – it’s going to allow many benefits an important part of our company’s consecutive year, our ridership grew for the investing in our people and elevating The Canadian Forces Liaison for our passengers and our employees. long-term success. third consecutive year, and we deepened ourselves towards a high performance We continue to support Council honored us with two The amenities will be in line with today’s Canada’s Federal Sustainable our stakeholder collaborations. awards for the Most Supportive standard that challenges us to be bold VIA Rail moves millions of passengers every lifestyle, including larger spaces for Development Strategy, which Employer in Canada Award and start thinking differently. focuses on the environmental year across Canada, and we are leading the We invested a lot of time laying out the and the Award of Excellence larger baggage like bikes and skis, quiet dimension of the United Nations way to alleviating congestion in cities and blueprint of what sustainable business could for Best Practice in Employer cars, upgraded WiFi, and better food Sustainable Development Goals reducing transport emissions. There is a be. We started looking to the future – if we Support of Canada’s (SDGs). Launched in 2015, the Reserve Forces. and beverages. SDGs consist of 17 goals for a greater cause to be served using passenger want to be sustainable, on all fronts, what better world by 2030. rail – and that is to improve the health, would that mean? In 2017, we underscored our environment and quality of life of Canadians. We asked ourselves, how could stations commitment to the SDGs focusing on four sustainable But to be successful we need to maximize be more sustainable? Not only greener and mobility goals: equitable access, our contribution and ensure more people less energy consuming, but also accessible, efficiency, security and safety, take the train. This will require a mind shift – better integrated into the community, and and green mobility. Page 9 depicts how the pillars of our one where people leave their cars at home using leading-edge technologies. WORKING BETTER TOGETHER: LISTENING, LEARNING, TAKING ACTION sustainable mobility plan align and choose more sustainable modes We’ve identified Ottawa as the model with the SDGs. of travel. train station and have recently improved Provided greater access and Created more accessible Achieved record in our Sustainable mobility is not just about accessibility, increased security, reduced more frequent travel options for information for our communities Employee Engagement Survey what we do as a business but also how environmental impacts and created a our customers we operate. It’s the perfect intersection of more seamless integration of sustainable the sustainable cause, in terms of carbon travel modes – including pedestrian reduction, and the continued viability of the access, bike racks and access to the light business. And that’s why I like the term rail train project. “sustainable mobility” – because it’s at the core of the raison-d’être of VIA Rail. through an increase in seat capacity*, The new “In Your Community” section resulting in 62% employee engagement, which has grown by 11% since 2009 of our website provides information of an increase of 16% when compared upcoming maintenance and construction to 2011 *available seat miles activities on VIA Rail’s infrastructure

02 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 03 OUR BUSINESS Our key assets reflect the breadth of our business, from our stations and maintenance centers to the fleet of locomotives and train cars we operate, the passengers we serve, the VIA RAIL AT-A-GLANCE buildings we occupy and the employees who work for us.

WHO WE ARE FREQUENCY

VIA Rail operates Canada’s national passenger rail service on behalf of the Government of Canada. An independent Crown TRAIN DEPARTURES corporation established in 1977, VIA Rail provides a safe, cost-effective and environmentally responsible service from coast to coast in both official languages. The corporation operates close to 514 train departures weekly on a 12,500 km network, connecting over 400 Canadian communities. With 2,899 employees as of the end of the calendar year, VIA Rail carried 4.39 million passengers in 2017. 514 per week of which 89% of our trains depart on time

WHERE WE OPERATE PASSENGERS EMPLOYEES FLEET

PASSENGER REVENUES PER PASSENGER TRIPS ACTIVE EMPLOYEES AS OF THE END TRAIN CARS TRAIN ROUTE OF THE CALENDAR YEAR (IN AND OUT OF SERVICE) 77% Inter-City Travel 22% Long-Distance 1% Regional

2,899 428 77% EMPLOYEE DIVERSITY LOCOMOTIVES of passenger revenues are from inter-city Live Graph travel (in the Corridor)

PASSENGER TRIPS PER TRAIN ROUTE 95% Inter-City Travel 4% Long-Distance 1% Regional 4.39 million 34% 73 Inter-City Travel Long-Distance covering 1.5 billion kilometres across of our employees are women, 11% are visible of which 71% have been rebuilt for improved Regional Canada of which: 95% is inter-city travel, minorities, 2% are people with disabilities and operational and environmental efficiency, to 95% 4% is long-distance and 1% is regional. 2% are Indigenous People run a safe and fluid service INTER-CITY TRAVEL LONG-DISTANCE REGIONAL of passenger trips consist of inter-city travel Live Graph (THE CORRIDOR) TRAVEL AND TOURISM SERVICES (in the Corridor) BUILDINGS In the densely populated In Western and Eastern VIA Rail provides passenger corridor between Québec Canada, VIA Rail’s trains service in several rural and COMMUNITIES SERVED TRAIN STATIONS OFFICES MAINTENANCE CENTRES City, QC and Windsor, ON, attract travellers from around remote regions of Canada. VIA Rail trains provide the world and support Mandated by the Government downtown-to-downtown Canada’s tourism industry. of Canada to meet essential travel between major urban The Canadian, VIA Rail’s transportation needs, centres, suburban centres Western transcontinental these trains serve many and communities. train, provides service communities where between Vancouver and alternative, year-round Toronto. In Eastern Canada, transportation is limited the Ocean runs between or unavailable. Montréal and Halifax. 400+ 121 7 4 * Services on Vancouver Island and Gaspé are suspended due to infrastructure availability served across Canada of which 54 are heritage stations 1 head office, 6 regional state-of-the-art facilities

04 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 05 SECURITY AND SAFETY

Every year, we make significant investments to WORKING ensure the safety and security of our operations. We also partner with our industry peers during Operation Lifesaver’s Rail Safety Week and other safety events to increase safety awareness along TOGETHER TO the rail network. BE THE SMARTER -36% reduction in the frequency of accidents WAY TO MOVE per 200,000 hours worked since 2011 PEOPLE RELIABILITY AND EFFICIENCY

To demonstrate our commitment to action, we spent last year listening to We are committed to being Canada’s most and learning from our stakeholders, which enabled us to shift our mindset reliable and efficient national and intercity mode of transportation. Through our fleet renewal project to better embrace the opportunities that arise. Through our efforts, we made and proposed high frequency rail project, we will be important progress advancing the four global sustainable mobility goals: well-positioned to contribute to a more dependable equitable access, security and safety, reliability and efficiency, and pollution and convenient service for our passengers. and climate responsiveness.

EQUITABLE ACCESS 89.7% on-time performance of all our trains on the infrastructure that VIA Rail owns Working together with the Council for Canadians with Disabilities and the community, we’ve invested more than $88 million to improve accessibility in our trains and stations, provided discount packages for designated groups, and increased train capacity and frequency where demand is high. POLLUTION AND CLIMATE RESPONSIVENESS

Our passenger rail service plays an important role 451,961 in Canada in reducing the transportation sector’s contribution to climate change, while helping to passengers took advantage of discounted packages in 2017 relieve congestion and smog issues that threaten air quality in our urban centres.

-30% CREATING POSITIVE IMPACTS: reduction of greenhouse gas emissions WHERE IT CONNECTS generated by VIA Rail trains since 2005, a difference of 52,965 tonnes

06 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 07 SHAPING CREATING POSITIVE IMPACTS We are committed to operating our business responsibly, while creating positive benefits that contribute to economic OUR FUTURE and social prosperity. Last year, we took action to connect the six pillars of our sustainable mobility plan to nine sustainable development goals where we believe we can make the biggest contribution in society. SUSTAINABLE MOBILITY AT VIA RAIL

PROVIDING THE SUPPORTING Working together, we are taking on a more proactive form of BEST CUSTOMER SOCIO-ECONOMIC leadership on sustainability that embraces the possibilities for us EXPERIENCE DEVELOPMENT

to transform mobility in Canada, while contributing to a more • Enhancing quality service • Creating value for money inclusive and equitable society. • Providing accessible mobility • Supporting community • Enabling more sustainable development travel options LEADING THE WAY TOGETHER OUR SUSTAINABILITY PILLARS Our long-term sustainability lens is a Providing the best customer experience JEAN-FRANÇOIS LEGAULT defining factor of our aspiration to be a by ensuring a reliable, affordable, and 11 Chief Legal & Risk Officer and forward-thinking, high performance and accessible service for our customers that 11 Corporate Secretary innovative company. We have shifted enables them to experience Canada in a MANAGING 3 OPERATING OUR BUSINESS SAFELY AND our emphasis from a short term focus on unique way. RESPONSIBLY SECURELY managing social, ethical and environmental Supporting socio-economic development WHERE 3 CANADIAN PUBLIC RANKS risks to seizing the opportunities for a 17 OUR PRIORITIES VIA RAIL HIGH IN SOCIAL by using public funds efficiently and • Upholding good CONNECT • Embedding a preventative RESPONSIBILITY more integrated transportation system effectively, while contributing to governance and ethical 9 safety culture for Canada that is accessible, reliable Canada’s economy by providing access conduct • Ensuring railway safety Our sustainable mobility efforts and environmentally sustainable. and connectivity to a sustainable • Collaborating with and security are paying off: according to our stakeholders 8 12 • Developing innovative a recent independent study To drive positive change, we must transportation system. 5 4 13 technology and by the Faculty of Management act together to make our vision a reality Operating safely and securely by embedding of Dalhousie University in infrastructure Nova Scotia, we ranked high by engaging in debate and listening to a culture where safety and security is in the Canadian public opinion with our many stakeholders. everyone’s first and foremost concern. regard to trustworthiness, social Reducing our impact on the environment responsibility, environmental ALIGNING OUR STRATEGY TO by being the preferred greener travel choice responsibility and ethical practices GLOBAL AND NATIONAL GOALS BEING AN REDUCING OUR – and the highest among six for Canadians, while reducing our emissions ATTRACTIVE IMPACT ON THE transportation companies. In 2017, we refined our sustainability per passenger-kilometre and increasing our EMPLOYER ENVIRONMENT These results confirm the aspirations with our 2025 strategic resource efficiency. relevance of our “responsible” orientations, while aligning with the • Developing talent to shape our future • Improving energy efficiency and strategic direction, which Being an attractive employer by supporting United Nations Sustainable Development • Promoting diversity and inclusion climate resilience reinforces our path to 2025. By a workplace where each employee feels implementing our sustainable Goals and Canada’s Federal Sustainable • Engaging and recognizing • Contributing to the circular economy recognized and rewarded for being of service mobility plan and strategy, Development Strategy 2016-2019. our people • Promoting the environmental we help build a sustainable to passengers, to each other, and to the benefits of passenger rail society while delivering on our Four sustainable mobility global goals communities VIA Rail serves. vision to be a smarter way to help navigate our path: to provide equitable Managing our business responsibly by move people. CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS AND THE WORLD BANK SUSTAINABLE MOBILITY GOALS access, to ensure safety and security, to ensuring good governance, accountability provide efficient and reliable services, and and integrity in everything we do, while EQUITABLE SAFE AND EFFICIENT CLEAN, GREEN AND ACCESS SECURE AND RELIABLE RESILIENT to be green, clean and resilient. engaging and consulting stakeholders on These goals are underpinned by the six their viewpoints. pillars of our sustainable mobility plan that keep us accountable to our objective of making a significant and lasting difference. 5 8 11 17 3 4 9 12 13 Gender Decent Sustainable Partnership for Good Quality Industry, Responsible Climate equality work and cities and the Goals health and education innovation and consumption action economic communities well-being infrastructure and production growth

08 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 09 ADVANCING OUR SUSTAINABILITY OUR STRATEGY DEPLOYMENT TEAM Our Sustainability Deployment Team meets on a regular basis to ENSURING PERFORMANCE discuss our progress against the sustainability mobility plan. The team members bring together diverse perspectives and act as change The implementation of our sustainable mobility plan is helping agents for our organization as we us build a sustainable business for the future, positioning us transform the business. well for our 2025 aspirations to be a leader in the passenger transportation industry.

DEFINING OUR In prioritizing our actions and establishing SUSTAINABLE MOBILITY PLAN performance indicators, we took into account how we could best mitigate BRUNO RIENDEAU Over the past year, our sustainable mobility potential operational and reputational risk, Director, Safety and plan was brought into sharper focus, “Looking ahead, we will MAKING PROGRESS THROUGH THE have the right priorities and resources to Sustainability take advantage of opportunities to optimize as we refined our actions to ensure they be focused on ensuring SUSTAINABLE DEPLOYMENT TEAM effectively implement our plan. Last year, efficiencies, grow our business and build remained responsible to our changing multi-functional involvement our Chief Executive Officer’s performance trust with our customers while creating We have clearly defined governance business context. in the execution of our plan, incentives were tied to the achievement of social benefits for the many communities processes to ensure that accountability We actively engaged with our internal and aligning our people’s for our sustainable mobility plan is our sustainable mobility plan. where we operate. performance incentives with stakeholders to exchange views and define embedded at the right levels of our We also successfully launched a Our sustainable mobility plan was integrated the achievement of our specific actions where we could make a organization. The Board is responsible for Sustainability Deployment Team with meaningful difference to our business, while into our plans leading up to 2025, touching sustainability objectives. providing oversight on the implementation Connecting performance multi-functional representation. In 2017, creating positive benefits on society. all four strategic orientations. of our sustainable mobility plan, reviewing to sustainability will the deployment team met four times performance and approving our annual We took the deliberate decision to chart help us deliver on our to review performance on our action plan, Sustainable Mobility Report. our 2020 course with the ultimate objective sustainability mobility plan.” and provided insights on integrating of integrating sustainability into all aspects Our Management Committee, led by the sustainability principles in a way that of our business, including our culture, Chief Executive Officer, Yves Desjardins- benefits our business and society. strategies, key initiatives and service offering. Siciliano, is accountable for ensuring we

ALIGNING TO OUR CORPORATE STRATEGY

Be the smarter way EMBEDDING OUR SUSTAINABLE MOBILITY PLAN Passengers first. to move people. OUR VISION We continuously strive to offer them a smarter and Our four strategic orientations represent where VIA Rail wants to be by 2025 – a forward-thinking, high-performance, and safer travel experience innovative organization. It is the roadmap to secure our future and position us as leaders in the transportation industry. OUR across Canada. MISSION RESPONSIBLE PERSONALIZED COLLABORATIVE CONNECTED

OUR 2025 ORIENTATIONS Personalized Connected Collaborative Responsible

OUR SUSTAINABILITY PILLARS Be a responsible Provide our customers, Foster collaborative Leverage innovative Customer Socio-Economic Safety and Environmental Attractive Responsible organization by capitalizing employees and communities relationships that drive solutions and ideas to Experience Development Security Stewardship Employer Business on advanced modular with an authentic and synergistic results connect our passengers, technologies personalized experience employees and assets OUR VALUES Innovation Accountability Trust Agility Know-how Integrity

10 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 11 PILLAR PRIORITY 2017 ACHIEVEMENTS 2020 OBJECTIVES ACTING ON CLIMATE CHANGE • Reduced our GHG emissions by 30% • Reduce our GHG emissions by 20% MITIGATION AND when compared to 2005, surpassing by 2020 and 30% by 2030, when ADAPTATION OUR OBJECTIVES our 2020 objective of 20% compared to 2005 CRITERIA AIR • Improved our fuel conservation and • Reduce our total CACs by 20% based ( ) 2020 SUSTAINABLE MOBILITY STRATEGY REDUCING CONTAMINANTS CAC train idling practices, and achieved a on 2009 OUR IMPACT 24% reduction since 2009 ON THE ENVIRONMENT WASTE MANAGEMENT • Selected new waste contractors, • Contribute to the circular economy and As we continue on our journey towards sustainable mobility, we are committed to achieving which will help us improve our waste divert a minimum of 10% of our waste the 2020 objectives we set for ourselves. Progress on our plan in 2017 has been positive, minimization and diversion rates from landfills

positioning us well for our path forward. SUSTAINABLE • Initiated the formalization of sustainability • Develop and implement sustainable PROCUREMENT into the procurement process procurement guidelines

PILLAR PRIORITY 2017 ACHIEVEMENTS 2020 OBJECTIVES ENVIRONMENTAL • Promoted the environmental benefits • Promote VIA Rail as the smarter, BENEFITS OF RAIL ACCESSIBILITY AND • Increased capacity on our trains, and • Make services affordable, increase rail of rail through speeches, marketing greener travel choice at schools, AFFORDABILITY worked with the UIC on a pilot to access and frequency, and implement campaigns, and social media businesses and government address passenger visibility impairments our multi-year accessibility plan organizations

QUALITY SERVICE • Strengthened our Customer Centres, • Integrate sustainable mobility into the ATTRACT PEOPLE • Hired and successfully onboarded • Increase the internal and external PROVIDING and improved travel comfort and customer experience, including surveys, 545 new employees talent pool THE BEST onboard entertainment product offerings, and travel options CUSTOMER DIVERSITY AND • Maintained a gender-balanced Board of • Increase gender diversity to 30% in EXPERIENCE INCLUSION INTER-MODALITY • Increased passenger volume from • Increase partnerships to foster inter- Directors and continued improving the management positions and develop an PARTNERSHIPS inter-modality by 97% since 2012 modality and integrate sustainability into BEING AN representation of designated groups Indigenous People strategy ATTRACTIVE in our workforce the sales strategy EMPLOYER

SUSTAINABLE • Revamped Ottawa Station which • Formalize and implement sustainable HEALTH AND • Initiated the VIAWELL Ambassador • Implement five new initiatives related to WELL-BEING MOBILITY HUBS includes sustainable mobility mobility design criteria for new and program nationally to increase the National Standards on Psychological design elements existing stations awareness on mental health at Health in the Workplace Program all levels FISCAL • Improved our financial performance, • Integrate sustainable mobility into RESPONSIBILITY grew efficiency, and invested in state departmental and individual objectives TALENT • Graduated the first group from the • Develop skills and competencies relating DEVELOPMENT of good repair VIA Rail Leadership School, which included to our sustainable mobility objectives 8,910 hours of training for our people VALUE FOR MONEY • Focused our capital investments • Integrate sustainability criteria into SUPPORTING on safety and compliance, growth investment decisions and measure EMPLOYEE • Achieved a 62% engagement score in • Strive for an engagement score of ENGAGEMENT SOCIO- and efficiency impacts of strategic investments our engagement survey 65% or greater ECONOMIC DEVELOPMENT COMMUNITY • Supported 1,510 community • Enhance our community strategy INNOVATION AND • Implemented a Centre of Excellence • Embed an innovation culture across CREATIVITY INVESTMENT organizations with in-kind trip donations to align with the sustainable mobility in the Montreal Maintenance Centre the organization amounting to $2,423,222 objectives and measure impacts to encourage our employees to find innovative solutions RAILWAY SAFETY • Instilled a risk preventive safety culture • Ensure the effective implementation MANAGEMENT and reduced train incidents by 77% of our SMS and measure our ETHICAL • Continued to reinforce our • Integrate sustainability considerations CONDUCT commitments on ethics and integrity into the Code of Ethics and risk since 2014 safety culture AND RISK MANAGEMENT management framework OCCUPATIONAL • Reduced our OH&S accident frequency • Reduce our year-over-year injury rate OPERATING HEALTH & SAFETY rate per 200,000 hours by 36% (OH&S) TRANSPARENCY AND • Engaged 340 communities and • Implement a stakeholder / community SAFELY AND since 2011 MANAGING SECURELY OUR BUSINESS COMMUNICATION community leaders across Canada engagement strategy and framework RESPONSIBLY SECURITY STRATEGY • Updated and enhanced security • Strengthen security at all our stations systems at key stations

PUBLIC OUTREACH • Reduced crossing accidents by 36% • Continue to reach communities on since 2014 VIA Rail’s safety initiatives to promote railway safety near railroads

12 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 13 2017 ACHIEVEMENTS

INCREASED PROVIDING TRAIN RIDERSHIP THE BEST CUSTOMER 4.39M passenger trips representing an EXPERIENCE increase of 11% since 2016 STRENGTHENING CUSTOMER SATISFACTION PUTTING THE PASSENGER FIRST 50 Net Promoter Score, an increase of 28% since 2015, reflecting the growing strong satisfaction our customers have with our service

EXPANDING INTER-MODALITY USERS When our customers choose VIA Rail, they know we offer something different – a more accessible, comfortable, safer and less stressful travel experience that encourages them to leave their cars at home. With more travellers opting for the train, our priority 114,716 passengers used inter-modal is to improve mobility access and ensure we deliver consistently connections in 2017, an increase of great service at each step of the journey through more personalized 97% since 2012 and authentic interactions. MARTIN R. LANDRY Chief Commercial Officer Putting the passenger first is at the heart home and avoid traffic jams and stress by of everything we do. To provide the best choosing a smarter, simpler, and greener customer experience, we spent the better way to travel – the train! part of the year listening to our customers, Through our inter-modal partnerships, we understanding their needs, and improving are working together with other passenger service quality and mobility access. carriers to make end-to-end travel even Notably, we increased capacity on the easier. We are pleased to see these efforts trains in highest demand, added direct are paying off and enhancing the appeal of connections on our popular Québec City – public transport. Montréal – Ottawa route, and further In 2017, our ridership increased by 11% expanded our commuter options to and compared to 2016. This represents our 3rd from Montréal, including two additional consecutive year of growth in ridership. stops in Saint-Hyacinthe during rush hour. Thanks to our customer-focused strategy We also participated in festivities to CREATING and the hard work and dedication of all mark Canada’s official 150th birthday, and POSITIVE IMPACTS: our employees, we have been consistently WHERE IT CONNECTS continued our successful “Why Don’t meeting and exceeding our targets. You Take the Train?” marketing campaign. The campaign provided timely messages to encourage travellers to leave their cars at

14 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 15 PROVIDING THE BEST CUSTOMER EXPERIENCE

ENHANCING IN FOCUS QUALITY SERVICE

SUPERIOR SERVICE We are committed to delivering superior IMPROVES CUSTOMER service by providing our customers with CREATING PERSONALIZED SATISFACTION a reliable, comfortable and convenient AND AUTHENTIC EXPERIENCES travel experience that promotes healthier lifestyles and enriches their quality of life. The VIA Rail experience is as unique as each of our customers. From the moment As part of our customer-centric strategy, they start thinking about their trip until the moment they arrive at their destination, we focused our efforts last year on we ensure our passengers are given personalized and caring service, which we +28% believe makes a real difference in their journey with us. increase in our net promoter's learning more about our passengers and score since 2015 understanding their preferences and Our front-line staff are behaviours in order to deliver an Our focus on improving the customer making a real impact on outstanding service. experience through personalized and authentic our customer’s experience. Our new front-line staff uniforms update their look, interactions remained an important priority Customer satisfaction is Today, we stand out across a diverse increase their visibility in stations and trains, and align in 2017. measured on a regular basis customer base because of the work we with our branding. and assessed at every step Digital Technologies: Our VIA Rail Mobile app of their journey. The quality are doing on a daily basis to increase of the service they receive train frequencies, enhance personalized We also launched a customer-friendly continues to be popular with our passengers, on the train really stands and authentic customer experiences and baggage policy making it easier for providing real-time information on upcoming out and is an important driver improve comfort both within our trains customers to connect to other travel stops and their train’s location, access to of our good results. and at our stations. modes. We simplified fees for excess and e-boarding passes and time savings when overweight baggage in collaboration booking tickets. In 2017, we were pleased to launch our with our airline partners, while increasing new kids program, "Choo Choo Club" – Customer Centres: Accelerated the flexibility of carry-on allowance for a winning proposal from our national implementation of our Customer Relationship over-sized articles. employee recognition program. Through the Management (CRM) information with our club, kids aged 2 to 11 can participate in an Our onboard and in-station employees are Customer Centre agents to enable faster and array of educational games and other fun now more visible with their new VIA Rail more personalized interactions. surprises to keep them entertained for the uniform accessories. Travel Comfort: Improved our Economy whole trip and create lasting memories. class menu, and integrated more Canadian products including new wines to our Business class menus. We also introduced earpieces for our onboard employees in the Québec City – Windsor corridor, enabling us to minimize the noise on board our trains from employee IMPROVING CONNECTIVITY: NEW CUSTOMER CENTRES radio communications. Onboard Entertainment: Launched our new Our customer centre agents at our new all-in-one multi-channel Choo Choo Club, to provide fun entertainment contact centres are more focused than ever in providing faster and and surprises for kids aged 2 to 11, and added more personalized customer interactions. With the recently new content and a podcast channel to the implemented Customer Relationship Management tool, our agents On Train entertainment system. have relevant information to significantly improve the quality and duration of customer calls. In 2018, we will improve the onboard experience with new payment methods and We know that our customer’s time is valuable and this new tool is making a difference in their interaction with us. new food choices.

LEFT: Celebrating our new VIA Rail Customer Centre in Montréal.

16 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 17 PROVIDING THE BEST CUSTOMER EXPERIENCE

PROVIDING VIEWPOINT ACCESSIBLE MOBILITY

AFFORDABLE TRAVEL We are committed to remaining Canada's To celebrate Canada’s official 150th birthday OPTIONS FOR ALL most accessible national and intercity last year, we participated in many of the MAKING TRAVEL EASY, ENJOYABLE WALKS OF LIFE mode of transportation. With more than festivities providing additional reduced fares AND ACCESSIBLE FOR OUR PASSENGERS DISCOUNTED PACKAGES 400 communities in Canada benefiting for Canadians travelling to these events % of total discounted trips taken from a nearby VIA Rail train station or onboard our trains. In addition, over 4,000 We are committed to being at the forefront of accessible stop, Canadians from all walks of life have young Canadians hopped on our trains taking Students 54.4% transportation for all travellers. This means allowing people to Children 28.9% access to a convenient, affordable and advantage of our Canada 150 Youth Pass. move freely and easily access what they need: jobs, markets, Military 9.8% accommodating means of transportation. Seniors 4.7% Accommodation: To ensure passenger social interactions, education and other services and amenities, Indigenous People 1.5% New Canadians 0.7% Convenience: Over the past year, we rail remains at the forefront of accessible irrespective of income, age, gender, and physical disability. successfully increased the accessibility to transportation for travellers with mobility our trains by making the trip experience or other limitations, we continued to engage Last year, our front line staff were pleased Upon reflection, she recounts: “From even more convenient. Working together the community and the Council for Canadians to welcome Suzan Jennings and her our departure at Sarnia Station to our with other railway owners, we improved with Disabilities to inform improvements to husband on board our train from Sarnia arrival at the Ottawa Station, we were met to Ottawa. As a person with physical with warm smiles, gentle interactions, our schedules to give passengers greater our trains and stations. We are also working “Once onboard, we settled disabilities, comfort became an important amazing food, attentive service and large flexibility when planning their trips. This with the International Union of Railways (UIC) into our comfortable priority as she moved around our station comfortable seats. As a bonus for included summer schedule adjustments on a pilot project to help passengers with seats, learned about the and on board our train. persons with disabilities, the accessible on our popular Québec City – Montreal – visual impairments. accessible features of washroom even included a transfer seat. Ottawa route, train frequency improvements the train car, and enjoyed Upon her arrival, two of our attendants Today, all our trains are wheelchair- We had high expectations that our train between Ottawa and Toronto, and the a wonderful day with were there to greet Suzan at the platform. 10% accessible and equipped with tie-downs experience would be better than our of our passengers took addition of two stops in Saint-Hyacinthe inclusive features We used our innovative elevated train and grab bars to make it easier to move air experience… and it was.” advantage of our discounted during rush hour. throughout our journey platform with a side access ramp to packages, including 44,403 around onboard. Our attendants are that opened our eyes to seamlessly move Suzan onto the train. Our more than $100M investments members of the military Affordability: We continued to provide available to escort passengers to the and veterans and 3,106 by the endless possibilities Once on board, our attendants escorted over the past few years in our trains, new Canadians. affordable passenger rail services platform, help them get on and off trains, that VIA Rail can deliver.” her to her seat, and communicated stations and frontline services are to Canadians through our discounted and assist with baggage. all the accessible features the train had significantly improving our offer to packages for students, children, SUZAN JENNINGS to offer. all Canadians. seniors, military, new Canadians and Passenger For people travelling with disabilities, Today, we remain the most accessible Indigenous People. we want to make travel easy, enjoyable national and inter-city mode of and a truly personalized and authentic transportation in Canada. experience. It was a pleasure to hear that Suzan’s experience with us exceeded her expectations.

INVESTING IN OUR STATIONS TO PROVIDE MORE OPTIONS FOR SPECIAL NEEDS

Our station in Ottawa, which is being revamped was designed with accessibility in mind. We invested $20 million to bring the $88.4M building up to universal accessibility standards. This includes an invested to improve elevated train platform with a side access ramp and new elevators accessibility across our assets to facilitate access to the tunnels and boarding platforms. Specialized equipment and assistance is available to make it easier to enter and move around our stations, and our attendants are 13,500 available to assist with baggage. special-needs requests answered with care by our in-station and onboard employees annually LEFT: Work in progress at Ottawa Station will make it fully accessible and more sustainable.

18 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 19 PROVIDING THE BEST CUSTOMER EXPERIENCE

ENABLING MORE IN FOCUS SUSTAINABLE TRAVEL OPTIONS

PARTNERING To enhance the attractiveness of public Union Pearson Express, Billy Bishop, CANADA 150: WITH INTER-MODAL transport for all Canadians, we are actively Montreal Airport shuttle. This year alone, INCREASING ACCESSIBILITY TO ENABLE CONNECTION PROVIDERS SPURS RIDERSHIP encouraging inter-modality, in line with 14,716 passengers took advantage of STUDENTS TO EXPERIENCE CANADA INCREASE IN Canada’s vision for a more sustainable inter-modal transportation, enabling us to INTER-MODAL RIDERSHIP integrated transportation system. avoid 261,357 tonnes of GHG emissions. By providing greater access to passenger rail transportation, we play a foundational role in connecting communities across Canada. Last year, we were proud to 120,000 Since 2011, we have been working In 2017, we increased our footprint in journey collaboratively through our many inter- planning by including inter-modality options participate in many of the festivities to mark Canada’s 150th birthday, enabling 100,000

114,716 modality and inter-operability partnerships on the Kayak Meta Search Engine as well as our travellers to experience and explore our nation’s incredible sights. 80,000 95,092 so that both transport operators and on a new travel online booking site ‘Nu Travel’ As part of the 150th anniversary celebrations 60,000 77,091 journey planners can combine different for our corporate clients. 74,563 72,782 modes of transportation in a seamless of Canada, we offered a sought-after travel 40,000 58,321 We collaborated with the Régie travel experience. pass to young Canadians between the ages 20,000 intermunicipale de transport Gaspésie of 12 and 25. The pass, commemoratively Today, our passengers have access to (RÉGÎM) shuttle bus from Campbellton train 2 3 4 5 6 7 priced at $150, provided young Canadians with 0 1 1 1 1 1 1 0 0 0 0 0 0 2 2 2 2 2 2 diverse carriers, including commuter trains, station to the city of Gaspé, and Airbus in unlimited VIA Rail train travel from coast to motor coaches, car-sharing companies, the London and Sarnia area, to harmonize coast during the month of July. ferries, airport shuttle buses, and airlines. their schedules around our train arrivals and +97% These inter-modal partnerships are helping departure times. The pass was an overwhelming success. increase in passenger volume improve economic activity, increase the Over 4,000 young Canadians hopped on our from inter-modality since 2012 We also started to align our baggage modal share of rail by encouraging people to trains to embark on the journey of a lifetime allowance with other carriers, making it leave their cars at home, reduce greenhouse across the country. The pass allowed them easier for travellers to hop between modes gas emissions, and promote quality of life to discover their country, encounter fellow of transportation. In the coming year, the by connecting people and communities. passengers, and experience the advantages revamp of our core reservation system will of travelling by train. New partnership agreements are help strengthen inter-modality connections continuously being formed. Today, we to other transportation services, schedules Passengers proudly shared their memories partner with 10 inter-modal strategic and ticketing options. online on various social media platforms connection providers, including using our hashtag #VIACanada150 and we hosted the longer form tales on the dedicated Canada 150 page of our blog.

CONNECTING PEOPLE WITH INTER-MODAL OPTIONS PHOTO: @MIREILLLESTP

Our inter-modal options are especially popular in the Québec City-Windsor corridor. For example, through our partnership 4,283 with UP Express, our passengers can travel with VIA Rail to Toronto Union Station and connect to Pearson Airport (two of passes sold to students Canada’s busiest hubs). As a result, residents from communities across southern Ontario and Québec can book their trip to Pearson Airport in a single transaction, making travel on a connected network seamless, convenient and attractive. 22,886 total trips (segments) taken 28.7M Airport Union Station Destination total kilometres travelled

20 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 21 2017 ACHIEVEMENTS

IMPROVING SUPPORTING FINANCIAL EFFICIENCY SOCIO-ECONOMIC $51M was allocated to efficiency improvements on our network, DEVELOPMENT operations and fleet PARTNERING CONTRIBUTING TO CANADA’S PROSPERITY WITH COMMUNITIES

Provided $2,432,222 in in-kind travel credits to support various events

SUPPORTING As we modernize VIA Rail for the future, it will be important that LOCAL SUPPLIERS we make strategic investments to renew our fleet and provide higher frequency rail in the Québec City-Windsor corridor. Doing so will enable us to meaningfully contribute to our economic prosperity, $364M promote social inclusion and do our part to support an integrated for purchased services, materials sustainable transportation system for Canada. and fuel to 2,818 suppliers, of which 94% are Canadian-based companies

PATRICIA JASMIN Chief Financial Officer Operating on a network spanning more studies on the high frequency rail project than 12,500 kilometres and connecting over to make travel faster, safer and even more 400 communities from coast to coast, efficient within the Québec City-Windsor puts us at the heart of Canada’s economic corridor, where 95% of our passenger trips prosperity and social connectivity. are taken. To remain relevant to Canadians, we Our contribution does not stop there; must continue to efficiently manage we have a great impact by being present taxpayer money, while ensuring we focus in the diverse communities where we live our investments on projects that grow and work. Last year we partnered with more revenues, contain costs, and create positive than 1,500 organizations and contributed socio-economic benefits. in-kind travel credits to support events that promote youth, health, diverse communities In 2017, we successfully improved our and Canadian heritage. financial performance driven in part by ensuring our capital investments focus on safety and compliance, growth and CREATING POSITIVE IMPACTS: efficiency, and state of good repair. WHERE IT CONNECTS We also completed market soundings and consultations on our proposed new corridor fleet, and continued feasibility

PHOTO: KENNY HUYNH

22 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 23 SUPPORTING SOCIO-ECONOMIC DEVELOPMENT

CREATING IN FOCUS VALUE FOR MONEY

STRATEGIC CAPITAL Our business success goes hand-in hand seamless travel experience. Driven by our INVESTMENTS ENSURE with our ability to create value for our disciplined approach to cost containment BEING PART OF THE SOCIAL FABRIC EFFICIENCY AND COST CONTAINMENT stakeholders and enable long-term and revenue growth we improved our AND STIMULATING ECONOMIC GROWTH economic, environmental and social cost efficiency. 2017 CAPITAL INVESTMENTS benefits for all Canadians. % of total spend We also created value by making direct Canada is one of the most beautiful countries and the smarter way to preserve its Efficiency 56% As part of our business transformation, our economic and social contributions, including natural beauty is to leave your car at home and travel by train. By providing access Safety 26% strategic capital investments are carefully through the wages we paid our 2,899 to more than 400 communities from coast to coast, we are stimulating economic Customer experience 16% Revenue growth 2% planned to ensure we run a safe, efficient employees, the in-kind trip credits donated growth and enabling travellers to discover their country. and reliable service. In 2017, we continued to 1,510 community organizations, and the our upgrades at Kingston Station as well as expenses we paid to 2,818 suppliers, of As Canada’s only national passenger rail carrier, we in Ottawa Station where we undertook which approximately 94% are Canadian- play an important role in contributing to the social and renovations of the elevation platform and based companies. economic progress of the communities through electric room, improved accessibility, which our rail service passes. Greater mobility for Canadians provides increased security technology, and expanded further indirect spillover benefits. With more To encourage travellers to explore the smaller cities sustainable mobility options, including people taking the train, we are enabling and towns as well as the ‘hidden gems’ in the larger pedestrian access, bike racks, light rail TOTAL GOVERNMENT greater access to jobs and other social and urban areas across Canada, we maintain a travel FUNDING REQUIRED project access and electric car plugs. in millions of dollars economic activities, while improving social blog. Updated on a weekly basis, the blog shares We made sizeable investments to rebuild connections and quality of life. information on the best spots in Canada to visit. 450 our Locomotive Rail Cars, pursue energy For example, in 2017, we successfully There is a wealth of information for our travellers, 446.3 efficiency projects at our maintenance 400 increased the economic and social activity in including the best restaurants, museums, outdoor

398.4 398.0 centres, and improve safety and fluidity of Saint-Hyacinthe by working collaboratively activities and venues available. Prominent Canadians 350 377.9 the network through infrastructure upgrades.

353.8 353.7 with the community to add more stops and were also interviewed to celebrate Canada 150 and 300 Our strategic investments in information further expand commuter options to and asked to share their favorite places to visit in Canada. technology, including enhancements to from Montréal and Ottawa. 250 When a community is featured in our blog it brings the reservation systems, are helping us a tremendous sense of pride to the local citizens. 2 3 4 5 6 7 200 1 1 1 1 1 1 0 0 0 0 0 0 increase ridership and create a more 2 2 2 2 2 2 Over the past year, the most popular stories shared on the blog were about cities in Southwest Ontario including Chatham, Kitchener and London, as well as the Plateau neighbourhood in Montreal, and Québec City. In 2017, we had more than 111,000 visitors on 2017 VALUE CREATION the blog, which we believe is helping to encourage ridership, promote the discovery of our country, Through our service, we are adding and creating positive socio-economic benefits for Canadians. and stimulate local economic benefits and social connectivity. CUSTOMERS EMPLOYEES SUPPLIERS COMMUNITIES SOCIETY Visit the blog at: blog.viarail.ca.

261 357

4.39M $265M $364M $2.4M tonnes CO2e passenger trips wages (including payments to in-kind travel credits carbon avoided providing safe and benefits) distributed suppliers for goods donated encouraging creating a healthier accessible services improving quality of life and services social engagement clean environment

24 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 25 SUPPORTING SOCIO-ECONOMIC DEVELOPMENT

SUPPORTING IN FOCUS COMMUNITY DEVELOPMENT

As an important part of the social fabric Health: We encourage our employees to of Canada, we actively partner with a support organizations that promote physical PARTNERING FOR broad array of organizations, including and mental health, which we formalized in STRONGER, HEALTHIER COMMUNITIES charity groups and non-profit organizations, 2017 through the development of a to create mutual value and broader social Contribution Policy. The policy provides VIA Rail is committed to helping communities prosper and grow. Through our benefits within the many communities guidance on how we select organizations partnerships, we aim to make a meaningful contribution to developing stronger ENCOURAGING where we live and work. and the type of support available. CANADA'S OFFICIAL and healthier communities. LANGUAGES We support various community organizations Diverse Communities: We are committed to through the provision of promotional in-kind connecting and serving Canada’s diverse Every year, we proudly contribute to events that encourage travel credits. The impact areas where we are communities. For example, in 2017, we were Canada's official languages. most focused include youth, health, diverse proud to partner with Equal Voice Canada Notably, in 2017, we maintained communities, and Canadian heritage. transporting more than 50 young women to our 20 year partnership with the National Assembly of Québec to mark In 2017, we contributed a value of the Théâtre Français de Toronto, the 100th anniversary of women’s suffrage, showcasing Francophone $2,423,222 in ticket vouchers to a total of to reflect on how far women have come culture. We also promoted the 1,510 community organizations, including Anglophone community in in government, and discuss what still local, regional and national charity groups Québec by providing in-kind remains to be done. travel credits to the Young and non-profit organizations. Québecers Leading the Canadian Heritage: We support Way conference in Ottawa. Youth: We are proud sponsors of our future organizations that enhance the knowledge Participants discussed Canadian leaders, providing youth with opportunities of our country, its culture and history. identity, social, environmental, for learning, social involvement and civic Invictus Games: Toronto hosted a major Garrisson Family Fun Fest: In Kingston, we and economical questions, In 2017, this included welcoming new responsibilities. For example, in 2017, international Paralympic multi-sport competition were a major sponsor of the family fest that and the role of Canada in Canadians, celebrating our official the world. we supported the National Youth Orchestra where more than 550 athletes (wounded, promoted numerous fun activities for kids, languages, and supporting military Canada tour, 2017 Canada Games, Invictus injured or sick members of the armed forces including bouncing castles, an interactive kids’ and veterans. Games, and over 4,000 youth used our and veterans) from 17 countries competed in zone and VIA Rail’s mini-train. The event attracted Canada 150 Youth Pass to discover Canada. different disciplines. In recognition of their more than 25,000 community members and service and in honour of their personal sacrifice highlighted the important role the military plays to our country, we provided complementary in the Kingston area. train rides to the Invictus Games for the Canadian delegation.

WELCOMING NEW CANADIANS Daughters of the Vote: We partnered with Equal Voice As part of our commitment to promote Canadian heritage, Canada to bring 338 young women (between the age of we play an active role in welcoming new Canadians to our 18 and 23) to Ottawa. They attended a one-day conference country and providing them with a discount to travel on on women’s empowerment that took place in the House of VIA Rail trains during their first year as a citizen. Commons. It was an opportunity to reflect on the progress made by women in the government and discuss what still For example, in 2017, we hosted a citizenship ceremony needs to be done. This partnership was undertaken as part in Québec City, where thirty new Canadians were sworn in, with their families proudly watching, at our Gare du Palais of VIA Rail’s long-standing commitment to gender equality Station. We also support various retention programs for and female leadership. international students through partnerships with Montréal International and Québec International.

LEFT: Citizenship ceremony at the Gare du Palais Station in Québec City.

26 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 27 2017 ACHIEVEMENTS

REDUCING ACCIDENT OPERATING FREQUENCY RATES SAFE LY AND -36% reduction in accident rates per 200,000 hours worked SECURE LY since 2011 STRENGTHENING SAFETY SAFETY FIRST AND FOREMOST MANAGEMENT SYSTEMS

In 2017, a key focus area for our SMS was risk identification, assessment and monitoring

LOWERING Nothing is more important to us than the safety and security of TRAIN INCIDENTS our people, passengers and the public. Safety and security is beyond a priority. It is part of our core values deeply rooted in our preventive culture and reflected in all -77% aspects of our operations. As part of our goal to go from safe to reduction in the number of train safer, we are committed to achieving a zero incident, no-harm incidents since 2014 as a result of our strengthened safety culture MARC BEAULIEU work environment, by fostering a strong safety culture based on Chief Transportation and teamwork and leadership. Safety Officer

Every year, we make significant investments We also put considerable effort into on safety and security and have a relentless educating Canadians on public safety around commitment to prevention and continuous rail property. Last year, we once again improvement. We are focused on ensuring partnered with Operation Lifesaver during the safety and security of our operations, Rail Safety Week, participated in the and providing public safety education. Canadian Mental Health Association’s Mental Health Week, and the North From an operational perspective, we are American Occupational Safety and Health instilling a strong safety culture where Week, and held our own internal annual safety is everyone’s first and foremost health and safety conference. concern. We held fatigue management workshops and health and safety awareness Together, we are shifting mindsets so sessions, and engaged our managers and that people understand that safety is CREATING employees in dialogue to listen to safety everyone’s responsibility – and we must POSITIVE IMPACTS: issues and share ideas. all do our part to prevent incidents and WHERE IT CONNECTS make our environments safer. In 2017, we were encouraged to see our performance heading in the right direction. Our accident frequency rate improved by 36% when compared to 2011 and our train incident ratio was 0.6.

28 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 29 OPERATING SAFELY AND SECURELY

EMBEDDING A VIEWPOINT PREVENTIVE SAFETY CULTURE

REDUCING INJURIES Fostering a strong safety culture is at BY IMPLEMENTING the heart of everything we do – whether LEADING THE CONVERSATION A COMPREHENSIVE SAFETY PROGRAM in our maintenance centres, in our stations, ON MENTAL WELLNESS on board our trains or in the communities ACCIDENT FREQUENCY RATE where we operate. We are committed to promoting the mental health and well-being per 200,000 hours worked In 2017, our focus was on providing of our employees, our passengers and the broader community. 10 extensive training through in-class and Through our VIAWELL Ambassador program, we are taking

9.43 on-the-job peer reviews. We introduced 8 important steps to strengthen our internal policies, practices and 8.48

8.05 Mental Health First Aid training and

7.60 processes and to engage our people through sensitivity training 6 collaborated with our unions to develop 6.46 6.33 6.08 and awareness. a new fatigue management plan and Montréal Health and Safety conference where 4 participants learned about new safety trends and sensitivity training to reduce fatigue in shared best practices. The VIAWELL Ambassador program And, more recently, our approach to their personal lives and at work. We 2 was launched in 2017 to champion helping Locomotive Engineers recover also encouraged ergonomic practices in As part of our commitment to foster a 1 2 3 4 5 6 7 “At VIA Rail, we are proud workplace mental health at all levels of from critical events was positively 0 1 1 1 1 1 1 1 0 0 0 0 0 0 0 our maintenance centres and worked 2 2 2 2 2 2 2 strong safety culture, we were proud to to play an active role in our organization. The objective is to recognized in a study published by the on measures to prevent baggage participate in the 2017 North American the prevention of mental create awareness, engage our people and Institut de recherche Robert-Sauvé. Over the past few years, our handling injuries. Occupational Safety and Health Week. provide tools to support our employees’ accident frequency rate has illnesses by promoting In addition to providing all our employees Our 22 Workplace Health and Safety mental well-being. Our focus is on been steadily declining due in Our managers are proactively engaging workplace health through with a free health check, we also launched Committees across Canada organized prevention, early intervention, recovery, part to our focus on proactive our employees on safety performance. our management practices, a Mental Health First Aid program and safety risk assessments and activities in their region to raise awareness leave and progressive return to work. With data from our Wi-Tronix technology, support programs and the trained over 300 employees on how to embedding a strong preventive on safety prevention. At our Montréal safety mindset among managers can now provide real-time training of our employees.” Today, we have 33 VIAWELL Ambassadors identify signs of mental health problems headquarters, we planned a whole week our people. feedback on safe train handling practices, who have been trained extensively on in themselves, co-workers, friends, of activities including a lunch and learn MARIE-CLAUDE LAPORTE mental health. They play a key role in family and the travelling public, as well and share good practices with our Senior Advisor, Disability about ergonomics and a presentation from providing support to reduce the stigma as refer people to specific services. locomotive engineers. Today, positive Management and Wellness UNIFOR about mental health. of mental illness and promote employee The curriculum covered topics including feedback is provided about 90% of engagement on the issue. substance use disorders, depression, the time. anxiety disorder and psychosis. Over the past year, mental health was an important topic at our leadership school training, our annual health and safety conference and our fatigue management workshops.

USING SIMULATED ENVIRONMENTS TO ENSURE SAFE TRAIN HANDLING BEHAVIOURS

We purchased a train simulator to replicate the in-cab work environment for our P42 and F40 locomotives. The simulator provides a controlled, immersive training environment, using the latest technologies to recreate different weather conditions and scenarios that may be encountered by our Locomotive Engineers in the real-world. We integrated the simulator into our Locomotive Cab Awareness Training to RIGHT: 1/ VIAWELL Ambassador promote safe train handling behaviours and improve the Matthew Coffen is trained to provide preventative support to training provided on human factors. fellow employees. 2/ A group of Montréal employees who completed their Mental Health First Aid training. 1 2 PHOTO: LAWRENCE KERR PHOTOGRAPHY

30 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 31 OPERATING SAFELY AND SECURELY

ENSURING RAILWAY WINDSOR KIDS SAFETY EVENT In May 2017, more than 2,350 students from SAFETY AND SECURITY three local school boards boarded our trains to visit the WFCU Centre in the City of Windsor and

OUR RISK-BASED SYSTEMATICALLY For example, by identifying high-risk areas participate in the 2017 MasterCard Memorial Card APPROACH IS HELPING MANAGING PERFORMANCE along the network on which we operate, activities. While onboard our trains, the kids from REDUCE TRAIN INCIDENTS Grades 5 and 6 received a lesson in rail safety as we were able to isolate and monitor speed Safety and security are the cornerstones of part of our Rail Safety Train Program and 1) compliance at specific crossovers, creating TRAIN INCIDENT RATIO our mandate to offer a national passenger rail Education Exposition. per million train-miles transportation service that meets the needs a much more efficient and effective process. of Canadian travellers from coast to coast. We ended the year with encouraging 3.0 results. In 2017, our train incident ratio We recognize the important responsibility

2.5 2.6 was 0.6. LEFT: Students boarding the train at the Windsor Station as 2.4 we have to meet and exceed, where part of the VIA Rail Safety Train program and Education Expo.

2.0 2.1 2.0 possible, all safety and security regulations. In addition to railway safety, we are also 1.5 This includes our obligations under the making important updates to our security 1.4 1.3 systems at key stations along our network. 1.0 Railway Safety Act, the Railway Safety Management System (SMS) Regulations, We continued the installation of innovative

0.5 0.6 the Memorandum of Understanding on technology upgrades, increased the number 1 2 3 4 5 6 7 0 1 1 1 1 1 1 1 0 0 0 0 0 0 0 Security, as well as other rules, regulations of security officers at our stations and 2 2 2 2 2 2 2 PRIORITIZING PUBLIC OUTREACH and best practices. Our Chief Transportation introduced a canine unit for specialty “As part of our commitment 1) Includes rail yard collisions, mainline to public safety, we were and Safety Officer is our Accountable security work. Over the years, we have made it our collisions, derailments with at least pleased to participate in one wheel off the track, exceeding Executive, who reports to the President and priority to educate Canadians about safety limits of authority violations, speeding Our security programs are an integral part Railway Safety Week infractions; excludes crossing accidents CEO and to the VIA Rail Board of Directors around rail property and trains. In our and trespassing. of our responsibility under the Railway through our partnership experience, a majority of incidents involving on our performance. Safety Act to promote and provide for the with Operation Lifesaver. our trains occur when people trespass In 2017, our SMS continuous improvement safety and security of the public, our Nothing is more important -77% on rail property or take unnecessary risks efforts were mainly focused on training our employees, and the protection of property to us than the safety and reduction in train incidents when crossing tracks. By working with since 2014 people on risk identification, assessment and environment in our railway operations. security of our people, various community organizations, industry and mitigation measures. We also tailored passengers and the associations and infrastructure owners, our SMS rule compliance monitoring to a communities where we are doing our part to instill a public Educating the public during Rail Safety Week in more risk-based preventive approach. we operate.” partnership with Operation Lifesaver's new 'Look, safety mindset through increased safety Listen, Live" campaign. DENIS VALLIERES awareness and education. Senior Director, Network Operations In 2017, as part of our commitment to public Our employees manned information kiosks safety, we partnered once again with at several stations including Halifax, Toronto Operation Lifesaver for Railway Safety and Jasper. Week. The week was dedicated to Passengers got to experience first-hand educating the public about the importance through a virtual reality video on their STRENGTHENING SECURITY of acting with extreme caution around the phones what it’s like to have a close railways through Operation Lifesaver’s new encounter with a train. Working together Over the past year, we continued to enhance our security ‘Look, Listen, Live’ campaign. with Transport Canada employees and at key stations. For example, at Ottawa Station, we completed This included holding a press conference the installation of innovative technologies such as video regional representatives, our employees surveillance and access management. We also strengthened with the Honourable Marc Garneau, helped educate the public about being our law enforcement presence by increasing the number of Minister of Transport and our newly- safe around railways. appointed Chairperson of the Board of security personnel and sniffer dogs on patrol in our trains, In addition to Railway Safety Week, we on our platforms and in our stations, while working together Directors, Ms. Françoise Bertand. During also hosted members of the International with other law enforcement partners along the network to the press conference, the government Association of Railways in Montréal for ensure the safety of our employees and our passengers. announced its funding support of the International Union of Railways (UIC) Operation Lifesaver, and we renewed International Level Crossing Awareness Day. our partnership with this important cause.

32 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 33 OPERATING SAFELY AND SECURELY

DEVELOPING INNOVATIVE IN FOCUS TECHNOLOGY AND INFRASTRUCTURE

Every year, we invest considerably in From an infrastructure perspective, our USING TECHNOLOGIES AND technology and infrastructure programs to ongoing work to eliminate rail joints and PREDICTIVE MAINTENANCE TO ENSURE operate a safe and efficient rail service. conduct state of good repair on the 3% SAFETY AND RELIABILITY We also use our Train Status Information of track we own within the 12,500 km Plus (TSI+) to monitor train speed and network on which we operate, continued In addition to optimizing the use of existing Wi-Tronix technologies to SAFETY AWARD provide real-time feedback to Locomotive to contribute to network safety. We are promote safer train handling practices, we are now shifting to condition-based RECOGNITION FOR Engineers (LEs) on safe handling. currently in the design phase of a major OUR NEW ELECTRONIC maintenance to predict rolling stock component repairs before a failure occurs project to install side double tracks, which TABLETS Our mobile electronic device provides direct will improve the safety, fluidity and reliability to ensure the safety and reliability of our railway service. communication with our LEs and access We were recognized by the of the network and reduce congestion. to safety rules, eliminating injuries caused Railway Association of Canada Over the past year, we have been working by handling heavy manual documents on We are partnering with the National with the Safety Award for the together with our employees to improve the use use of innovative electronic board our trains. In 2017, we received a Research Council of Canada to assess of our Wi-Tronix information and coach LEs on tablets for Locomotive Safety Award from the Railway Association the quality of our infrastructure, particularly Engineers. The tablets help better train handling practices. We also developed of Canada for the mobile electronic device. with respect to how the track reacts to eliminate the risk of a common new maintenance inspection schedules to injury due to the weight of changes in extreme temperatures. We Furthermore, condition-based maintenance proactively monitor a change in performance of the manuals and binders, allow will also be continuing to improve our for real-time manual updates on our rolling stock and infrastructure is components to predict their useful life while crossing equipment and visual signals to and facilitates communication helping to prevent potential failures by in operation. with the LEs. decrease the number of crossing and conducting more frequent inspections and trespassing incidents. Train Status Information Plus (TSI+): Through predicting problems before they occur. our TSI technology we get real-time information 374 Today, condition-based maintenance is about locomotive and train performance by 1 LE Mobile Electronic devices used on several applications including measuring and reporting data. The data is used in use in 2017 heating and air conditioning systems, by our managers to coach LEs on safer and more refrigerators, diesel engines, automatic efficient handling practices, particularly with car doors, and air brakes. respect to fuel consumption and speeding. Speedometer Inspections: Our speedometers are now being remotely monitored more frequently to detect deterioration before a failure occurs. As a result, we are able to prevent inaccuracies and reduce unnecessary distractions for our LEs.

Thermal Camera Inspections: Through MONITORING THE CONDITION OF OUR TRACK condition-based monitoring, we have increased 2 WITH INDUSTRY-LEADING TECHNOLOGIES the number and shortened the time of train inspections by using thermal cameras. This has Our industry-leading technologies help us monitor the resulted in better performance and comfort for condition of our infrastructure enabling us to run a safe and customers, less time troubleshooting on failures, more fluid service. In addition to our ongoing geometry and and less resources to conduct the inspections. ultrasonic tests, we also used predictive technologies to proactively detect potential issues, including the use of ground penetrating radar for ballasts. We also equipped some of our level crossings with sensor alarms, enabling us to react quickly, reduce interruptions to services and maintain safe operations.

RIGHT: 1/ Monitoring real-time data from TSI+ technology. 2/ Speed variances are now being remotely monitored to ensure safety. 3/ Inspecting train with thermal camera. 3 PHOTO: FTM EXPERT SYSTEM AND RAILTERM INC. LEFT: Ground penetrating radar helps determine the state of the ballast.

34 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 35 2017 ACHIEVEMENTS

LOWERING OUR REDUCING CARBON FOOTPRINT OUR IMPACT ON THE -34% reduction in greenhouse gas emissions per passenger-kilometre ENVIRONMENT since 2005 IMPROVING SHAPING CANADA’S LOW-CARBON ECONOMY ENERGY EFFICIENCY

2.2 million kWh saved per year at our Toronto Maintenance Centre from LED lighting

REDUCING CRITERIA AIR Despite the inherent environmental benefits of rail, we recognize CONTAMINANTS (CAC) the important responsibility we have to do our part to reduce the impacts of our own operations and to ensure the resilience of our buildings and infrastructure to climate change. -24% reduction in CAC emissions per Our priority is to improve the carbon footprint of our operations, passenger-kilometre since 2009 use resources efficiently, minimize waste, and promote the environmental benefits of rail by encouraging travellers to leave ROBERT ST-JEAN Chief Asset Management Officer their cars at home and take the train.

Our certified ISO 14001 Environmental reduction in carbon emissions. In recognition Management System (EMS) provides us of our fuel conservation practices, we with the framework to ensure we comply received an Environmental Award from the with regulations, prevent pollution and Railway Association of Canada. These continuously improve our processes. accomplishments position us well to reach In 2017, we were pleased to see three of the goals set by Canada and the International our maintenance centres successfully Union of Railways to limit GHG emissions. renew their ISO 14001 EMS certifications. Doing more with less is an important We also adopted a Green building policy, tenet of our circular economy commitment. which includes our commitment to achieve Through our condition-based maintenance LEED certifications on select buildings. program, we are optimizing the use of And, as part of our climate resilience strategy, materials for as long as possible, which in CREATING we also finalized a contract with the turn helps us reduce waste and save costs. POSITIVE IMPACTS: National Research Council of Canada to To drive our waste minimization strategy, WHERE IT CONNECTS assess extreme weather vulnerabilities we plan to work together with our new on our infrastructure. waste suppliers to help us achieve our waste targets. The significant investments we made in capital assets and improved train handling behaviours was the largest contributor to our

36 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 37 REDUCING OUR IMPACT ON THE ENVIRONMENT

IMPROVING ENERGY EFFICIENCY IN FOCUS AND CLIMATE RESILIENCE

DRIVING YEAR OVER We set ambitious targets, having committed Renewable Energy: We continue to explore YEAR FUEL EFFICIENCY to reducing our carbon emissions by 20% opportunities to source green energy FUEL CONSERVATION PRACTICES IMPROVEMENTS by 2020 and 30% by 2030, based on 2005, for our rail and building operations. In 2017, THROUGH TRAIN HANDLING BEHAVIOURS GHG EMISSIONS INTENSITY in alignment with the goals set by the we completed energy audits at three VS. FUEL EFFICIENCY Canadian Government and the International maintenance centres, which identified Our Wi-Tronix technologies have also been instrumental in helping us improve Union of Railways. To meet our targets we opportunities for greener energy. We are

0.15 40 Passenger-km/litre fuel rail fuel efficiency and reduce our environmental impacts. Through personalized are focused on three strategic priorities. also working with our rail partners to energy management scorecards informed by our Wi-Tronix telemetry system, explore renewable fuel and the use of 30 Improving Energy and Carbon Efficiency: our Locomotive Engineers gain a much better appreciation for their fuel 0.10 hybrid electric/diesel engines for our With 80% of our emissions generated from

e/Passenger-km efficiency performance and the opportunities for improvement. 2 fleet renewal project. 20 rail operations, our efforts are on optimizing

kg CO kg 0.05 car cycling and training Locomotive Climate Resilience: In partnership with the 10 “Fuel conservation practices Over the past year, we continued to make improvements on how Engineers (LEs) on fuel efficient behaviours. Railway Association of Canada, we continue on our trains are helping we train and coach our Locomotive Engineers (LEs) on innovative fuel 6 7 to collaborate with our industry peers to 0 10 11 12 14 15 1 1 0 0 0 0 013 0 0 0 0 We spent the past year making important reduce our carbon footprint. efficiency practices. 2 2 2 2 2 2 2 2 understand the impact of extreme weather progress implementing fuel conservation Training our Locomotive GHG emissions intensity events on rail. In 2017, we finalized a Engineers in simulated Performance Measurement: Our innovative telemetry Wi-Tronix Passenger-km per litre of fuel methods in our rail operations and contract with the National Research Council system is enabling us to compile data and monitor progress through optimizing our train handling behaviours. environments and of Canada to assess and identify extreme the LE Energy Management Scorecards. Through on-the-job CRITIERIA AIR CONTAMINANTS At the end of 2017, we improved our empowering them through EMISSIONS INTENSITY weather vulnerabilities on our infrastructure, personalized energy instruction, we coach our LEs on ways to reduce train idling and carbon efficiency by 34% and our fuel tonnes per passenger-kilometre including temperature changes and the management scorecards improve fuel efficiency. efficiency by 30%, based on 2005 levels. impact of freeze-thaw cycles. is driving performance 0.0035 Furthermore, our criteria air contaminants Simulator Training: In support of our fuel efficiency improvement on fuel efficiency.” 0.0030 intensity improved by 24% since 2009. objectives, last year we enhanced our apprentice LE simulator training 0.0025 JONATHAN COOKE program. By adding a new feature to the simulator, we can now train Energy efficiency at our buildings is 0.0020 Instructor, Learning and our apprentice LEs on how to better operate locomotives for lower 0.0015 being achieved through building retrofits, Development fuel consumption. 0.0010 including lighting fixtures, air conditioning 0.0005 and boiler systems, and other building Train Cycling: We significantly increased capacity on our trains where we experienced the highest demand on our network. By better 0 09 11 12 13 14 15 16 17 envelope refurbishments. 0 010 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 cycling our trains, we increased the number of available seat miles by 5.3% when compared to 2016.

IMPROVING ENERGY EFFICIENCY AT OUR TORONTO MAINTENANCE CENTRE -30% Last year, we made significant improvements to the Toronto reduction in fuel intensity Maintenance Centre by replacing the existing lighting with since 2005 LED lighting fixtures within the interior and outdoor yard areas. The project enabled us to reduce our energy and carbon emissions, by saving approximately 2.2 million kWh Environmental per year for the facility, translating into savings of $250,000 Award per year in operating expenses. The lighting also contributed We received the Railway to enhancing the safety of our operations by improving the Association of Canada’s lighting quality for our employees. Environmental Award in recognition of our fuel efficiency strategy

PHOTO: LAWRENCE KERR PHOTOGRAPHY LEFT: New LED lighting at Toronto Maintenance Centre.

38 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 39 REDUCING OUR IMPACT ON THE ENVIRONMENT

EXTENDING THE LIFE OF LUBRICANTS THROUGH CONTRIBUTING TO CONDITION-BASED MAINTENANCE

THE CIRCULAR ECONOMY Through condition-based maintenance, we proactively analyze the engine oil parameters to help determine oil condition and engine health on a regular basis. As a result of the program, oil change intervals were “Embracing circular IMPROVING OUR CIRCULAR ECONOMY reduced from every 2,000 hours to completely replacing scheduled oil economy principles in PROCUREMENT PROCESSES changes with oil analysis, to determine when a change is necessary. our procurement process Remanufacturing Participating in the circular economy is an This enables us to save $900,000 in capital and operating costs annually enables us to not only important part of how we plan to achieve Recycling 2 by reducing the number of needed overhauls to our diesel generator reduce our environmental our landfill waste diversion target of 10% sets, and avoiding more than 47,000 litres per year of wasted engine footprint, but also reduce by 2020 and our long-term goal to embed oil that would have resulted from our previous scheduled our costs and improve zero-waste concepts in our business. maintenance program. operational efficiencies. Reuse Working in partnership As a rail transportation company, we 3 with rail suppliers, see many opportunities to contribute 5 we will be exploring to the circular economy by reducing Redesign opportunities to improve materials at source, engaging suppliers our eco-efficiency.” on eco-design options, elongating material 4 life-cycles through reuse, repair and Maintenance TRACY POWER remanufacturing, and working with our Director, Procurement partners to recover and recycle materials PARTNERING WITHIN THE OPTIMIZING MATERIAL USE AND Ensuring the value of products, materials and resources COMMUNITY TO RE-USE IMPROVING RECYCLING at the end of their life. are maintained in the economy for as long as possible. EMPLOYEE UNIFORMS An important part of our waste prevention In 2017, we embarked on a project to Every year, we partner with strategy is to continue to systematically formalize the integration of circular economy them to support us in achieving our waste recognized organizations across analyze our operations to optimize principles into our procurement processes, reduction and diversion targets. the country who collect our old material use. including when defining our technical employee uniforms and find In the coming year, we will be working alternative uses for them. requirements, selection criteria and To optimize and extend the life of our on our fleet renewal project Request for contracting language. Many of these organizations – rail equipment, components and supplies, Proposal in the Québec City-Windsor including Renaissance, Goodwill we have started to experiment with At the end of last year, we were pleased corridor, where we plan to influence Industries Dartmouth, Goodwill London and Waterloo, and condition-based maintenance. With our to have successfully negotiated innovative eco-design options. TransContinental Textiles – have previous scheduled maintenance program, Our highly visible waste recycling receptacles in the waste contracts with four new waste both an environmental and we ended up discarding the product Ottawa Station are helping us divert waste from landfills. suppliers across Canada, which incentived social purpose. Their mission is to employ people who have had when it may have still had life. The move difficulties in life and provide to a more proactive approach enables us that specializes in managing the them with opportunities to to predict and correct failures before they redistribution of corporate interior assets reintegrate themselves back into their local workforce. become problems, reduce unnecessary through resale, recycling and donations. waste, extend product lifecycles and We also partnered with recognized significantly reduce our costs. organizations to repurpose our used EXPLORING ECO-DESIGN OPTIONS IN OUR FLEET RENEWAL PROJECT In 2017, condition-based maintenance uniforms to give them a second life. testing included engine oil analysis, battery By diverting millions of tons of reusable As our train fleet naturally approaches the end of its life, our cars conditions, ultrasonic tests, thermal goods from landfills annually, these and locomotives will be replaced with a newer, more efficient cameras and other electric parameters. organizations significantly help the environment and create social benefits alternative. Through our market sounding processes, we have been When materials naturally reach the end of for the people who work form them. exploring more sustainable features, including the use of hybrid their life, we partner with various reuse, engines, renewable fuels, fuel efficient propulsion technologies, refurbishment and recycling organizations. 30 year locomotive lifespan, and better waste recycling receptacles For example, in 2017, we continued to work on board. We are also exploring testing requirement to ensure the with Green Standards – an organization cars are acclimatized for extreme weather events.

40 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 41 REDUCING OUR IMPACT ON THE ENVIRONMENT

PROMOTING THE ENVIRONMENTAL BENEFITS OF PASSENGER RAIL

PROVIDING A CLEANER As one of the most environmentally-friendly AND MORE SUSTAINABLE inter-city transportation modes, we believe TRAVEL OPTION passenger rail is an important part of the environmental solution for Canada. It provides a cleaner, more accessible and 261,357 affordable alternative to cars, while supporting the necessary shift needed to tonnes of CO2e of carbon avoided by VIA Rail trains in 2017 reduce the transportation sector’s when compared to car travel contribution to deteriorating air quality, smog, congestion and climate change.

Lowers Greenhouse Emissions: Our President and CEO, Yves Desjardins-Siciliano, 4X The transport sector in Canada accounts speaking at the Forum des mobilités durable in Paris less energy used on average discussing the role passenger rail plays in limiting for 23% of Canada’s GHG emissions, of climate change in Canada. by trains when compared to road transport2) which 51% comes from passenger road transport and a mere 0.07% comes from particulate matter – are big contributors VIA Rail’s passenger rail service. When to the deteriorating air quality and smog we compared to taking the car, passenger rail are seeing in our towns and cities. generates 66% less GHG emissions per Promotes Efficient and Cleaner Energy Use: passenger-kilometre.1) When compared to road transport, railways Reduces Toxic Pollutants and Smog: uses on average more than 4 times less Criteria air contaminants from rail transport energy.2) Furthermore, technological are much lower than road transport. Many advancements in rail are significantly of these toxic pollutants – including carbon improving fuel efficiency and options for monoxide, volatile organic compounds, renewable energy sources. nitrous oxides, sulphur dioxides and

1) Based on the findings of the study “Comparison of Passenger Rail Energy Consumption with Competing Modes” (2015) 2) Based on the findings of the “Transportation in Canada 2016 - Addendum 2016”, which compares road transport and urban transit with railways energy consumption.

WHY DON'T YOU TAKE THE TRAIN? ADVERTISING CAMPAIGN

To encourage Canadians to change their habits, leave their cars at home and take the train, we have been implementing our “Why Don’t You Take the Train” marketing campaign. In August 2017, we launched a variety of new advertising messages emphasizing the train as the smarter way to travel on digital billboards along highways in Montréal, Toronto and Ottawa. The messages were triggered when there was heavy congestion and traffic.

42 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 43 2017 ACHIEVEMENTS BEING DEVELOPING SKILLS AN ATTRACTIVE 129,003 total hours of training in 2017, with an average of 46 hours EMPLOYER per employee PROMOTING DIVERSITY EMPOWERING THE WORKFORCE OF THE FUTURE

34% of workforce comprised of women, an increase of 2% since 2015

ENGAGING OUR PEOPLE Our 2,899 employees are the foundation of our success. It is their customer-focused dedication, and their motivation and talent that have made us resilient and flexible in the face of change. 78% As we transform our business for the next phase of VIA Rail’s future, participation rate in our employee engagement survey, an increase of we are empowered by our strong set of values, a culture based on 7 percentage points since 2016 performance, and our focus on talent and development. It is these attributes that underpin our ambitions leading up to 2025 to be a LINDA BERGERON Chief Human Resources Officer personalized, connected, collaborative and responsible organization.

Guided by our core values – innovation, Progressive Aboriginal Relations (PAR) know-how, trust, agility, accountability certification process to solidify our approach and integrity – this year we began a gradual, to integrating Indigenous communities transformation of our people strategy. into all facets of our business. We focused our efforts on ensuring leaders Employee dedication and commitment to exude effective management capabilities our business was a highlight. This year, as well as enhancing the work environment 16 outstanding employees across Canada so that all employees feel supported were recognized through our Distinction and empowered. Awards. There were 215 peer-nominated CREATING employees up for the awards, an increase POSITIVE IMPACTS: In 2017, we completed more than 129,000 WHERE IT CONNECTS of 162% compared to 2016. We also had hours of training for our people, and were a 78% participation rate on our employee proud to see our first group of future leaders engagement survey. graduate from the two year VIA Rail Leadership School Program. These are all encouraging signs that we are heading int he right direction as an In addition to increasing gender diversity attractive employer. and encouraging more military veterans to join our workforce, we embarked on the

44 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 45 BEING AN ATTRACTIVE EMPLOYER

DEVELOPING TALENT VIEWPOINT TO SHAPE OUR FUTURE

INCREASING As we build our future workforce, we are We also continued to offer technical KNOWLEDGE THROUGH focused on attracting and developing the skills training focused on customer-centric TRAINING OUR LEADERS TRAINING PROGRAMS best talent. service, equipment maintenance, and FOR THE FUTURE locomotive engineering. Where possible, AVERAGE HOURS OF Last year, we continued to strengthen TRAINING PER EMPLOYEE we use succession training so that we relationships with recruitment organizations As we transform our business towards our 2025 ambitions, harness the knowledge of our experienced 46 to ensure we access the best talent our Leadership School is accelerating the growth of our future

46.0 employees and ensure it is being 42 pool. We also took advantage of our leaders in alignment with our vision and purpose. passed down.

38 40.6 best ambassadors – our employees – by introducing a new employee referral In 2017, we restructured our Mechanics Last year, we were proud to graduate our Our participants in the Leadership 34

33.9 program to help us find candidates for and Maintenance Apprenticeship program first group from the Leadership School School Program, became even more 30 31.4 specialized positions. At the end and integrated our more experienced Program, which we launched in 2016. knowledgeable about the common goals we are focusing on to transform 26 of 2017, we successfully hired and on employees to participate as instructors. The program provided our future 4 5 6 7 ourselves into a high-performance, 22 1 1 1 1 boarded 545 talented people. We also selected our talented Customer 0 0 0 0 leaders with a broader knowledge of our 2 2 2 2 customer-focused and agile organization. Experience employees to train onboard business, helping them develop new We have a structured approach to training “To drive forward our employees, station workers and VIA management reflexes, and giving them Upon completion of the program, we and development, enabling our people 2025 ambitions, we are Customer Centre employees. linking the day-to-day the tools to truly engage and empower received positive feedback from the 46 hours to continuously grow and develop their activities of our people to their people. participants, and our overall employee training per employee to ensure management and technical skills. Our apprenticeship training programs have our people develop their skills our strategic goals and engagement scores for managers been a great success. In 2017, we awarded We also strengthened the training and capabilities, and are Our management level training is purpose. The Leadership increased by 17% since 2015. empowered to be successful. 11 apprenticeships prizes for outstanding modules of our Leadership School to focused on developing future leaders with School is an important part include our 2025 strategic orientations – This represents an increase work during the four year apprenticeship of 48% since 2014. the capabilities to create an environment of building the capabilities personalized, connected, collaborative program. Many of the participants are where people feel supported, valued needed to deliver on and responsible – which resulted from now working as rail car technicians, diesel and empowered to be successful. In 2017, our aspirations.” planning sessions and workshops mechanics, refrigeration mechanics, 74 participants completed the two year with more than 70 executives, directors electricians or technicians for rail cars FRANCE TOULOUSE VIA Rail Leadership School Program. and managers. and diesel engines. Director, Centre of Expertise

VIA RAIL LEADERSHIP SCHOOL OUTPUTS

74 8,910 4.5/5 PROVIDING SUCCESSION TRAINING trainees, including directors, hours of training over average satisfaction score THROUGH OUR APPRENTICESHIP PROGRAM senior managers, managers the course of 82 sessions and supervisors Our Mechanics and Maintenance Apprenticeship Training Program helps develop the skills required for various technical trades. The program provides succession training through mentorships with our experienced employees. The apprenticeship program is well established at our Montreal Maintenance Centre, and was recently implemented in Toronto and Vancouver.

RIGHT: VIA Rail’s management in a strategic planning session that led to the creation of our 2025 ambitions. LEFT: Recent graduates of the Apprenticeship Program.

46 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 47 BEING AN ATTRACTIVE EMPLOYER

PARTNERING TO IMPROVE PROMOTING REPRESENTATION OF INDIGENOUS COMMUNITIES

DIVERSITY AND INCLUSION We are committed to enhancing our relationship with Canada’s Indigenous communities. In 2017, we began

SETTING OUR SIGHTS ACTING ON GENDER EQUALITY work to attain the base level of the CCAB Progressive ON CONTINUOUSLY AND AWARENESS Aboriginal Relations Certificate. This is more than just IMPROVING GENDER a designation – it’s a commitment that requires a high DIVERSITY We are committed to playing our part level of collaboration between our departments. To be in attracting and developing a diverse considered for certification, we must demonstrate: leadership actions, equitable GENDER DIVERSITY workforce that reflects the attitudes and employment programs, business development with Aboriginal-owned businesses, Men 66.2% needs of the communities where we and establishing and maintaining positive community relations. Women 33.8% operate. For us, a diverse and inclusive workforce is essential to achieving our 2025 ambitions. We aim to actively LEFT: Linda Bergeron, Chief Human Resources Officer with JP Gladu, President and CEO of CCAB. embrace diversity and empower people to challenge each other to be more Sonia Corriveau, VIA Rail’s Chief Business Transformation innovative and deliver results. Officer was on a panel with Harjit Singh Sajjan, Minister of National Defence, about how women can make a To support our efforts, last year, we difference in male dominated sectors. formalized our Diversity Action Plan and our We aim to actively embrace senior management set annual diversity To increase the number of women in “CCAB is excited and INCREASING REPRESENTATION OF gender diversity. In 2017, targets in alignment with our diversity management positions, we have started honoured to welcome VETERANS AND INDIGENOUS PEOPLE we made progress leading VIA Rail into our business conversations within commitments. Our employee-led regional to lead conversations to empower As part of our goal to be an inclusive and Canadian society and will diversity and inclusion committees play an meaningful change. family. The national role accessible employer, we are doing our part be setting new ambitions important role in promoting behaviours VIA Rail plays in connecting to increase under-represented groups in our In addition to promoting inclusivity to continuously improve. consistent with our values and help us break all Canadians is essential workforce, including people with disabilities, and equality within our business, our down unconscious bias. for promoting our mutual visible minorities, Indigenous Groups and senior management is also leading business interests. We military veterans. Our commitment to gender diversity is an the conversation on gender equality look forward to working important part of our Diversity Plan. Today, and female leadership within together in the months and We continue to maintain our long and proud women account for 40% of our executive Canadian society. years ahead.” tradition of supporting military and veteran team, 31% of our management positions, community members to make the transition VIA Rail was named Canadian Armed Forces’ Most JP GLADU and 34% of our non-management positions. to civilian life. In addition to sharing our Supportive Employer in Canada. President and CEO of The Canadian Council for values, the military provides skills and Aboriginal Business competencies that are highly transferable Excellence for Best Practice in Employer to our organization. In 2017, we increased Support of Canada’s Reserve Forces. our efforts to encourage more veterans We are the first-ever federal Crown to join our staff. Today, we have 50 military Corporation and main passenger rail members in our workforce, and the transport company to receive these awards. LEADING CONVERSATIONS number is growing. TO IMPROVE WOMEN’S ADVANCEMENT As part of our commitment to inclusive We also worked together to implement growth, in 2017, we entered into a our new leave policy allowing employees In 2017, our Chief Human Resources Officer, partnership with the Canadian Council for who are in the Reserves to continue their Linda Bergeron, led a series of workshops with Aboriginal Business, enabling us to work military training or participate in temporary female management employees in Montreal, together to forge closer ties and facilitate Halifax, and Toronto. The workshops provided a missions during military operations in increased representation of Indigenous forum to discuss the challenges of taking on a Canada and abroad. In 2017, we were Peoples in our workforce. management role as a woman and to exchange honoured to receive two Canadian Forces ideas on how best to improve the engagement of Liaison Council awards – the Canadian women in management positions. Armed Forces’ Most Supportive Employer in Canada Award and the Award of

LEFT: Female managers participating in dialogue with our Chief Human Resources Officer in Montréal.

48 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 49 BEING AN ATTRACTIVE EMPLOYER

ENGAGING AND IN FOCUS RECOGNIZING OUR PEOPLE

To be relevant in a fast paced and ever- changing business environment, we are EMPOWERING OUR PEOPLE taking the necessary steps to ensure we TO BE THEIR BEST engage our people in the success of our business, while recognizing and rewarding As we build the workforce of the future, our focus is on empowering our people their achievements. to come up with the best and brightest ideas to support our transformation RECOGNIZING EMPLOYEES WHO GO On a regular basis, we proactively engage into a high-performance, customer-focused organization. Through our Client ABOVE AND BEYOND with our unions on matters of mutual Innovation Challenge and our Centre of Excellence, we are engaging our interest in a spirit of collaboration. Every year, we recognize the employees to find innovative solutions to improve our business. incredible achievements of Specifically, we partner with UNIFOR, our people through our who represents our employees working Yves Desjardins-Siciliano, President and CEO, and Distinction Awards. Martin R. Landry, Chief Commercial Officer, with Zachary Client Innovation Challenge: Every in stations, customer service centres, Wells (centre), Senior Service Attendant, winner of the In 2017, we received 215 peer maintenance centres and administrative Five-Star Service Award for Central Canada. year, we recognize the value of our nominees – an increase of centres; and, Teamsters Canada Rail employees’ ideas and experiences to 162% since 2016. From those, 16 outstanding employees Conference (TCRC), who represents our Challenge, and Centres of Excellence improve customer service. In 2017, we were proud recipients of our Locomotive Engineers. at our maintenance sites. recognized Justin Sutherland, Chef on award in the categories: board The Canadian, who shed light on Five-Star Service, Maintenance In 2017, we were pleased to successfully These Centres of Excellence provide a the challenges faced when cooking and Excellence, Success Story, renew our agreement with the TCRC for forum for employees to submit ideas on and Team Spirit. serving food to dozens of passengers. another five years in advance of its expiration how to improve their day-to-day work His idea for a new onboard kitchen date. It was a real accomplishment for processes and solve problems through renovation hit the mark, and the new us and a testament of the value of having leadership and teamwork. designs are expected to improve a collaborative partnership approach with efficiency and working conditions 1 the unions. while preventing potential injuries We also engage directly with our employees on board our trains. to encourage creative thinking through Centre of Excellence: At our our Distinction Awards, Client Innovation maintenance centres, we are empowering our employees to work together to find innovative solutions to enhance their working environments to solve day-to-day problems. Through our Centre of Excellence, we have DELIVERING POSITIVE EMPLOYEE ENGAGEMENT RESULTS brought together more than 500 bright ideas from our employees since 2 The latest trends in our employee engagement survey have been positive, giving us a pulse on how we are doing as an 2016 – 91% of the ideas have been organization. We learned that our people are committed and have great pride in working for VIA Rail. We used the result completed or are currently in progress. to inform our continuous improvement plans for 2018.

RIGHT: 1/ Justin Sutherland recognized through the Client Innovation Challenge for his onboard kitchen renovation idea. 2/ Employees working 78% 62% +6% 72% together on day-to-day improvements in the work environment. 3/ Mathieu Brunet, Electrician, participation rate, engagement score, increase in trust index score would not hesitate to developed a new valve assembly system making an increase of 7 percentage an increase of 5 percentage since 2015, indicating recommend VIA Rail as a onboard toilets quieter, less expensive and easier points since 2016 points when compared to 2016 confidence in follow-up actions great place to work to troubleshoot. 3

50 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 51 2017 ACHIEVEMENTS MANAGING REACHING COMMUNITIES OUR BUSINESS 340 meetings with governments, and business and community organizations on RESPONSIBLY our strategic projects SETTING THE EXAMPLE ADHERING TO THE HIGHEST STANDARDS FROM THE TOP

We welcomed a new Board of Directors, which is gender balanced and diverse

ENGAGING A BROAD RANGE Good governance and ethical conduct, transparent communications OF AUDIENCES and proactive stakeholder engagement are core tenets of our responsible management business philosophy. As a Crown Corporation, we ensure the right accountability, risk 174,768 Facebook fans, 45,706 followers on management and controls are in place to successfully advance the Twitter and 13,577 followers transformation of our business through our strategic plan leading on Instagram

SONIA CORRIVEAU up to the year 2025. As we embark on our roadmap for the future, Chief Business we will be focusing on becoming even more efficient, with an Transformation Officer uncompromising risk discipline.

The strength of our business positions us Our communication strategy, under well to respond to strategic opportunities the leadership of our new Chief of as they emerge to transform VIA Rail into Communications, was updated and we high performing, customer-focused, leading made important progress through our sustainable transportation company. Our advertising campaigns that promote VIA Rail clear systems of accountability, values of as the smarter travel option. In 2017, we fairness and integrity, and proactive gained local, national and international engagement are important drivers of our recognition for our travel campaigns, and social license to do business. engaged even more Canadians using various social media channels. From a governance perspective, in 2017, many new members were appointed to Through our consultations, we are confident CREATING our Board of Directors by the Government, of our capabilities to realize the full potential POSITIVE IMPACTS: as previous members’ mandates were of our proposed high frequency and fleet WHERE IT CONNECTS complete. The new Chairperson and Board renewal projects. In 2017, we participated at introduced a new Board Committee to 340 meetings with governments, and increase our oversight of major projects and business and community organizations on ensure risks are managed and our reputation our strategic projects. is protected at all times.

52 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 53 MANAGING OUR BUSINESS RESPONSIBLY

UPHOLDING GOOD GOVERNANCE VIEWPOINT AND ETHICAL CONDUCT

We have a strong culture of compliance Today, our high caliber and diverse Board and a mindset of acting with integrity in is composed of 11 members, including COMMUNICATING everything we do. We adhere to the Federal the Chairperson and 10 independent OPENLY AND TRANSPARENTLY Accountability Act, and have a strict Code non-executive Directors. We are pleased to of Ethics which all management, unionized report that more than 50% of the Board We believe in being open and transparent in the communications STRENGTHENING employees and third parties acting on our members are women. we provide to the public about our company, our services and how OVERSIGHT ON MAJOR behalf are required to sign to ensure their PROJECTS THROUGH All new Directors receive a comprehensive we do business. When requested, we take the necessary steps to ongoing compliance. A NEW BOARD induction into our business, including on SUB-COMMITTEE ensure relevant information is made readily available to our Good governance is a guiding principle social, environmental and ethical topics. audiences in a timely and responsible manner. In 2017, our updated Board that underpins our license to do business. The Board also regularly discusses our 2020 Our Board of Directors – appointed by the sustainable mobility plan and the progress established the Major Projects Last year, we continued to strengthen the Advertising Campaigns: We continued Committee. Governor-in-Council on the recommendation we are making on matters of strategic impact of our communications to position to gain traction on our advertising The Committee provides of the Minister of Transport – is responsible importance, including health, safety, VIA Rail as the smarter more sustainable campaigns. In 2017, we won three prizes oversight on our major projects for overseeing the strategic direction and security, environment, accessibility, and “Our commitment to to ensure appropriate due way to travel. at the Prix Média d’Infopresse. Our management of our business and reporting stakeholder engagement. providing clear, transparent, “Winter Way to Travel” campaign won diligence is conducted, risks Corporate Communications: Our assessed and mitigated and on our operations to the Canadian and accurate information both Best Use of Digital Media and Best Today, four committees assist the corporate disclosures, including annual our reputation protected, federal government. is at the core of how we Use of Data and Research, while the Board in its oversight: the Audit and Pension reports, speeches and projects are made while ensuring projects are ensure responsible “Why Don’t You Take the Train” campaign managed in scope, on time In 2017, we welcomed eight new Board Investment Committee, the Major Projects available through our website, webcasts communications and won in the Best Use of Billboards prize. and on budget. of Directors members, who possess a Committee, the Human Resources and formal meetings. Our Annual Public The “Winter Way to Travel” campaign marketing. Through Meeting held in May 2017 can be watched strong mix and balance of skills, knowledge Committee and the Communication and was also recognized internationally openness and transparency, online on the VIA Rail YouTube channel, and experience to support the achievement Stakeholders’ Relations Committee. at the Festival of Global Media in Rome we are communicating with which includes our 2016 results and 2017 of our vision and strategic objectives. where it won silver in the Best Use of impact to a broad range First Quarter results as well as updates on Geo-Location category. of audiences on VIA Rail’s the top 10 question topics we received. business transformation and future growth.” Social Media: We also communicate directly with the public through other ANN BOUTHILLIER media channels, including our blog, Chief Communications Officer Facebook, Twitter and Instagram accounts. At the end of 2017, we had 174,768 fans on Facebook, 45,706 followers on Twitter, and 13,577 followers on Instagram.

WELCOMING A SKILLED, GENDER-BALANCED AND DIVERSE NEW BOARD OF DIRECTORS

In 2017, we welcomed a new Board of Directors composed of 11 members, of which eight are new Directors. Through the new Director selections, we were pleased to have maintained a high caliber, gender balanced and diverse composition of members – RIGHT: 1/ VIA Rail’s YouTube channel includes the 2017 Annual we have 6 female members, and representation from General Meeting where Yves visible minorities and the Indigenous community. Desjardins-Siciliano answers the top 10 topics derived from over 700 questions received. 2/ Our “Why Don’t You Take the Train?” marketing campaign, LEFT: VIA Rail’s Board of Directors with Yves Desjardins-Siciliano, challenges people to pause and President and CEO of VIA Rail, and Honourable Bill Fraser, Minister re-evaluate their travel habits. 1 2 of Transportation and Infrastructure in Moncton, NB.

54 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 55 MANAGING OUR BUSINESS RESPONSIBLY

COLLABORATING WITH OUR STAKEHOLDERS

“By working together Through our Government and Community Sustainable Transportation: To support and collaborating with Relations team we have developed a missions of organizations that are dedicated our stakeholders we are stakeholder engagement strategy to to sustainable transportation, we contributed enriching our understanding promote dialogue on issues of public to the Canadian Urban Transit Association’s of the issues and building interest that are relevant to our business Transit Awareness Day, the inauguration strong relationships. This and to the interests of the communities of the new organization Trajectoire Québec past year, we responded where we operate. and a summit hosted by the Association to various requests and québécoise des transport. received manifestations In 2017, we increased dialogue with many of support for many of of the communities we serve in a spirit of Military and Veterans: We continued to our strategic projects." transparency, cooperation and good faith. increase our efforts to support Canada’s We had more than 340 formal meetings Military members’ transition to a civilian JACQUES FAUTEUX with various levels of government, business life through the Military Employment Director of Government and communities as well as non-governmental Transition Program. Other partnerships Community Relations organizations on a broad range of issues. include: the Royal Canadian Legion’s national Poppy Campaign, True Patriot Love, High Frequency Rail and Fleet Wounded Warriors Canada, Canadian Renewal Projects: We responded to Forces Morale and Welfare Services, and requests from numerous organizations, the Canadian Army Run. including the Eastern Ontario Wardens’ Caucus, the Eastern Ontario Major’s We also continued to engage proactively Caucus, along with the Chambers of with communities within close proximity to Commerce of Drummondville, Trois-Rivières, our rails to discuss and address issues on Québec City, Peterborough and Ottawa upcoming maintenance and construction regarding the High Frequency Rail project activities on our infrastructure. and our fleet renewal project.

PROVIDING TIMELY AND RELEVANT INFORMATION TO OUR COMMUNITIES

In order to provide more timely and relevant information, we launched a new community webpage and have developed a tool to post updates on the site in a more dynamic and user-friendly way. Using geo-spatial technology, users can now locate their community on a map and identify pertinent information of interest. You can visit our community webpage at community.viarail.ca. ABOVE: Our President and CEO, Yves Desjardins-Siciliano, and David Flannigan, Dominion President of the Royal Canadian Legion launch the VIA Rail Poppy Campaign and pay tribute to Canadian Veterans.

56 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 57 MEASURING GRI / VIA RAIL INDICATOR 2017 2016 2015 EMPLOYEES PERFORMANCE 102-7 Number of active employees at the end of the calendar year 2,899 2,731 2,577 405-1 Number of active male employees 1,913 1,865 1,701 DATA SUMMARY TABLE 405-1 % of active male employees 66% 68% 66% 405-1 Number of active female employees 986 866 876 405-1 % of active female employees 34% 32% 34% GRI / VIA RAIL INDICATOR 2017 2016 2015 102-41 Unionized employees (%) 81% 81% 81% CUSTOMER 401-1 New hires 545 566 393 VIA Rail Passengers (in thousands) 4,392 3,974 3,818 VIA Rail New hires from Canadian Armed Forces 22 25 5 VIA Rail Passenger miles (in millions) 953 858 822 401-1 Employee turnover rate (%) 11% 10% 11% 102-43/45 Customer satisfaction (Net Promoter Score) 50 49 39 VIA Rail Attendance rate (%) 94% 95% 93% VIA Rail On-time performance (%) 73% 73% 71% 405-1 Number of active Indigenous employees 54 52 n/a VIA Rail Passengers taking advantage of fare discounted packages (in thousands) 452 393 n/a 405-1 % of active Indigenous employees 2% 2% n/a VIA Rail Inter-modality passengers (in thousands) 115 95 77 405-1 Number of active visible minority employees 350 278 n/a SOCIO-ECONOMIC 405-1 % of active visible minority employees 11% 10% n/a 201-1 In-kind trip donations ($) 2,423,222 1,416,849 1,502,042 405-1 Number of active people with disabilities employees 67 49 n/a 203-2 Total suppliers supported 2,818 2,562 2,500 405-1 % of active people with disabilities employees 2% 2% n/a 203-2 Local Canadian suppliers supported (%) 94% 93% 94% 405-1 Number of active veteran employees 50 38 n/a 203-2 Supplier expenses for purchased services, materials and fuel ($ millions) 364 334 315 405-1 % of active veteran employees 2% 1% n/a SAFETY 405-1 Age group over 50 (%) 35% 39% 43% 403-2 Train incident ratio per million train-milesa) b) 0.6 1.4 2.4 405-1 Age group between 30-50 (%) 50% 44% 42% 403-2 Crossing incidents 9 7 9 405-1 Age group below 30 (%) 15% 17% 15% 403-2 Trespassing incidents 17 16 11 404-1 Total hours of training 129,003 106,893 70,911 403-2 Accidents per 200,000 hours worked (frequency) 6.1 6.3 6.5 404-1 Health and safety training 42,865 42,652 33,681 403-2 Days lost per 200,000 hours worked (severity) 95.0 118.6 129.3 404-1 Customer service training 42,072 31,283 20,540 403-2 Lost-time incidents 158 153 151 404-1 Equipment training 17,838 11,008 8,464 404-1 Safety training hours 42,865 42,652 33,681 404-1 Employee support training n/a 9,743 1,311 ENVIRONMENT 404-1 Management training 5,346 8,861 2,188 c) 404-1 Specific skills and professional development 17,816 1,706 2,771 VIA Rail Total GHG emissions (scope 1 and 2) (tCO2e) 138,437 136,293 134,652 c) 404-1 General training programs n/a 1,640 1,956 305-1 Total direct GHG emissions (scope 1) (tCO2e) 136,510 132,961 132,212 404-1 Number of employees who received training 2,800 2,630 2,091 305-1 Rail locomotives (tCO2e) 126,533 124,683 125,616 404-1 Average hours of training per employee 46.0 40.6 33.9 305-1 Maintenance centers and stations (tCO2e) 9,615 7,786 6,597 GOVERNANCE 305-1 Road vehicles (tCO2e) 362 491 n/a c) 102-22 Board directors 12 10 11 305-2 Total indirect energy consumed – electricity (scope 2) (tCO2e) 1,928 3,332 2,439 d) 102-22 Non-executive directors 10 9 10 VIA Rail GHG emissions avoided by VIA Rail trains compared to car travel (tCO2e) 261,357 235,155 223,956 VIA Rail % reduction in GHG emissions since 1990 e) 40% 41% 41% 102-22 Female board directors (%) 50% 50% 50% VIA Rail % reduction in GHG emissions intensity since 2009 e) 34% 30% 26% a) Includes rail yard collisions, mainline collisions, derailments with at least one wheel off the track, exceeding limits of authority violations, VIA Rail % reduction in GHG emissions since 2005e) 30% 28% 29% speeding infractions; excludes crossing accidents and trespassing. e) 305-4 Kilograms CO2e per passenger-kilometre 0.082 0.090 0.095 b) Our 2015 incident ratio was restated due to a change in methodology. GRI sector Litres of fuel per passenger-kilometree) 0.030 0.031 0.031 c) GHG emissions relates to scope 1 emissions from rail locomotives, road vehicles, and natural gas consumption from maintenance centres and stations and scope 2 emissions from electricity and steam consumption from maintenance centres and stations. It includes CO , CH VIA Rail % reduction in fuel intensity since 2005e) 30% 26% 25% 2 4 and N O. We applied a base year of 2009 when measuring our progress towards the International Union of Railways objective. We applied a f) 2 305-7 Total criteria air contaminants (CAC) (Kilotonnes) 3.28 3.16 3.12 base year of 2005 when measuring progress towards VIA Rail’s GHG reduction target. We use the GHG protocol for our reporting standard, 305-7 Nitrous oxides (kilotonnes) 2.11 2.03 2.01 and apply the emission factors from Environment Canada’s National Inventory 2015. GHG emissions for 2016 have been restated since the 305-7 Sulphur dioxides (kilotonnes) 0.001 0.001 0.001 last report to include most up to date GHG calculation. 305-7 Particulate matter (kilotonnes) 0.043 0.042 0.041 d) Based on the study “Comparison of Passenger Rail Energy Consumption with Competing Modes” (2015) for door-to-door direct activity. e) Does not include emissions from road vehicles, maintenance centres or stations. Data from 2016 has been restated since last report to 305-7 Hydrocarbons (kilotonnes) 0.82 0.79 0.78 include most up-to-date GHG calculation. 305-7 Carbon monoxide (kilotonnes) 0.30 0.29 0.29 f) Emission factors for criteria air contaminants (CAC) are based on the “2015 Locomotive Emissions Monitoring Report”, page 25, table 8, VIA Rail CAC intensity (tonnes/thousand passenger-kilometre) 0.0021 0.0023 0.0024 total passenger for diesel locomotives (g/L). Please note that the CAC data has bee revised from last year to report VIA Rail’s specific VIA Rail % reduction in CAC intensity since 2009 24% 27% 28% CAC emissions. Last year, we reported the total CACs for Canada.

58 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 59 ALIGNING TO GRI DISCLOSURE SECTION / LOCATION PAGE / SOURCE GOVERNANCE INTERNATIONAL STANDARDS 102-18 Governance structure Ensuring Performance 11 102-19 Delegating authority Ensuring Performance 11 GRI INDEX 102-20 Executive-level responsibility for economic, Ensuring Performance 11 environmental, and social topics 102-21 Consulting stakeholders on economic, Managing Our Business Responsibly, 47, 64* In compiling the content for our 2017 Sustainable Mobility Report, we were guided by the environmental, and social topics About this Report reporting principles set out in the Global Reporting Initiative (GRI) Standards Reporting 102-22 Composition of the highest governance body Managing Our Business Responsibly 54* Framework, using the Core option. The following GRI index presents the GRI standard and its committees 102-23 Chair of the highest governance body Managing Our Business Responsibly 54 disclosures covered in our report and other resources available on our website. 102-24 Nominating and selecting the highest Managing Our Business Responsibly 54 governance body GENERAL STANDARD DISCLOSURES 102-30 Effectiveness of risk management processes Sustainable Mobility at VIA Rail, 8, 10, 52* Ensuring Performance, GRI DISCLOSURE SECTION / LOCATION PAGE / SOURCE Managing Our Business Responsibly GRI 101: FOUNDATION 2016 Does not include any disclosures. 102-31 Communicating critical concerns to the www.viarail.ca/sites/all/files/media/pdfs/ Code of Ethics highest governance body sustainable_mobility_report_2015.pdf VIA Rail Canada GRI 102: GENERAL DISCLOSURES 2016 STAKEHOLDER ENGAGEMENT ORGANIZATIONAL PROFILE 102-40 List of stakeholder groups Managing Our Business Responsibly 56 102-1 Name of the organization About this Report 64 102-41 Collective bargaining agreements Data Summary Table 59 102-2 Activities, brands, products, and services VIA Rail At-a-Glance 4 102-43 Approach to stakeholder engagement About this Report 64 102-3 Location of headquarters Corporate Offices Back Cover Page 102-44 Key topics and concerns raised Sustainable Mobility at VIA Rail, 8, 10* 102-4 Location of operations VIA Rail At-a-Glance 4 Ensuring Performance 102-5 Ownership and legal form VIA Rail At-a-Glance 4 REPORTING PRACTICE 102-6 Markets served VIA Rail At-a-Glance 4 102-45 Entities included in the consolidated VIA Rail At-a-Glance 4 102-7 Scale of the organization VIA Rail At-a-Glance, Data Summary Table 4, 58-59 financial statements 102-8 Information on employees and other workers Being an Attractive Employer, 44, 59 102-46 Defining report content and topic boundaries Sustainable Mobility at VIA Rail, 8, 10, 64 Data Summary Table Ensuring Performance, About this Report 102-9 Supply chain Supporting Socio-Economic Development 22* 102-47 List of material topics Sustainable Mobility at VIA Rail 8 102-12 External initiatives Sustainable Mobility at VIA Rail, 8, 26-27, 28, 33, 102-50 Reporting period About this Report 64 Supporting Socio-Economic Development, 49, 56* 102-51 Date of most recent report About this Report 64 Operating Safely and Securely, Being an Attractive Employer, 102-52 Reporting cycle About this Report 64 Managing Our Business Responsibly 102-53 Contact point for questions regarding About this Report 64 102-13 Membership of associations About this Report 64* the report STRATEGY 102-54 Claims of reporting in accordance with the GRI Index 60 GRI Standards 102-14 Statement from senior decision-maker In Conversation with the President 2 102-55 GRI content index GRI Index 60 102-15 Key impacts, risks, and opportunities In Conversation with the President 2* 102-56 External assurance About this Report 64 ETHICS AND INTEGRITY 102-16 Mechanisms for reporting concerns about www.viarail.ca/sites/all/files/media/pdfs/ Code of Ethics unethical or unlawful behaviour About_VIA/Code_ethics_complete_EN.pdf VIA Rail Canada 102-17 Mechanisms for advice and concerns www.viarail.ca/sites/all/files/media/pdfs/ Code of Ethics about ethics About_VIA/Code_ethics_complete_EN.pdf VIA Rail Canada * Partially reported

60 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 61 GRI INDEX

MATERIAL TOPICS

GRI DISCLOSURE SECTION / LOCATION PAGE / SOURCE GRI DISCLOSURE SECTION / LOCATION PAGE / SOURCE GRI 103: MANAGEMENT APPROACH 2016 GRI 400: SOCIAL STANDARD SERIES 2016 103-1 Explanation of the material topic and its boundary Sustainable Mobility at VIA Rail, 8, 10 EMPLOYMENT Ensuring Performance 103 Management approach Being an Attractive Employer 44-46 103-2 The management approach and its components Sustainable Mobility at VIA Rail, 8, 10 401-1 New employee hires and employee turnover Being an Attractive Employer, 46, 59 Ensuring Performance Data Summary Table GRI 200: ECONOMIC STANDARD SERIES 2016 OCCUPATIONAL HEALTH AND SAFETY ECONOMIC PERFORMANCE 103 Management approach Operating Safely and Securely 28-30 103 Management approach Supporting Socio-Economic Development 22 403-1 Formal joint management – worker health and www.viarail.ca/sites/all/files/media/pdfs/ 2015 Sustainable 203-1 Infrastructure investments and services supported Supporting Socio-Economic Development 22-24 safety committees sustainable_mobility_report_2015.pdf Mobility Report, 203-2 Significant indirect economic impacts Supporting Socio-Economic Development, 22-24, 58-59 p. 26 Data Summary Table 403-2 Types of injury and rates of injury, occupational Data Summary Table 58 204-1 Proportion of spending on local suppliers Supporting Socio-Economic Development, 58 diseases, lost days, and absenteeism, and Data Summary Table number of work-related fatalities INDIRECT ECONOMIC IMPACT 403-3 Workers with high incidence or high risk of Operating Safely and Securely 30-32 diseases related to their occupation 103 Management approach Supporting Socio-Economic Development 22 TRAINING AND EDUCATION 203-1 Infrastructure investments and services supported Supporting Socio-Economic Development 22-24 103 Management approach Being an Attractive Employer 46-47 203-2 Significant indirect economic impacts Supporting Socio-Economic Development, 22-24, 58-59 Data Summary Table 404-1 Average hours of training per year Being an Attractive Employer, 46, 59 per employee Data Summary Table 204-1 Proportion of spending on local suppliers Supporting Socio-Economic Development, 58 Data Summary Table 404-2 Programs for upgrading employee skills and Being an Attractive Employer 46-47 transition assistance programs GRI 300: ENVIRONMENTAL STANDARD SERIES 2016 DIVERSITY AND EQUAL OPPORTUNITY ENERGY 103 Management approach Being an Attractive Employer 48-49 103 Management approach Reducing Our Impact on the Environment 36 405-1 Diversity of governance bodies and employees Being an Attractive Employer, 48-49, 54, 59 302-3 Energy intensity Reducing Our Impact on the Environment, 38-39, 58 Managing Our Business Responsibly, Data Summary Table Data Summary Table 302-4 Reduction of energy consumption Reducing Our Impact on the Environment, 38-39, 58 LOCAL COMMUNITIES Data Summary Table 103 Management approach Supporting Socio-Economic Development 22, 25-27 302-5 Reductions in energy requirements of products Reducing Our Impact on the Environment, 38-39, 58 and services Data Summary Table 413-2 Operations with significant actual and potential Supporting Socio-Economic Development 22, 25-27 negative impacts on local communities EMISSIONS 103 Management approach Reducing Our Impact on the Environment 36 305-1 Direct Greenhouse Gas (GHG) Emissions Reducing Our Impact on the Environment, 38-39, 58 (Scope 1) Data Summary Table 305-2 Energy indirect greenhouse gas (GHG) emissions Reducing Our Impact on the Environment, 38-39, 58 (scope 2) Data Summary Table 305-4 Greenhouse gas (GHG) emissions intensity Reducing Our Impact on the Environment, 38-39, 58 Data Summary Table 305-5 Reduction of greenhouse gas (GHG) emissions Reducing Our Impact on the Environment, 38-39, 58 Data Summary Table 305-7 Criteria air contaminants (nitrous oxides, sulphur Data Summary Table 58 dioxides, particulate matter, hydro carbons, and carbon monoxide) SUPPLIER ENVIRONMENTAL ASSESSMENT 103 Management approach Reducing our Impact on the Environment 40 308-2 Negative environmental impacts in the Reducing Our Impact on the Environment 40 supply chain and actions taken

62 VIA RAIL CANADA SUSTAINABLE MOBILITY REPORT 2017 63 CORPORATE OFFICES COMMUNICATING HEADQUARTERS AND QUÉBEC blog.viarail.ca 3 Place Ville Marie, Suite 500 Montréal, Québec OUR PROGRESS www.facebook.com/viarailcanada H3B 2C9 ABOUT THIS REPORT 514 871-6000 895 de la Gauchetiere West www.twitter.com/VIA_Rail Montréal, Québec H3B 4G1 www.youtube.com/user/VIARailCanadaInc We are committed to ensuring our communication on sustainable mobility is transparent, 514 989-2626

credible and engaging for all our stakeholders. Aligning our approach to reporting with ATLANTIC www.instagram.com/viarailcanada international standards is an important part of how we ensure the information we provide 1161 Hollis Street is relevant to a broad audience. Halifax, Nova Scotia B3H 2P6 902 494-7900

REPORTING SCOPE As we mature in our reporting, we expect ONTARIO 40 Elgin, 4th floor The 2017 Sustainable Mobility Report is our to further strengthen our materiality Ottawa, Ontario third formal standalone report where we assessment process to focus our reporting K1P 1C7 YOUR FEEDBACK IS communicate our commitment, programs priorities and identify areas of improvement. IMPORTANT TO US 613 907-8353 and performance related to sustainability. Also, as a member of the International 123 Front Street West, Suite 1500 The report covers quantitative data from Union of Railways, we are committed to We want you to be part of Toronto, Ontario our sustainable mobility journey our operations across Canada for the 2017 ensuring that we use our Sustainable M5J 2M3 as we strive to improve our calendar year, unless otherwise stated. Mobility Report to actively communicate performance and reporting 416 956-7600 process. Engaging with our The report reflects VIA Rail’s vision, VIA Rail’s climate-friendly initiatives to raise WEST stakeholders is an important objectives and performance with respect awareness, acceptance and recognition of part of how we can determine to six sustainability pillars that we believe the role of transport as part of the solution 146-123 Main Street if the information we are Winnipeg, Manitoba communicating is relevant. are important to our business and our to climate change, and report data on our R3C 1A3 We would like to invite you stakeholders: customer experience, energy consumption and carbon emissions. 204 949-7483 to send your comments, socio-economic development, safety, suggestions or questions THIRD PARTY ASSURANCE 1150 Station Street on this report to: environment, our employees, and responsible management. The data provided in this report has not been Vancouver, British Columbia Corporate Communications third party verified. Over the next few years, V6A 4C7 VIA Rail Canada Our intention is to issue a sustainable 3 Place Ville Marie, Suite 500 we will be focusing on strengthening our 604 640-3700 Montréal, Québec mobility report on an annual basis. data management systems. H3B 2C9 [email protected] ALIGNMENT WITH We will be considering third party assurance INTERNATIONAL STANDARDS in future years to add to the credibility of We have aligned the contents of this report our communication. with the Global Reporting Initiative (GRI) Standards and its Transportation and Logistics Sector Supplement. Our GRI Index provides references to information sources on how our corporate disclosures align with the GRI requirements. While we did not conduct an extensive materiality assessment, an internal WWW.CAPSULECREATIVE.CA stakeholder engagement exercise was undertaken to identify the priorities of greatest impact to our business and to society at large.

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