2019 Sustainability Report Serves As Our Communication a Key Role in Delivering Affordable and Clean Energy to 2.5 Active Travel and Low-Carbon Modes of Transport

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2019 Sustainability Report Serves As Our Communication a Key Role in Delivering Affordable and Clean Energy to 2.5 Active Travel and Low-Carbon Modes of Transport //// TRANSFORMING SOCIETY FOR FUTURE GENERATIONS OUR SUSTAINABILITY REPORT 2019 //// SNC-Lavalin Sustainability Report 2019 2 NOTICE This document and its contents have been prepared and are intended solely as information for SNC-Lavalin. This sustainability report relates to the activities, brands, products and services associated with SNC-Lavalin. Reference in this sustainability report to the company or to SNC-Lavalin, means as the context may require, SNC-Lavalin Group Inc., or one or more of its subsidiaries or joint arrangements. SNC-Lavalin assumes no responsibility to any other party in respect of or arising out of or in connection with this document and/or its contents. //// SNC-Lavalin Sustainability Report 2019 3 CONTENTS 1. MESSAGE FROM OUR PRESIDENT AND CEO 4 7. INTEGRITY 84 9. HEALTH, SAFETY AND ENVIRONMENT 112 2. OUR ACHIEVEMENTS 7 Our Integrity Evolution 85 Governance 113 Our Integrity Program 86 Code of Conduct 115 3. MESSAGE FROM OUR GLOBAL Industry Engagement and Recognition 87 Training 115 HEAD OF SUSTAINABILITY 10 Governance: Oversight and Reporting 89 HSE Week 115 4. OUR PROGRESS TOWARDS UN AGENDA 2030 14 Code of Conduct 90 Stakeholder Engagement 115 Communications 91 Environmental Focus at our Facilities 115 Introduction to the UN Sustainable Development Goals (SDGs) 15 Business Partner Compliance and Due Diligence 91 HSE Performance 116 5. WHAT MATTERS MOST TO OUR STAKEHOLDERS 25 Risk Assessment 93 Guarding Against Complacency 93 10. ECONOMIC IMPACT 120 How our Business Strategy Responds to Global Societal and Environmental Megatrends 26 Education and Training 94 An Experienced Partner 121 Materiality Assessment 26 Visible Leadership in the Community 96 An Innovative Infrastructure Partnership 121 Modern Slavery and Human Traffcking 99 Experienced Asset Managers 122 6. SUSTAINABILITY, GOVERNANCE AND LEADERSHIP 65 Our P3 Expertise in Action 122 8. PEOPLE AND SOCIETY 102 Values, Principles, Standards, and Norms of Behaviour 66 Our Recent Awards 123 Governance Structure 70 Employees 103 11. RESEARCH AND INNOVATION 125 Delegating Authority 72 Governance 103 Sustainability Governance 73 Compensation and Benefts 105 12. ORGANIZATIONAL PROFILE 131 Sustainability Leadership 77 SNC-Lavalin Academy 106 Equality and Diversity 108 A. APPENDIX GRI 140 Donations and Sponsorships 110 Gender Pay Gap (for UK only) 111 Generation Z 111 SNC-Lavalin Sustainability Report 2019 4 1 MESSAGE FROM OUR PRESIDENT AND CEO Musée national des beaux-arts du Québec Pavillon Pierre Lassonde Québec City, Québec, Canada Photography by Stephane Brugger SNC-Lavalin Sustainability Report 2019 5 1. MESSAGE FROM OUR PRESIDENT AND CEO We are all in this together I am also taking stock of the quick succession of challenges that the world and our organization will have to face. As I write this message the Covid-19 pandemic In the near future, governments all over the world, in attacks countries and regions, taking countless an unprecedented effort to boost the economy, will be precious lives. Most of SNC-Lavalin’s employees, authorizing numerous infrastructure projects. Projects for which SNC-Lavalin, as any major engineering firm, including myself, are working from home, will have to be ready for with a skilled workforce and a while our essential workers keep communities stable and reliable network of suppliers and partners. afloat. Our colleagues in Ontario are supporting nuclear power stations. In Québec, our teams The rapid changes in society present us with challenges are building temporary drive-in clinics and and opportunities, we are transforming our business today to respond to the global megatrends of climate change, testing facilities in hospital parking lots and population growth and urbanization, transitioning to a in the UK, our colleagues have been using low-carbon, more efficient and more resilient economy. 3D printers to produce PPE masks to protect Our Sustainability Policy Statement, announced in November healthcare workers. We are all in this together 2019 in conjunction with our Sustainable Business Strategy, and as a company, everyone is eager to help. I demonstrates the company’s long-term commitment to wholeheartedly thank the crews of volunteers Sustainable Development and Agenda 2030. The Strategy who, on their own initiative, borrowed company outlines how SNC-Lavalin will embed sustainability principles vehicles to deliver groceries and medicine to in every business activity, at corporate, sector and project levels. The document is based on the UN Sustainable vulnerable members of the community. Development Goals and focuses on ten measurement categories to guide implementation across all our operations. IAN L. EDWARDS President & CEO //// SNC-Lavalin Sustainability Report 2019 6 SNC-Lavalin contributes to each of the 17 UN Sustainable Goal 13: Climate Action – We are facing a predicted climate big data and real-time connectivity help infrastructure asset Development Goals. As we continue on our new strategic path, breakdown and worryingly global CO2 emissions have not owners plan for the long-term and manage in the moment. announced in July 2019, we are looking forward to improving reduced. Governments and global organizations such as ours The technologies we employ helps our clients achieve this our performance in relation to three key UN goals. These are must change their actions and decisions to solve the Climate innovation in action: systems and services become more the goals considered to be most material both to SNC-Lavalin Crisis. In collaboration with the Global Climate Adaptation user-friendly and effcient, while also enhancing safety and to its stakeholders. Partnership, our experts developed the pioneering Climate and wellbeing. Goal 7: Affordable and clean energy – As a world-leading Safeguards System, a set of decision-making tools and engineering organization, one of the best ways we can combat guides, to enable major banks worldwide to assess climate Our responsibility for sustainability risks associated with large infrastructure funded projects and climate change and overcome the greatest global challenge of includes renewing our commitment our age is by helping society transition to a low-carbon identify appropriate mitigation measures. economy. This transition involves the substitution of fossil Goal 11: Sustainable Cities and Communities – Our teams as a signatory of the United Nations fuels with other energy sources, primarily renewable and develop sustainable infrastructure with consideration of Global Compact and engaging in nuclear energies. environmental, societal and economic impacts providing our We are the stewards of CANDU® technology, and we use our cities and communities with enough energy, water, transport projects that promote the UN’s experience as a nuclear reactor designer to collaborate with routes, buildings and infrastructure to thrive and grow. We broader development goals. small modular reactor (SMR) vendors. Our CanAtom joint design those essential building blocks keeping in mind that venture is currently leading the Darlington Retube & Feeder global resource scarcity requires urban areas to conserve Replacement project for Ontario Power Generation, playing energy and water, reduce raw material usage and promote Our 2019 sustainability report serves as our Communication a key role in delivering affordable and clean energy to 2.5 active travel and low-carbon modes of transport. on Progress (CoP) in terms of implementing these principles. million households. Darlington provides 20% of Ontario's Sweden's Transport Administration is planning to build a new I am really proud that SNC-Lavalin has already integrated power supply. high-speed rail network, linking the country's three major its long-term sustainability goals into the company’s new Our designers are transforming offshore wind project cities. The East Link, 150 km of new railway from Stockholm strategic direction. Our industry is driven by changes in society, delivery by standardizing the design of foundations and to Linköping, will form the frst part of this network. The new climate disruption, resource scarcity, rapid urbanization, monopiles, enabling a production line approach to fabrication railway will be designed for speeds above 250 km/h and up demographic transformations, shifts in economic power and reducing costs without compromising on safety and to 320 km/h, making it the frst dedicated high-speed railway and technological innovation. This makes sustainability not reliability. We are currently developing one of the world’s in Sweden. only the right thing to do as a world-leading engineering frst arrays of foating wind turbines for Kincardine Offshore We are working on similar mass transit networks worldwide organization, it is critical business priority. Wind Farm in Scotland, United Kingdom, which will have the such as the Riyadh Metro in Saudi Arabia, HS2 in the UK and capacity to provide electricity equivalent to powering over Parramatta Light Rail in Sydney. 55,000 households. Delivering sustainable solutions that meet the needs of IAN L. EDWARDS We are also investigating new technologies to help modern populations is at the heart of how we design towns, President & CEO electrify transportation, store hydrogen as a fuel and build cities and communities throughout the world. In a smart “smart grids”. city, the city responds to their residents needs in real time; SNC-Lavalin Sustainability Report 2019 7 2 OUR ACHIEVEMENTS //// SNC-Lavalin Sustainability Report 2019 8 2. OUR ACHIEVEMENTS Celebrating our
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