CLIMATE CHANGE REPORT CARBON DISCLOSURE PROJECT 2019 2017

CONTENTS

Contents������������������������������������������������������������������������������������������������������������������ 2 Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading ��24 Preface �������������������������������������������������������������������������������������������������������������������� 3 Page: CC7. Emissions Methodology ��������������������������������������������������������������������������� 24 Page: CC8. Emissions Data - (1 Jan 2013 - 31 Dec 2013) ���������������������������������� 26 Module: Introduction ��������������������������������������������������������������������������������������������� 4 Page: CC9. Scope 2 Emission Breakdown - (1 Jan 2016 - 31 Dec 2016) ������� 29 Page: Introduction �����������������������������������������������������������������������������������������������������������������4 Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016) ����31 Module: Management �������������������������������������������������������������������������������������������� 6 Page: CC11. Energy ����������������������������������������������������������������������������������������������������������� 33 Page: CC1. Governance �������������������������������������������������������������������������������������������������������6 Page: CC12. Emissions Performance �������������������������������������������������������������������������� 34 Page: CC2. Strategy ������������������������������������������������������������������������������������������������������������8 Page: CC13. ��������������������������������������������������������������������������������������37 Page: CC3. Targets and Initiatives ���������������������������������������������������������������������������������14 Page: CC14. Scope 3 Emissions ������������������������������������������������������������������������������������ 38 Page: CC4. Communication ���������������������������������������������������������������������������������������������17 Module: Sign Off ��������������������������������������������������������������������������������������������������� 41 Module: Risks and Opportunities ���������������������������������������������������������������������� 18 Page: CC15. Sign Off ����������������������������������������������������������������������������������������������������������41 Page: CC5. Climate Change Risks ��������������������������������������������������������������������������������18 Page: CC6. Climate Change Opportunities ���������������������������������������������������������������21

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PREFACE

The Carbon Disclosure Project (CDP) is a charity that runs the global CDP provides a disclosure platform and a well-established rating mechanism. CDP disclosure system for investors, companies, countries, cities, and scoring drives corporate transparency and helps to guide, incentivize and assess environmental action. regions, and manages their environmental impacts. CDP is the industry standard in GHG Emissions reporting; it has the richest and most Reporting companies now represent over 50% of global market capitalization. By scoring companies from A to D-, CDP takes each organization on a journey of continuous comprehensive dataset on corporate and city actions, having been in improvement; from disclosure to awareness, through to management, and finally to place for 20 years. CDP believes that improving corporate awareness leadership. Its scoring measures the comprehensiveness of disclosure, awareness and of GHG Emissions through measurement and disclosure is essential management of environmental risks and best practices associated with environmental to the effective management of carbon and climate change risk. leadership, such as setting ambitious and meaningful targets. CDP is constantly evolving its disclosure and scoring system in response to market CDP requests information on climate risks and low carbon opportunities from the world’s needs and the rising urgency of global environmental challenges. Its annual A List largest companies on behalf of over 515 institutional investor signatories with US$106 includes the most pioneering companies leading the way on environmental transparency trillion in combined assets and 150+ major purchasers with over US$4 trillion in and performance. procurement spend.

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MODULE: INTRODUCTION

Page: Introduction

CC0.1 Introduction *reference anywhere in this document to “SNC-Lavalin” (This does not apply if you have been offered means, as the specific context may require, either and selected the option of answering the shorter Please give a general description and introduction SNC-Lavalin Group Inc. and all, or one or more, of its questionnaire). If you are going to provide additional to your organization. affiliated companies, subsidiaries, divisions or branches, years of data, please give the dates of those Founded in 1911, SNC-Lavalin* is one of the leading or SNC-Lavalin Group Inc. or one or more of its affiliated reporting periods here. Work backwards from engineering and construction groups in the world and companies, subsidiaries or divisions. the most recent reporting year. a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin’s approximately CC0.2 Reporting Year Enter Periods that will be disclosed 35,000 employees provide EPC and EPCM services to Please state the start and end date of the year for Fri 01 Jan 2016 - Sat 31 Dec 2016 clients in a variety of industry sectors, including oil and which you are reporting data. gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its The current reporting year is the latest/most recent financing and operations and maintenance capabilities to 12-month period for which data is reported. Enter provide complete end-to-end project solutions. the dates of this year first. We request data for SNC-Lavalin maintains exceptionally high standards more than one reporting period for some emission for health and safety, ethics and compliance and accounting questions. Please provide data for the environmental protection, and is committed to delivering three years prior to the current reporting year if quality projects on budget and on schedule to the complete you have not provided this information before, or satisfaction of its clients. if this is the first time you have answered a CDP information request.

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CC0.3 Country list configuration CC0.4 Currency selection Please select the countries for which you will be supplying Please select the currency in which you would like data. If you are responding to the Electric Utilities module, to submit your response. All financial information this selection will be carried forward to assist you in contained in the response should be in this currency. completing your response. Currency Select country CAD ($) Algeria Australia Brazil

Canada Chile Colombia CC0.6 Modules As part of the request for information on behalf of investors, France India Ireland companies in the electric utility sector, companies in the Kuwait Poland Qatar automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the Romania Russia Saudi information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector Arabia South Africa (FBT) should complete supplementary questions in addition Trinidad and United to the core questionnaire. United Kingdom Tobago Arab Emirates If you are in these sector groupings, the corresponding Serbia South Africa Sweden sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS United Thailand Tunisia Arab Emirates navigation bar when you save this page. If you want to query your classification, please emailrespond@cdp .net. United States United Kingdom Venezuela of America If you have not been presented with a sector module that United States you consider would be appropriate for your company to - - of America answer, please select the module below in CC0.6.

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MODULE: MANAGEMENT

Page: CC1. Governance

CC1.1 Where is the highest level of direct He also liaises with the corporate team which oversees CC1.2 Do you provide incentives for the responsibility for climate change within the management of the lease agreements for about management of climate change issues, your organization? 400 offices leased by the corporation, around the world. including the attainment of targets? Senior Manager/Officer The Vice President, Environment & Sustainability, is a Yes direct report to the Executive Vice President, Integrated CC1.1a Please identify the position of the individual Management Systems, who reports to the CEO and sits or name of the committee with this responsibility on the Corporation’s Executive Commi ttee. The CVPES also prepares, on a quarterly basis, Management’s (i) Job title environmental and sustainability report to the Safety, Corporate Vice President, Environment Workplace and Project Risk Committee (SWPRC) of the & Sustainability (CVPES) Board of Directors of the SNC-Lavalin Group. (ii) Description of his position in the corporate structure The mandate of the SWPRC does not specifically refer to The CVPES is responsible for managing the Company’s climate change issues, but broadly covers “environment response to climate change issues. He is a member of the issues” which are deemed by Management to include Corporation’s Senior Management Team. He is responsible climate change. for the Company’s annual submission to the CDP. *Note that the situation described above was prevalent all He liaises with a network of senior managers in the through the reporting period (2016), but that structural Company’s different Sectors, who are responsible for changes were made in early 2017. environmental and sustainable development issues, including climate change, within their sector.

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CC1.2a Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit The type of Incentivized Performance Comment from these incentives? incentives Indicator

Business unit managers Monetary reward Other: Market growth in The SNC-Lavalin Power Sector has a strategic focus on “Green energy” projects clean and renewable power. We specifically developed our Green and initiatives for the objectives of, among others: Expanding and marketing Power’s Green and renewable energy product lines and services, and pursuing strategic projects in the area of .

Corporate executive team Monetary reward Other: Management The Executive Vice President, Integrated Management of Climate change Systems is incentivised in part based on the achievement of the various environmental objectives, which include management of climate change issues.

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Page: CC2. Strategy

CC2.1 Please select the option that best describes CC2.1a Please provide further details on your risk management procedures with regard to climate change your risk management procedures with regard to risks and opportunities climate change risks and opportunities How far into the Frequency of To whom are Geographical future are risks Comment Integrated into multi-disciplinary company wide risk monitoring results reported? areas considered management processes. considered? Annually Board or individual/ All regions where 3 to 6 years SNC-Lavalin has formal Review Committees at sub- set of the SNC-Lavalin does the Executive, Sector and Business Unit levels to Board or committee business. In 2016, assess risk associated with significant projects appointed by SNC-Lavalin for which the corporation is about to submit a the Board divided its projects bid. Formal reviews are held with mandatory between the participation by the Review Committees and following continents senior personnel with relevant expertise to or sub-regions: assess commercial and technical risk related to proposals. The Corporation also assesses risk at › North America; an enterprise level. The enterprise risk register › Latin America; includes environmental and climate change risk. › Europe; › Africa & Middle East; › Asia & Oceania.

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CC2.1b Please describe how your risk and CC2.1c How do you prioritize the risks and CC2.2 Is climate change integrated into your opportunity identification processes are applied opportunities identified? business strategy? at both company and asset level The Enterprise Risk Management system uses a corporate Yes At the company level, policies and procedures are risk register which identifies potential risks or opportunities established and implemented to ensure that the application and assigns owners to each one. Risk owners are of the specific response to the risks identified aligns with responsible for assessing the risk using a predetermined the strategic objectives and risk appetite of SNC-Lavalin. set of criteria, determining the appropriate mitigation measures and developing and implementing action plans At the asset level, SNC-Lavalin uses Stature, a risk to manage the risk. Risk identification, assessment and management and life cycle application, to identify and mitigation are reviewed in committees and the results are assess risks. This tool provides a common platform for reported annually to the CEO and the Board of Directors. assessing risks and implementing SNC-Lavalin’s risk management systems and processes. This application Risks are assessed and prioritized based on health & has been specifically configured to align with the safety, environmental, regulatory, reputation, business corporate risk management processes. All projects continuity and financial consequences, as well as the meeting threshold criteria for implementation of risk probability of the risk occurring and its manageability. management process are required to utilize Stature to identify and manage associated environmental impacts. Stature has also been utilized to date to manage enterprise risks, including climate change.

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CC2.2a Please describe the process of how climate iii. The most important components of the short-term v. How this is gaining you strategic advantage over change is integrated into your business strategy strategy that have been influenced by climate change your competitors; and any outcomes of this process (e.g. changes in operational practices, changing the SNC-Lavalin wants to be recognized as a world leader in way business is communicated, etc.). Short term can i. How the business strategy has been influenced, i.e. the sustainability. Thus, the strategic objective is to position mean current. If climate change has only affected the internal process for collecting and reporting information SNC-Lavalin in emerging fields as well as develop more long-term strategy, this should be stated; to influence the strategy; experience in fields with growing potential (e.g. energy, In 2015, SNC-Lavalin ‘s Board of Directors adopted a operation and maintenance of green buildings, environment Business development teams have to communicate their sustainability strategy applicable to all its activities. As and water, water desalination, responsible and sustainable analysis to the VP corporate strategy and to the Executive part of its strategy, the company proposes to identify resource development, etc.). SNC-Lavalin will continue team on a yearly basis. Climate change is one of many potential improvements to its clients’ projects to reduce to expand its service capacity related to climate change, issues addressed through the strategic planning process, the environmental impact, and make them more efficient based on its assessment of opportunities. the results of which are ultimately approved at the Board on a life-cycle analysis basis ; and to reduce its energy level. More broadly, internal communications about vi. What have been the most substantial business consumption, resource use, and carbon emissions, thus SNC-Lavalin’s values, the Health, Safety, Security and decisions made during the reporting year that have improving overall efficiencies. These goals can only be Environment (HSSE) policy and the sustainability report been influenced by the climate change driven aspects achieved through efficient internal communication and assures that all employees are aware of the company’s of the strategy (e.g. investment, location, procurement, training emphasizing that employees have to consider that policies, objectives and achievements regarding sustainable M&A, R&D). Both the business decision and the aspect sustainability is an integral part of daily operations and development, including climate change. of climate change that has influenced the business decision making. decision must be made clear in the answer. If there are ii. What aspects of climate change have influenced the iv. The most important components of the long-term none to report, this should be stated. strategy, e.g. need for adaptation, regulatory changes or strategy that have been influenced by climate change opportunities to develop green business? In 2016, SNC-Lavalin created a Renewable Energy Centre (e.g. changing core business focus, development and of Excellence and made significant investments in its SNC-Lavalin sees climate change as bringing mostly incorporation of new technologies, etc.). In the less renewable business by continuing to build its highly skilled opportunities: decisions are mainly related to those likely event that climate change has only affected the team, develop our competitive offering which allowed us to opportunities. SNC-Lavalin’s strategy includes the will to be short-term strategy, this should be stated; qualify for many wind and solar bid opportunities around recognized as a world leader in sectors such as planning, The main long-term strategy influenced by climate change the world. design and development of light rail; design, construction has been the portfolio of business acquisitions. Past and maintenance of green buildings and infrastructures acquisitions included firms specialized in water distribution, (BOMA, LEED, ENVISION, etc.); water distribution, including light rail, transportation planning services, etc. Future filtration and desalination plant; installation of renewable acquisitions should integrate similar services and expertise. energy production and distribution facilities (ranging from solar and wind to nuclear and hydroelectrity); climate change adaptation for industries and municipalities, etc.

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CC2.2c Does your company use an internal price CC2.3a On what issues have you been engaging directly with policy makers? on carbon? Trade No, and we currently don’t anticipate doing so in the next Corporate Position Details of engagement Proposed legislative 2 years Association Clean Support SNC-Lavalin’s CEO as well as Candu Energy’s President & Chief It was proposed that energy generation Executive Officer and three other SNC-Lavalin’s employees provisions should be CC2.3 Do you engage in activities that could either are registered in the Office of the Commissioner of Lobbying of made in the federal directly or indirectly influence public policy on Canada’s registry. Amongst the subject discussed with federal budgets (2013, climate change through any of the following? representatives, the following issues were raised: • Efficient 2015 and 2017) for approval processes for major energy projects ; • Recommendations infrastructure funding (tick all that apply) on Federal policy regarding development in Ontario; and to support • Infrastructure funding at the federal level. New Building Canada innovation and, > Direct engagement with policy makers Fund. National Infrastructure Component and Provincial/Territorial more generally, the > Trade associations Infrastructure Component; • Nuclear Cooperation Agreements manufacturing sector. governing nuclear power exports to India and other countries with regard to SNC-Lavalin’s ability to provide services in such markets; • Canadian nuclear policy related to domestic and international sales; • Canadian nuclear policy related to international sales of Candu products and technology in China , UK, Romania and Argentina

CC2.3b Are you on the Board of any trade associations or provide funding beyond membership? Yes

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CC2.3c Please enter the details of those trade associationsthat are likely to take a position on climate change legislation

Is your position on Trade climate change Please explain the trade association’s position How have you, or are you attempting to influence the position? Association consistent with theirs?

Conseil patronal Consistent The CPEQ recognizes that efforts should be made to reduce emissions and SNC-Lavalin has a representative on the Board de l’environnement thus contributes to the fight against climate change. In reaction to the provincial government of Directors of the organization du Quebec announcement regarding its 2030 objective to lower global emission by 37,5% (compared (CPEQ) to 1990), the CPEQ has made suggestions to the provincial government including that a significant percentage of the carbon market auctions revenues should be allocated to businesses to help them reduce their carbon footprint, including by modernizing their fleets, by promoting research for the development of biofuel, converting some vehicles to natural gas, by incorporating green logistics to reduce mileage and by establishing synergies between companies for sharing trucks and reduce empty runs. The CPEQ has also recommended that the government establishes annual intermediate targets and an accountability mechanism to make it possible to evaluate, every year, the progress of Quebec in achieving its target and the resulting impacts and, if necessary, reassess the realistic nature of the target.

Global Compact Consistent The GCNC represents Canadian companies who have adhered to the UN Global Compact. SNC-Lavalin is represented on the working group which is developing Network Canada It supports the achievement of objectives and targets set by the international community tools to help Canadian companies meet climate change management via the CoP process, most recently at the Paris Conference. objectives and which interacts with government in this regard.

Canadian Chamber Consistent The Canadian Chamber of Commerce supports evidence-based policymaking that appropriately SNC-Lavalin has an employee on the Board of Directors of CCC and of Commerce accounts for environmental externalities as well as efforts by the government of Canada to has an employee on the International Affairs Committee of CCC. cooperate with provinces and territories to address environmental issues that are of shared jurisdiction. We favour a price on carbon, support the creation of a water strategy and believe in the imperative to foster technological innovation and ensure efficient regulatory processes.

Canadian Mixed Priority: Ensure an effective, competitive and harmonized approach to Canadian climate SNC-Lavalin has an employee on the Board of Directors of CME and Manufacturers change policy. While members believe that reducing is a priority, an employee on the Board Advisory Committee of Manufacturier et and Exporters CME is concerned about the current ongoing failure to introduce harmonized climate change Exportateurs de Quebec policies in Canada. Our members seek a North America-wide approach to climate change policy as opposed to a patchwork of half measures. CME Objectives: •Use incentives to help manufacturers reduce emissions with greater support for investments in manufacturing technologies and industrial innovation. •Ensure harmonized reporting of greenhouse gas emissions across Canada. •Ensure a uniform approach for treating manufacturing under federal and provincial climate change initiatives. The goal is a federal-provincial agreement on GHG reduction targets and how to get there, if it takes competitiveness and early action by manufacturers into account. •Continually highlight to government, industry and the public, the significant reductions in GHG emissions achieved by Canadian manufacturers. The above policy is broadly consistent with SNC-Lavalin ‘s position on climate change.

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CC2.3f What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? In 2016, SNC-Lavalin’s CVPES took part in the revision of the Health, Safety, Security and Environment (HSSE) Policy and the elaboration of environmental standards for the corporation. He also reported environmental performance metrics to demonstrate environmental compliance and to continuously improve environmental performance to the Office of the President and the HSSE Committee of the Board of Directors of the Corporation. In turn, SNC-Lavalin’s representative on the board of directors of the CPEQ regularly communicated with the CVPES to let him know of any initiatives that would influence climate change policy.

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Page: CC3. Targets and Initiatives CC3.1a Please provide details of your absolute target Base year CC3.1 Did you have an emissions reduction or % emissions % of reduction covered Base Target Is this a science ­ renewable energy consumption or production ID Scope emissions from base by target Comment year year based target? target that was active (ongoing or reached in scope year (metric completion) in the reporting year? tonnes C0₂e) Absolute target Abs1 Scope 1+2 16% 5% 2015 11,489.15 2016 No, and we do not The scope of our anticipate setting target includes (location­ based) one in the next scope 1 and 2 energy 2 years consumption in offices. This represent a small proportion of our direct and indirect emissions (16%). We consider that these emissions are entirely under SNC-Lavalin’s control, contrary to project-related emissions (77%) which are dependent on clients’ specifications, making it harder to predict and manage.

CC3.1e Please provide details of your absolute target

% complete (emissions ID % complete (time) Comment or renewable energy) For the third year in a row we exceeded our target (5%) by Abs1 100% 100% a wide margin, effectively reducing our emissions by 24%.

CC3.2 Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions? Yes

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CC3.2a Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

% revenue Taxonomy, project or from low % R&D in Are you reporting low methodology used to classify carbon low carbon Level of aggregation Description of product/Group of products carbon product/s or Comment product/s as low carbon or to product/s in product/s in the avoided emissions? calculate avoided emissions the reporting reporting year year

Group of products Our Air, Accoustics and Climate Change Avoided emissions Other: Each project is 0.01% Less than or The total revenues for our air, team helps clients reduce their air unique and might use a equal to 10% acoustics and climate change emissions via a unique program for the different methodology services represents less than 0.001% detection and control of fugitive emissions. of that of the company and the Clients for such services includes smelters services within this line of business and refineries. The same team has also include contracts unrelated to GHG helped institutional clients, municipalities emission reduction (such as acoustics for instance, to complete GHG emissions services). As such, both the % of inventory and implement reduction revenues and % of R&D associated plans. Other services include Carbon risk with this line of business can be and opportunity identification, strategy deemed insignificant. and management.

Group of products Our Power Sector designs and builds Avoided emissions Other: Each project is unique 12% Less than or Our Hydro Power & Distribution renewable energy power plants equal to 10% combined with our Nuclear business (nuclear, Solar, Wind, Geothermal or lines generate about 12% of Hydroelectric). In some cases, those are SNC-Lavalin’s revenues. But it has to new power stations and no GHG emissions be noted that some of the associated are avoided. In other cases, the new contracts include the installation of installations allow the decommission of distribution lines and infrastructures older, less efficient plants. Power also that are not necessarily associated oversees the retrofitting of existing power with low-carbon powerplants or stations, making them more efficient. projects. In 2016, SNC-Lavalin created a Renewable Energy Centre of Excellence and invested in its renewable business by continuing to build its highly skilled team, developing a competitive offering which allowed the Power Sector to qualify for many wind and solar bid opportunities around the world.

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CC3.3 Did you have emissions reduction initiatives CC3.3b For those initiatives implemented in the reporting year, please provide details in the table below that were active within the reporting year Estimated Investment (this can include those in the planning and/or annual required Estimated CO₂e (unit implementation phases) Activity Description Voluntary/ Payback lifetime of savings Scope currency Comment type of activity Mandatory period the Yes (metric -as initiative tonnes specified CO₂e) in CC0.4) CC3.3a Please identify the total number of projects Other In 2016, through our 2,793.92 Scope 1 Mandatory <1year Ongoing Annual monetary at each stage of development, and for those in the optimization program Scope 2 savings and implementation stages, the estimated C0₂e savings called "Operational (location ­ investments are Excellence", we based) considered to be Total estimated annual C0₂e Stage of Number of reduced the area of business sensitive savings in metric tonnes C0₂e development projects owned and rented and SNC-Lavalin (only for rows marked*) space by about 16%. will not disclose These optimization this information. Under - efforts translated investigation in a 24% GHG To be 870 emission reduction. implemented*

Implementation - CC3.3c What methods do you use to drive investment in emissions reduction activities? commenced* Method Comment Implemented* 2,793.92 Financial optimization calculations - Not to be - implemented

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Page: CC4. Communication

CC4.1 Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication Status Page/Section reference Attach the document Comment

In voluntary communications Complete GRI table and Environment 2828 SL17 GCC 0TH GRl2016 EN V3.pdf The GRI table is annexed to our broader sustainability report which performance section can be found here: http://www.snclavalin.com/en/sustainability/ No printed version of this report is available at the moment.

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MODULE: RISKS AND OPPORTUNITIES

Page: CC5. Climate Change Risks

CC5.1 Have you identified any climate change CC5.1a Please describe your inherent risks that are driven by changes in regulation risks that have the potential to generate a substantive change in your business operations, Risk driver Carbon taxes revenue or expenditure? Tick all that apply SNC-Lavalin has a significant business selling engineering and construction services for the construction of power plants as well as contracts with companies extracting petroleum. We also have contracts Description > Risks driven by changes in regulation with industrial customers to build large industrial infrastructure such as smelters, gas and acid plants. > Risks driven by changes in physical climate parameters Such projects may be affected should carbon be priced by means of taxes or cap and trade schemes. > Risks driven by changes in other Potential impact Reduced demand for goods/services climate-related developments Timeframe 3 to 6 years

Direct/Indirect Indirect (Client)

Likelihood Very likely

Magnitude of impact Low

In 2016, SNC-Lavalin’s combined services for the Mining & Metallurgy, Oil & Gas and Power sectors totaled 67% of Estimated financial the company’s products - about 5.7 billion dollars. A global reduction of 1% of the demand for those types of services Implications could signify a loss of earnings of 57 million dollars. SNC-Lavalin also offers services related to eco-design, energy optimization, retrofitting and carbon capture adapted Management to power plants, the extractive industry and industrial sites. It is estimated that the increased demand for those types method of services might compensate for some of the losses resulting from the deferral or cancellation of carbon- intensive.

Cost of Management The cost of management would either be insignificant and/or absorbed in general management costs.

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CC5.1b Please describe your risks that are driven by change in physical climate parameters

Risk driver Change in precipitation extremes and

According to the Centre for Research on the Epidemiology of Disasters , since 2000, the average number of climate- related disasters each year has been 44 per cent higher than between 1994 and 2000 and well over twice the level during the 1980s. Extreme weather and natural disasters have already had direct impact on SNC- LavaIin’s operations. In 2014, the downtown area of Calgary, Alberta, was closed for 4 days due to severe flooding. In 2015, state Description of emergency was declared after flooding affected Houston’s greater area where SNC-Lavalin operates from three offices. In May 2016, Fort McMurray in Canada lost 2400 buildings due to wildfires. And in early 2017, many towns and cities in the Quebec province had to deal with severe floodings, necessiting evacuations and road closures. Even less dramatic weather events can have an impact on SNC-Lavalin’s capacity to deliver its project on time as work on project sites can be stopped or slowed down for safety reasons.

Potential impact Reduction/disruption in production capacity

Timeframe Up to 1 year

Direct/Indirect Direct

Likelihood Virtually certain

Magnitude of impact Medium- high

It was estimated that 5.1 million hours of work were lost due to the flooding in Calgary in 2014, resulting in $485 Estimated financial million of lost economic output by the private sector. More specifically for SNC-Lavalin, more than 1,000 persons were Implications affected by the evacuation of the downtown area. Although most workers were able to work from home, 32,000 hours could have been lost. Since 2012, SNC-Lavalin has a global security team which constantly assesses security risks confronting Management employees, assets and/or property. This team also establishes appropriate control measures to identify and method evaluate risk, as well as to mitigate the risk to an acceptable level according to our duty of care. Business resiliency is a core element of the corporate security program and this covers physical climate.

Cost of Management The cost of managing business resiliency associated with physical climate change risk is marginal.

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CC5.1c Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver Changing consumer behavior

Clients who implement leading edge corporate sustainability programs may impose additional requirements on Description doing business with them, over and beyond regulatory compliance - including sharing information about energy consumption/ GHG emissions or setting targets to lower the latter

Potential impact Inability to do business

Timeframe upto 1 year

Direct/Indirect Direct

Likelihood Unlikely

Magnitude of impact Medium­ high

For the first time in 2015, clients have asked SNC-Lavalin to submit a supply chain report via the CDP. Although, Estimated financial SNC-Lavalin’s emissions are low and minimally contribute to client’s emissions, not complying with this request might Implications hinder to company’s ability to do business with some clients. Active contracts with the two companies that have asked this information reflect anticipated revenues in excess of $400 million. SNC-Lavalin has a strategy to maintain a good relationship with key clients in all sectors. In doing so, SNC-Lavalin Management hopes to get a better portrait of the ever evolving situation from direct account from those involved in investment method and partnership decisions. Implementing a proactive sustainability program will be a key management tool.

Cost of Management The costs of management methods are absorbed in the business development budget.

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Page: CC6. Climate Change Opportunities

CC6.1 Have you identified any inherent climate CC6.1a Please describe your inherent opportunities that are driven by changes in regulation change opportunities that have the potential to generate a substantive change in your business Opportunity driver Renewable energy regulation operations, revenue or expenditure? Renewable energy regulations will promote the development of energy sources such as geothermal, hydro, biomass and solar in which SNC-Lavalin’s Power Sector has expertise. The demand will also be fuelled by the oil and gas Tick all that apply Description industry- an important part of SNC-Lavalin’s clients- as 20 % of North American renewable investment in the 2000s > Opportunities driven by changes in regulation came from these companies. > Opportunities driven by changes in Potential impact Increased demand for existing products/services physical climate parameters > Opportunities driven by changes in other Timeframe Up to 1 year climate-related developments Direct/Indirect Direct

Likelihood Very likely

Magnitude of impact Medium-high

In 2016, three of the top 20 most important active projects (in terms of revenue) were related to renewable energy. Estimated financial Those projects included new power plants, as well as the refurbishing and/or expansion of existing facilities. Those Implications projects (mainly large-scale hydropower) represented 1.535 Billion $in revenues over the course of their realisation. Winning one more project of that type would represent several hundred million$ in revenues. SNC-Lavalin makes sure it has expertise in renewable energy fields such as geothermal, Management wind, hydro (including run-of-river) and solar. The company invests in expertise method development through training and our Renewable Energy Centre of Excellence. The cost associated with training specific to renewable energy has not been evaluated. Cost of Management The Centre of Excellence costs are absorbed into SNC-Lavalin’s operating costs.

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CC6.1b Please describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver Other physical climate opportunities

SNC-Lavalin has a line of services in order to help clients - from the private and Description public sectors - prepare adaptation plan to climate change.

Potential impact Increased demand for existing products/services

Timeframe 3 to 6 years

Direct/Indirect Direct

Likelihood More likely than not

Magnitude of impact Low

It is expected that, with the increase of extreme weather events and changing weather patterns, more industries Estimated financial and municipalities will require consulting services in order to prepare and adapt to climate change. The financial Implications implication might however be modest as this line of services doesn’t generate a substantial proportion of SNC­-Lavalin’s revenues. Management The Air, Acoustic and Climate Change team is closely monitoring opportunities method to promote their consulting services in these areas.

Cost of Management The cost of management is absorbed into marketing costs.

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CC6.1c Please describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver Changing consumer behavior

As awareness of Climate Change spreads, demand for eco-friendly products and services increases as well, in Description particular when said products are associated with well known labels. In the construction field such services can be the design, construction operation and maintenance of certified buildings and infrastructure: LEED, BOMA, ENVISION, etc.

Potential impact Increased demand for existing products/services

Timeframe Up to 1 year

Direct/Indirect Direct

Likelihood Likely

Magnitude of impact Medium

Over the years, SNC-Lavalin has been involved in more than 100 LEED- certified projects. In 2016, the active projects Estimated financial that included buildings seeking LEED certification show total revenues of almost 3 billion dollars, including two major Implications Canadian hospitals. In 2015, SNC-Lavalin has also started a major, multibillion-dollar infrastructure project in Canada which will achieve ENVISION certification. Various business units within the corporation are owners of expertise related to sustainability Management certification and ensure that the appropriate expertise is maintained in-house. More than 80 method LEED- certified experts were working at SNC-Lavalin at the time of writing this report. In 2016, no specific costs were associated with the management of opportunities driven by changing Cost of Management consumer behaviour.

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MODULE: GHG EMISSIONS ACCOUNTING, ENERGY AND FUEL USE, AND TRADING

Page: CC7. Emissions Methodology

CC7.1 Please provide your base year and base year emissions (Scopes 1 and 2) CC7.3 Please give the source for the global warming potentials you have used

Scope 1 Base year emissions Scope 2 Base year emissions Base year Gas Reference (metric tonnes C0₂e) (metric tonnes C0₂e) CO₂ IPCC Second Assessment Report (SAR - 100 year) Tue 01 Jan 2013 - Tue 31 Dec 2013 55,969.02 15,185.17

CH₄ IPCC Second Assessment Report (SAR - 100 year) CC7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions N₂O IPCC Second Assessment Report (SAR - 100 year)

Please select the published methodologies that you use

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2a If you have selected “Other” in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

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CC7.4 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel / Material /Energy Emission Factor Unit Reference

Natural gas 2.02838 Other: kg CO₂e per m3 Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Other: Diesel 2.67620 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Propane 1.50502 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Biogasoline 2.19697 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Biodiesels 2.61163 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Other: Gasoline/Petrol 2.30250 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

Other: gas oil 2.96572 kg CO₂e per liter Source: DEFRA: http://www.ukconversionfactorscarbonsmart.co.uk/

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Page: CC8. Emissions Data - (1 Jan 2013 - 31 Dec 2013)

CC8.1 Please select the boundary you are using CC8.3 Please describe your approach to reporting Scope 2 emissions for your Scope 1 and 2 greenhouse gas inventory Scope 2, location-based Scope 2, market-based Comment Operational control We are reporting a Scope 2, We have no operations where we are able to - location-based figure access electricity supplier emissions factors CC8.2 Please provide your gross global Scope 1 or residual emissions factors and are unable emissions figures in metric tonnes CO₂e to report a Scope 2, market-based figure 52,970.55 CC8.3a Please provide your gross global Scope 2 emissions figures in metric tonnes C0₂e

Scope 2, location-based Scope 2, market-based (if applicable) Comment

9,419.21 -

CC8.4 Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure? Yes

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CC8.4a Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Relevance of market­ based Relevance of Scope 1 Relevance of Scope 2 Source Scope 2 emissions from this Explain why the Source is excluded emissions from this source emissions from this source source (if applicable)

Projects-based emissions Emissions are relevant Emissions are relevant No emissions from this source SNC-Lavalin is still evaluating the best method to accurately other than Oil & Gas but not yet calculated but not yet calculated measure its direct and indirect emissions on project sites. sector’s emission A pilot project is under way and the Oil and Gas Sector is experimenting with different tracking methods.

Vehicle fleet Emissions are relevant No emissions from this source No emissions from this source Vehicle fleets other than those associated with Oil and Gas Sector's but not yet calculated projects are not considered. Methodology to do so is being evaluated.

Infrastructure Emissions are relevant Emissions are relevant No emissions from this source Methodologies are currently being developed to measure Concession Investments but not yet calculated but not yet calculated the emissions from SNC-Lavalin's ICI portfolio.

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CC8.5 Please estimate the level of uncertainty of the total gross global CC8.6 Please indicate the verification/assurance status that applies to your Scope 1 and 2 emissions figures that you have supplied and specify the reported Scope 1 emissions sources of uncertainty in your data gathering, handling and calculations No third party verification or assurance Uncertainty Main sources Scope Please expand on the uncertainty in your data range of uncertainty CC8.7 Please indicate the verification/assurance status that applies to your Scope 1: More than 40% Data gaps We obtained direct data from offices and reported Scope 2 emissions but less than or permanent facilities representing 87% of the equal to 50% surface occupied by SNC-Lavalin worldwide. No third party verification or assurance It has been decided not to extrapolate the data on the missing 13% of office space as every office differs from the other: CC8.8 Please identify is any data points have been verified as part of the third climate, thermal qualities, energy efficiency, party verification work undertaken, other than the verification of emissions occupation configuration, etc. SNC-Lavalin figures reported in CC8.6, CC8.7 and CC14.2 considers it has captured the majority of its Oil & Gas Sectors’ field activities-related emission, which represents about 44% of Additional data points verified Comment the annual revenues of the company. No additional data verified - Scope 2: More than 40% Data gaps We obtained direct data from offices (location­ based) but less than or representing 87% and permanent facilities equal to 50% of the surface occupied by SNC-Lavalin CC8.9 Are carbon dioxide emission from biological sequestrated carbon worldwide. It has been decided not to extrapolate the data on the missing relevant to you organisation? 13% of office space as every office differs from the other: climate, thermal No qualities, energy efficiency, occupation configuration, etc. SNC-Lavalin considers it has captured the majority of its Oil Further Information & Gas Sectors’ field activities-related Although no external verification was sought, our GHG emission calculations were internally emission, which represents about 44% of the annual revenues of the company. verified by our Air and Accoustics and Climate Change team who offers such services to clients. Scope 2 - - - (market­ based)

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Page: CC9. Scope 2 Emission Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1 Do you have Scope 1 emissions sources in more than one country? CC9.2 Please indicate which other Scope 1 emissions breakdowns you are Yes able to provide (tick all that apply) > By business division CC9.1a Please break down your total gross global Scope 1 emissions > By facility by country/region > By GHG type > By activity Country/Region Scope 1 metric tonnes C0₂e

Australia 7,081.35 CC9.2a Please break down your total gross global Brazil 2.68 Scope 1 emissions by business division

Canada 1,064.20 Business division Scope 1 emissions (metric tonnes C0₂e) Colombia 2,387.75 Mining & Metallurgy 0 France 27.06 Infrastructure 293.26 Ireland 27.91 Oil & Gas 52,052.75 Kuwait 65.42 Power 580.76 Qatar 7,702.97 Multiple sectors (shared locations) 43.78 Romania 41.11

Russia 1,637.30

Saudi Arabia 29,013.49

South Africa 3,472.56

Trinidad and Tobago 36.50

United Arab Emirates 160.22

United Kingdom 39.08

United States of America 210.97

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CC9.2b Please break down your total gross global Scope 1 emissions by facility CC9.2c Please break down your total gross global Scope 1 emissions by GHG type Facility Scope 1 emissions (metric tonnes C0₂e) Latitude Longitude GHG type Scope 1 emissions (metric tonnes C0 e) Canada, ON, Mississauga, SP-3 plant 580.76 ₂

QATAR, Doha, KBH Building, offices 434.27 CO₂ 52,482.28

Saudi Arabia, Jubail Industrial Area 362.96 CH₄ 35.46

RUSSIA , Yuzhno-Sakhalinsk , offices 326.63 N₂O 368.05 SAUDI ARABIA, Al Khobar, SLI FAYEZ 232.68 HFCs 84.77 Canada, AB, Nisku, plant 110.33 USA, TX, Victoria , plant 94.80 CC9.2d Please break down your total gross global Scope 1 emissions by activity UNITED ARAB EMIRATES, Abu 98.13 Activity Scope 1 emissions (metric tonnes CO e) Dhabi Trade Centre, Offices ₂

KUWAIT, Fahaheel, offices 65.41 Offices and other permanent locations 2,088.26

UNITED ARAB EMIRATES, Dubai, 57.12 Production Facilities 684.26 Jumeirha Lake Towers, offices

Other permanent facilities 495.46 O&G Project site and field activities 50,113.27

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Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1 Do you have Scope 2 emissions sources in more than one country? Country/Region Scope 1 metric tonnes C0₂e Yes Ireland 91.64

CC10.1a Please break down your total gross global Scope 2 emissions Kuwait 36.69 by country/region Qatar 730.95 Country/Region Scope 1 metric tonnes C0₂e Romania 2,036.10 Algeria 46.81 Russia 22.27 Australia 266.99 South Africa 803.67 Brazil 66.75 Trinidad and Tobago 34.42 Canada 661.00 United Arab Emirates 481.06 Chile 142.16 United Kingdom 266.98 Colombia 21.96 United States of America 3,210.97 France 37.65

India 461.14

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CC10.2 Please indicate which other Scope 2 emissions breakdowns you are CC10.2b Please break down your total gross global Scope 2 emissions by facility able to provide (tick all that apply) Scope 2 emissions Scope 2, market-based Facility (metric tonnes C0₂e) > By business division (metric tonnes CO₂e) Latitude Longitude > By facility > By activity USA, Texas, Houston, Office 1,246.94 -

USA, TX, Victoria , plant 466.26 - CC10.2a Please break down your total gross global Scope 2 emissions by QATAR, Doha, KBH Building, office 674.18 - business division USA, Tx, Sealy, plant 433.05 - Scope 1 emissions Scope 2, market-based Business division (metric tonnes C0 e) (metric tonnes CO e) ₂ ₂ SOUTH AFRICA, Secunda, office 222.79 - Mining & Metallurgy 189.32 - USA, TX, Bay City, plant 434.99 - Infrastructure 434.19 - INDIA, Mumbai, Trade Star 353.14 - Oil & Gas 5,810.10 - Building , offices UNITED ARAB EMIRATES, Abu 481.06 - Power 585.21 - Dhabi Trade Centre, Offices

ROMANIA, Bucharest , Hermes Multiple sectors (shared locations) 2,400.39 - 2,036.10 - Business Center, office

USA, LA, New Iberia , plant 440.80 -

Other permanent facilities 2,208.36 - CC10.2c Please break down your total gross global Scope 2 emissions by activity

Scope 2 emissions Scope 2, market-based Activity (metric tonnes C0₂e) (metric tonnes CO₂e) Latitude Longitude

Office and other permanent locations 6,606.97 -

Production Facilities 2,368.77 -

O&G Project site and field activities 443.47 -

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Page: CC11. Energy CC11.4 Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 CC11.1 What percentage of your total operational spend in the reporting year figure reported in CC8.3a was on energy? MWh consumed Emissions Basis for applying a low associated with low factor (in units Comment More than 0% but less than or equal to 5% carbon emission factor carbon electricity, of metric tonnes heat, steam or cooling C0₂e per MWh)

CC11.2 Please state how much heat, steam, and cooling in MWh your Contract with suppliers 13,443.43 0.001127 Corresponds to electricity organization has purchased and consumed during the reporting year or utilities, with a purchased from Hydro ­ supplier-specific Quebec, who produces Energy type MWh emission rate, not electricity almost backed by electricity exclusively (99%) from Heat 0 attribute certificates. low-carbon hydropower.

Steam 0 CC11.5 Please report how much electricity you produce in MWh, and how much Cooling 0 electricity you consume in MWh

Consumed Total Consumed Total Total electricity electricity renewable renewable CC11.3 Please state how much fuel in MWh your organization has consumed electricity consumed that is electricity electricity that Comment produced (for energy purposes) during the reporting year (MWh) purchased produced is produced by (MWh) 201598.54 (MWh) (MWh) company (MWh) 43,991.12 43,991.12 0 0 0 - CC11.3a Please complete the table by breaking down the total “Fuel” figure entered above by fuel type

Fuels MWh

Other: Diesel 122,872.23

Other: Gas oil/ heating oil 385.38

Propane 513.22

Natural gas 4,488.77

Biodiesels 41,506.74

Other: Petrol/ gasoline 28,736.38

Biogasoline 3,095.81

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Page: CC12. Emissions Performance

CC12.1 How do your gross global emissions(Scope 1 and 2 combined) for the reporting year compare to the previous year? No change

CC12.1a Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emission compare to the previous year

Emissions value Direction Reason Please explain and include calculation (percentage) of change

Emissions Optimization of office spaces and relocating all production facilities under 21.54 Decrease reduction activities one roof allowed to reduce emissions of about 3225 tonnes of CO₂e.

Some O&M activities were sold during the year and the emissions from the Divestment 0.11 Decrease associated offices were not considered, representing about 72 tonnes of CO₂e.

Acquisitions - - No acquisition in 2016

Mergers - - No merger in 2016.

Change in output 7.54 Decrease Change in location and type of projects.

SNC-Lavalin updated the factors used to calculate Change emissions related to fuel consumption as well as 0.48 Decrease in methodology for electricity usage, notably in Canada and the US, where most of its offices are located, explaining part of the observed decrease.

Inclusion of emissions associated with refrigerant usage (leaks or Change in boundary 0.14 Increase fugitive emissions of HVAC systems) representing 84.77 t of CO₂e. Change in physical Workers’ camp changed location in 2016 and the energy is now assumed by the 2.41 Decrease operating conditions owner of the building (Associated emissions are thus transfered under scope 3)

Unidentified - - -

Other - - -

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CC12.1b Is your emissions performance in CC12.1 and CC12.1a based on location-based Scope 2 emission figure or a market-based Scope 2 emissions figure? Location-based

CC12.2 Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes C0₂e per unit currency total revenue

Metric % numerator Metric Direction of change change from Intensity (Gross global enominator: Scope 2 from previous previous Reason for change figure combined Unit total figure used year year Scope 1 and 2 revenue emissions)

0.000007 metric 8,470,833,000 Location- based 0.76 Decrease The change is well within tonnes CO₂e error margins and not very significant. Our scope 1 and 2 emissions decreased mainly due to restructuring, and our revenues decreased as well compared to that of 2015, maintaining our emission intensity to a level almost identical to that of 2015.

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CC12.3 Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

% Direction of Metric change Intensity Metric Metric Scope 2 change from denominator: from Reason for change figure numerator denominator figure used previous Unit total previous year year

1.79 metric tonnes full time 34,952 Location-based 7.72 Decrease Our scope 1 and 2 equivalent emissions decreased C0₂e (FTE) employee mainly due to restructuring, and the number of full-time employees decreased as wellcompared to that of 2015.

0.13 metric tonnes square meter 492,649 492,649 39.03 Decrease Our scope 1 and 2 emissions decreased, C0₂e mainly due to restructuring. In addition, the real estate we occupied that reported energy consumption in 2016 increased, largely due to overlapping lease terms. Empty office space and production facilities had minimal energy consumption. Thus, in 2017, the real estate we occupied will be well below that of 2015 and our intensity metric will be readjusted.

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Page: CC13. Emissions Trading

CC13.1 Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years

CC13.2 Has your organization originated any project-based carbon credits or purchased any within the reporting period? No

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Page: CC14. Scope 3 Emissions

CC14.1 Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Percentage of emissions calculated Metric tonnes scope 3 Evaluation status Emissions calculation methodology using data obtained from suppliers Explanation CO₂e emissions or value chain partners

Purchased goods Not evaluated - - - - and services

Capital goods Not evaluated - - - -

Fuel-and-energy Not evaluated - - - - related activities (not included in Scope 1 and 2)

Upstream Not evaluated - - - - transportation and distribution

Waste generated Not evaluated - - 0.00% - in operation

Business travel Relevant, calculated 17,283.47 Car rental, rail and air travel companies 100.00% Includes long-term car leases, car rentals (for provide SNC-Lavalin with calculated GHG projects), flights and rail travel booked through emissions via our in- house travel agent. SNC-Lavalin’s in-house travel agent. We estimate that They each have a different methodology. we capture about 80% of our air travel emissions.

Employee Not evaluated - - - - commuting

Upstream leased Relevant, calculated 5,804.09 SNC-Lavalin applies the same methodology for 100.00% Includes all rented office space and workers’ assets its scope 3 emissions associated with rented camps where the utilities are paid by the landlord office spaces than with the buildings that it and charged to SNC-Lavalin on a surface-based owns. Landlords provide information on energy ratio or other evaluation specified in the lease. consumption, but SNC-Lavalin does not verify it.

Downstream Not evaluated 0.00% - - - transportation and distribution

Processing of Not relevant, - - - SNC-Lavalin solds services not products sold products explanation provided that would need further processing.

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Sources of Percentage of emissions calculated Metric tonnes scope 3 Evaluation status Emissions calculation methodology using data obtained from suppliers Explanation CO₂e emissions or value chain partners

Use of Not evaluated - - - - sold products

End of life Not evaluated - - - - treatment of sold products

Downstream Not relevant, - - - SNC-Lavalin owns a very small portion of the total leased assets explanation area it occupies {about 9%). In a very few instances, provided we rent or sublease spaces and those situations are usually temporary.

Franchises Not relevant, - - - SNC-Lavalin’s business model does explanation provided not include any franchise.

Investments Not evaluated - - - -

Other (upstream) Relevant, not - - - Many project teams are hosted at clients’ facility. yet calculated Using projections based on the number of employees, It was estimated that O&G projects might be associated with 16 000 tons of CO₂ equivalent. As much as the total of our offices’ and production facilities’ scope 1, 2 and 3 emissions.

Other Not evaluated - - - - (downstream)

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C14.2 Please indicate the verification/assurance status that applies to your CC14.4 Do you engage with any of the elements of your value chain on reported Scope 3 emissions GHG emissions and climate change strategies? (Tick all that apply) No third-party verification or assurance No, we do not engage

CC14.3 Are you able to compare your Scope 3 emissions for the reporting year CC14.4c Please explain why you do not engage with any elements of with those for the previous year for any sources? your value chain on GHG emissions and climate change strategies, and Yes any plans you have to develop an engagement strategy in the future At this stage, SNC-Lavalin wishes to focus on including more Scope 1 and Scope 2 CC14.3a Please identify the reasons for any change in your Scope 3 emissions emission sources to its inventory before including more sources to its Scope 3. and for each of them specify how your emissions compare to the previous year

Sources of Reason for Emissions Direction Scope 3 Comment change value (%) of change emissions

Business Change in 199.91 Increase SNC-Lavalin now has a Policy which makes travel physical the use of a single Global management operating travel company for all air travel bookings. conditions Although the integration of all Sectors and Business units is not entirely complete, our system now captures a greater portion of our air travel. We estimate that we capture about 80% of our air travel emissions.

Upstream 49.53 Decrease SNC-Lavalin has an ongoing leased assets program aiming at the optimization of all rented office locations.

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MODULE: SIGN OFF

Page: CC15. Sign Off

CC15.1 Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job category

Manya Pelchat Health, Safety & Environment Manager EHS manager

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