EVOKE DELIVER INSPIRE SUSTAINABILITY COLLABORATE REPORT 2018 SUSTAIN EVOLVE DESIGN ENHANCE LEAD INNOVATE PERFORM ENVISION ACHIEVE CREATE TRANSFORM GROW CONNECT ENGAGE SUPPORT ELEVATE Run-of-River Hydropower Bhote Koshi River, Nepal WELCOME Table of Contents MESSAGE FROM THE CEO 1 ABOUT STANTEC 2 SUSTAINABILITY AT STANTEC 7 Sustainability Governance 9 Sustainability in Our Operations 10 Sustainability for Our Clients 12 Sustainable Development Goals 12 ENVIRONMENTAL STEWARDSHIP 15 Environmental Management 17 Emissions 18 Resource Conservation 20 SOCIAL BETTERMENT 25 People-Centered Workplace 27 Health, Safety, and Security 38 Thought Leadership 42 Community Engagement 44 Indigenous Connections 46 RESPONSIBLE GOVERNANCE 49 Ethical Business Practices 50 Corporate Governance 52 Strategy 53 Risk Management 53 Integrated Management 55 Cybersecurity and Customer Privacy 56 Supply Chain Management 57 GRI CONTENT INDEX A-1 UNGC COMMUNICATION ON PROGRESS B-1 ATB Financial Westwinds Campus Calgary, Alberta, Canada ABOUT THIS REPORT ABOUT THIS 2018 Reviews and Approvals SUSTAINABILITY REPORT Our consolidated financial statements were audited This Sustainability Report, Stantec’s twelfth annual, by Ernst & Young LLP Chartered Professional provides information about Stantec’s material Accountants. Our greenhouse gas emissions environmental, social, and governance (ESG) inventory was independently verified by Bureau issues and impacts for our fiscal year ending Veritas Group. December 31, 2018. All financial information is reported in Canadian dollars (unless otherwise Stantec’s sustainability disclosures and data stated). This report communicates Stantec’s underwent internal quality checks and are factual to overall sustainability journey and demonstrates the best of our knowledge at the time of reporting. our transparency regarding vital topics that apply The report also underwent a formal review and to most organizations and that stakeholders are approval process by senior management from each highly interested in. functional area, the Executive ESG Committee, and the C-suite. Plus, the board-level Health, Frameworks Safety, Security, Environment, and Sustainability The Sustainability Report covers GRI Standards and Committee reviewed the report before its release. the ways we meet the needs of stakeholder groups. The GRI Content Index (Appendix A) We commissioned ISOS Group, a leading sustainability report assurance and verification • Cross-references sections of this report and company, to conduct a third-party review of the public documents that contain relevant data content and quality of this report. • Adds pertinent details not explained in the main More Information body of this report and explains any omissions Additional information is available in our 2018 Annual Report; our Management Information • Refers to topics in the Engineering and Con- Circular dated March 15, 2019; our Annual struction Services Standard of the Sustainability Information Form dated February 28, 2019; and Accounting Standards Board (SASB) our 2018 CDP Disclosure (formerly the Carbon Disclosure Project); as well as on stantec.com. • Refers to recommendations in the Task Force on Combined, these resources provide transparency Climate-related Financial Disclosures (TCFD) of regarding Stantec’s ESG performance. the Financial Stability Board This report and future updates can be accessed The report also includes Stantec’s Communication at stantec.com/sustainability. Please direct any on Progress for the United Nations Global Compact comments and questions about our sustainability (UNGC) (Appendix B). efforts to [email protected]. Report Boundaries This report reflects all Consulting Services global operations but does not include Construction Services operations, which were divested in 2018. When I think about the future of my children and future generations, I feel very proud to be leading Stantec, an organization with sustainability at the core of our business. Our commitment to designing infrastructure that supports a sustainable future is ingrained in our operations through the services we provide to our clients, the way we treat our people and run our business, and the passion we have for serving our communities. Actively and purposefully, we address all three elements of sustainability: environmental, social, and governance (ESG). Our Response to Key Global Trends While creating our 2019 Strategic Plan, Stantec’s Executive Leadership Team identified key global trends that factor heavily in our decision-making and direction. Climate change is one of the high-impact, high-uncertainty global trends we identified. By addressing climate change in our design and delivery solutions, our global team of designers, engineers, scientists, and project managers are doing what’s right plus reinforcing our position as a top-tier firm that’s recognized for our creative, technology- forward, and collaborative approach. We’re targeting the following strategic growth opportunities, which are directly tied to the world’s response to climate change: • Making smarter cities to serve residents more sustainably and efficiently • Invigorating infrastructure to improve performance and resource efficiency • Creating resilient coastlines to prepare communities for sea-level rise and extreme weather • Remixing energy to help the world’s energy supply move from fossil fuels to renewable and low-carbon sources MESSAGE FROM THE CEO By pursuing opportunities like these, along design in order to make measurable with projects that create and maintain progress toward the goal of carbon neutral sustainable communities, we support the buildings, developments, and major UN Global Compact and the Sustainable renovations by 2030. Development Goals. • We provided inspiring, inclusive, As well as contributing to our overall collaborative, flexible, safe, and healthy strategic direction, several members of work environments. Stantec’s leadership team serve on our Executive ESG Committee. We also have • We invested in our people by funding their a board-level Health, Safety, Security, innovative ideas and by providing learning Environment, and Sustainability Committee. programs and volunteer opportunities. Our Approach to Sustainability For these accomplishments and The way I see it, Stantec’s future depends commitments, Stantec earned several on our Company’s ability to successfully accolades, including for leadership in the address the challenges posed by climate fight against climate change from CDP, a change, create an inspired work culture that Sustainable Development Goal Leadership draws the world’s best and brightest to the Award from the Global Compact Network Company and keeps them engaged and Canada, and one of the Best 50 Corporate excited about their work, and manage our Citizens in Canada from Corporate Knights. business to maximize sustainable growth while operating ethically and transparently. Inspiration to Action, Action to Inspiration I’m proud of our sustainability performance Our achievements in 2018 show we’re on improvements and even prouder of our the right track: people for designing sustainable solutions for our world. You’ll read about some of our • We brought together our 1,200 team success stories in this report. members in Edmonton, moving them from three offices into one new LEED- I hope you’ll be as inspired as I am—inspired certified head office, Stantec Tower. This by the progress of the past year and inspired great example shows our work toward to do even more for sustainability in the reducing carbon emissions; improving years to come. employee comfort, collaboration, and team building; and increasing financial sustainability by saving costs. • Stantec’s per-employee emissions have dropped significantly over the years. Gord Johnston And we committed to reducing emissions Stantec President and CEO even further by setting new ambitious reduction goals. • Our Buildings business operating unit signed on to the American Institute of Architects 2030 Commitment in support of the 2030 Challenge, which asks firms to prioritize energy performance in their STANTEC INC. 1 Our Purpose Creating communities Our Promise Design with community in mind Our Goal To be a top-tier global design and delivery firm that is recognized for our creative, technology-forward, and collaborative approach Our Values We put people first. We do what is right. We are better together. We are driven to achieve. SIX STRATEGIC OBJECTIVES 1 Inspired Culture – We will continue to build an inspiring, inclusive work environment that attracts, supports, and develops world-class talent. 2 Winning Impactful Work – We will pursue and win work that transforms communities and inspires our people. 3 Exceptional Project Execution – We will execute projects exceptionally for our clients. 4 Inspired Thought Leadership – We will combine proven ideas with curiosity, creativity, and technology-forward approaches to position Stantec as an iconic firm. 5 Competitive Operational Advantage – We will embrace and enhance our collaborative business model and integrated platform for competitive and operational advantage. 6 Strategic Acquisitions – We will grow through strategic acquisitions to meet client needs and strengthen our ability Scioto Greenways Columbus, Ohio, United States to create communities. 2 2018 STANTEC SUSTAINABILITY REPORT ABOUT STANTEC Reportable Segments* 54% United States 30% Canada 16% Global 2018 GROSS REVENUE $4.3 billion Business Operating Units* 27% Infrastructure 22% Buildings 21%