Sustainability Report 2019 Stantec and the COVID-19 Pandemic As we were preparing Stantec’s 2019 Sustainability Report, the • As an element of our business continuity planning, our world began to respond in earnest to the COVID-19 pandemic. IT systems were already designed in anticipation of the Because our corporate pandemic response efforts began in potential need to have staff work from home. Once the need early January 2020—outside the scope of this report—we will for social distancing and stay-at-home orders became clear, comprehensively describe our COVID-19 response in next year’s Stantec was able to immediately respond. Sustainability Report. • At the start of the pandemic, we were able to immediately In the meantime, here are some high-level points of interest: deploy our crisis communications, health and safety, and mental health programs to minimize the stress on our • Stantec’s Pandemic Preparedness Program was established employees. in 2011 and consists of a Pandemic Response Plan that is overseen by a Pandemic Committee. • Many of Stantec’s service offerings—such as health care design, disaster preparedness, water treatment, and • The Pandemic Committee members are subject matter resiliency planning and implementation—are providing direct experts and include two Executive ESG Committee support to the pandemic response. members (chief human resources officer and senior vice president of Health, Safety, Security, Environment, For more information as the crisis continues to unfold, please and Sustainability) as well as one of our firm’s principal reference Stantec’s dedicated COVID-19 webpage for expert toxicologists, certified as a Diplomate of the American knowledge, relevant service offerings, information on business Board of Toxicology. continuity, and leadership messages. ABOUT THIS REPORT This Sustainability Report, Stantec’s 13th annual, highlights Reviews and Approvals our contributions to and focus on sustainability and provides Our consolidated financial statements were audited by information about Stantec’s material environmental, social, and Ernst & Young LLP Chartered Professional Accountants. Our governance (ESG) issues, impacts, and achievements for our greenhouse gas emissions inventory was independently verified fiscal year ending December 31, 2019. All financial information by Apex Companies (previously Bureau Veritas Group). is reported in Canadian dollars (unless otherwise stated). Stantec’s sustainability disclosures and data underwent internal Frameworks quality checks and are factual to the best of our knowledge at the time of reporting. The report underwent a formal review and The Sustainability Report covers Global Reporting Initiative approval process by senior management from each functional (GRI) Sustainability Reporting Standard Disclosures and the area, the Executive ESG Committee, and the C-suite. Additionally, ways in which we meet the needs of certain stakeholder groups. the board Health, Safety, Security, Environment, and Sustainability The GRI Content Index (Appendix A) refers to topics in the Committee reviewed the report before its release. Engineering and Construction Services Standard of the Stantec commissioned ISOS Group, Inc. to conduct a third-party Sustainability Accounting Standards Board (SASB) and the review of this report to determine whether it was prepared in recommendations in the Task Force on Climate-related accordance with the requirements of the Core report option of Financial Disclosures (TCFD) of the Financial Stability Board. the GRI Sustainability Reporting Standards. The report also includes Stantec’s Communication on Progress More Information for the United Nations Global Compact (Appendix B). Additional information is available in our Annual Report dated Throughout this report we have included Management Approach February 26, 2020; our Management Information Circular links to provide additional information on the topics identified in dated March 11, 2020; our Annual Information Form dated this report (summarized in Appendix C). February 26, 2020; our 2019 CDP Disclosure (formerly the Carbon Disclosure Project); and on our website, stantec.com. Report Boundaries Combined, these resources provide transparency regarding This report reflects all Stantec worldwide operations. Stantec’s ESG performance. This report, past reports, and future updates can be accessed at stantec.com/sustainability. We welcome your comments and questions about our sustainability efforts. Please direct them to [email protected]. Finchaa-Amerti-Neshe Water Conveyance System Blue Nile River Basin, Ethiopia TABLE OF CONTENTS MESSAGE FROM OUR PRESIDENT AND CEO 1 APPENDIXES 50 SUSTAINABILITY AT A GLANCE 2 APPENDIX A STANTEC SNAPSHOT 3 GRI Content Index A.1 SUSTAINABILITY AT STANTEC 11 APPENDIX B Sustainability Approach 12 UNGC Communication on Progress B.1 Sustainability Governance 14 APPENDIX C Strategy 15 Summary of Management Approaches C.1 Climate Action 18 APPENDIX D Sustainable Development Goals 20 Cautionary Note Regarding Materiality 23 Forward-Looking Statements D.1 ENVIRONMENTAL STEWARDSHIP 25 Environmental Management 26 Reducing Emissions 27 Resource Conservation 28 SOCIAL BETTERMENT 30 People-Centered Workplace 31 Health, Safety, and Security 38 Charitable Investments 39 Indigenous Connections 40 Innovation 42 RESPONSIBLE GOVERNANCE 43 Corporate Governance 44 Ethics and Compliance 45 Risk Management 45 Integrated Management System 46 Project Delivery 47 CyberSecurity and Privacy 48 Quarry Park FIsh Habitat Compensation Program Human Rights 48 Calgary, Alberta, Canada Sustainable Supply Chain 49 MESSAGE FROM OUR PRESIDENT AND CEO Planet Our people are passionate about In addition to our own people, we are communities successfully address Besides focusing on reducing our sustainable design, and our expertise committed to improving the quality of their sustainability goals. Whatever the own environmental impact, we also in the area is a key differentiator when life of those living in the communities challenge, Stantec is ready to help our develop and deliver innovative ways it comes to winning business. we serve through sustainable design, clients and communities meet it. to reduce carbon emissions, mitigate formalized volunteer opportunities, environmental impacts, and enhance People and charitable support systems. the resiliency of the communities The powerful forces affecting the world and clients we serve. Enabling our today are creating a wide array of Protection clients and communities to address sustainability challenges. Our talented Strong governance that promotes Stantec is deeply involved in promoting their sustainability and resilience scientists, engineers, and architects are socially and environmentally a sustainable future in the communities challenges isn’t just the right thing dedicated to meeting these challenges responsible practices is an absolute Gord Johnston we are a part of through the use of better to do; it’s an immense business with insight and innovation. requirement to achieve sustainable President and Chief Executive Officer design to revitalize cities, promote re- opportunity. earnings growth and protect the Stantec newable energy, and restore ecosystems. To attract and retain our team of interests of the environment, clients, We continue to support the UN Global Climate change, shifting population experts, we work hard to foster an employees, and shareholders alike. Compact and align our work with the UN demographics, geopolitics, and inclusive culture that values and Together with our board, our leadership Sustainable Development Goals. transformative technologies are vigorously pursues professional ethics, promotes a culture of responsibility expected to drive trillions in demand health and safety, and exceptional and continuous improvement. Our success proves that it’s possible for design services in the areas project performance. I’m proud of the to be profitable while maximizing the of coastal resilience, ecosystem thousands of women and men who We will continue to make good on our beneficial impact we have on the planet restoration, smart cities, and renewable devote so much talent and passion to promise to design with community and people. energy between now and 2030. Stantec’s clients and communities. in mind by helping our clients and SUSTAINABILITY AT A GLANCE STANTEC SNAPSHOT SUSTAINABILITY AT STANTEC ENVIRONMENTAL STEWARDSHIP SOCIAL BETTERMENT RESPONSIBLE GOVERNANCE APPENDIXES 2019 STANTEC SUSTAINABILITY REPORT | 1 SUSTAINABILITY AT A GLANCE Stantec embraces Key 2019 Overall Environmental Social Governance the entire sustain- Sustainability Named by Corporate Knights as one of Recognized by CDP for climate Reduced our injury rate (total Governed by executive- and board-level Highlights the 100 Most Sustainable Companies leadership (A- score) recordable incident rate or TRIR) sustainability committees ability spectrum: in the World and 50 Best Corporate by 15% since 2018 environmental Citizens in Canada Reduced Scope 1 and 2 emissions Further strengthened and embedded by 39% since our 2013 baseline Created a new C-suite position focused sustainability, including climate action, protection and Actively supported the UN on innovation and annually invest into our strategic plan enhancement, Global Compact and Sustainable Rolled out a print management program approximately $3 million to support Development Goals in the United States that is reducing our the innovation, creativity, and thought Advanced gender equity (44% of