ABOUT BOMBARDIER INC. AND BOMBARDIER AEROSPACE

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1 Bombardier Corporate Governance ABOUT BOMBARDIER INC. AND BOMBARDIER AEROSPACE Bombardier is a global transportation company operating two industryleading businesses: Aerospace and rail transportation. The company s 65,400 employees design, manufacture, sell and support the widest range of worldclass products in these two sectors. Headquartered in Montreal, the company posted revenues of $17.9 billion US for the fiscal year ending January 31, Bombardier Aerospace is the world s third largest civil aircraft manufacturer and is a world leader in the design and manufacture of innovative aviation products for the business, regional, and amphibious aircraft markets. Bombardier Aerospace employs approximately 33,600 people worldwide. For the year ending December 31, 2011, Bombardier Aerospace s revenues amounted to $8.6 billion. Bombardier Aerospace s 1.6 million square-foot Toronto facility is located on 370 acres and employs over 3,700 people. Aircraft manufacturing has been occurring on the site since 1928 when the de Havilland Aircraft Manufacturing Company of Canada began operations. The Bombardier Aerospace Toronto Site performs final assembly, painting and installation of interiors for the Q400 turboprop commuter aircraft, final assembly of the Global family of business aircraft and assembly of wings for the Lear 45 aircraft. Location Address: 123 Garratt Boulevard, Toronto, Ontario Phone: Website: csr.bombardier.com Bombardier Aerospace Toronto Assembly Site

2 CORPORATE GOVERNANCE CORPORATE SUSTAINABILITY Introduced in the spring of 2009, Bombardier s corporate strategy Our Way Forward will enable the company to build a sustainable future by addressing key challenges in the years to come. This company-wide initiative articulates key business priorities that are aligned with Bombardier s mission and core values. Corporate social responsibility (CSR) is one of them. Bombardier is committed to manufacturing innovative transportation solutions in a sustainable and responsible manner. Some of the specific initiatives implemented at the Bombardier Aerospace Toronto Site are highlighted below. Lighting Conducting off-shift lighting audits and turning off lights if not required. Retrofitting lighting, saving about $40,000 per year and 450,000 kwh per year. Replacing the 20-year-old lighting fixtures with the latest in fluorescent fixtures resulting in an annual reduction of 181 tonnes of CO2 emissions and energy savings of 821,000 kwh. Gas Installing variable frequency drive energy efficient compressors, saving about $80,000 per year. Converting from steam heat to gas heat, saving $200,000 per year. Re-commissioning abandoned solar panels to preheat boiler feed water saving 45,000 m3 of natural gas per year. Heating and Cooling Installing new controls on boilers, saving about $40,000 per year. Replacing an 1800 ton chiller, saving about $25,000 per year and 300,000 kwh per year Upgrading the chiller sequence controls, saving about $15,000 per year. Replacing the salt bath and oven, saving about $25,000 per year and 300,000 kwh per year. Replacing a constant-flow chilled water pumping system with a variable flow system, reducing CO2 emissions by 128 tonnes annually and 584,000 kwh of electrical energy annually. Processes Rooftop solar panels at Toronto Site Installing set-back timers on chemical process tanks, saving about $7,500 a year and 91,000 kwh per year. Installing condensate recovery systems, saving about $100,000 per year.

3 Solar Installation of 200 solar panels that generates an average of 475 MWh/year reducing the natural gas consumption and providing enough heat to raise the make-up water temperature by C. As a result of these and other initiatives, the Toronto site reduced energy use by 30 per cent between 2000 and Natural gas use was reduced by 23.6 per cent. WATER CONSUMPTION At the Toronto site, the greatest potential for water use reduction was on the domestic side as the manufacturing process opportunities were limited. From 2002 to 2009, water use at the Toronto site was reduced by 18 per cent. This was achieved through water reduction initiatives such as automated flush meters and converting water-cooled compressors to air cooled. SOLID AND HAZARDOUS WASTES To support Bombardier s corporate environmental strategy, the Toronto site committed to a target of zero landfill by The site s waste management provider, MCC, contracted the services of Cascades Recovery to receive recyclable materials and solid waste from the site. As of September 2011, solid waste from the site was no longer sent to landfill, instead sent to the Covanta energy-from-waste facility in Niagara Falls, New York. This agreement enabled the Toronto site to meet its target of Zero Waste to Landfill by 2011, four years earlier than the target goal. Bombardier s Recycling and Waste Station Additionally, since 2002, the Toronto site has successfully increased its waste diversion rate from 55 per cent to 75 per cent. This increased diversion rate has been supported by: increased employee training and awareness installing Dyson energy efficient hand dryers to reduce paper towel waste substituting polystyrene use in the cafeteria with compostable containers for takeout orders establishing an organics waste collection program replacing 500 garbage containers with 90 recycling centres Hazardous waste generation has also been reduced at the Toronto site as a result of various operational changes, including: eliminating the use of trichloroethylene eliminating the use of methylene chloride paint strippers on-site recycling and re-use of waste solvents waste aviation fuel re-used by on-site contractor to fuel grounds maintenance fleet

4 ENGAGEMENT Employee Engagement Bombardier recognizes that employee engagement is crucial in working towards achieving carbon neutrality and other key environmental targets. In 2010, the company created the Bombardier Green Fund to elicit and leverage the best site-related initiatives submitted by employees to improve energy efficiency and overall environmental performance. Through the Green Fund, Bombardier designates capital funds to Mount Trashmoar invest in green projects in order to meet its environmental targets. Projects must meet a list of criteria; however, the traditional payback period required for capital projects is extended or ignored in lieu of environmental and corporate sustainability benefits. Green Fund projects have been implemented across Bombardier facilities worldwide. Some of the projects at the Toronto site described in above sections came from employee suggestions that were funded through the Green Fund. These include the lighting retrofits, variable flow drive for chilled water, boiler replacement, and solar panels. Employees at the Toronto site also engage in sustainability through annual Earth Day celebrations. Past Earth Day activities have included the creation of Mount Trashmoar, a demonstration of a day s worth of the facility s solid waste piled high outside the facility. Mount Trashmoar proved an effective vehicle for showing employees the volume of waste generated over the course of one day and it got people talking about solid waste. Prizes were awarded to those who most accurately guessed the weight of Mount Trashmoar. Earth Day at the Toronto site has also featured an electronic waste collection drive that resulted in the diversion of over 3.7 metric tonnes of electronic waste from landfill. Community Involvement The Bombardier Toronto Site actively engages the local community through events such as Annual Family Day, whereby employees, their families, contractors and neighbours are invited to an open house. The open house includes self guided tours of the facility, activities, games and give-aways for the kids, lunch and entertainment. The facility also welcomes the community to view its static display of current and vintage aircraft. Guests are welcome to board a luxury business jet, sit in the cockpit of training fighter jet and take pictures of a full scale mock up of the Avro Arrow. MEASURING PROGRESS Corporately, Bombardier tracks its environmental progress through its CSR reporting. Environmental data is compiled on a quarterly basis by all sites and submitted to the Corporate HSE function for inclusion in the company s Environmental Reporting. Once recorded, an internal quantitative accuracy review is conducted to identify any inconsistencies from the previous year.

5 MOVING FORWARD Bombardier has identified enhancing its CSR as one of its five business priorities for the future. Inherent in this is the company s commitment to reducing the environmental footprint of its products and operations, further promoting employee health and safety in daily decisions and actions, and actively contributing to the development of communities in which the company operates. Bombardier Aerospace is committed to expanding its CSR leadership role in the aerospace industry by engaging, supporting and guiding industry associations, regulatory agencies and government bodies, and by ensuring strong Bombardier participation in key industry events. The Toronto Site continues to reduce its environmental footprint through its ISO41001 certified environmental management systems by setting annual objectives and targets for waste and energy. ABOUT THE ONTARIO AEROSPACE COUNCIL Bombardier Aerospace is a member of the Ontario Aerospace Council (OAC). The OAC brings together more than 220 Ontario aerospace companies and organizations, working together: to be the voice of the Ontario aerospace industry; and to increase Ontario s share of the global aerospace market. The OAC is a not-for-profit, non-share capital corporation governed by a Board of Directors representing all segments of the Ontario aerospace industry, which produces over $7 billion annually in innovative, globally competitive products and services and employs more than 24,000 people. The Ontario aerospace industry, led by its energetic Board of Directors, is working together through the OAC to define and carry out an ambitious set of strategic initiatives, programs, events and activities that will: drive greater health and growth of the industry; lead the world in innovative, customer-focused products and services; ensure skills and knowledge to support the industry; build a world-class brand for the industry; and enable small and medium-sized enterprises to meet their particular business requirements. All companies and organizations in Ontario and beyond who are involved in and with the Ontario aerospace industry are invited to be part of the OAC. The OAC s goals are to enhance recognition of the Ontario aerospace industry as a leader in global aerospace markets and to build stronger capabilities in the industry to assure continued growth and prosperity. For more information about the OAC, visit

6 WHAT IS PARTNERS IN PROJECT GREEN? Opportunities to gain a competitive advantage through sustainable business practices are more attainable than you think. Partners in Project Green is a growing community of businesses working together to green their bottom line by creating an internationally-recognized eco-business zone around Toronto Pearson. Through new forms of business-to-business collaboration, Partners in Project Green delivers programming that helps businesses reduce energy and resource costs, uncover new business opportunities, and address everyday operational challenges in a green and cost-effective manner. PEARSON ECO-BUSINESS ZONE