2011 GREEN REPORT MANITOBA TELECOM SERVICES INC.

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1 2011 GREEN REPORT MANITOBA TELECOM SERVICES INC.

2 2011 GREEN REPORT MANITOBA TELECOM SERVICES INC. : MAKING AN IMPACT OUR COMMITMENT IS TO REDUCE OUR IMPACT ON THE ENVIRONMENT AND HELP OUR CUSTOMERS, EMPLOYEES AND STAKEHOLDERS DO THE SAME 2ZERO-EMISSION BATTERY-POWERED NISSAN LEAF ELECTRIC CARS ANNOUNCED AS ADDITIONS TO THE EIGHT ENVIRONMENTALLY-FRIENDLY HYBRID VEHICLES ALREADY IN OUR FLEET 11 CONSECUTIVE YEARS ON THE JANTZI SOCIAL INDEX, A GROUP OF 60 CANADIAN COMPANIES THAT PASS A COMPREHENSIVE SET OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE SCREENS 30 VEHICLES IN THE FLEET AND ROUTING OPTIMIZATION ENABLERS PILOT PROJECT TO REDUCE FUEL CONSUMPTION, IMPROVE RESPONSE TIME TO CUSTOMERS, REDUCE GHG EMISSIONS AND ENHANCE EMPLOYEE SAFETY 36 PER CENT REDUCTION IN PAPER PURCHASED SINCE 2008, OUR BASELINE YEAR, AND A 5% REDUCTION IN 2011 VERSUS PER CENT OF EMPLOYEES WORK IN OR OUT OF LEED OR BOMA CERTIFIED LOCATIONS 673 TELEWORKERS OVER 10% OF OUR WORKFORCE 1750 MCGILLIVRAY AVENUE LOCATION IN WINNIPEG RECEIVED A BOMA EARTH AWARD FOR ENVIRONMENTAL IMPROVEMENTS 5,930 COMPANY SUBSIDIZED PUBLIC TRANSIT PASSES ISSUED TO EMPLOYEES 18,559 TONNES OF GHG EMISSIONS FROM OPERATIONS IN 2011, UP SLIGHTLY FROM OUR 2008 BASELINE OF 17,327 TONNES 38,537 WIRELESS DEVICES RE-USED OR RECYCLED SINCE THE PROGRAM STARTED 160,000 SQUARE FEET IN THE ALLSTREAM CENTRE, CANADA S MOST ENVIRONMENTALLY RESPONSIBLE CONFERENCE CENTRE 981,464 FEWER PIECES OF PAPER FOR BILLS AND MARKETING SENT TO CUSTOMERS 2

3 2011 GREEN REPORT The MTS Allstream 2011 Green Report describes the Company s environmental performance and plans. The 2011 Green Report includes comparative data 1, where available, along with information about our green objectives, priorities and initiatives for 2012 and beyond What s in this Report Message from CEO Pierre Blouin 2011 Performance 2012 Priorities Our Commitment We will reduce our impact on the environment and help our customers, employees and stakeholders do the same Our Green Objectives 1. Reduce our carbon footprint and the environmental impact of our operations 2. Provide our employees with incentives and information to enable them to reduce their personal impact on the environment 3. Help our customers reduce their impact on the environment by providing them with communications solutions and information that enable green behaviours Who We Are MTS Allstream is one of Canada s leading national communication companies, providing innovative communications for the way Canadians live and work today. The company has more than 100 years of experience, with 5,500 employees across Canada. MTS Allstream s business is dynamic and consists of two operating divisions. In Manitoba, MTS is the leading full-service telecommunications provider for residential and business customers. MTS s suite of services include the latest in wireless technology, broadband services, IPTV, voice services, home security, and an extensive range of business solutions. Across Canada, Allstream is a leader in IP communications and is the only national provider that focuses exclusively on the business telecommunications market. MTS Allstream has nearly two million customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The Company s extensive national fibre optic network spans more than 30,000 kilometres. MTS Allstream has spent 11 consecutive years on the Jantzi Social Index for leadership in social responsibility and is the recipient of the 2011 Governance Gavel Award from the Canadian Coalition for Good Governance, recognizing clear and effective public disclosure and leading governance practices. MTS Allstream s public shares are listed on the TSX (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit For more information about MTS s products and services, please visit For more information about Allstream s products and services, please visit As part of our commitment to reducing our impact on the environment, this report is available online only at 1 This report provides an overview of corporate performance, including our two largest operating units MTS Inc. and Allstream Inc. as well as the parent company, Manitoba Telecom Services Inc. The data reported on GHG emissions does not include the full operations of Delphi/UC, which is a smaller subsidiary. Another subsidiary AAA Alarms was excluded from GHG emissions data in previous reports, but this has been addressed as part of our commitment to improve our GHG management system. We plan on including Delphi/UC operations in the future. 3

4 : GETTING BETTER A MESSAGE FROM CEO PIERRE BLOUIN It has been nearly five years since MTS Allstream undertook efforts to revitalize its environmental sustainability or green program. At that time, I said we would improve our environmental performance on the foundation of our strategy, policies, operating practices, management systems and green initiatives that involve our employees across the country. We have made some solid progress and I would like to share a few highlights from previous Green Reports: I mplementing Workplace 2.0, an employee teleworking program that facilitates work-life balance and helps minimize our carbon footprint B eing recognized for our efforts (e.g., Corporate Knights Best 50 Corporate Citizens, Commuter Friendly Workplace Award, Manitoba Excellence in Sustainability Award) M aintaining an effective Environmental Management System (EMS) to ensure compliance with environmental law/ regulations E stablishing an expanded and improved office recycling program across the country L aunching virtual workplace solutions for enterprise customers to enable a more flexible workplace, lower costs, and reduce GHG emissions B eing a partner to the City of Montreal s Sustainable Development Strategy since 2007 R e-using or recycling over 1,000,000 kilograms of material from decommissioned equipment E ngaging employees in education and awareness events (e.g., Earth Day, Earth Hour, Défi Climat, National Commuter Challenge, Clean Air Commute) C ontributing to the operations of the Green Action Centre in Manitoba, a non-profit, non-government hub for greener living T itle sponsor of the Allstream Centre, Canada s most environmentally-responsible conference centre I mplementing corporate sustainability policies (e.g., reduce printing, eliminate unnecessary idling of fleet vehicles, reduce business travel) R educing paper consumption through initiatives like electronic billing for both business and residential customers D onating $100,000 to the David Suzuki Foundation M oving to more efficient power sources, technology and HVAC at office, network and IT locations A dding two zero-emission battery-powered Nissan Leaf electric cars to the eight hybrid vehicles in our fleet U pdating our GHG inventory and establishing a new baseline for our GHG footprint S etting an absolute GHG emissions reduction target 20 per cent by 2020 Of course, I am pleased to report this progress. At the same time, I know that fully addressing MTS Allstream s environmental impacts and performance is a longer-term journey. In this regard, we can do better. We can close on opportunities to improve what is included in our public reporting on environmental performance and we need to disclose our annual Green Report earlier in the year. Getting better is definitely a journey It means that we need to stay close to emerging trends and new practices to effectively plan, implement and report on environmental sustainability. It means we need to keep moving what is best in class today is the standard tomorrow. It means we have to be committed, courageous and passionate. These are all key values for MTS Allstream which we will bring to bear to reduce our absolute GHG emissions by 20 per cent by In addition, and while progress has been slower than we would like, we are committed to improving our reporting so it is clear where MTS Allstream is a leading performer, is meeting reasonable expectations or needs to do more. I look forward to updating you on MTS Allstream s progress against the future plans identified in this report. Pierre Blouin 4

5 : PERFORMANCE The data presented here, unless otherwise noted, highlights results in key green performance areas from 2008 (our baseline year) to the end of December, Priority Key Initiatives Results Reduce, Reuse, Recycle Paper Printing Equipment Purchased 36% less paper than 2008 and 5% less than 2010 Recycled nearly 370,000 kg of materials from decommissioned equipment in Nearly 1,200,000 kg of these materials have been recycling since 2008 Continued our corporate standard for office paper (30% recovered, post-consumer fibre sources, Sustainable Forestry Initiative) Continued the expanded, uniform office recycling program introduced at nearly 40 office locations across the country in 2009 Greening our fleet Fuel consumption/ efficiency Eco-maintenance Fuel consumption in 2011 was relatively flat compared to 2010 (year-over-year increase of less than 0.5%) and 2008 (year-over-year increase of 2.5% with a corresponding 3.5% increase in kilometres travelled due to increased business requirements) Recycling remains a significant part of fleet operations. In 2011, we continued to recycle tires, batteries, engine oil, engine filters plastic and antifreeze Item 2011 Total since 2008 Tires 321 1,329 Batteries Oil (L) 7,200 31,400 Crushed Filters 364 2,343 Plastics (Kg) 351 1,029 Antifreeze (L) 1,230 5,925 Announced the addition of two zero-emission battery-powered Nissan Leaf electric cars to the eight hybrid vehicles already in our fleet. At the time, there were only four Nissan Leaf cars in Manitoba and 111 in Canada Launched the MTS Fleet and Routing Optimization Enablers pilot to reduce our carbon footprint by managing and monitoring fuel consumption and providing more efficient routing. As well, this initiative is intended to improve response time to customers, enhance employee safety and support productivity. Allstream has used similar GPS technology in a portion of its fleet since 2008 Energy efficiency Lighting HVAC Alternate energy Approximately 60% of employees work in or out of LEED 3 or BOMA 4 certified locations Recipient of a BOMA Earth Award for environmental leadership in building management, operations and green practices at our 1750 McGillivray location in Winnipeg (new efficient lighting to reduce energy consumption, water-saving washroom fixtures, new waste disposal/recycling program) Completed energy efficiency HVAC and lighting upgrades at the largest network location in Winnipeg (640 Corydon) Completed lighting energy efficiency upgrades at an additional seven sites Upgraded HVAC systems to improve energy efficiency at an additional three locations Our largest office location in Toronto (200 Wellington) is LEED certified at the Gold level 2 We currently report and benchmark against Scope 1 and Scope 2 criteria as defined under the Carbon Disclosure Project guidelines 3 Leadership in Energy and Environmental Design 4 Builder Owners and Managers Association 5

6 PERFORMANCE Priority Key Initiatives Results Regulatory compliance Annual environmental compliance review Fuel tank upgrades to mitigate risk Spills and incidents reporting The annual Environmental Management & Compliance Review provides a structured and prioritized snapshot of compliance with environmental legislation, regulations and applicable standards, and sets out the associated corrective actions taken or required by MTS Allstream The 2011 Review did not identify any significant regulatory compliance issues On track to comply with federal requirements to remove Halon Fire Suppression Systems from service by the end of 2014 two additional systems removed in All Halon fire suppression systems in Manitoba were previously removed from service by December 31, 2009 as required by provincial regulation On track to comply with federal requirements to remove CFC-11 Chillers from service by the end of 2015 implemented plan in 2011 to remove two additional CFC-11 Chillers Established requirements for increased awareness of spill response and clean-up procedures for relevant employees Upgraded or replaced fuel storage systems at an additional six locations to mitigate against an environmental spill MTS Allstream had and remediated two reportable events in Both of these Freon releases were reported to the regulatory authority with no further action required Customer initiatives e-waste reduction e-billing options Virtual workplace solutions Over 38,500 cell phones recycled since the program started Nearly 46,000 MTS consumer customers have signed up for e-bill since 2008 Part of the Canadian Wireless Telco Association (CWTA) RecycleMyCell program Reduction in paper billing to consumer customers eliminated over 215,000 pieces of paper in 2011 Reduced printed advertising materials to consumer customers by 41% in 2011 eliminated 487,189 printed items 5% reduction in paper invoices for enterprise customers in 2011 compared to ,000 fewer pieces of paper in 2011 compared to 2010 and several million fewer since 2008 Residential phone directories commonly called White Pages became available only upon request Continued to engage enterprise customers in the potential of virtual workplace communication solutions that enable a more flexible workplace, lower costs, support business continuity and reduce environmental footprint mts.ca MyAccount subscriptions hit 100,000 with its self-serve capabilities reducing the production and circulation of paper by both the company and customers Employee commuting Teleworking Alternative transport Continued the Workplace 2.0 teleworking program which was launched in 2007 and relocated participants from an office workstation to a home office on a full or part-time basis. With over 10% of our workforce teleworking, the program eliminates millions of kilometres of commuting each year Over 5900 company-subsidized public transit passes were issued in Winnipeg (almost 500 passes each month) a 26% increase from

7 PERFORMANCE Priority Key Initiatives Results Education, awareness and engagement Employees Community activities Sponsorships Continued to inform and engage employees on community-based events, including: Earth Hour, Earth Day, the National Commuter Challenge across Canada and the Clean Air Commute in the Greater Toronto Area Continued to recognize environmental leadership through the most prestigious category/ level for our employee appreciation program Partner to the City of Montreal s Sustainable Development Strategy since 2007 Continued to contribute to the operations and services of the Green Action Centre in Manitoba, a non-profit, non-governmental hub for greener living Title sponsor of the state-of-the-art Allstream Centre, Canada s most environmentally responsible conference centre which uses Allstream communications technology to provide green networking solutions that are sustainable Worked with Partners in Project Green (Pearson eco-business Zone) to create a MTS Allstream case study on corporate governance for a green program Through the CWTA RecycleMyCell program, sponsored Waste Reduction Week 7

8 : REDUCING GHG IMPACT AND IMPROVING GHG SYSTEMS MTS Allstream s priorities for 2012 and beyond support our long-term environmental commitment statement, reduction target and green objectives Our Commitment We will reduce our impact on the environment and help our customers, employees and stakeholders do the same Our Green Objectives 1. Reduce our carbon footprint and the environmental impact of our operations 2. Provide our employees with incentives and information to enable them to reduce their personal impact on the environment 3. Help our customers reduce their impact on the environment by providing them with communications solutions and information that enable green behaviours Our Reduction Target To reduce absolute GHG emissions by 20 per cent by the end of 2020 Starting from a 2008 baseline of 17,326 total tonnes of GHG emissions Our Priorities for 2012 and Beyond per cent by 2020 Reduction Target Our GHG emissions of 18,559 tonnes were up slightly from our baseline of 17,327 tonnes. MTS Allstream will implement and develop additional plans to achieve our 20 per cent by 2020 reduction target. In the shorter-term, our strategy will focus on energy consumption and efficiency for our office locations, network and information technology sites and our corporate fleet of vehicles. At the same time, we will minimize overall waste generation by reducing, re-using or recycling paper and materials/ equipment, maintain compliance with environmental regulatory requirements, engage customers in reducing e-waste, using electronic billing and enabling green behaviours through virtual workplace solutions, and helping employees to reduce their personal impact on the environment through alternate commuting options. Some examples of concrete actions for 2012 include: Implementing the fully approved Fleet and Routing Optimization Enablers initiative in MTS to reduce fuel consumption and GHG emissions. This project will install two GPS units into each vehicle. The first unit will provide turn-by-turn directions to the driver, reducing both travel time and fuel consumption. The second unit will provide real time data, displaying the precise location, path, speed of the vehicle and status of the engine Upgrading office locations with more energy efficient building envelopes, HVAC and/or lighting (e.g., 150 Laurier West in Ottawa, 625 Belmont in Montreal) Providing business customers with 24/7 secure access to a searchable database with seven years of electronic invoices through Allstream s self-service portal, TouchPoint, which reduces the need for printing, making it a true green solution 2. GHG Management System and Reporting MTS Allstream has opportunities to improve the quality and timeliness of its internal system and reporting which have yet to be realized. For example, we intend to address the following for the 2012 Allstream Green Report: Total energy consumption Total waste generation Longer-term opportunities that still need to be fully analyzed include reporting on Scope 3 GHG emissions, improving environmental performance metrics and measures, and third-party verification of our GHG management system. 8

9 : COMMITTING TO CORPORATE SOCIAL RESPONSIBILITY MTS Allstream strives to be a responsible corporate citizen. As a constituent of the Jantzi Social Index, our Company ranks among the top socially responsible and environmentally progressive companies in Canada. We continue to make progress toward our goal of reducing our impact on the environment and in 2011 we marked an important milestone for MTS Allstream s green plan with the announcement of our 20% by 2020 GHG reduction target a commitment to reduce our absolute GHG emissions by 20% by the end of In the communities we serve, our employees and retirees volunteer an average of more than 50,000 hours every year. We were awarded the 2011 Governance Gavel Award by the Canadian Coalition for Good Governance for having the best disclosure of governance practices and approach to executive compensation by a small or mid-sized issuer. AN AWARD-WINNING COMPANY Manitoba Telecom Services Inc., used under license.