SNC-Lavalin issues its 2014 sustainability report. GRI Index

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1 SNC-Lavalin issues its 2014 sustainability report Index

2 2014 Sustainability Report Index 2 Indicator Indicator Name Indicator description SNC-Lavalin s Answer Standard Disclosure Standard Disclosure Title Disclosure Requirements The disclosure requirements for the selected Standard Disclosures are provided below. The G4 Implementation Manual contains explanations of how to prepare the information to be disclosed and how to interpret the various concepts in the Guidelines. Organizations should consult the G4 Implementation Manual when preparing a sustainability report. Strategy and analysis G4-1 a. Provide a statement from the most senior decision-maker of the organization (such as CEO, chair or equivalent senior position) about the relevance of sustainability to the organization and the organization s strategy for addressing sustainability. Please see Robert G. Card s message. The statement should present the overall vision and strategy for the short term, medium term and long term, particularly with regard to managing the significant economic, environmental and social impacts that the organization causes and contributes to, or the impacts that can be linked to its activities as a result of relationships with others (such as suppliers, people or organizations in local communities). The statement should include: Strategic priorities and key topics for the short and medium term with regard to sustainability, including respect for internationally recognized standards and how such standards relate to long term organizational strategy and success; Broader trends (such as macroeconomic or political) affecting the organization and influencing sustainability priorities; Key events, achievements and failures during the reporting period; Views on performance with respect to targets; Outlook on the organization s main challenges and targets for the next year and goals for the coming 3 5 years; Other items pertaining to the organization s strategic approach. Organizational profile G4-3 a. Report the name of the organization. SNC-Lavalin Group Inc. (the Company ). G4-4 a. Report the primary brands, products and services. Please refer to the at a Glance section of our 2014 Annual Report and Section 2 of the Management s Discussion and Analysis (MD&A) portion of our 2014 Financial Report. G4-5 a. Report the location of the organization s headquarters. The Company s headquarters and registered office is located at 455 René-Lévesque Boulevard West, Montreal, Quebec, Canada H2Z 1Z3. G4-6 a. Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. As of December 31, 2014, the Company had permanent offices in over 34 countries, including the major offices located in the following regions: The Americas: BRAZIL, CANADA, CHILE, COLOMBIA, PANAMA, PERU, UNITED STATES, VENEZUELA Europe: BELGIUM, FRANCE, GERMANY, MONACO, NORWAY, POLAND, ROMANIA, RUSSIAN FEDERATION, SERBIA, SWEDEN, UNITED KINGDOM Africa & the Middle East: ALGERIA, BAHRAIN, EGYPT, MOROCCO, SAUDI ARABIA, SOUTH AFRICA, TUNISIA, UNITED ARAB EMIRATES Asia & Oceania: AUSTRALIA, CHINA, INDIA, KOREA, MALAYSIA, NEW ZEALAND, THAILAND SNC-Lavalin has temporary offices in a dozen additional countries and conducts projects in some 100 countries worldwide.

3 2014 Sustainability Report Index 3 G4-7 a. Report the nature of ownership and legal form. The Company was incorporated under the laws of Canada by Letters Patent on May 18, 1967, and was continued under the Canada Business Corporations Act on March 24, The shares of the Company are traded on the Toronto Stock Exchange (TSX: SNC). As of March 16, 2015, the Company had 152,467,586 common shares outstanding. To the knowledge of the Directors and officers of the Company, based on shareholders public filings, the only person or company who beneficially owns or controls or directs, directly or indirectly, voting securities carrying more than 10% of the voting rights attached to all shares of the Company is the Caisse de dépôt et placement du Québec (the Caisse ), an institutional fund manager. As of March 16, 2015, based on shareholders public filings, the Caisse beneficially owned or controlled or directed, directly or indirectly, 17,266,200 Common Shares representing 11.33% of the outstanding Common Shares of the Company. G4-8 a. Report the markets served (including geographic breakdown, sectors served and types of customers and beneficiaries). The Company offers services and does not manufacture products. For a summary of markets served, including geographic breakdowns and sectors, please see Section 2.1, Our Business, on p. 11 of the MD&A and Section 7, Geographic Breakdown of Revenues by Category of Activity, on p. 31 of the 2014 Financial Report. The Company serves a wide range of customers in the public, quasi-public and private sectors. Section 8, Segmented information, on p. 32 of the MD&A, provides an overview of projects and clients by sectors (segments) of activity. G4-9 a. Report the scale of the organization, including: Total number of employees; Total number of operations; Net sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organizations); Quantity of products or services provided. As of December 31, 2014: Total number of employees: 42,003; Total number of operations: See Section 2.1 Our Business on p. 11 of the MD&A; Total revenues: CA$8,238.8 million; Total capitalization: Equity attributable to SNC-Lavalin shareholders: CA$3,305.6 MILLION; Cash net of recourse debt: CA$1,324.0 million; Quantity of products or services provided: See Section 7, Geographic Breakdown of Revenues by Category of Activity, on p. 31 of the 2014 Financial Report. G4-10 a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. For employee breakdown per region, see table on Tab G4-10. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organization s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). G4-12 a. Describe the organization s supply chain. SNC-Lavalin s supply chain is project based on the nature, type and geographic location of projects, and is therefore highly variable from one year to another as these factors evolve.

4 2014 Sustainability Report Index 4 G4-13 a. Report any significant changes during the reporting period regarding the organization s size, structure, ownership or supply chain, including: Changes in the location of, or changes in, operations, including facility openings, closings, and expansions; Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations); Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination. > On June 23, 2014, in line with its strategy, the Company announced that it had reached an agreement with Kentz Corporation Limited ( Kentz ), approved by the boards of directors of both companies, on the terms of a cash acquisition by which the entire ordinary share capital of Kentz, issued and to be issued, was to be acquired by SNC-Lavalin (the acquisition ) for a consideration estimated at approximately 1.2 billion (CA$2.1 billion). Kentz is a global oil and gas services company. On August 22, 2014, the Company announced that it had completed the Acquisition. > On September 30, 2014, SNC-Lavalin sold its 100% ownership interest in Ovation Real Estate Group (Quebec) Inc. ( Ovation ). Ovation s principal activity was to build, operate and maintain an acoustic concert hall in Montreal, Canada. SNC-Lavalin will continue to provide operations and maintenance services for this acoustic concert hall and its new owner until > On October 15, 2014, SNC-Lavalin announced that it sold its 21% ownership interest in Astoria, the owner of the legal entity that owns and operates a gas-fired combined-cycle power plant in New York City. > On December 1, 2014, SNC-Lavalin sold its 100% ownership interest in AltaLink Holdings, L.P. (ahlp ), the parent company of AltaLink, L.P., owner and operator of transmission lines and substations subject to rate regulation in Alberta, to Berkshire Hathaway Energy. G4-14 a. Report whether and how the precautionary approach or principle is addressed by the organization. As of December 31, 2014, the Company was mainly a service provider, not a manufacturer of products. As such, the Company employs risk management processes, which are being expanded to cover not only project-based risks, but also Company-wide risks. Currently, the precautionary principle does not form part of corporate risk management processes. G4-15 a. List externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or which it endorses. G4-16 a. List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: Holds a position on the governance body; Participates in projects or committees; Provides substantive funding beyond routine membership dues; Views membership as strategic. The Company provides a wide range of engineering, procurement and construction management services on projects, as well as operations and maintenance activities, in some 100 countries. The Company applies the most stringent of the prevailing national laws or recognized international standards. SNC-Lavalin is a founding member of the Quebec Business Council on the Environment and a founding member of the Partnering Against Corruption Initiative (PACI). It also a member of, and participates in, some executive networks of the Conference Board of Canada, notably regarding sustainable development and aboriginal affairs. SNC-Lavalin is also a member of the Chamber of Commerce of Metropolitan Montreal, the Conseil des relations internationales de Montréal (CORIM) and the Canadian Council of Chief Executives. This refers primarily to memberships maintained at the organizational level. Identified material aspects and boundaries G4-17 a. List all entities included in the organization s consolidated financial statements or equivalent documents. b. Report whether any entity included in the organization s consolidated financial statements or equivalent documents is not covered by the report. The organization can report on this Standard Disclosure by referencing the information in publicly available consolidated financial statements or equivalent documents. The main segments of the Company are presented in our 2014 Management s Discussion and Analysis (MD&A) pages They are: - Resources, Environment and Water - Infrastructure - Power - ICI A list of main subsidiaries, joint arrangements and associates of the Company, as well as the principal infrastructure concession entities in which the Company participates, are published in Section 1.2 Subsidiaries, Joint Arrangements and Associates, on p. 3-4 of the Company s Annual Information Form (AIF). G4-18 a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. G4-22 a. Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. Issues of content, scope, boundaries, materiality and prioritization were reviewed by a joint team composed of representatives from the Corporate Environment & Sustainable Development team, the Environment & Water business unit and Global Corporate Communications. None to disclose. G4-23 a. Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. None to disclose.

5 2014 Sustainability Report Index 5 Stakeholder engagement G4-24 a. Provide a list of stakeholder groups engaged by the organization. The Company considers its key stakeholders to be its clients, its shareholders and its employees. Business units are encouraged to engage local communities, particularly in less developed countries, near construction sites under the Company s management. Please see the Management Proxy Circular and Notice of Annual Meeting of Shareholders, dated March 16, 2015, Section 3.11, Shareholder Engagement, p. 33. G4-25 a. Report the basis for identification and selection of stakeholders with whom to engage. SNC-Lavalin engages with all stakeholders who communicate with the corporation. G4-26 a. Report the organization s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. G4-27 a. Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Please see the Management Proxy Circular and Notice of Annual Meeting of Shareholders, dated March 16, 2015, Shareholder Engagement section, p. 59. The Company will keep stakeholders aware of all major developments through its quarterly MD&A and/or press releases. Also see the 2014 MD&A, Section 13, Controls and Procedures, p. 40. Report profile G4-28 a. Reporting period (such as fiscal or calendar year) for information provided. The 2014 calendar year, which is also the Company s fiscal year. G4-29 a. Date of most recent previous report (if any). November 2014 G4-30 a. Reporting cycle (such as annual, biennial). Annual G4-31 a. Provide the contact point for questions regarding the report or its contents. For questions regarding this report and its contents, please visit the SNC-Lavalin website ( and click on Contact Us. G4-32 a. Report the in accordance option the organization has chosen. b. Report the for the chosen option. c. Report the reference to the External Assurance Report, if the report has been externally assured. recommends the use of external assurance but it is not a requirement to be in accordance with the Guidelines. G4-33 a. Report the organization s policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Report the relationship between the organization and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization s sustainability report. a. SNC-Lavalin strives to answer the in accordance core guidelines. b. of this report. c. The report has not been externally assured. SNC-Lavalin did not seek external assurance for the current report.

6 2014 Sustainability Report Index 6 Governance G4-34 a. Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Please see sections Information on our Board of Directors and Board Committee Reports, on p. 9 and following of the Management Proxy Circular and Notice of Annual Meeting of Shareholders, dated March 16, Ethics and integrity G4-56 a. Describe the organization s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. Please refer to

7 2014 Sustainability Report Index 7 Specific standard disclosures Standard Disclosure Standard Disclosure Title Disclosure Requirements The disclosure requirements for the selected Standard Disclosures are provided below. The G4 Implementation Manual contains explanations of how to prepare the information to be disclosed and how to interpret the various concepts in the Guidelines. Organizations should consult the G4 Implementation Manual when preparing a sustainability report. CATEGORY: ECONOMIC Aspect: economic performance G4-EC1 Direct economic value generated and distributed a. Report the direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization s global operations as listed below. If data is presented on a cash basis, report the justification for this decision and report the basic components as listed below: Direct economic value generated: Revenues; Economic value distributed: Operating costs; Employee wages and benefits; Payments to providers of capital; Payments to government (by country); Community investments; Economic value retained (calculated as Direct economic value generated less Economic value distributed ). a. Direct economic value Economic value generated (A): Revenues: Please refer to the Consolidated Income Statements in our 2014 Financial Report. Economic value distributed (B): Operating costs: Please refer to the Consolidated Income Statements in our 2014 Financial Report. Employee Wages and Benefits: Please refer to Note 36 in our 2014 Consolidated Financial Report. Payments to providers of Capital: Please refer to the Consolidated Statements of Cash Flows in our 2014 Consolidated Financial Report. Payments to government by country and community investments are not disclosed. Economic value retained (A-B): Please refer to the Consolidated Income Statements in our 2014 Financial Report. b. EVG&D by country, region or market Please refer to sections 7 and 8 of our 2014 Management s Discussion and Analysis (MD&A). b. To better assess local economic impacts, report EVG&D separately at country, regional, or market levels, where significant. Report the criteria used for defining significance. G4-EC2 Financial implications and other risks and opportunities for the organization s activities due to climate change a. Report risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue or expenditure, including: A description of the risk or opportunity and its classification as either physical, regulatory or other; A description of the impact associated with the risk or opportunity; The financial implications of the risk or opportunity before action is taken; The methods used to manage the risk or opportunity; The costs of actions taken to manage the risk or opportunity. Please see SNC-Lavalin s report to the Carbon Disclosure Project at CATEGORY: ENVIRONMENTAL Aspect: materials G4-DMA Generic disclosures on management approach a. Report why the Aspect is material. Report the impacts that make this Aspect material. b. Report how the organization manages the material Aspect or its impacts. c. Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach; The results of the evaluation of the management approach; Any related adjustments to the management approach. a. Although SNC-Lavalin does not manufacture products, the question of materials used in our daily operations specifically paper and IT material is considered material to our organization. This is due to a concern over deforestation in the case of paper used and the depletion of non-renewable resources for IT material. In both cases, it is considered that the use of those materials could be detrimental to the environment over the long term. b. Both paper and IT procurement has been centralized over the last year. This will allow a better tracking of the quantity of material used and, eventually, allow for a reduction of the impacts of this activity. Offices are incentivised to buy FSC-certified paper through an agreement with our paper supplier, which offers a substantive rebate on this type of paper. And the IT material is now capitalized over 5 years (rather than the previous capitalization period of 2 years). This accounting change is expected to give an incentive to the different business units to reduce the replacement rate of their PCs and laptops. c. Evaluation of the approach has not taken place yet.

8 2014 Sustainability Report Index 8 G4-EN1 Materials used by weight or volume a. Report the total weight or volume of materials that are used to produce and package the organization s primary products and services during the reporting period, by: Non-renewable materials used; Renewable materials used. SNC-Lavalin does not manufacture products. The services provided for clients are mainly related to engineering, design and management of construction projects. Thus, office supplies represent the majority of the material used in providing these services. SNC-Lavalin currently tracks its use of electronic equipment (see Tab EN1 for current data) and wishes to present paper use statistics starting in G4-EN2 Percentage of materials used that are recycled input materials a. Report the percentage of recycled input materials used to manufacture the organization s primary products and services. As mentioned above, SNC-Lavalin does not produce consumer goods. Our consulting and engineering services uses primarily paper, IT equipment and other office supplies. In 2014, paper procurement was still managed on an office location basis and SNC-Lavalin did not measure the proportion of paper used that is made of recycled material. That being said, all offices in the greater Montreal region (representing about 2500 employees) uses Domtar s first choice multiuse paper. Said paper contains 0% of recycled material, but is certified both by the Rainforest AllianceTM and the Forest Stewardship Council (FSC). Buying FSCcertified paper counts as a sustainable purchase under the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED ) for Existing Building: Operation and MaintenanceTM rating system. Starting in 2015, SNC-Lavalin centralized its procurement services, and paper purchases will be monitored, first across Canada, then around the world. In addition to the 1,000 recycled PCs bought for the XP project in 2014 (representing about 8% of all PCs owned by the company), all PCs and laptops are refurbished in house and reused often many times before being disposed of. The current IT equipment inventory indicates that 45% of the IT material in use (in Canada) has been refurbished at least once. Aspect: Energy G4-DMA Generic disclosures on management approach a. Report why the Aspect is material. Report the impacts that make this Aspect material. b. Report how the organization manages the material Aspect or its impacts. c. Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach; The results of the evaluation of the management approach; Any related adjustments to the management approach. G4-EN3 Energy consumption within the organization a. Report total fuel consumption from non-renewable sources in joules or multiples, including fuel types used. b. Report total fuel consumption from renewable fuel sources in joules or multiples, including fuel types used. c. Report in joules, watt-hours or multiples, the total: Electricity consumption; Heating consumption; Cooling consumption; Steam consumption. d. Report in joules, watt-hours or multiples, the total: Electricity sold; Heating sold; Cooling sold; Steam sold. a. In the current global context, no organization can ignore issues related to energy consumption: all stakeholders shareholders, employees, the general public and government expect that publicly traded corporations join the efforts to curb climate change. In addition, energy consumption can be linked to non-renewable resource depletion and air emissions. b. At the moment, energy consumption is tracked in all offices. c. The current management approach is based on measuring or estimating energy consumption associated with significant office space occupied. As most office space is leased, a cut-off of 7,000 sq.ft. was used. Data is not collected for leases of space smaller than this. Please see SNC-Lavalin s annual Carbon Disclosure Report for more details. a. 32,068 GJ of natural gas and 1,230 GJ of diesel (gasoil). b. Only one SNC-Lavalin office has a utility company contract specifically requesting renewable energy: SNC-Lavalin in Sweden. This office used 170,301 kwh of electricity from renewable sources. All other offices purchased electricity mix from the grid. c. In 2014, SNC-Lavalin consumed 138,939 GJ of electricity and did not directly buy heating, cooling or steam. d. Not applicable. e. Total energy consumption in 2014 would be of GJ. f. and g. Please see SNC-Lavalin s CDP report, available on CDP.net, for standards, methodology, assumptions and conversion factors used. e. Report total energy consumption in joules or multiples. f. Report standards, methodologies, and assumptions used. g. Report the source of the conversion factors used.

9 2014 Sustainability Report Index 9 G4-EN5 Energy intensity a. Report the energy intensity ratio. b. Report the organization-specific metric (the ratio denominator) chosen to calculate the ratio. c. Report the types of energy included in the intensity ratio: fuel, electricity, heating, cooling, steam, or all. d. Report whether the ratio uses energy consumed within the organization, outside of it or both. G4-EN6 Reduction of energy consumption a. Report the amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples. b. Report the types of energy included in the reductions: fuel, electricity, heating, cooling, and steam. c. Report the basis for calculating reductions in energy consumption such as base year or baseline, and the rationale for choosing it. a. and b. SNC-Lavalin calculates its energy ratio in terms of revenues, number of employees and office occupancy. Please see associated table (Tab EN5). c. Energy considered are fuel and electricity as SNC-Lavalin does not consume directly any cooling, heating or steam. d. The energy ratio only takes into account energy consumed within the organization (CDP Scope 1 and Scope 2). a. SNC-Lavalin saw a reduction of 19,47% of its consumed GJ. It is estimated that those reductions come mainly from divestment and optimization of rented office space, not from specific energy conservation initiatives. Note that SNC-Lavalin rents the majority (about 82%) of the office space that it occupies. Therefore, significant energy conservation initiatives (such as renovation targeting the insulation or the heating system) are not possible as outside our direct control. d. Report standards, methodologies, and assumptions used. Aspect: biodiversity G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas a. Report the following information for each operational site owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas: Geographic location; Subsurface and underground land that may be owned, leased, or managed by the organization; Position in relation to the protected area (in the area, adjacent to, or containing portions of the protected area) or the high biodiversity value area outside protected areas; Type of operation (office, manufacturing or production, or extractive); Size of operational site in km2; Biodiversity value characterized by: The attribute of the protected area or high biodiversity value area outside the protected area (terrestrial, freshwater, or maritime ecosystem); Listing of protected status (such as IUCN Protected Area Management Categories, Ramsar Convention, national legislation). Please see associated table (Tab EN11). Note 1: None of the sites owned by SNC-Lavalin were located adjacent to a protected area. Projects and ICI are managed by SNC-Lavalin. Note 2: All sites listed are located in protected areas or within 1 km. Note 3: Offices, project sites and operational sites associated with Kentz, an affiliated company acquired by SNC-Lavalin in August 2014, were not considered in this evaluation as Kentz was acquired in August Note 4: Uncontrolled projects were not considered. Aspect: emissions G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) a. Report gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such as purchases, sales, or transfers of offsets or allowances. b. Report gases included in the calculation (whether CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6, NF 3 or all). c. Report biogenic CO2 emissions in metric tons of CO 2 equivalent separately from the gross direct (Scope 1) GHG emissions. d. Report the chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions. e. Report standards, methodologies, and assumptions used. f. Report the source of the emission factors used and the global warming potential (GWP) rates used or a reference to the GWP source. g. Report the chosen consolidation approach for emissions (equity share, financial control, operational control). a. 1, tonnes of CO2 eq. b. CO 2, CH 4 and NO 2. c. None to report. d. SNC-Lavalin has selected 2013 as its base year. Many changes in scope and methodology had occurred in previous years, 2013 was considered the most accurate. Scope 1 emissions in 2013 totaled 2,266 tonnes of CO2 eq. There was a 24% reduction of Scope 1 emissions between This is mainly due to divestments and optimization of rented office space. e. f. and g. Please see SNC-Lavalin s CDP report (available at CDP.net).

10 2014 Sustainability Report Index 10 G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) a. Report gross energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such as purchases, sales, or transfers of offsets or allowances. b. Report gases included in the calculation, if available. c. Report the chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions. d. Report standards, methodologies, and assumptions used. e. Report the source of the emission factors used and the global warming potential (GWP) rates used or a reference to the GWP source, if available. f. Report the chosen consolidation approach for emissions (equity share, financial control, operational control). a. 7, tonnes of CO2 eq. b. CO 2, CH 4 and NO 2 c. As mentioned above, 2013 was selected as base year. Scope 2 emissions in 2013 totaled 8,451 tonnes of CO2 eq. There was a 6% reduction of Scope 2 emissions between This is mainly due to divestments and optimization of rented office space. e. f. and g. Please see SNC-Lavalin s CDP report (available at CDP.net). G4-EN18 Greenhouse gas (GHG) emissions intensity a. Report the GHG emissions intensity ratio. b. Report the organization-specific metric (the ratio denominator) chosen to calculate the ratio. c. Report the types of GHG emissions included in the intensity ratio: direct (Scope 1), energy indirect (Scope 2) and other indirect (Scope 3). a. and b. SNC-Lavalin calculates its energy ratio in terms of revenues, number of employee and office occupancy. Please see associated table (Tab EN18). c. Emissions included are direct (Scope 1) and indirect (Scope 2). d. Gases included are CO 2, CH 4 and NO 2. d. Report gases included in the calculation. G4-EN20 Emissions of ozone-depleting substances (ODS) a. Report production, imports, and exports of ODS in metric tons of CFC-11 equivalent. b. Report substances included in the calculation. c. Report standards, methodologies, and assumptions used. d. Report the source of the emission factors used. SNC-Lavalin does not produce, import or export any ODS substances. G4-EN21 NOX, SOX and other significant air emissions a. Report the amount of significant air emissions, in kilograms or multiples for each of the following: NOX ; SOX; Persistent organic pollutants (POP); Volatile organic compounds (VOC); Hazardous air pollutants (HAP); Particulate matter (PM); Other standard categories of air emissions identified in relevant regulations. a. SNC-Lavalin only tracks NO2 as part as its GHG emission inventory. The other gases are deemed insignificant as SNC-Lavalin did not own any production facilities in In 2014, SNC-Lavalin directly emitted 3.60 kg of NO2. b and c. Standards methodology, assumptions and source of emission factors can be consulted in SNC-Lavalin s CDP report (available online at CDP.net) b. Report standards, methodologies and assumptions used. c. Report the source of the emission factors used.

11 2014 Sustainability Report Index 11 Aspect: effluents and waste G4-EN24 Total number and volume of significant spills a. Report the total number and total volume of recorded significant spills. b. For spills that were reported in the organization s financial statements, report the additional following information for each such spill: Location of spill Volume of spill Material of spill, categorized by: Oil spills (soil or water surfaces) Fuel spills (soil or water surfaces) Spills of wastes (soil or water surfaces) Spills of chemicals (mostly soil or water surfaces) Other (to be specified by the organization) a. Four significant spills, totaling approximately 1750 L of different liquids (principally hydrocarbon products and waste water) were recorded through b. No spill was reported in the organization s financial statement. c. In all cases, only localized soil was impacted. All impacted material was excavated and transported offsite for remediation by a third party. Note 1: For SNC-Lavalin, only Level III spills, i.e. spills over 100 L in water or 200 L on land, are considered significant. Note 2: Spills ocurred by Kentz after September 1, 2014 are included. See associated graph (number of spills ). c. Report the impacts of significant spills. G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats signifcantly affected by the organization's discharges of water and runoff a. Report water bodies and related habitats that are significantly affected by water discharges based on the criteria described in the Compilation section below, adding information on: Size of water body and related habitat Whether the water body and related habitat is designated as a protected area (nationally or internationally) Biodiversity value (such as total number of protected species) a. No water bodies or related habitats have been significantly impacted by SNC-Lavalin s activity in SNC-Lavalin, via it s Global Environmental Management System and its Best Environmental Management Practices, prohibits the release of untreated process water or waste water to the environment at all its controlled facilities. All water releases shall comply with local legislation at all time. In 2014, no significant accidental spills to water bodies were recorded. Aspect: compliance G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations a. Report significant fines and non-monetary sanctions in terms of: Total monetary value of significant fines; Total number of non-monetary sanctions; Cases brought through dispute resolution mechanisms. In 2014, no significant fines or non-monetary sanctions were imposed on SNC-Lavalin pertaining to environmental noncompliance. No environmental non-compliance allegations are subject to a dispute resolution mechanism. b. Where organizations have not identified any non-compliance with laws or regulations, a brief statement of this fact is sufficient.

12 2014 Sustainability Report Index 12 CATEGORY: SOCIAL SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK Aspect: occupational health and safety G4-DMA Generic disclosures on management approach a. Report why the Aspect is material. Report the impacts that make this Aspect material. b. Report how the organization manages the material Aspect or its impacts. Please see the Health and Safety section of this report. c. Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach; The results of the evaluation of the management approach; Any related adjustments to the management approach. G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and saftey programs a. Report the level at which each formal joint management-worker health and safety committee typically operates within the organization. b. Report the percentage of the total workforce represented in formal joint management-worker health and safety committees. Please see the Health and Safety section of this report. G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender a. Report types of injury, injury rate (IR), occupational diseases rate (ODR), lost day rate (LDR), absentee rate (AR) and work-related fatalities, for the total workforce (that is, total employees plus supervised workers), by: Region; Gender. Please see the Health and Safety section of this report. b. Report types of injury, injury rate (IR), occupational diseases rate (ODR), lost day rate (LDR), absentee rate (AR) and work-related fatalities for independent contractors working on-site to whom the organization is liable for the general safety of the working environment, by: Region; Gender. c. Report the system of rules applied in recording and reporting accident statistics. Aspect: Training and education G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings a. Report on the type and scope of programs implemented and assistance provided to upgrade employee skills. b. Report on the transition assistance programs provided to facilitate continued employability and the management of career endings resulting from retirement or termination of employment. The SNC-Lavalin Academy, the Company s training and development centre, offers different programs addressing company-wide needs, including the People Leader Development Program and the Project Management Development Program. The Academy has built partnerships with top global learning organizations, steered by a faculty made up of key SNC-Lavalin experts. The quality of delivery is ensured by state-of-the-art instructional design promoting various learning strategies. Programs are piloted and undergo continuous improvement following employee feedback. In addition, programs offer a unique opportunity to network and share experiences with people from all over the world. In situations where employment is ended other than for cause, employees are encouraged to make use of the Employee Assistance Program, a confidential service managed by a third party that is available in most of the regions where we operate. As required, employees are also offered career transition services. G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category a. Report the percentage of total employees by gender and by employee category who received a regular performance and career development review during the reporting period. All employees, regardless of employment level, are entitled to an annual performance review. In 2014, 98% of employees had a performance review.

13 2014 Sustainability Report Index 13 Aspect: Diversity and Equal Opportunity G4-LA12 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity a. Report the percentage of individuals within the organization s governance bodies in each of the following diversity categories: Gender Age group: under 30 years old, years old, over 50 years old Minority groups Other indicators of diversity where relevant a. With respect to the composition of governance bodies, the Company has always taken Board diversity into consideration, as it believes such diversity enriches Board discussions by providing a variety of expertise and perspectives, particularly for globally active companies such as SNC-Lavalin. The Company is also convinced that diversity in all forms increases the efficiency and effectiveness of the Board and the Board committees. As of December 31, 2014, the Board of Directors of SNC-Lavalin was composed of nine men and two women. The Company s Executive Committee is composed of eight men and one woman. The age and gender breakdown for all employees is as follows: b. Report the percentage of employees per employee category in each of the following diversity categories: Gender Age group: under 30 years old, years old, over 50 years old Minority groups Other indicators of diversity where relevant Workforce by age Workforce by gender < 30 16% F 20% % M 80% > 50 26% Aspect: equal remuneration for women and men G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation a. Report the ratio of the basic salary and remuneration of women to men for each employee category, by significant locations of operation. b. Report the definition used for significant locations of operation. Confidential

14 2014 Sustainability Report Index 14 SUB-CATEGORY: HUMAN RIGHTS Aspect: non-discrimination G4-HR3 Total number of incidents of discrimination and corrective actions taken a. Report the total number of incidents of discrimination during the reporting period. b. Report the status of the incidents and the actions taken with reference to the following: Incident reviewed by the organization; Remediation plans being implemented; Remediation plans have been implemented and results reviewed through routine internal management review processes; Incident no longer subject to action. Very few allegations of discrimination were brought to the attention of senior management. For those deemed to be founded, remedies have been implemented or are in the process of implementation. A formal reporting process has been developed to facilitate the reporting of incidents, including an Ethics & Compliance hotline operated by an independent third-party service provider. Aspect: child labour G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour a. Report operations and suppliers considered to have significant risk for incidents of: Child labour; Young workers exposed to hazardous work. b. Report operations and suppliers considered to have significant risk for incidents of child labour either in terms of: Child labour is not permitted at SNC-Lavalin under any circumstances and represents a violation of our Code of Ethics. None of the permanent offices are considered to be at risk. Regarding its supply chain, the Company is presently developing processes to identify and manage at-risk supply chain activities. No incidents were reported in Type of operation (such as manufacturing plant) and supplier; Countries or geographical areas with operations and suppliers considered at risk. c. Report measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labour. Aspect: Forced and Compulsory Labour G4-HR6 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour a. Report operations and suppliers considered to have significant risk for incidents of forced or compulsory labour either in terms of: Type of operation (such as manufacturing plant) and supplier; Countries or geographical areas with operations and suppliers considered at risk. Forced and compulsory labour is a violation of SNC-Lavalin s Code of Ethics. SNC-Lavalin has a zero tolerance policy pertaining to forced and compulsory labour within its offices and on construction sites under its responsibility. None of the operations under its control are considered to be at risk. b. Report measures taken by the organization in the reporting period intended to contribute to the elimination of all forms of forced or compulsory labour. Aspect: security practices G4-HR7 Percentage of security personnel trained in the organization s human rights policies or procedures that are relevant to operations a. Report the percentage of security personnel who have received formal training in the organization s human rights policies or specific procedures and their application to security. b. Report whether training requirements also apply to third party organizations providing security personnel. In 2015, SNC-Lavalin Global Security began to work towards meeting the Voluntary Principle on Security and Human Rights (VPSHR) standards. To this end, we have reviewed our global security guard contract to ensure that we include a compliance requirement to the VPSHR. We have also participated in a working group under the auspices of the Global Compact Network Canada to review and publish a guide regarding the implementation of KPIs pertaining to the Voluntary Principles. Finally, all corporate operations security personnel have been trained and are familiar with the requirements of the principles.

15 2014 Sustainability Report Index 15 Aspect: indigenous rights G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken a. Report the total number of identified incidents of violations involving the rights of indigenous peoples during the reporting period. b. Report the status of the incidents and actions taken with reference to: Incident reviewed by the organization; Remediation plans being implemented; Remediation plans have been implemented and results reviewed through routine internal management review processes; Incident no longer subject to action. No identified incidents related to violations of the rights of indigenous peoples. SUB-CATEGORY: SOCIETY Aspect: anti-corruption G4-DMA Generic disclosures on management approach a. Report why the Aspect is material. Report the impacts that make this Aspect material. b. Report how the organization manages the material Aspect or its impacts. Please refer to c. Report the evaluation of the management approach, including: The mechanisms for evaluating the effectiveness of the management approach; The results of the evaluation of the management approach; Any related adjustments to the management approach. G4-SO3 Total number and percentage of operations asessed for risks related to corruption and the significant risks identified a. Report the total number and percentage of operations assessed for risks related to corruption. b. Report the significant risks related to corruption identified through the risk assessment. Please refer to G4-SO4 Communication and training on anti-corruption policies and procedures a. Report the total number and percentage of governance body members that the organization s anti-corruption policies and procedures have been communicated to, broken down by region. b. Report the total number and percentage of employees that the organization s anti-corruption policies and procedures have been communicated to, broken down by employee category and region. c. Report the total number and percentage of business partners that the organization s anti-corruption policies and procedures have been communicated to, broken down by type of business partner and region. d. Report the total number and percentage of governance body members that have received training on anti-corruption, broken down by region. e. Report the total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region. Please refer to G4-SO5 Confirmed incidents of corruption and actions taken a. Report the total number and nature of confirmed incidents of corruption. b. Report the total number of confirmed incidents in which employees were dismissed or disciplined for corruption. c. Report the total number of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption. d. Report public legal cases regarding corruption brought against the organization or its employees during the reporting period and the outcomes of such cases. Employees can use the confidential Ethics & Compliance hotline from anywhere in the world, online or by telephone. We thoroughly investigate and address every complaint that has substance. In 2014, 310 complaints were reported through the hotline; 48% of these complaints were related to personnel, 46% to business integrity and 6% to other matters. For more information on the Ethics & Compliance hotline and how the complaints were handled, please refer to Matters to be disclosed under this section are contained in SNC-Lavalin Group Inc. s 2014 Audited Consolidated Financial Statements as filed on (see in particular Note 34 Contingent Liabilities).