A LOT OF GOOD GOES INTO WHAT WE DO
Transcription
A LOT OF GOOD GOES INTO WHAT WE DO
A LOT OF GOOD GOES INTO WHAT WE DO INGREDIENTS INTRODUCTION SOCIETY ECONOMIC 02 A MESSAGE FROM OUR CEO 23 COMMUNITY ENGAGEMENT & ASSISTANCE 47 FINANCIAL MANAGEMENT 03 A MESSAGE FROM OUR VP SUSTAINABILITY 24 ABORIGINAL RELATIONS 04 CORPORATE SUSTAINABILITY STRATEGY 25 CORRUPTION 05 TARGETS AND PERFORMANCE PRODUCT RESPONSIBILITY SOCIAL 11 OUR PEOPLE 29 MARKETING AND COMMUNICATIONS 29 PUBLIC POLICY 11 WORKFORCE 12 NEW HIRES & TURNOVER ENVIRONMENT 13 HEALTH, SAFETY & ENVIRONMENTAL PROTECTION 33 ENVIRONMENTAL MANAGEMENT 14 TRAINING AND CAREER DEVELOPMENT 16 EMPLOYEE BENEFITS & ASSISTANCE 18 HUMAN RIGHTS 48 EMPLOYEE COMPENSATION 49 CLIMATE CHANGE: FINANCIAL RISKS & OPPORTUNITIES ABOUT THIS REPORT 52 REPORT PROFILE 53 REPORT CONTENT 54 ASSURANCE 55 COMPANY PROFILE 56 OPERATIONAL STRUCTURE 34 IMPACT MITIGATION 58 GOVERNANCE, COMMITMENTS AND ENGAGEMENT 36 ENVIRONMENTAL INNOVATION 62 AWARDS AND RECOGNITION 37 ENERGY USE AND GHG EMISSIONS 40 ENERGY & EMISSIONS REDUCTION STRATEGIES 41 GREEN BUILDING GRI CONTENT INDEX A LOT OF GOOD COMES OUT OF OUR WORK TOO With a commitment to safe and ethical practices, as well as to long-term community development, Ledcor makes a healthy contribution to the sustenance of people and our planet. To help create a sustainable future, we do our best every day to support the communities where we work, create a safe and rewarding workplace, reduce our impact on the environment, improve the environmental impact within with the industries in which we work, and make sound economic decisions. A lot of good goes into what we do, for instance establishing the Ledcor Group Applied Research Chair in Oil Sand Environmental Sustainability at NAIT with a $1.5 million gift – a healthy investment towards our collective future. We plan to do more in the upcoming year. Far more. 02 LEDCOR 2011 SUSTAINABILITY REPORT A MESSAGE FROM OUR CEO Over the past 65 years, the growth of the Ledcor Group of Companies has been driven by our entrepreneurial spirit and the emphasis we put on innovation, balanced by strategic decision-making and the ongoing dedication and commitment of our employees. Today, the industries we focus on are much broader than it was 65 years ago. Sustainability has been brought to the forefront of modern business, and is now integral to Ledcor’s Vision, Mission & Guiding Principals. This is fitting to the theme of this report, “A Lot of Good Goes into What We Do”. It is easy to see what we do from the outside, while internally, we strive to be innovative on all of our projects. In 2011, the Ledcor family expanded from 4,700 employees to over 7,200 employees. This significant growth speaks to the increase in large-scale projects Ledcor has been awarded, the growth of the company in the form of new branch offices and the introduction of Ledcor Resources and Transportation. Over the past year, we were acknowledged with several employer awards, including the Financial Post’s Ten Best Companies to Work For and Canada’s 10 Most Admired Corporate Cultures. These awards are a credit to our employees and to our values- DAVID LEDE driven workplace culture. This year also saw Ledcor and our employees reach a Chairman & CEO The Ledcor Group of Companies significant fundraising goal of more than $1 million for the United Way and other charities across North America. We have a lot to be proud of as we celebrate our 65th year of business, including our efforts to become a more sustainable company. Thank you to all of our employees and clients for your continued hard work and dedication and for helping Ledcor to lead the way in all of our industries. Sincerely, David Lede Chairman & CEO The Ledcor Group of Companies LEDCOR 2011 SUSTAINABILITY REPORT 03 A MESSAGE FROM OUR VP SUSTAINABILITY The introduction of a formal Corporate Social Responsibility program at Ledcor three years ago was an exciting moment. Ledcor focused on sustainability with the same dedication we apply to all of our businesses and aimed to meet our clients’ requests for support with their own sustainability efforts. In 2011, in preparation for the release of our first public Ledcor Sustainability Report, we took the time to reflect on the great strides we’ve made – and to focus on our strategy for the future. Our aim is to balance Ledcor’s growth and development with our social and environmental responsibilities, making sure that our overall impact on the economies, communities and ecosystems in which we operate is positive. We are working to implement systems and processes that will allow us to better track our sustainability performance – whether it be our greenhouse gas emissions, our safety track record or our charitable contributions to the communities in which we live and work. Just as we have always been industry leaders, we will add leadership in the movement towards sustainability. It is with great pleasure that I express thanks to everyone who has dedicated many hours to the development of this report and our overall Corporate Social Responsibility program. It has been an amazing journey to this point, and I invite MURRAY MACKINNON you to see where we go next. VP of Corporate Sustainability The Ledcor Group of Companies Sincerely, Murray Mackinnon VP of Corporate Sustainability 04 LEDCOR 2011 SUSTAINABILITY REPORT CORPORATE SUSTAINABILITY STRATEGY We are in a position to make investments and decisions that benefit our company and support the sustainability objectives of our clients. Ledcor is focused on balancing economic, social and environmental goals. We strive to maintain this balance throughout all aspects of our business and empower our employees to do the same. As a result, we have established a progressive corporate sustainability strategy that allows us to make sound economic decisions, support the communities where we work, create a safe and rewarding work environment for our employees and reduce our impact on the environment. Demonstrating corporate social responsibility is the right thing to do, but our decision to become a more sustainable company is based on more than just principles. We believe that addressing our sustainability at this point in time is a practical decision. Governments are moving towards applying greenhouse gas (GHG) emissions regulations to heavy-emitting sectors such as transport and electricity, with further industry regulation on the horizon. Meanwhile, citizens and organizations are demanding that companies demonstrate a higher level of transparency, responsibility and leadership, making voluntary action on climate change and sustainability a prerequisite for doing business. Ledcor recognizes that it has an obligation to its clients, employees and other stakeholders to address all aspects of our sustainability. We are in a position to make investments and decisions that benefit our company and support the sustainability objectives of our clients. This will allow us to mitigate future risks; remain competitive in a changing market; attract and retain employees; meet clients’ evolving needs; preserve valuable natural resources; strengthen relationships with governments and communities; uphold our reputation; and much more. As a diversified company we have had the opportunity to integrate sustainability into a variety of projects across many sectors. These wide-ranging projects and initiatives truly reflect the diversity of our companies, each with its own area of expertise. This has been fundamental to our success. In 2011 we continued to show significant progress in both reporting sustainability metrics and establishing our sustainability performance. Due to the large volume and diversity of projects we undertake across our companies, it is often a challenge to create singular standards or tracking systems that can apply to all of our business divisions. As we rise to this challenge, we are working progressively to develop systems that are specific to Ledcor and can consistently track our progress. Although we have made strides in terms of data collection, particularly our GHG emissions data, we are still working towards developing better practices. LEDCOR 2011 SUSTAINABILITY REPORT 05 TARGETS AND PERFORMANCE MOVING FORWARD Our Corporate Sustainability Group is tasked with driving the necessary changes across every Ledcor division. Our Corporate Sustainability Group is tasked with leading this process and driving the necessary changes across Ledcor. This team – with the help of a diverse group of employees throughout the company – is working to ensure that we are constantly evolving and improving. Through our annual Sustainability Reports, many topics and metrics are now being tracked and reported, both increasing awareness internally and increasing corporate transparency. In this report, for the first time, Ledcor has produced a scorecard detailing our performance on key topics from 2011 and targets moving forward. We believe that this will provide us with strategic focus toward achieving both our short-and long-term goals. 06 LEDCOR 2011 SUSTAINABILITY REPORT PERFORMANCE AT A GLANCE TOPIC 2011 TARGETS 2011 PERFORMANCE 2012 TARGETS SOCIAL Health & Safety •Maintain our commitment to safety while reducing our injury rate. •In 2011 our total recordable injury rate (TRIF) rose to 2.46 from 1.26 in 2010. •Work to improve our safety track record. •Reduce TRIF to below 2011 levels. Community Giving •Make 2011 memorable by running our biggest United Way campaign ever. •Continue to give back through our many other charitable donations and initiatives. •In 2011, our annual United Way Campaign raised over $1 million for charity thanks to our generous employee donations and corporate match program – a Ledcor record. •Ledcor’s corporate charitable contributions have totaled over $12 million •Continue to raise the bar in terms of charitable giving and community engagement. •Use Ledcor’s 65th anniversary to drive momentum. Engagement •Educate our stakeholders on Ledcor’s sustainability strategy and initiatives. •Internally, Ledcor’s Green Teams continued to lead sustainability-focused projects, initiatives and presentations. •Ledcor’s Corporate Sustainability group continued its outreach and efforts to increase sustainability awareness throughout the company. •Continue to drive engagement internally through increased communication, outreach and Green Team recruitment. •Conduct a Materiality Assessment to identify Ledcor’s top priorities. Our People •Support our employees and their families. •Gain recognition as an industry leader and top employer. •In 2011 Ledcor was once again acclaimed for its industry best practices and award-winning corporate culture. Highlights included: –2011 Canada’s Top 10 Most Admired Corporate Cultures – National & Regional Winner –2011 Canada’s Top 100 Employers –2011 BC’s Top 55 Employers –2011 Financial Post’s Ten Best Companies to Work For –2011 Ledcor Construction USA awarded ‘Best Places to Work’ in the North Bay •Continue to develop strong programs to support our employees. LEDCOR 2011 SUSTAINABILITY REPORT TOPIC 2011 TARGETS 2011 PERFORMANCE 07 2012 TARGETS ENVIRONMENTAL GHG Emissions •Develop a company-wide GHG inventory process in order to set our baseline. •In 2011, for the first time, Ledcor successfully completed a GHG emissions inventory for the entire Ledcor Group of Companies. This followed two years of partial inventories during which we built •Now that our baseline has been set, begin to develop reduction strategies and realistic, measurable goals. capacity and refined our data collection methods. Sustainability Reporting •Increase the number of GRI Indicators we report annually. •In 2011, we increased the number of indicators we report on from 14 to 17. 11 of these indicators were third-party assured by Deloitte & Touche. •Continued to report at a C+ GRI Application Level. •Continue to increase the number of GRI Indicators we report on, with an aim of reporting at a B+ Application Level. •Develop a data reporting system to consistently track sustainability metrics. •Use our sustainable business practices and growth plan to increase our corporate financial success. •In 2011 Ledcor continued to grow, surpassing expectations. Total annual revenue grew from approximately $1.7 billion in 2010 to $2.3 billion. •Continue to grow our business. ECONOMIC Growth SOCIAL OUR GREATEST ASSETS ARE OUR PEOPLE SOCIAL HIGHLIGHTS We recognize that our greatest assets are our people. We are committed to investing in our employees, whether they are working in our offices or on our jobsites. Given the diversity of operations within the Ledcor Group of Companies, we tailor our people practices to maintain our position as a top employer. Ledcor hires locally whenever possible, and partners with community-based job training programs as well as universities and colleges to help us build strong ties in the communities where we operate. Ledcor’s full-cycle recruitment team works directly with business leaders on the end-to-end hiring process. Our enterprise-wide Applicant Tracking System lets us manage our candidate database so that candidates are reviewed in a timely manner, ensuring that each candidate’s experience with Ledcor is a rewarding one and allowing us to focus on promoting and hiring from within the company. Ledcor prides itself on having a large returning workforce, project after project. We believe in providing timely and relevant feedback to employees so that they can be successful in their jobs. One way that we provide feedback is through the Performance Management Process. Ledcor conducts performance management review with employees at least once annually. This process consists of feedback on specific core and/or job specific behavioural competencies, attainment of pre-determined goals and objectives and development initiatives. LEDCOR 2011 SUSTAINABILITY REPORT 11 OUR PEOPLE Ledcor is an equal-opportunity employer that firmly believes in protecting the rights of our employees. Our labour and human resources practices are based on the following principles: •We not only listen to our employees, we actively seek out their opinions. •We invest in developing our employees through on-the-job development and training opportunities. •We model a strong safety culture throughout the organization. •We continuously search for new ways to solve today’s problems and meet the needs of tomorrow. •We consciously recognize and reward our employees. Ledcor has a solid history of positive labour relations with our trades workforce, including the Christian Labour Association of Canada (CLAC). Years of working together to resolve mutual workplace concerns have led to a flexible and motivated workforce. Because of our approach, we enjoy a very collaborative relationship with KOROL CUP CLAC and their membership. WORKFORCE Annual participants ~150 Ledcor employed a total of 7,260 employees in 2011, a 56% increase from 2010. Table 1 provides a full breakdown of Ledcor’s workforce. Trevor’s motto Get’er done Amount raised $34,000 Table 1: Employee Breakdown EMPLOYMENT TYPE 2009 2010 2011 Canadian Permanent Full-Time Employees 1,681 2,037 2,587 Canadian Permanent Part-Time Employees 19 27 30 Canadian Fixed Term Full-Time Employees 1,435 2,072 3,961 Canadian Fixed Term Part-Time Employees 0 0 4 Total Employees in Canada 3,135 4,136 6,582 USA Permanent Full-Time Employees 386 367 427 USA Permanent Part-Time Employees 1 2 2 USA Fixed Term Full-Time Employees 139 153 249 USA Fixed Term Part-Time Employees 0 0 0 Total Employees in USA 526 522 678 Total Full-time Employees 3,641 4,629 7,224 Total Part-time Employees 20 29 36 Male - - 6,312 Female - - 948 Grand Total 3,661 4,658 7,260 An annual hockey tournament became known as the Korol Cup after a team member, Trevor Korol, died tragically in an airplane accident. Now every year, Ledcor employees and their families take to the ice to raise money for the Trevor Korol Memorial Scholarship Fund at the Northern Alberta Institute of Technology. 12 LEDCOR 2011 SUSTAINABILITY REPORT The best measure of success is that each and every employee returns home at the end of the day – safely. New Hires and Turnover1 The construction industry is characterized by seasonal, often temporary work that is vulnerable to the boom and bust cycles of the economy. In light of this, Ledcor strives to attract and retain the best employees. There were a total of 1,361 new hires in 2011, with 516 employees departing from Ledcor voluntarily or due to dismissal or retirement 2. Table 2: New Hires and Rehires 20113 CATEGORY COUNT PERCENTAGE OF TOTAL EMPLOYEES Region Canada 1,201 39.4% USA 160 5.3% 1,361 44.7% Total New Hires and Re-hires Table 3: Turnover Rates Excluding Shortage of Work as a Reason 2009 % TOTAL 2010 % TOTAL 2011 % TOTAL COUNT EMPLOY COUNT EMPLOY COUNT EMPLOY CATEGORY Gender Age Region Male 253 12.1% 295 12.1% 499 16.4% Female 66 3.2% 58 2.4% 130 4.3% Under 30 74 3.5% 72 3.0% 210 6.9% 30 - 50 168 8.0% 196 8.1% 291 9.6% Over 50 77 3.7% 85 3.5% 128 4.2% Canada 268 12.8% 302 12.4% 560 18.5% USA 51 2.4% 51 2.1% 69 2.3% 319 15.3% 353 14.5% 629 20.7% Total Departed Employees Table 4: Turnover Rates Including Shortage of Work as a Reason 2009 % TOTAL 2010 % TOTAL 2011 % TOTAL COUNT EMPLOY COUNT EMPLOY COUNT EMPLOY CATEGORY Gender Age Region Male 579 27.7% 426 17.5% 588 19.4% Female 201 9.3% 104 4.3% 154 5.1% Under 30 161 7.7% 129 5.3% 234 7.7% 30 - 50 417 20.0% 277 11.4% 355 11.7% Over 50 202 9.7% 124 5.1% 153 5.1% Canada 656 31.4% 409 16.8% 640 21.1% USA 124 5.9% 121 5.0% 102 3.4% 780 37.4% 530 21.8% 742 24.5% Total Departed Employees 1Ledcor tracks turnover for non-unionized and non-field employees only. The total number of non-unionized and non-field employees at Ledcor on December 31, 2011 was 3,046. This number was used to calculate turnover rates. Figures include terminations due to dismissal, injury/illness, quit, retirement and return to school both excluding and including shortage of work. The term “shortage of work” is used when a project is completed and there is no immediate project for an employee to transfer to. These employees are often brought back when a new project is awarded. 2 There were no employee deaths in 2011. 3 Currently, our new hires and re-hires report does not include age group and gender information. LEDCOR 2011 SUSTAINABILITY REPORT 13 THINK SAFETY, WORK SAFELY Our safety slogan – describes not only what we do, but our values and culture. HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION Ledcor is committed to a strong HS&E Program that protects our employees, subcontractors, clients, members of the public and property from harm. Ledcor believes all incidents are preventable. Our goal is ZERO incidents. Ledcor supports all workers in their right to work in a safe and healthy environment and their right and responsibility to refuse unsafe work. Our employees and contractors on our projects work in cooperation with management in the implementation of our comprehensive HS&E Program. This includes participation in all elements of the program, including worksite hazard assessments, inspections, incident investigations, equipment maintenance and safety audits, in an effort to continuously improve workplace safety. All our worksites and facilities, management, employees and contractors comply with local government occupational health, safety and environmental regulations and standards. Ledcor’s HS&E Program requires the deployment of only qualified and trained workers. It also outlines requirements for relevant employee training, job-specific safe work practices, personal protective equipment, operation and maintenance procedures and safety guidelines that focus management, employee and contractor awareness on reducing the risk of incidents in all work-related activities. Please see the Training and Career Development section of this report for more details on HS&E training at Ledcor. 14 LEDCOR 2011 SUSTAINABILITY REPORT The HS&E team consists of over 100 safety-credentialed professionals and industry specialists who support our teams in carrying out their HS&E responsibilities. Because of Ledcor’s dedication to safety, our HS&E program has been recognized by industry leaders and has received safety awards for worker safety, environmental protection and incident prevention on our worksites and at our facilities. We continually measure our success through formal external audits, collection of leading and lagging indicators and safety recognition programs. But ultimately, the best measure of our success is that each and every employee returns home at the end of the day – safely. Worker Incidents Ledcor has implemented an enterprise-wide, single data collection process for workplace incidents called the Incident Management System (IMS). Collected data is used for reporting, monitoring, evaluating and trending of workplace-related incidents 4. The incident data is also used proactively in daily and weekly safety meetings and other preventive safety programs. In line with industry best practice, Ledcor follows the Canadian Association of Petroleum Producers (CAPP) Guide for Reporting of Occupational Injuries. Table 5 provides Ledcor’s year-over-year safety statistics. Ledcor had no work-related deaths in 2011. 5 Table 5: Safety Statistics STATISTIC 2009 2010 2011 Total Person Hours 10,652,462 9,063,267 13,401,665 Lost Time Incidents (LTI) 16 6 27 Medical Aid Incidents (MA) 63 25 66 Restricted Work Cases (RWC) 35 26 72 First Aid Incidents (FA) - 238 475 Illnesses - 1 7 LTI Frequency 0.30 0.13 0.40 Total Recordable Injury Frequency (TRIF) 2.14 1.26 2.46 Absentee Rate5 (days/employee) - - 3.10 4 Minor (first-aid level) injuries are included in statistics. 5Includes sick days for non-unionized and non-field employees only. The total number of non-unionized and non-field employees at Ledcor on December 31, 2011 was 3,046. This number was used to calculate absentee rate. LEDCOR 2011 SUSTAINABILITY REPORT TRAINING AND CAREER DEVELOPMENT Ledcor recognizes the importance of individual and team development through continuous learning. An important part of the Ledcor experience is our commitment to providing employees with a wide variety of learning opportunities. Ledcor encourages employees to take an active role in their own development and professional growth by discussing their training needs with their managers. All managers contribute to employee development by guiding the selection of appropriate courses and supporting training goals. The Ledcor Training Team is dedicated to helping employees in the assessment of their needs in the areas of training and development. They design, develop and deliver training-based solutions across the company. Our online Training Centre allows employees to explore many great tools to help them as they grow and develop their skill sets. Types of training include: •Skills Training: Includes training in areas such as problem solving, communication skills, negotiating skills, presentation skills, leadership development, supervision, etc. Ledcor offers a variety of in-house training for both teams and individuals. •Academic Training: Typically includes College or University courses and studies directly related to an employee’s current job or identified development path. •Job Specific Training: Specific training required to perform necessary elements of a person’s job or to maintain required certifications. •Safety Training: Occupational safety training is mandatory for all project employees. It provides information on safety hazards, site-specific safety programs and safe work procedures. •On the Job Training: An experienced employee provides direction/coaching/ training to another employee in a specific area. The Certified Ledcor Leader (CLL) program is designed specifically for Ledcor salaried staff with direct reports or those who directly influence/lead others in a managerial type role. Leaders move through the program by attending one course at a time and then applying the learning back on the job. Ledcor also offers employees online learning opportunities such as the User Productivity Kit (UPK). This tool provides web-based training for software applications in use at Ledcor. UPK libraries are updated regularly to provide training on a wide variety of applications. All regular employees are eligible to participate in training opportunities. Temporary and casual employees are required to participate in training needed to perform their job (such as safety training). UPSKILLING Compulsory corporate education and training includes: • Drug and alcohol program • Supervisor safety training • Mentoring program • First aid training • Workplace hazardous material information systems 15 16 LEDCOR 2011 SUSTAINABILITY REPORT Ledcor maintains award-wining safety programs that exceed regulatory requirements. Table 6: 2011 Average Training Hours6 AVERAGE TRAINING HOURS BY GENDER 2011 Average Hours Per Employee 6.0 Average Hours Per Female Employee 7.0 Average Hours Per Male Employee 5.7 AVERAGE TRAINING HOURS BY JOB CATEGORY Project Coordinator/Project Engineer 4.0 Executive 12.8 Foreman 0.0 General/Branch/Location/Regional/Site Management 12.1 Project Management 11.0 Supervisory & Management 12.8 Specialized Professional 6.5 Superintendent 7.4 Business/Technical Professional 2.5 Student 0.3 This training data does not include LEED or external training as neither is tracked within the company in an accessible format. There is also no tracking system currently in place to supply total training hours for safety programs throughout the company; however, each group has Leading Indicators or Safety Goals for all levels of employment on jobs sites, with additional mandatory training requirements. No person is allowed on a job site without meeting these requirements and following the outlined safety training goals. Ledcor maintains award-winning safety programs that exceed regulatory requirements. On our projects, Ledcor holds mandatory weekly and daily crew meetings to address current HS&E issues in the workplace. We also administer corporate education and training that includes a Supervisor Safety Training, Drug and Alcohol Program, Mentoring Program, First Aid Training, and Workplace Hazardous Material Information System/Hazcomm. The following is a list of all mandatory safety training for employees working on project sites that must be taken prior to instatement: •Ledcor Supervisory HS&E Training Program •Drug and Alcohol Training •Mentoring Program •Field Level Hazard Assessments •Behaviour Based Observation EMPLOYEE BENEFITS AND ASSISTANCE At Ledcor, we recognize the need to attract and retain the best employees – our greatest assets. In order to do so, we offer comprehensive benefit programs to our employees and their dependents in both Canada and the USA. 6 Training statistics include only non-unionized and non-field employees. LEDCOR 2011 SUSTAINABILITY REPORT Health Benefits Canada In order to assist employees with health, vision, and dental care-related expenses, including serious diseases, Ledcor makes available comprehensive insurance and benefit programs through third-party carriers. Available to both full-time and part-time employees after three months of continuous employment7, our Canadian healthcare program is designed to provide comprehensive protection for our employees and their dependents8. Ledcor’s Group Benefit Plan includes the following for both regular full-time employees, temporary full-time employees (>18 months) and regular part-time employees: •Employee Life Insurance •Extended Healthcare •Accidental Death, Dismemberment •Dental CareDrug Plan and Specific Loss Indemnity Additionally, full-time employees and part-time employees working 30 or more hours per week are eligible for Long Term Disability (LTD) Income Benefits. The LTD plan is particularly important for employees and their families coping with serious diseases, as it provides those eligible with regular income to replace income lost because of a lengthy disability due to disease or injury. This plan also provides vocational rehabilitation designed to help employees return to their job or other gainful employment, medical coordination and survivor benefits. Health Benefits USA Ledcor provides a number of health- and welfare-related insurance programs to help employees in the USA Mainland and Hawaii take care of themselves and their families. Ledcor’s plan focuses on affordable, preventative health care. We have kept employee premiums as low as possible, while ensuring all employees have low or no-cost access to preventative services and routine office visits. Through these programs, regular full-time employees and regular part-time employees working 30 or more hours per week are eligible for the following benefits: •Medical •Out of Country Medical Coverage •DentalLife and AD&DLong Term Disability •Vision Ledcor Employee and Family Assistance Program Ledcor has a joint program administered by Human Solutions called Ledcor Employee and Family Assistance Program (EFAP). EFAP is an off-site, confidential, voluntary, short-term counselling service that acts as a separate entity under a 7Union employees, seasonal employees, and employees who work less than 20 hours per week are not eligible to participate in the plan. 8Dependent is defined as: spouse, legal or common-law; unmarried children under age 21, or under age 25 if they are full-time students (children under age 21 are not covered if they are working more than 30 hours a week, unless they are full-time students); children who are incapable of supporting themselves because of physical or mental disorder are covered without age limit if the disorder begins before they turn 21, or while they are students under 25, and the disorder has been continuous since that time. Our health plans focus on affordable, preventative care. 17 18 LEDCOR 2011 SUSTAINABILITY REPORT Inclusiveness means a workplace where differences are valued. non-profit society concept. The program is led by an Advisory Committee comprised of union and management representatives who provide guidance and support for the administration of the program, while ensuring that quality and confidentiality standards are met. EFAP allows employees and their family members to access a range of services to support their psychological health. EFAP provides private and confidential shortterm counselling for personal, family and work-related concerns. This confidential program provides access to a host of offerings, including: •Comprehensive Counselling •Prevention-oriented health promotions •Crisis management, trauma response, disaster preparedness, peer training and cumulative stress management •Online Services: health risk assessments, e-learning and health change planning, childcare and eldercare resources locators •Employee and key personnel education and training •Utilization tracking and data trend analysis HUMAN RIGHTS Ledcor is committed to protecting the rights of its clients, employees and other stakeholders affected by its operations. We believe strongly in the principles of non-discrimination, equal opportunity employment and indigenous rights. This commitment is reflected both in our policies and our practices. It is our goal to maintain a respectful and inclusive workplace. Our Human Resources department is responsible for monitoring and managing company practices, and ensuring that no legitimate complaint is dismissed or downplayed. Diversity and Inclusion Ledcor aims to treat people with respect and dignity by creating and maintaining a diverse and inclusive workforce that reflects the communities in which we live and conduct business. Ledcor always conducts business in accordance with the Human Rights legislation of the countries in which we operate. Ledcor’s Diversity and Inclusion Policy helps to ensure that we are benefiting from a wide range of backgrounds, perspectives and experiences in order to achieve company objectives and meet the needs of our customers. Diversity encompasses all of our differences that make us unique individuals. Inclusiveness means a workplace where differences are valued and all employees are encouraged to contribute their perspectives and capabilities and to have the opportunity to develop skills and talents consistent with our values and business objectives. LEDCOR 2011 SUSTAINABILITY REPORT 19 The Equal Employment Opportunity and Affirmative Action Policy dictates that Ledcor must not discriminate against any employee or applicant for employment because of race, color, religion, creed, national origin, sex, age, marital status, sexual orientation or citizenship status, genetics, disability or disabled veterans and Vietnam era veterans status. Employee Conduct and Harassment9 All Ledcor employees are expected to act in an ethical manner and ensure that the company’s reputation is not diminished by their actions. Employees must comply with the Employee Code of Conduct, which covers procedures related to maintaining a positive work environment; confidentiality; compliance with laws; public officials; political contributions and activities; giving or receiving gifts and benefits; and conflicts of interest. In the USA, these matters fall under Ledcor’s Code of Business Ethics and Code of Conduct. It is Ledcor’s policy to maintain an environment free of harassment as described in its Harassment Policy (Harassment Free Policy in the USA). No employee shall be subjected to, or subject another person to, harassment. All allegations of harassment will be investigated promptly and appropriate action will be taken by Ledcor. We at Ledcor are aware of the potential for work-related threats or acts of violence to be directed against employees from external or internal sources. Ledcor has a zerotolerance policy toward work-related threats or acts of violence. The Work-Related Threats of Violence Policy dictates that no employee or any other individual affiliated with Ledcor will subject any other person to work-related threats or acts of violence or allow or create conditions that support work-related threats or acts of violence. Human Rights Training In support of Ledcor’s commitment to maintain a positive, productive work environment that is free from any form of harassment, all new employees are required to complete online training entitled “Respect in the Workplace: Preventing Harassment & Discrimination”. There are two versions of the training: a Manager version and an Employee version. Both take approximately one hour to complete. Participants must score a minimum of 80% on an online test at the end of the program. In addition, USA-based employees are required to complete Ethics Training. Aboriginal Awareness training is mandatory for senior management and also available to all Ledcor employees. These training programs help to ensure that Ledcor employees have the knowledge and the skills necessary to work with the Aboriginal community. It also allows Ledcor to build long lasting relationships through awareness and understanding of the history and culture of Aboriginal people. 9 Harassment is defined as any conduct, comment, gesture or contact based on one of the prohibited grounds of discrimination as set out in each jurisdiction’s applicable Human Rights legislation that is unwelcome and ought reasonably to be known to be unwelcome, detrimentally aff ects the work environment or leads to adverse job-related consequences for the person who is being harassed. COMMUNITY OUTREACH Point of view Industry Benefits Trust funds, training, educational programs Students in Grades 4 and 5 at Richmond Elementary School learned about the pros and cons of pipeline development from our Corporate Sustainability and Health, Safety & Environment teams. The students were especially interested in learning about the Northern Gateway Pipeline, as it was a class research project. SOCIETY WE SUPPORT COMMUNITIES WHERE WE OPERATE SOCIETY HIGHLIGHTS Social responsibility means accountability to our employees, the environment and the communities that are impacted by our operations. Part of Ledcor’s corporate culture is to provide support to the various communities in which we operate. We strive to leave a positive legacy – social, environmental and financial. With this aim in mind, we believe it is best practice to manage and maintain effective, mutually beneficial partnerships with our community stakeholders. Ledcor employees are a diverse, multi-cultural group of people committed to making their communities a better place to live and work. Ledcor encourages all staff to be goodcorporatecitizensandtostrivetobecomeassetstotheirlocalcommunities. Giving back is something Ledcor promotes across the corporation. Corporately, Ledcor focuses on supporting pediatric initiatives by contributing financial donations to children’s hospitals and critical care initiatives across North America. Our Community Alliances team is committed to communicating and interacting with all involved stakeholders from an established foundation of mutual respect, trust and cooperation. Overall, we work to support the “how” of establishing, maintaining and developing relationships with diverse communities to create value and opportunity. LEDCOR 2011 SUSTAINABILITY REPORT COMMUNITY ENGAGEMENT AND ASSISTANCE Ledcor recognizes that the economic legacy of its construction projects and other endeavors can have a lasting impact on local communities. Whether it is a corporate donation to a major hospital for much needed equipment, building a community center in an isolated town, a company-wide employee and corporate donation match program, or building a specialized playground for a children’s hospice, we believe in giving back to our communities. Ledcor also encourages its branch offices and project sites to provide financial support and actively participate in charitable organizations at a community level. We use these initiatives as an opportunity to engage our employees and promote good citizenship. In 2011, Ledcor and its employees contributed over $1 million to the United Way organizations in communities where our branch offices are located, with Ledcor matching employee contributions dollar for dollar. Ledcor has been an active participant in many joint ventures for training, community development and advocacy in communities where we have projects. Some of the programs we have partnered with are: •Heavy Metal Rocks Program •Vancouver Blade Runners •Trades in Motion •Job Horizons: Northern Neighbors •Miss School, Miss Out •Alberta Chamber of Resources These initiatives help us develop strong community relationships by providing opportunities in addition to employment. EDUCATION Ledcor is a strong supporter of education and provides a variety of grants and donations to Canadian and American institutions offering education in applied trades and technologies, such as BCIT and the Northern Alberta (NAIT) and Southern Alberta (SAIT) Institutes of Technology in Edmonton and Calgary. The positive, mutually beneficial partnership between Ledcor and NAIT was recently reflected by Ledcor’s establishment of The Ledcor Group Applied Research Chair in Oilsands Environmental Sustainability. These investments in education are consistent with Ledcor’s objectives of increasing the number of people entering construction and related fields, and ensuring graduates are trained to meet the company’s client needs, especially in the areas of sustainable development and construction management. STRONGER COMMUNITIES We develop strong community relationships by providing opportunities beyond employment. 23 24 LEDCOR 2011 SUSTAINABILITY REPORT ABORIGINAL RELATIONS Ledcor recognizes the long-term benefits of partnering with Aboriginal communities and organizations, and we have a successful history of collaborating with Aboriginal communities that are located near our jobsites. We recognize the importance of cultivating long-term relationships that are based on mutual respect, trust and cooperation. As a result, we are actively striving to work with these communities before the initialization of any potential projects. It is our intention to develop and nurture every possible opportunity for local and Aboriginal workers, suppliers and trade contractors whenever possible. Where a choice exists between local/Aboriginal and non-local workers, suppliers and trade contractors, and providing there is no compromise to costs and quality, the local/ Aboriginal workers, suppliers and trade contractors will be given preference. MANITOBA METIS FEDERATION (MMF) In recent years, we have been able to dedicate a group of hard working Ledcor employees to initiating, maintaining and improving relationships with the Aboriginal communities potentially involved in or affected by our projects. Ledcor has partnered with several Aboriginal community-owned companies on construction Partner feedback Honest and progressive Impact Building communities projects where it would not only benefit Ledcor but also the Aboriginal community. A few of the aboriginal employment programs we have supported include: Aboriginal Human Resource Development Council of Canada, National Aboriginal Trades Leadership Goals Long-term benefits Committee, First Nations Training and Employment Partnership Program, Vancouver The president of the MMF approached Ledcor seeking opportunities for his community. Without a specific project in mind, we helped develop a roadmap for the MMF to implement projects with our teams and other industry partners operating in the area. Metis Economic Development Organization and Metis National Council. Aboriginal Skills and Employment Program (VanAsep), Metis Apprenticeship Program, Ledcor provides a targeted Aboriginal Awareness training program to our employees, in an effort to ensure the value of our relationships with Aboriginal communities is understood at all levels of our organization. These training programs also provide our employees with the knowledge and skills necessary to build meaningful relationships with diverse communities. Through these partnerships and programs we are working towards building healthy working relationships and endeavor to set important precedents for our industry partners. These relationships add value to our projects and help us to effectively make realistic proposals and commitments to the diverse communities where we work. Ledcor is committed to making a positive impact – where we leave in better standing than when we came. Photo Credit: NAIT Digital Library LEDCOR 2011 SUSTAINABILITY REPORT 25 CORRUPTION Ledcor deals with the issue of corruption through both its company policies and employee training. Ledcor’s USA Code of Business Ethics requires the company ensure that each Associate, including those engaged in performance of any federal contract, must ETHICS TRAINING Ledcor provides training through the Ethics Awareness Program. have a copy of the Code of Ethics and be familiar with the Ethics Awareness Program. Ledcor provides periodic training through the Ethics Awareness Program to all of its officers, directors, owners, partners, managers, employees and, as appropriate, agents and subcontractors. Additionally, Associates are required to acknowledge their commitment to understanding and compliance with the Code of Ethics Policy and the Ethics Awareness Program on a regular basis. In order to comply with federal regulations, Ethics Training is mandatory for all employees working within Ledcor’s USA operations. In 2011, a total of 164 employees completed this training. Table 7: Ledcor Ethics Training 201110 Management completed training Non-Management completed EMPLOYEES COMPLETED ETHICS TRAINING 2011 Not completed ethics training Management 22 % of Management 4.0% Non-Management 142 % of Non-Management 5.7% In Canada, Ledcor’s Employee Code of Conduct requires that all employees of Ledcor act in an ethical manner and ensure that the company’s reputation is not diminished by their actions. All employees are expected to comply with the Code’s procedures related to positive working environment; confidentiality; compliance with laws; public officials; political contributions and activities; and giving/receiving gifts or benefits. Ledcor recognizes the right of employees to be involved in activities as citizens of their communities, but requires that employees keep their role as private citizens separate and distinct from their responsibilities as employees of Ledcor and avoid conflict of interest situations. 10 The total number of non-unionized and non-field employees at Ledcor on December 31, 2011 was 3,046. This number was used to calculate training statistics. Some data from previous years is unavailable or excluded due to incomparability. PRODUCT RESPONSIBILITY COMMITTED TO THE HIGHEST LEVEL OF SERVICE AND QUALITY PRODUCT RESPONSIBILITY HIGHLIGHTS Ledcor primarily produces projects and services rather than “products.” Whether the project is large or small, Ledcor is committed to accountability, innovation, integrity and quality. Although all of our projects are designed and constructed in accordance with legal regulations and the needs of our clients, many other requirements such as customer privacy, standards and certification schemes are project specific. Ledcor is committed to delivering the highest level of service, craftsmanship and quality. We take pride in our track record and ability to offer our clients tested reliability and proven expertise. Ledcor’s employees play an integral part in ensuring that Ledcor projects meet the high standards that both we and our clients expect. LEDCOR 2011 SUSTAINABILITY REPORT 29 MARKETING AND COMMUNICATIONS Ledcor is committed to a Code of Business Ethics that expresses the principles, policies and practices that every officer, director, owner, partner and employee must use when conducting the Company’s business. Ledcor stresses both corporate and personal integrity and therefore it is imperative that the company and its associates obey all applicable laws that affect our business. Such laws include those that apply to marketing communications. All advertising and promotional materials produced or approved by Ledcor must comply with government regulations. Ledcor employees are encouraged to reference the Government of Canada’s Canada Business Network marketing regulations and standards for guidance on legal requirements and best practices. The Canadian Code of Advertising Standards, created by the self-regulatory body Advertising Standards Canada (ASC), is also a resource used by Ledcor. As the Canadian advertising industry’s principal instrument of self-regulation, the code sets the criteria for acceptable advertising in Canada. These resources and others are referenced regularly. KEARL OIL SANDS Any concern about the legality of Ledcor marketing communications materials Work hours 1.4 million are directed towards Ledcor’s legal team to ensure compliance with relevant laws Peak workforce 425 and regulations. We review and update our standards and practices as laws and regulations change. We are not engaged in the marketing or sales of products that are banned in our home markets. Ledcor is not aware of any non-compliance issues related to regulations or voluntary codes concerning marketing communications. PUBLIC POLICY Ledcor’s government-facing staff members are well versed in the Federal Lobby Act and provincial regulatory lobbyist acts. These employees understand the circumstances that would require lobbyist registration and follow protocols outlined in legislation as required. Ledcor ensures all political donations are made through formal channels so they are properly recorded in provincial databases. For example, Ledcor’s donations to registered BC and Alberta political parties are all found under the Elections BC and Elections Alberta political donations database. Output from Nisku Facility 300 modules Ledcor provided on-site construction for a 4-kilometer aboveground, insulated Utilidor built to carry utility lines from the main plant site to the ore preparation plant for Imperial Oil’s Kearl Oil Sands project. Our scope included foundations, heavy civil construction, concrete and structural steel to support the installation of pre-fabricated modules. ENVIRONMENT MAKING NEW GREEN DECISIONS EVERY DAY Photo Credit: Nic Lehoux ENVIRONMENT HIGHLIGHTS Ledcor is committed to sustainability, and this is reflected in our approach to environmental management. Our environmental policies and practices ensure that we minimize our impact on the environment to the greatest extent possible. As stated in Ledcor’s corporate HS&E Policy, Ledcor is committed to protecting the environment in all aspects of our operations. The environmental protection guidelines and practices of the Ledcor HS&E Program are implemented at all project sites, offices and operating facilities, with greater care taken on environmentally sensitive projects. As a business that operates primarily as a contractor, Ledcor’s control over the environmental management of each project is dependent on the form of agreement arranged with our respective clients. Ledcor takes responsibility for implementing legislated environmental policy and other industry standards and regulations. Our clients establish at their discretion the degree to which Ledcor exceeds those established criteria. The Environmental Protection section of HS&E Program provides instruction to all Ledcor employees on their duties and responsibilities as they relate to the protection of the environment on projects, operating facilities and administrative offices where Ledcor conducts business. These environmental protection guidelines and practices are implemented at all project sites, offices and operating facilities. Typical minimum waste diversion from landfill by weight (75%) LEDCOR 2011 SUSTAINABILITY REPORT 33 ENVIRONMENTAL MANAGEMENT Ledcor is committed to complying with all applicable federal, provincial state and local government environmental requirements. We cooperate with all local government agencies to develop sound environmental practices and procedures CALGARY ZOO that are practical and appropriate. Enmax Conservatory at the Calgary Zoo is Canada’s most energy-efficient greenhouse. In addition to meeting the requirements of this HS&E directive, all environmentally sensitive projects (deemed as such through client designation/requirements or through local government legislation) require the development of an environmental protection plan (EPP). Training in the EPP is part of the Ledcor Supervisor’s Safety Training course curriculum. RECYCLING AND WASTE Ledcor supports the principle of reduce, reuse, recycle in all its operations. Various forms of waste are produced in the normal course of construction and maintenance operations. All waste generated on Ledcor projects that can be classified as hazardous is handled, stored and disposed of in accordance with local government regulations. Non-hazardous waste generated during construction, demolition, maintenance or renovation work is recycled through re-use on the project, or removed to local recycling facilities, where reasonably available. Building projects registered with LEED track and report the weight of waste materials removed from those projects. Ledcor typically achieves over 75% diversion from landfill (by weight). Our HS&E Program dictates that office administration must ensure a wasterecycling program is implemented whenever possible and that office staff are participating. These recycling programs collect all paper, cardboard, aluminum and plastic containers, dry cell batteries and printer and toner cartridges, at a minimum. Other recycling initiatives, such as electronics and composting of food scraps, have been undertaken at several of Ledcor’s offices. AIR CONTAMINANTS Ledcor makes all reasonable efforts to reduce the release of air contaminants generated by equipment or project work processes into public or work areas. In addition, LEED projects are required to meet minimum indoor air quality (IAQ) performance to enhance indoor air quality in buildings. 34 LEDCOR 2011 SUSTAINABILITY REPORT Any spill location is restored to meet or exceed applicable legislation. SOIL CONSERVATION When working in areas identified as environmentally sensitive, Ledcor is responsible for ensuring that all project personnel are informed of site requirements and guidelines for soil conservation, including: •Rights of way •Transfer of Noxious Weeds •Soil disturbances •Prevention of soil erosion by water and •Stock piling wind beyond the confines of the site •Low ground pressure tires or tracks works (LEED). •Project restoration WATER On all of our projects, procedures are in place to: •Ensure all hazardous spills are promptly contained and cleaned up to reduce potential harm to groundwater. •Prevent turbid water discharges and sediments from escaping the site. •Minimize erosion and sedimentation from rainfall at the construction site. •Identify, reduce, eliminate or prevent the contamination of storm water. Before any water is discharged from a site into adjacent waterways or storm sewers, Ledcor ensures that the water quality meets the standards of all local government environmental requirements. IMPACT MITIGATION Ledcor’s HS&E program tracks and implements safety standards and protects the environment surrounding our jobsites. Spills exceeding approximately 30L are deemed significant and are subject to a detailed investigation. Additionally, many sites implement a more stringent threshold where every spill is investigated. All environmental incidents, including spills, are tracked in Ledcor’s Incident Management System (IMS). In 2011, there were a total of 29 significant spills on Ledcor project sites. All spill locations have been restored to meet or exceed applicable legislation and project requirements. Ledcor takes responsibility for ensuring that all spills are promptly contained and cleaned up to reduce potential harm to groundwater, and for instituting procedures to prevent turbid water discharges and sediments from escaping the site. The procedures are designed to minimize erosion and sedimentation from rainfall at the construction site and to identify, reduce, eliminate or prevent the contamination of storm water. Working close to environmentally sensitive waterways may require special project procedures to be developed to protect the identified areas. LEDCOR 2011 SUSTAINABILITY REPORT Table 8: Number of Significant Spills 2009-2011 YEAR NUMBER OF SIGNIFICANT SPILLS 2009 12 2010 9 2011 29 RESPONSIBILITY We take responsibility to ensure any spill is promptly contained and cleaned up. Table 9: Significant Spills 2011 PROJECT/SITE NAME MATERIAL QTY (L) CZ Pipeline Gold Acre Rehandle Fuel 2139 Hanna Dist Maint - A-20,21,22 Chemical 1050 2011 PRC Waste & Coal Mining Fuel 500 Hanna Dist Maint - A-20,21,22 Fuel 200 Sunchild Road Phase 1 Fuel 175 Christina Lake Laterals Fuel 125 Goldstrike Ore Handle Fuel 76 Mt Milligan Winter Works Oil 70 QTY (T) Number of spills 30 25 20 15 10 5 0 CZ Pipeline Gold Acre Rehandle Chemical 57 2011 Significant Spills: 29 Willow Creek Mine Dec 1, 2010 Oil 50 2010 Significant Spills: 9 Mt Milligan Winter Works Oil 50 Mt Milligan Winter Works Oil 50 Mt Milligan Winter Works Oil 50 Willow Creek Mine Dec 1, 2010 Oil 45 Mt Milligan Summer Works 2011 Oil 45 Willow Creek Mine Dec 1, 2010 Oil 40 Mt Milligan Summer Works 1B Oil 40 Wintering Hills Wind Project Oil 40 Shell - MRM Muskeg Removal Fuel 40 Mt Milligan Winter Works Oil 40 40 Suncor - TRO Fuel PRC Gordon Creek Crossing Fuel 38 Mt Milligan Winter Works Oil 35 Willow Creek Pond & Road Work Fuel 30 Willow Creek Mine Dec 1, 2010 Oil 30 Willow Creek Mine Dec 1, 2010 Oil 30 HWY 801 Long Island Lake Ph2 Fuel 30 Polygon 4 Oil 30 Willow Creek Mine Coal Total 2009 Significant Spills: 12 15 5144 L 15 t 35 36 LEDCOR 2011 SUSTAINABILITY REPORT ENVIRONMENTAL INNOVATION We invest heavily in environmental innovation and technology. Ledcor is constantly driving innovation. From our environmentally focused service offerings to our internal initiatives, we are pursuing opportunities to encourage positive change within our industry sectors. We continue to invest heavily in environmental innovation and technology, including renewable energy, green building, wastewater treatment technology and carbon offset project development. SUSTAINABILITY INNOVATION AWARD 2011 The annual Sustainability Innovation Awards allows Ledcor employees to share their sustainable projects or business solutions in hopes of winning an award and garnering support for their initiative. In 2011, the award was presented to an employee for his Recycling Sandblast Abrasive system. The proposed self-contained blasting, cleaning, and media storage unit allows for the multiple reuse of blasting material – providing a more economic, safe and environmentally friendly solution to abrasives management. The use of this system, which replaces silica sand with non-toxic garnet, will virtually eliminate worker exposure to free silica dust, which is increasingly recognized as a serious construction health risk. As the garnet can be recycled over six times without loss of performance, there will also be significant reductions in both waste and transportation for disposal. It is estimated that this system could save approximately $1.4 million in abrasive costs and $24 million in production costs over 20 years. INTEGRATED SUSTAINABILITY We are committed to building lifetime clients and actively seek feedback from our clients and other stakeholders both through formal and informal channels. LEDCOR 2011 SUSTAINABILITY REPORT 37 ENERGY USE AND GHG EMISSIONS Although our operations are currently inextricably tied to the use of fossil fuels, we are committed to increasing our energy efficiency while exploring alternative and renewable energy options where possible. GHG EMISSIONS UBC PHARMACEUTICAL SCIENCES BUILDING In order to quantify the GHG footprint associated with our operations, individual During the construction phase of this six-floor, 23,200-metre building, at least 94 percent of the waste was recycled GHG inventories for all of our major divisions were prepared on behalf of Ledcor by or salvaged and diverted from landfills. Offsetters. Offsetters analyzed and calculated the GHG emissions inventories for Ledcor’s companies and subsidiaries based on information collected and compiled by Ledcor’s Corporate Sustainability group. Ledcor’s GHG inventories are structured to follow the accounting and reporting guidelines of the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (GHG Protocol), published by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). This protocol is the international accounting tool most widely used by government and business leaders to understand, quantify and manage their GHG emissions. Emissions were tracked for Scope 1, 2 and selected Scope 3 sources: •Scope 1: Direct GHG emissions from sources that are owned or controlled by the company, such as emissions from combustion in boilers, furnaces, vehicles and other equipment. •Scope 2: Indirect GHG emissions from the generation of purchased electricity consumed by the company that physically occur at the facility where the electricity is generated. •Scope 3: All other indirect emissions generated as a consequence of the activities of the company, but that occur from sources not owned or controlled by the company. This is an optional reporting category. Scope 3 emissions data came from various sources, including paper use, employee business travel data and a staff commuting survey. All data compilation was completed according to the financial control methodology as outlined in the GHG Protocol. A company has financial control over an operation if the company has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities. In situations where the information available was incomplete it was estimated or extrapolated from the available data. Table 10 details the estimated total emissions associated with each company for 2011 in tonnes of carbon dioxide equivalent (tCO2e). This includes the six GHGs covered by the Kyoto Protocol (CO2, SF6, CH4, N2O, HFCs and PFCs). 38 LEDCOR 2011 SUSTAINABILITY REPORT Increasing the accuracy and completeness of fuel tracking data is a primary focus. Table 10: GHG Inventory Summary 11 COMPANY SCOPE 1 & 2 GHG EMISSIONS SCOPE 3 GHG EMISSIONS tCO2e % OF TOTAL TCO2E % OF TOTAL Building Central Canada & US 3,536 2% 1,517 3% Building Western Canada 347 0% 31,626 56% Contractors 161,095 80% 10,457 18% Corporate Operations n/a n/a 130 0% Industrial 19,757 10% 9,441 17% LTS 8,670 4% 2,131 4% Properties 1,040 1% 118 0% Resources and Transportation 7,449 4% 238 0% Shared Services n/a n/a 907 2% Ledcor Total 201,894 100% 56,565 100% The largest source of emissions for Ledcor in 2011 was the mobile combustion of diesel and gasoline (72%). This was followed by other indirect construction site GHG emissions (11%), employee air travel (5%) and commuting (5%). This is the first year that all of Ledcor’s divisions have been inventoried and will serve as a baseline year against which future reductions will be measured. In order to track progress in minimizing Ledcor’s carbon footprint, emission intensity metrics have also been calculated for each major division. These were estimated by Offsetters as emissions per employee (see Table 11). Table 11: GHG Emissions per Employee12 COMPANY 2011 EMISSIONS PER EMPLOYEE (tCO2e/EMPLOYEE) Building Central Canada & US 29 Building Western Canada 37 Contractors 65 Corporate Operations 4 Industrial 67 LTS 45 Properties 129 Resources and Transportation 74 Shared Services 5 Ledcor Total 55 11 Numbers may not add up exactly due to rounding. 12 Based on 4,714 total employees. Estimates provided by assigned data providers within each group. LEDCOR 2011 SUSTAINABILITY REPORT Ledcor continues to improve our GHG tracking and data collection methods in order to provide the most accurate and comprehensive representation of our company-wide emissions. Increasing the accuracy and completeness of fuel tracking data is a primary DIRECT AND INDIRECT focus. This data will help inform our ongoing efforts to increase our energy efficiency, We estimated our total energy consumption for the first time in 2011. reduce our emissions and improve our overall environmental performance. As Ledcor and Offsetters’ knowledge and experience with inventory calculation grows, improved methodologies and tools may be developed. When this happens, previous years’ reported emissions may be adjusted according to the new methodology. Adjustments will also be made when new emission factors are published that more closely reflect actual emissions than those available at the time of the original calculations. These adjustments allow the emissions accounting to be as accurate and consistent from year to year as possible. However, in the case where adjustments are relatively insignificant (less than 5%) or do not reflect a change in calculation methodology, recalculations may not be performed for previous years’ emissions. ENERGY CONSUMPTION Direct Energy Use In 2011, for the first time, we estimated our total direct and indirect energy consumption. Industrial (9%) Contractors (85%) Direct energy consumption was approximately 135,333,762 GJ. This primarily LTS (6%) represented fuel used in our fleet vehicles and natural gas used for heating at our many different locations. Indirect energy consumption was approximately 12,360 GJ from the use of electricity. Table 12: Energy Consumption Summary COMPANY DIRECT ENERGY USE INDIRECT ENERGY USE GJ % OF TOTAL GJ % OF TOTAL Building Central Canada & US 48,661 0% n/a n/a Building Western Canada 4,984 0% n/a n/a Contractors 115,092,066 85% n/a n/a Indirect Energy Use Corporate Operations n/a n/a n/a n/a Properties (51%) Industrial 12,476,471 9% 6,045 49% LTS 7,609,566 6% n/a n/a Properties 5,763 0% 6,315 51% Resources and Transportation 96,252 0% n/a n/a Shared Services n/a n/a n/a n/a Total : 135,333,762 100% 12,360 100% Industrial (49%) 39 40 LEDCOR 2011 SUSTAINABILITY REPORT We are working towards reducing our largest source of emissions – fuel. ENERGY AND EMISSIONS REDUCTION STRATEGIES Strategies to increase energy efficiency and reduce GHG emissions are being developed at the corporate level of Ledcor Group of Companies, especially with regards to fuel use in vehicles and equipment. Since the inception of our Corporate Sustainability program in 2008, Ledcor has made progress with several initiatives. Green Commuting Ledcor encourages its employees to take steps to reduce their own environmental footprints, particularly the emissions generated through travel to and from the workplace, whenever possible. In Vancouver, where Ledcor’s corporate head office is located, full-time salaried employees are provided with the opportunity to purchase an annual transit pass at a discounted rate through the TransLink Employer Pass Program (EPP). In 2011, 78 Ledcor employees enrolled in this program. Ledcor also has an account with car share company Zipcar, providing an incentive for employees in cities across North America to leave their cars at home. Transport Fuel Ledcor is working incrementally towards reducing our largest source of emissions – transport fuel use. This will require energy conservation and efficiency strategies, as well as behavioural changes at all levels of the organization. In 2010, we began investigating the potential for fuel switching initiatives, both new investments and conversions. Fuel switching options include propane vehicles, natural gas vehicles (NGV) using compressed natural gas (CNG) or liquefied natural gas (LNG) and electric vehicles. Due to the diversity of our projects and operating locations, there will be no one-size-fits-all solution. This process is ongoing, and we hope to report further on our progress in future reports. LEDCOR 2011 SUSTAINABILITY REPORT 41 GREEN BUILDING LEED Ledcor Construction Limited has been a leader within the green building industry as an early adopter of the LEED Green Building Rating System. We were an early Corporate Member of the US Green Building Council (USGBC) and a founding Corporate Member of the Canada Green Building Council (CaGBC). LEED is a third-party certification program, which promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health 13: •Sustainable site development •Water efficiency •Energy efficiency •Materials selection •Indoor environmental quality With the LEED principles now a building industry norm, Ledcor is continuing to expand its expertise in sustainable building design and construction. We co-authored LEED to Contractors, the manual adopted by the CaGBC for educational seminars for builders, contractors and suppliers. Ledcor employees have presented this course on many occasions for the CaGBC and at Globe, Buildex and Green Build conferences. Ledcor has also developed its own in-house LEED documentation programs for five variants of LEED to USGBC and CaGBC standards. These have been accepted by leading green architectural firms and Ledcor has been acknowledged by the Director of Education, CaGBC as the first contractor in Canada to have these in-house capabilities. By the end of 2011, Ledcor had 30 LEED projects certified or completed and awaiting certification. These buildings occupy over 2.6 million square feet and are valued at over $393 million. We have 49 LEED Green Associates and Accredited Professionals (APs) on staff, and over 250 field and office staff who have completed our in-house Gold Seal accredited course on sustainable construction practices. LIVING BUILDING CHALLENGE Ledcor is the contractor for two of the Cascadia Chapter of the CaGBC’s “Living Building Challenge” projects, which require green building practices that go well beyond LEED. These are highly evolved buildings that are designed to be “net zero” for both energy and waste. There are currently only 80 projects worldwide attempting to meet this rigorous standard. To date there are only three certified Living Buildings in the USA, and one with partial recognition in Canada. 13 http://www.cagbc.org/AM/Template.cfm?Section=LEED GREEN EXCHANGE Jobs created 1,000+ LEED certification Platinum Original structure maintained 95% A national model for sustainable redevelopment, Chicago’s Green Exchange is now home to more than 100 eco-minded businesses and organizations. Ledcor’s construction team helped turn this former factory, built in 1914, into the largest sustainable business community in the U.S. 42 LEDCOR 2011 SUSTAINABILITY REPORT LEDCOR RENEW We were one of the first companies to offer green retrofitting services to our clients. Within climate change and GHG emissions discussions, the impact of new construction activities is an often mentioned concern. Rarely is it recognized that existing buildings – over 98% of the building stock in Canada – contribute far more to GHG emissions through poorly performing walls and roofs, glazing and outdated mechanical and electrical/lighting equipment. Ledcor RENEW addresses this through the provision of environmental solutions for existing buildings. Our experts assess all aspects of a building and provide a suite of sustainable solutions including: •Energy, water, waste, indoor air quality (IAQ) and GHG assessment; •Renewable and green energy assessment; •Business plan, procurement and execution; •LEED® EBOM, BOMA BESt, ENERGY STAR, etc. assessment; •Optimized aggregate full retrofit financing with grants, incentives, monetized carbon and life-cycle finance without split incentive challenges; and, •General retrofit services TORONTO TOWER Annual savings $420,000 Space redeveloped 399,000 square feet Budget $18 million Ledcor’s Renew team turned a mechanical plenum floor into leasable office space for one of Morguard’s office towers in downtown Toronto. A decades-old HVAC mechanical system was replaced, as were windows and lighting. As a result, the annual energy savings are projected to be more than $420, 000. LEDCOR 2011 SUSTAINABILITY REPORT 43 GREENROADS ™ In recent years, the growing popularity and adoption of the LEED certification program for building construction has been recognized by other industry sectors. Similar and related measure of sustainability are now evolving – such as the Greenroads™ rating system. Developed by the Greenroads Foundation, with Ledcor as a founding member, Greenroads™ is a collection of sustainability best practices for street and roadway design and construction. It is applicable to all roadway project including new, reconstruction and rehabilitation. Beginning in 2010, Ledcor started to assess the applicability of the Greenroads™ program for our Civil & Infrastructure division, which builds roads, highways, and related civil engineering projects. SUSTAINABILITY PROGRAM Energy Consumed 135, 333, 762 GJ Emissions 258,459 tonnes CO2e By understanding our baseline, we can begin to develop strong targets for reducing our impact through our projects. ECONOMIC BELIEVERS IN THE TRIPLE BOTTOM LINE ECONOMIC HIGHLIGHTS Ledcor’s straightforward approach has been the foundation of our business and the reason why clients come back to us over and over – and we take this same straightforward approach towards our financial management. Ledcor contributes significantly to the sustainable growth of the economies in which it operates through various means, including: •Salaries and benefits paid to our employees •Government taxes •Infrastructure development •Investment in technology and innovation •Community donations As a privately held company, Ledcor is not required to disclose its financial information to the public. Although we support corporate transparency, we also believe strongly Business conducted with repeat clients (≈75%) in not disclosing information that could affect our competitiveness or erode stake- New clients (≈25%) holder confidence in the company. As believers in the triple bottom line approach tomeasuringorganizationalsuccess,weaimtoconsiderourfinancialsuccessin the context of our environmental and social performance. LEDCOR 2011 SUSTAINABILITY REPORT 47 FINANCIAL MANAGEMENT GIVING BACK Every year the Senior Executive BBQ for Charity. LOOKING FORWARD We believe in setting the bar high with lofty but reachable goals. The roots of our company were firmly planted by our founder, William F. Lede, a believer in being fiscally responsible, providing customer service excellence and in supporting every employee. Our longevity and our future will always be tied to operating effectively and efficiently, and providing superior services to our clients. Ledcor strives to always meet or exceed our clients’ expectations while remaining within the financial boundaries set out by pre-defined agreements. Our clients are important to us, and we are committed to building “Ledcor Lifetime Clients” through accountability, innovation, integrity and quality. Our success has been measurable, with approximately 80% of our business conducted with repeat clients. Ledcor continues to show growth and profitability, with a full slate of projects and a sustainable business model that will carry us forward into the next decade and beyond. 48 LEDCOR 2011 SUSTAINABILITY REPORT EMPLOYEE COMPENSATION It is our aim to share our financial success with our employees. Our employees are instrumental to our financial success. It is our aim to share this success with our employees by offering them competitive wages, health benefits and helping to ensure their financial success during retirement. Ledcor offers a Defined Contribution Pension plan to employees in the form of a Registered Retirement Savings Plan (RRSP) in Canada and a 401k plan in the USA14. This Retirement Benefit Program is designed to support employees’ overall retirement planning by providing regular contributions to supplement their contributions. Additionally, employees can manage their retirement funds to suit their individual retirement needs. CANADA In Canada, Ledcor provides a Core Contribution of 2% of full-time employees’ regular earnings into a Group RRSP account after 3 months of continuous service. Ledcor will also match 50% of employees’ Optional Contribution, to a maximum of 3% of their salary. Combined, this allows employees to put away 11% of their earnings for retirement. On average, Canadian employees contributed 4.0% of their total pre-tax salaries to this Group RRSP account in 2011, while Ledcor contributed another 3.3% of the total pre-tax salaries. Ledcor’s Canada Group RRSP is compliant with the Guidelines for Capital Accumulation Plans (CAP Guidelines) established by the Joint Forum of Financial Market Regulators. USA In the USA, Ledcor’s 401(k) retirement plan is available to full-time and part-time employees on the first of the month following 90 days of employment, provided they are at least 21 years old. Employees may contribute as little as 1% or as much 80% of their earnings on a pre-tax basis to their 401(k), to an annual maximum of $16,500 ($22,000 if they are 50 or older). All employees contributing to Ledcor’s 401(k) plan will receive an employer matching contribution – 50% of the first 8% of compensation contributed to the Plan, up to a maximum of 4%. In 2011, 87.4% of full-time regular employees participated in 401(k) plan. On average, employees contributed 1.8% of their total pre-tax salaries and Ledcor contributed another 4.5% of the total pre-tax salaries. Ledcor’s US 401(k) is compliant with requirement and regulation of Employee Retirement Income Security Act (ERISA). 14Exceptions to this plan include the following three eligible aspects and they are for employees that are: 1) residents of Puerto Rico; 2) covered by a collective bargaining agreement for which retirement benefits have been the subject of good faith negotiations; and/or 3) casual employees. LEDCOR 2011 SUSTAINABILITY REPORT 49 CLIMATE CHANGE: FINANCIAL RISKS AND OPPORTUNITIES Ledcor is aware of the business risks posed by climate change. Both the physical effects of climate change and likely regulatory changes have the potential to impact our many operations. As a result, we are committed to understanding and responsibly managing the impacts of climate change on our businesses. Physical effects such as rising temperatures and changes to water cycles could pose significant operational risks to most of the industries in which Ledcor operates, such as natural resources sectors, telecommunications and transportation. Shortening winter seasons and warmer temperatures impact the durations and load capabilities of Winter Roads. The length of winter drilling seasons, extreme weather events and significant changes to seasonal water flows all have the potential to disrupt field operations and supply chains to northern or remote sites. Increasing regulation of GHG emissions has the potential to have significant financial implications for Ledcor and its diverse industries. Although the regulatory environment in North America remains uncertain, the intricacies of the legislative environment impact many of our core business clients. British Columbia has introduced legislation enabling the province to introduce a cap-and-trade system under the Western Climate Initiative (WCI). BC has also implemented a carbon tax, which applies to the retail purchase or use of fossil fuels within the province – a direct cost of 5.56 cents/litre, rising in July 2012 to 6.67 cents/litre. Similarly, Alberta, where many of our most active resource businesses and clients are located, developed legislation in 2007 that regulates GHG emissions from large industrial emitters. This program not only puts a price on carbon, but created the Alberta-based Offset Credit System. These examples highlight the evolving political environment under which the use of fossil fuels is being increasingly monitored and regulated. Although Ledcor is unlikely ENCANA GAS PLANT Final processing capacity 800 million SCFLD Work hours 3.1 million Plant site Fort Nelson, BC to be directly subject to these regulations in the immediate future, many of our clients will be. Part of our clients’ responses to this regulatory burden will likely be passed to Ledcor in some capacity. Our clients are increasingly calling on us to quantify and address our own emissions as part of their supply chain management, and we are committed to supporting our clients’ reporting requirements. Ledcor began work on Phase 1 of the Cabin Gas Plant for Encana Corporation in August 2010. Construction involved everything from heavy earthworks to pre-engineered building installation. We are now working on Phase 2, which includes piling and site-wide power distribution. 50 LEDCOR 2011 SUSTAINABILITY REPORT Ledcor is well positioned to seize the challenges and opportunities related to climate change. Our businesses remain inextricably tied to the energy, mining, construction and other heavy industry sectors, and we remain committed to the sustainable development of our core industries. But we also see opportunities arising in the emerging low-carbon economy. Many of these opportunities have been identified by Ledcor, and through corporate diversification we have already begun to invest in climate-change related opportunities: •Ledcor’s investment in Offsetters has allowed us to contribute to the development of high quality carbon offsets and other carbon management solutions. •Part of our Building group, Ledcor Renew was created to meet the growing demand for existing building upgrades and optimization to reduce energy consumption and emissions. Modernizing the energy and environmental efficiency of existing buildings provides a more cost-efficient construction solution while reducing the carbon footprint inherent in new construction. SUNCOR FIREBAG Work hours 4.6 million Peak workforce 800 Piping fabrication 310,000 ø inches Ledcor contributed to both stage 3 and stage 4 of the Firebag project in Fort McMurray. Stage 3 included water treatment, steam generation, utilities and offsite. We added to that in Stage 4 to form a 125-kBPCD bitumen production train that will share common facilities such as tankage, diluent production, de-oiling and utility systems. LEDCOR 2011 SUSTAINABILITY REPORT 51 •Our Resources and Transportation group is contributing to the mitigation of climate change impacts by clearing and pelletizing pine beetle killed wood. While clearing for replanting and reducing fire risk in the interior of British Columbia, Ledcor is also generating biomass for alternative energy partners. •Ledcor Environmental Solutions has been investing in water recovery technologies, primarily focusing on minimizing water wasted in domestic sewage and industrial processes. Our systems also have applications in tailings and oil sands water reclamation. •Ledcor also offers specialized services in market segments such as the renewable energy sector with projects in solar, biomass, run-of-river hydro and wind energy. Climate change may present many risks to our natural resources and the economies in which we have traditionally operated, but Ledcor is well positioned to seize the challenges and opportunities that will arise. SILVERDALE RELOAD FACILITY Twigs and bark left from logging are ground or chipped into biomass products, such as wood chips and biofuel/hog fuel. ABOUT THIS REPORT Our sustainability efforts, including reporting, are key to attracting like-minded clients and employees. Creating a method of accountability for our sustainable performance helps us to systematically drive new initiatives forward while measuring the success of current initiatives. REPORT PROFILE This is the third annual Ledcor Sustainability Report completed for the Ledcor Group of Companies, covering the calendar year 2011. Prepared in accordance with theinternationallyrecognizedGlobalReportingInitiative(GRI)G3.1Sustainability Reporting Guidelines, this report was designed to document Ledcor’s commitment to integrating sustainability into our company at all levels – from our corporate head offices to our jobsites. Ledcor’s decision to report publically on our sustainability performance for the first time is based on our evolving corporate philosophy and business practices. Werecognizethevalueinsharingourprogressandachievementswithour employees, peers, clients and other stakeholders in an effort to help drive positive change and transparency. Our sustainability efforts, including reporting, are key to attracting like-minded clients and employees. Creating a method of accountability for our sustainable performance helps us to systematically drive new initiatives forward while measuring the success of current initiatives. LEDCOR 2011 SUSTAINABILITY REPORT 53 REPORT CONTENT INTEGRATED SUSTAINABILITY We are committed to integrating sustainability into our company at all levels. DEFINING REPORT CONTENT This report is designed to provide a balanced and reasonable presentation of our social, environmental and economic performance, while addressing the concerns and expectations of our stakeholders. This requires the identification and prioritization of sustainability issues that are of key importance to Ledcor. For the first time, Ledcor has conducted a formal Materiality Assessment. This process was designed to help us identify our key stakeholders and to determine the threshold and depth of topics to be addressed by both our Sustainability Report and overall Corporate Social Responsibility program. The Materiality Assessment Workshop was convened by Ledcor’s Corporate Sustainability Group and included a working group of executives representing all divisions of the company. The goal was to identify issues of strategic importance to Ledcor that also substantively influence the opinions and decisions of our stakeholders. Considerations that were taken into account during this process included, but were not limited to: •Company values, priorities and concerns •Significance to stakeholders •Our ability to obtain accurate and comprehensive data •Laws, regulations, standards, risks and other external pressures facing Ledcor and the industries in which we operate •Our sustainability goals for the future 54 LEDCOR 2011 SUSTAINABILITY REPORT This sustainability report demonstrates our commitment to providing an accurate, comprehensive and credible assessment of our sustainability performance and initiatives. Using this process, the following areas were identified as being of significant importance: •Safety •Employee Development •Health •Fuel Usage •Environmental Incidents •Employee Engagement •Community Engagement •Equipment Utilization and Efficiency •Charitable Donations •Employee Transportation •Reputation/Brand •Waste/Recycling •Balancing Profit and Sustainability •GHG Emissions •Productivity Focusing our future sustainability strategy on these topics will help to increase the relevance of our program and goals. These results will enable us to focus on the issues of greatest significance to Ledcor and its stakeholders. SCOPE AND BOUNDARY The boundaries of this report encompass all operations over which Ledcor exercises financial control or significant influence in Canada, the USA and the Bahamas1. This includes subsidiaries and joint ventures over which we have financial control. We are confident that this information is complete and accurately reflects Ledcor’s social, environmental and economic performance. DATA MANAGEMENT Data is collected and managed throughout the year, tracked at various levels within Ledcor’s companies and compiled by the Corporate Sustainability Group. This includes information contained within our policies; operational and performance data; employee information from our Human Resources department; and other information where relevant. CHANGES TO REPORT CONTENT Since the 2010 reporting period, the following changes have been made to the scope, boundary or measuring methods applied: 1. We increased the scope of our GHG emissions inventories to include the direct and indirect emissions from all of Ledcor’s operations, broken down by company. 2.GHG emissions inventories were all consolidated according the financial control approach2. 1 2 Excludes Comspan. http://www.ghgprotocol.org/files/ghgp/public/ghg-protocol-revised.pdf LEDCOR 2011 SUSTAINABILITY REPORT 55 COMPANY PROFILE The Ledcor Group of Companies is one of North America’s largest, employee-owned, construction companies. Founded in 1947 in Alberta’s oil patch, Ledcor now operates out of over 20 offices across North America and employs over 7,000 people. ALBERTA’S OIL PATCH Through thoughtful and strategic decision-making, Ledcor has also become one Ledcor operates out of 20 offices in North America and employs more than 7,000 people. of the most diversified contracting companies. We provide a broad portfolio of services to private and public clients in several major industry sectors. Ledcor’s first project – preparing the access road and well site for Imperial Oil’s famous discovery in Leduc – began a legacy of success and laid the foundation for long-term client relationships that continue to this day. Ledcor went on to support the discoveries and innovations that characterized the entrepreneurial spirit of Alberta. The company grew alongside the resource industry, expanding construction operations and driving activity. Meeting new challenges as a civil contractor, Ledcor built highways, blasted rock and excavated the earth. We linked discovery to industry by constructing supporting utilities and, by the 1970s, pipelines. In the early 1980s, Ledcor expanded across Canada and into the United States. At that time, Ledcor entered the building and industrial sectors, diversifying across several construction divisions: Building, Civil, Industrial, Mining, Pipeline, Infrastructure, Highways and Telecommunications. By adapting to market conditions and undertaking restructuring initiatives, Ledcor continued to grow – even in a period of severe economic downturn. Through the 1990s, Ledcor marked growth in every division, and met the construction boom of the early 2000s on a strong foundation with well-tested methods for performance. As the marketplace began to recognize sustainability as a necessity, so did Ledcor. As an early member of the US Green Building Council (USGBC) and founding member of the Canadian Green Building Council (CaGBC), Ledcor has been actively involved with the Leadership in Energy and Environmental Design (LEED) building certification program from the outset. Ledcor’s long-term focus on environmental sustainability has resulted in new business divisions and new building practices that add environment-focused value to our service offerings. These newly created and acquired green businesses include Ledcor Renew, Ledcor Environmental Solutions and Offsetters. Today, Ledcor maintains its commitment to improvement and achievement – and is now working to integrate sustainability into its corporate philosophy and business practices. All of our business divisions continue to review their processes to offer innovative solutions to our clients; operate in the most economical, sustainable and efficient manner; and provide the highest quality results. 56 LEDCOR 2011 SUSTAINABILITY REPORT OPERATIONAL STRUCTURE Long-term focus on environmental sustainability has resulted in new business divisions and new building practices. Headquartered in Vancouver, BC, Ledcor is a privately held, employee-owned company with a broad portfolio throughout North America. Ledcor has expanded over the years through strategic growth and acquisitions. As a result, we have a robust and healthy balance sheet. In 2011, Ledcor was operational in Canada, the USA and the Bahamas, employing a total of 7,260 individuals and providing services to the following sectors: •Building •Highways •Natural Resources (oil & gas, mining) •Infrastructure •Energy & Chemical •Telecommunications •Pipeline •Forestry & Agriculture We also own companies in the following sectors: •Aviation •Carbon Management •Marine Services Ledcor’s 2011 annual revenue was approximately $2.3 billion, with 85% of our business conducted in Canada, 14% in the USA and the remainder in the Bahamas. Table 13: 2011 Revenue by Region GREEN BUSINESS We created and acquired three green businesses in 2011 to further increase the environmental value in our service offerings. They are Ledcor Renew, Ledcor Environmental Solutions, and Offsetters. REGION 2010 REVENUE 2010 % OF TOTAL 2011 REVENUE 2011 % OF TOTAL Canada $1,301,141,000 79% $1,908,335,000 85% USA $283,035,000 17% $315,199,000 14% Bahamas $72,456,000 4% $33,251,000 1% TOTAL $1,656,632,000 100% $2,256,785,000 100% LEDCOR 2011 SUSTAINABILITY REPORT BUSINESS DIVISION PROFILES Ledcor is comprised of several specialized businesses that operate seamlessly as One Ledcor. Ledcor’s Executive leadership ensures that business practices, goals, philosophies and innovations are shared and implemented between business units. REVENUE BY REGION Ledcor’s revenue was approximately $2.3 billion in 2011. The following is a summary of Ledcor’s primary businesses and their subsidiaries: •Ledcor’s two Building divisions (Canada and USA) focus on commercial, institutional and residential projects. The building group is home to over 49 LEED-accredited professionals who have helped to build many LEED-certified projects and two of North America’s first Living Building Challenge certified projects. The building group recently diversified further with the addition of Ledcor Renew, which specializes in retro-fitting existing buildings, improving energy efficiency, extending their economic life and reducing their environmental impact. Renew has also been qualified to build solar photovoltaic rooftop systems. •Industrial manages all aspects of heavy construction. Services include energy plant development, civil/concrete, structural steel, mechanical, piping, instrumentation, commissioning and start-up assistance. •Ledcor Technical Services (LTS) offers design, installation, construction, maintenance, testing systems integration and repair services to telecommunications, cable and FTTP (Fiber to the Premises) operators, with enterprises throughout the US and Canada. •Contractors comprises several units that offer services to various industry sectors across Canada and the US. These units have successfully completed projects in the communications, energy, forestry, foundations, power, mining, oil & gas, private and municipal developments, public/private utilities, railway and transportation sectors. •Properties develops Ledcor’s real estate investments. The main focus of the group is to selectively pursue joint ventures or partnerships with repeat clients and investors to acquire, develop and operate new and existing real estate portfolios. •Resources and Transportation comprises Ledcor’s existing tugboat, barge and aviation businesses and its new wood fibre alternative energy initiatives. These include Ledcor Marine, Summit Air, Opus Aviation, the Vancouver Harbour Floatplane Centre (VHFC) and Ledcor’s new wood fibre alternative energy initiative. •Offsetters helps organizations and individuals understand, reduce and offset their climate impact. Offsetters also develops high-quality, third-party verified carbon offset projects that are commonly used in comprehensive carbon management strategies. Ledcor’s carbon management portfolio includes the flagship Great Bear Rainforest Project, a community-based initiative that is expected to prevent an estimated 33 million tonnes of GHGs from entering the atmosphere. •Ledcor Environmental Solutions (LES) investigates the viability of and invests in new green technologies. Currently, LES is developing and researching environmental solutions for waste water, industrial tailings and similar water recovery solutions. Canada (85%) USA (14%) Bahamas (1%) 57 58 LEDCOR 2011 SUSTAINABILITY REPORT GOVERNANCE, COMMITMENTS & ENGAGEMENT Ledcor’s Vision, Mission & Guiding Principles are applied across the organization. Our mission is to remain committed to building Ledcor Lifetime Clients through accountability, innovation, quality and sustainability. LEDCOR GOVERNANCE Ledcor is a privately held, employee-owned organization. Our board is comprised solely of senior executives from Ledcor’s various companies. The Chairman of the Board is David W. Lede, while the President and CEO is Ron Stevenson. External advisors are called upon from time to time in order to provide insight and advice on specific business matters. Ledcor has a number of committees that are designed to address diverse business objectives. The recommendations of these committees assist the Board of Directors in setting strategic objectives for Ledcor. The committees are each overseen by a President or Vice President and each has clearly defined objectives. These committees are made up, in some cases, of volunteer employees and, in other cases, of specific employees who are asked to participate because of their relevant skills and experience. In the industries in which we operate, risks are often inherent; but each risk is an opportunity to prove the value of our policies and core values to our stakeholders. We hold ourselves accountable on every level, from safety, to the environment, to final turnover and full delivery. Ledcor aims to take a precautionary approach and minimize our negative impacts through our strong commitments to safety, ethical and accountable leadership and industry best practices. LEDCOR 2011 SUSTAINABILITY REPORT EXTERNAL INITIATIVES Ledcor does not subscribe to or endorse any specific economic, environmental or social charters; instead, we maintain and follow our own rigorous company policies and standards. The Ledcor Group of Companies as a whole, as well as its various business units, maintain memberships in a wide variety of industry associations, institutes and other organizations. These include: •Alberta Chamber of Resources (acr) •Alberta Construction Association (aca) •International Association of Foundation Drilling (adsc) •Alberta Metal Building Association (amba) •International Council of Shopping Centers (icsc) •Alberta Roadbuilders and Heavy Construction •International Pipe Line & Offshore Contractors Association (arhca) •Alberta Sand & Gravel Association (asga) •American Society of Civil Engineers (asce) •Association for Mineral Exploration British Columbia (ame bc) •Association of Professional Engineers, Association (iploca) •International Society of Mine Safety Professionals (ismsp) •Interstate Natural Gas Association of America (ingaa) •Mining Association of British Columbia (mabc) Geologists and Geophysicists of Alberta (agegga) •Mining Suppliers Association of BC (msabc) •Building Owners and Managers Association (boma) Calgary •Calgary Chamber of Commerce •North Saskatoon Business Association (nsba) •Northeastern Alberta Aboriginal Business Association (naaba) •Calgary Construction Association (cca) •Ontario General Contractors Association (ogca) •Calgary General Contractors Association •Prospectors & Developers Association of Canada •Canada Green Building Council (cagbc) (pdac) •Canadian Construction Association (cca) •Quantity Surveyors of British Columbia (qsbc) •Canadian Council for Aboriginal Business (ccab) •Reed Construction Data (rcd) •Canadian Energy Pipeline Association (cepa) •Regina Construction Association •Canadian Institute of Mining (cim) •Saskatchewan Construction Association (sca) •Canadian Nuclear Safety Commission (cnsc) •Saskatchewan Construction Safety Association •Canadian Standards Association (csa) •Centre for Transportation Engineering & Planning (c-tep) •Construction Owners Association of Alberta (coaa) (scsa) •Saskatoon Construction Association •Saskatoon General Contractors Association •Society for Mining, Metallurgy and Exploration (sme) •Deep Foundations Institute (dfi) •Society of Industrial and Office Realtors (sior) •Edmonton Chamber of Commerce •Southern Interior Construction Association (sica) •Edmonton Construction Association (eca) •Toronto Construction Association (tca) •Edmonton Downtown Business Association (dba) •Urban Development Institute (udi) •General Contractors Association (gca) of Saskatchewan •US Green Building Council (usgbc) •Vancouver Board of Trade •Greenroads Foundation •Vancouver Island Construction Association (vica) •Independent Contractors and Businesses •Vancouver Regional Construction Association Association (icba) •Infrastructure Health & Safety Association (ihsa) (vrca) HUMBLE BEGINNINGS Ledcor had its start in 1947 when founder William Lede secured a loan for a bulldozer. 59 60 LEDCOR 2011 SUSTAINABILITY REPORT Green Teams in regional offices are taking a leading role in improving the sustainability of Ledcor workplaces. STAKEHOLDER ENGAGEMENT Ledcor engages with a variety of stakeholder groups to gain valuable feedback on our reporting and performance. These groups include employees, clients, community members, Aboriginal groups and other interested parties. One stakeholder group of particular importance to Ledcor is our employees. From our Corporate Head Offices to each project site, we endeavor to engage our employees in constructive dialogue. Green Teams in several of Ledcor’s regional offices are also taking a leading role in improving the sustainability of their workplaces. So far, these teams have led several initiatives, including reducing office paper use and increasing recycling. Ledcor is currently expanding this program, with an aim to have Green Teams in every major corporate office in the future. INTEGRATED SUSTAINABILITY We are committed to building lifetime clients and actively seek feedback from our clients and other stakeholders both through formal and informal channels. LEDCOR 2011 SUSTAINABILITY REPORT We survey our employees on an annual basis to ensure we are on track in providing a work environment that embraces our core values of safety, quality, integrity, sustainability and success. Based on the results of this confidential survey, our OUTSPOKEN leadership team works with management and employees to further understand We survey employees annually to ensure we’re on track in providing a work environment that embraces our core values. and respond to the feedback received. Table 14: Key Employee Survey Results KEY STRENGTHS KEY AREAS FOR IMPROVEMENT Employees see Ledcor’s Core Value of Safety demonstrated in their day-to-day work lives. Increased praise/recognition for doing good work improves employees’ view of leadership at Ledcor. Employees understand that the way they perform their jobs affects their success at Ledcor. It is important to employees that regular performance reviews are useful in establishing career development goals. Our employees are proud to work at Ledcor. Frequent discussions about performance management help employees to progress in their careers. Some of the key topics and concerns that were identified through the 2011 Employee Survey were communication, leadership and performance management. We are working hard to respond to these concerns, and will continue to communicate our progress internally and through the Ledcor Sustainability Report. Our external stakeholders are equally important to Ledcor. We are committed to building lifetime clients, and actively seek feedback from our clients and other stakeholders through both formal and informal channels. Ledcor recently undertook extensive market research in Canada that included surveying and interviewing past, present and potential clients, industry partners and stakeholders in order to better understand Ledcor’s reputation in the industry. This open and collaborative approach has enabled us to strengthen our relationships and partnerships. We also seek feedback from a range of stakeholders regarding our sustainability reporting. The Ledcor Sustainability Report is directly distributed to key clients and other associates for review and consultation in an effort to obtain input on what they expect and hope to see in the future from our company. These valuable discussions are continually driving us to improve our reporting and performance, to meet our clients’ sustainability requirements and to meet or exceed industry best practices. 61 62 LEDCOR 2011 SUSTAINABILITY REPORT AWARDS AND RECOGNITION Our top employer awards have been earned through the dedication and talents of our many employees. Ledcor has been acclaimed for its industry best practices and award-winning corporate culture. We view our loyal clients and employee retention as a testament to our corporate and industry achievements. We have been recognized by a multitude of organizations throughout our 65-year lifetime. Highlights from 2011 include: 2011 Canada’s Top 10 Most Admired Corporate Cultures – National Winner Canada’s 10 Most Admired Corporate Cultures is presented by Waterstone Human Capital. This annual program recognizes best-in-class Canadian organizations for having a culture that has helped them enhance performance and sustain a competitive advantage. Winning companies are eligible for nomination every three years. 2011 Canada’s Top 10 Most Admired Corporate Cultures – Regional Winner This award recognizes top organizations on a regional level for having a corporate culture that drives performance and sustains a company’s competitive advantage. Only companies that are nominated are eligible to make a submission. Regional winners move forward to compete for a spot in Canada’s top 10. 2011 Canada’s Top 100 Employers Canada’s Top 100 Employers is an annual national competition that recognizes companies who are leaders in their industry in attracting and retaining top talent. 2011 BC’s Top 55 Employers 2011 was the second year in a row for Ledcor to receive this honour. This award recognizes British Columbia employers with its head office or principal place of business in British Columbia and who lead their industries in offering exceptional places to work. 2011 Financial Post’s Ten Best Companies to Work For This special designation recognizes fast-growing companies in Canada that offer tremendous career advancement opportunities together with leading-edge employee perks and benefits. 2011 Ledcor Construction USA awarded ‘Best Places to Work’ in the North Bay The selection, by North Bay Business Journal, was based on several months of gathering nominations, employee input and extensive review. In a survey of employees from each of the 67 selected companies, Ledcor rated higher than average on criteria of credibility, respect, fairness, pride, and camaraderie. LEDCOR 2011 SUSTAINABILITY REPORT 63 FORWARD. TOGETHER. We at Ledcor have worked hard on our third annual Sustainability Report and wish to thank you for taking an interest in our performance and progress. We are committed to advancing our sustainability goals and look forward to sharing our achievements with our stakeholders well into the future. For more information about sustainability at Ledcor do not hesitate to contact Tania Akehurst, Sustainability Specialist, at Tania.Akehurst@ledcor.com. Photo Credit: NAIT Digital Library 64 LEDCOR 2011 SUSTAINABILITY REPORT APPENDIX: ASSURANCE LETTER INDEPENDENT ASSURANCE REPORT To: The Board of Directors and Ledcor Industries Inc. (“Ledcor”) What we looked at: Scope of our work We have reviewed selected corporate-wide and business unit performance indicators in Ledcor’s Report on Sustainability (the “Report”) for the year ended December 31, 2011. Ledcor management is responsible for collection and presentation of the indicators and information set out in the Report. A review does not constitute an audit and, consequently, we do not express an audit opinion on the selected performance indicators. Ledcor was responsible for selecting performance indicators as well as their presentation in the report. We did not review the narrative sections of the Report, except where they incorporated the selected performance indicators. Our responsibility is to express an independent conclusion, based on our assurance procedures, on whether anything has come to our attention that causes us to believe that the selected performance indicators are not presented fairly, in all material respects, in accordance with the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting Guidelines. The GRI G3.1 definitions can be found at www.globalreporting.org. For the list of selected performance indicators reviewed, please see the addendum to this report. What we did: Assurance standards and key assurance procedures We conducted our review in accordance with the International Standard on Assurance Engagements (ISAE) 3000 developed by the International Federation of Accountants. As such, we planned and performed our work in order to provide limited assurance with respect to the selected performance indicators that we reviewed. Our review criteria were based on the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting Guidelines. Our procedures included: •interviewing relevant Ledcor management and staff responsible for data collection and reporting •obtaining an understanding of the management systems, processes and the relevant controls used •to generate, aggregate and report the data at Ledcor’s regional operations and head office •reviewing relevant documents and records on a sample basis •testing and re-calculating information related to the selected performance indicators on a sample basis •assessing the information for consistency with our knowledge of Ledcor’s operations, including comparing the Ledcor’s assertions to publicly available third-party information Sustainability, environmental, health & safety data are subject to inherent limitations of accuracy given the nature and the methods used for determining such data. The selection of different acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary. What we found: Our conclusion Based on our work described in the Scope of Our Work section above, nothing has come to our attention that causes us to believe that the subject matter are not presented fairly, in all material respects, in accordance with the relevant criteria. Deloitte & Touche LLP Chartered Accountants Vancouver, BC, Canada December 7, 2012 © Deloitte & Touche LLP and affiliated entities. 65 LEDCOR 2011 SUSTAINABILITY REPORT ADDENDUM: SELECTED PERFORMANCE INDICATORS REVIEWED The following corporate-wide performance indicators were included in Deloitte’s review of selected sustainability subject matter areas within Ledcor’s Sustainability Report for the year ended December 31, 2011. CATEGORY GRI INDICATOR ATTRIBUTE UNITS Environment Economic Society EN3 Direct energy consumption GJ EN16 Scope 1 & 2 tCO2e EN23 Significant spills (>30 L) No. of spills EC3 Canadian Defined Contribution Plan contributions Employee contribution % Ledcor contribution 3.3% US 401k Plan contribution Employee contribution 1.8% Ledcor contribution 4.5% Employee completed Ethics Training Management SO3 % of Management Hours/ employee Non-Management SO5 Public Policy LA1 Employee breakdown Employees Turnover excluding “shortage of work” as a reason 29 4.0% 22 4.0% n/a 2,587 Canadian Permanent Part-Time Employees 30 Canadian Fixed Term Full-Time Employees 3,961 Canadian Fixed Term Part-Time Employees 4 US Permanent Full-Time Employees 427 US Permanent Part-Time Employees 2 US Fixed Term Full-Time Employees 249 US Fixed Term Part-Time Employees 0 Total Employees LA2 201,894 5.7% n/a (qualitative) Canadian Permanent Full-Time Employees 135,333,762 142 % of Non-Management Labor 2011 VALUE Male 7,260 Employees 499 Female 130 Less than 30 210 30-50 291 Greater than 50 128 Canada 560 USA Total Departed Employees 69 629 66 LEDCOR 2011 SUSTAINABILITY REPORT CATEGORY GRI INDICATOR ATTRIBUTE Labor LA2 LA7 Turnover including “shortage of work” as a reason Worker incidents UNITS Male Employees 2011 VALUE 588 Female 154 Less than 30 234 30-50 355 Greater than 50 153 Canada 640 USA 102 Total Departed Employees 742 Total person hours Number 13,401,665 Lost time incidents (LTI) 27 Medical aid incidents 66 Restricted work cases (RWC) 72 Incidents requiring first aid 475 Illnesses 7 LTI frequency (LTIF) 0.40 Total recordable injury frequency (TRIF) Lost time/person hrs 2.46 Absentee Rate Total injury time/ person hrs 3.10 LA8 Employee & Family Assistance Program n/a (qualitative) n/a LA10 Training Hours/ employee 6.0 Average hours per employee Average hours per female employee 7.0 Average hours per male employee 5.7 Project Coordinator/Project Engineer 4.0 Executive Foreman 12.8 – General/Brand/Location/Regional/Site Management 12.1 Project Management 11.0 Supervisory & Management 12.8 Specialized Professional 6.5 Superintendent 7.4 Business/Technical Professional 2.5 Student 0.3 67 LEDCOR 2011 SUSTAINABILITY REPORT INDICATOR ASSURANCE 2011 GRI CONTENT INDEX DESCRIPTION YEARS REPORTED EC3 Coverage of the organization’s defined benefit plan obligations. 2009 2010 2011 Y Emissions, Effluents, and Waste EN16 Total direct and indirect greenhouse gas emissions by weight. 2009 2010 2011 Y EN17 Other relevant indirect greenhouse gas emissions by weight. 2009 2010 2011 N/A Products and Services EN23 Total number and volume of significant spills. 2009 2010 2011 Y EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. 2009 2010 N/A N/A LA1 Total workforce by employment type, employment contract, and region, broken down by gender. 2009 2010 2011 Y LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. 2009 2010 2011 Y LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender. 2009 2010 2011 Y LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. 2009 2010 2011 Y Training and Education LA10 Average hours of training per year per employee by gender, and by employee category. 2009 2010 2011 Y Corruption SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. 2010 2011 Y Public Policy SO5 Public policy positions and participation in public policy development and lobbying. 2010 2011 Y Product Responsibility Communications PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. 2010 2011 N/A Economic Economic Performance EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. 2011 N/A Environmental Energy EN3 Direct energy consumption by primary energy source. 2011 Y EN4 Indirect energy consumption by primary source. 2011 N/A CATEGORY ASPECT Economic Economic Performance Environmental Labor Practices and Decent Work Employment Occupational Health and Safety Society Labor Practices and Decent Work Employment LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation. 2011 N/A Product Responsibility Marketing Communications PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. 2011 N/A CALGARY CHARLOTTE CHICAGO DALLAS EDMONTON FORT MCMURRAY HONOLULU HOUSTON IRVINE KELOWNA LAS VEGAS NAPA PHOENIX REGINA RENO SAN DIEGO SASKATOON SEATTLE TORONTO VANCOUVER VICTORIA LEDCOR GROUP OF COMPANIES Corporate Head Office Suite 1200, 1067 West Cordova Street Vancouver, British Columbia Canada V6C 1C7 U.S. Head Office Suite 100, 6405 Mira Mesa Boulevard San Diego, California USA 92121 T 604 681 7500 T 858 527 6400 F 604 681 4385 F 858 527 6410 ISSN 1481-5419 Please contact Tania Akehurst with any questions regarding this report. Tania Akehurst Sustainability Specialist 604 699 2747 tania.akehurst@ledcor.com LEDCOR.COM