Carbon Action Plan by DIALOG

CARBON ACTION PLAN Executive Summary DIALOG’s Carbon Action Plan (CAP) details our approach to monitoring, benchmarking and reducing our operational carbon emissions, as well as explains our innovative offsetting program. DIALOG’s CAP has three primary objectives: Objective 1 To calculate DIALOG’s net emissions from operations. Objective 2 To continually implement new emissions reduction initiatives. Objective 3 To appropriately offset remaining emissions. DIALOG’s 2012 Carbon Action Plan outlines six major carbon emission categories: Electricity, Server Loads (separated from electricity for reasons explained later), Natural Gas, Air travel, Paper, and Staff Commuting. Information has been collected for these six categories for each studio and then aggregated to reflect DIALOG’s overall carbon emissions. This information is outlined in the chart below and expressed in tonnes of carbon dioxide equivalent emissions (tCO2e). Equivalent CO2 emissions include for the effects of other non-CO2 greenhouse gas emissions, such as methane.

Summary for 2012 (tCO2e) Category (tCO2e)

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

Electricity

540

439

1,023

Server Loads

263

199

177

710

Natural Gas

194

154

105

455

Air Travel

328

135

213

214

890

206

106

396

1,552

1,041

592

338

3,523

8.04

6.63

4.39

5.83

6.49

Paper Staff Commuting Total tCO2e per person

Our CAP is organized into 5 sections that address the following:

1. WHAT IS A CARBON ACTION PLAN? WHY DO WE NEED ONE? Introduces the concept of a Carbon Action Plan and why it is important.

2. WHAT ARE WE ALREADY DOING ABOUT OUR CARBON EMISSIONS FROM OPERATIONS? Details initiatives to reduce DIALOG carbon emissions across Canada.

3. WHAT DID WE MEASURE, HOW DID WE MEASURE IT, AND WHY DID WE MEASURE IT? Summary of DIALOG’s emissions from operations and our calculation methodology.

4. HOW IS DIALOG OFFSETTING THE CARBON EMISSIONS WE CANNOT REDUCE? Explores our unique offsetting partnership with Community Forests International.

5. PLANS FOR THE FUTURE Preview of what is next for DIALOG’s Carbon Action Plan. Carbon Action Plan | 1

1. WHAT IS A CARBON ACTION PLAN? WHY DO WE NEED ONE? The Carbon Action Plan A Carbon Action Plan outlines an organization’s plan to take responsibility for its greenhouse gas emissions, typically with the goal of becoming carbon neutral. The core purpose of the Plan is to: conduct an audit of the sources and quantities of an organization’s greenhouse gas emissions; determine how best to reduce those emissions; and offset those emissions that cannot be reduced. Once all emissions are offset, the organization has reached a carbon neutral state.

What are carbon emissions? Carbon emissions are a subset of greenhouse gas (GHG) emissions - emitted gasses that warm the atmosphere by increasing the amount of energy retained by the atmosphere. Human-caused emissions are predominantly in the form of carbon dioxide (CO2). The burning of fossil fuels and the clear-cutting and burning of forests around the world are the primary sources of anthropogenic CO2 emissions. Other activities produce additional forms of GHG’s, such as the decomposition of organics in the absence of oxygen, which produces methane. Most of our daily activities that require energy such as driving cars, heating buildings, and running our computers use power produced from CO2 producing fossil fuels. As well, developing forests, marshes, and other carbon-dense ecosystems for human use has resulted in further emissions. This is because as trees decompose, and soils are dried out, CO2 and other greenhouse gases are released into the atmosphere.

Why are greenhouse gas emissions so important? We rely on greenhouse gasses in the atmosphere to keep the planet habitable. Without them the planet would average -18°C instead of its comfortable 14°C. During the last two centuries, rapid industrialisation and population growth gave rise to increased use of fossil fuels and the clearing of forests for agriculture. This led to a rapid accumulation of CO2 in the atmosphere, rising from 280 parts-per-million (ppm) in 1850 to over 400 ppm today. It is estimated that 350 ppm is the highest level that will allow for a sustainable biosphere. We can readily observe the impacts that increased greenhouse gas emissions are have on our natural environment. Global average temperatures are increasing, ice caps are melting, and there is an increased frequency and intensity of major weather events. Furthermore, increased greenhouse gas emissions in the atmosphere are causing increased carbon concentrations in the oceans. Carbon dissolved in the ocean is carbonic acid, so we are seeing increased ocean acidity wreaking havoc on marine ecologies - notably the devastation to coral reefs all around the world. The ‘Super Storm Sandy’ that hit New York City and caused billions in damage and left many people homeless is an example of a severe major weather event. Around the world, Category 5 major weather events are more than twice as common today as they were in 1980. It is important to think about how carbon emissions can impact us – from a social, environmental, and economic perspective. As we continue to carry out this greenhouse gas science experiment with our planet, the effects will be increasingly experienced by us all.

Is DIALOG taking action? DIALOG felt it important to stop contributing to the problem in a demonstrable way which could be used to encourage others. DIALOG is focusing on the many things we can do to reduce our carbon emissions and do our part to stop emitting greenhouse gases. Monitoring, benchmarking, and reducing emissions are valuable first steps. At DIALOG, we have 5 primary motivations for monitoring our carbon emissions: 1. To better understand our impact on the environment. 2. To undertake measures to reduce our impact. 3. To track the success of these measures. 4. To offset our carbon impact. 5. To demonstrate sustainability leadership in actions as well as advocacy. Carbon Action Plan | 2

How does carbon neutrality work? DIALOG’s goal is to become carbon neutral by emitting net-zero greenhouse gas emissions. This means that DIALOG will reduce GHG emissions to as close to zero as possible, and commit to supporting activities that keep or pull the rest out of the atmosphere. So measuring total GHG emissions across all studios was the first challenge to achieving carbon neutrality. First, we measured emissions associated with our daily activities, such as commuting to work or electricity consumption at the office. Boundaries around which emissions were included were set to make the process manageable. For example, employee emissions related to commuting to work were considered, whereas the carbon footprints of the workday lunches consumed by the same employees were not. Travel to site was not included in this year’s calculations either, solely due to a lack of resources. Secondly, a list of all existing emissions reduction activities and initiatives was compiled. This list helped us determine what we are doing, what we are not doing, and where we can improve. Finally, opportunities to support activities that keep carbon out of the atmosphere were explored as a means of ‘offsetting’ DIALOG’s remaining emissions. Carbon offsetting is a way to affordably reduce the amount of GHG’s in the atmosphere. To achieve this offsetting, DIALOG has partnered with Community Forests International (CFI) to develop a locally owned and operated carbon offset project that keeps as much carbon from going into the atmosphere as we emit in an entire year. CFI is a not-for-profit organization based in New Brunswick that uses sustainable forestry practices and conservation easements to ensure carbon is kept out of the atmosphere. More details on this innovative program are in Section 4 below.

Carbon Action Plan | 3

2. WHAT ARE WE ALREADY DOING ABOUT OUR CARBON EMISSIONS? Our approach to carbon emissions reduction is two-pronged: â&#x20AC;˘

We reduce our carbon emissions as much as possible, as described below.

â&#x20AC;˘

We offset our remaining carbon emissions with Community Forests International (CFI).

Carbon Reduction Initiatives The goal of the carbon reduction initiatives is to reduce as many emissions as possible. Some initiatives relate to procurement and others are based on education. Currently, these initiatives are maintained and operated in a fairly informal way.

Initiative

Studio

Double sided printing on paper that is either 100% recycled or has recycled content

ALL

Limit unnecessary printing of emails, faxes, etc.

ALL

Drawings sent to print shops that use eco-bond and 100% recycled plotter paper

ALL

Dishwashers are only run when full

ALL

Tap water is encouraged over plastic water bottles

ALL

Rechargeable batteries are used when possible and other batteries are recycled

ALL

Studios are equipped with video conferencing equipment to reduce the need for flights

ALL

Paperless ePost paystubs reduce paper waste

ALL

Studio-wide participation in the Commuter Challenge

ALL

Secure bike storage to encourage employees to cycle to work

ALL

Recycling to reduce waste generated

ALL

Studio owned bicycles offer a carbon-free transit option

CGY

Daylight sensors detect natural light and automatically turn off lights to reduce energy use

CGY, TOR

Lights turn off automatically after hours

CGY, TOR

Printers use less paper (default settings: black and white / double sided)

CGY, EDM, TOR

Subsidy for transit users to encourage public transit use

CGY, EDM, TOR

Shower and changing facilities to encourage employees to walk or bike work

CGY, EDM, TOR

Green cleaning that encourages re-usable cleaning materials (such a cloths and mops)

CGY, TOR

Wake-on-LAN (WOL) printer and workstation power settings reduce energy consumption

CGY, TOR, VAN

Food waste is diverted using composting bins / stations

CGY, TOR, VAN

Reusable cutlery, plates, and cups for internal functions

CGY, TOR, VAN

Reusable platters at catered events

CGY, TOR, VAN

Carpooling information boards to encourage employees to rideshare when possible

CGY, TOR, VAN

Membership to car sharing services such as Car2Go or Zipcar

CGY, TOR, VAN

Water-efficient fixtures in bathrooms

EDM, TOR

Paper recycling bins at each desk

EDM, TOR, VAN

No plastic water bottles at catered lunches

TOR

Programmable thermostats to reduce the energy required to heat and cool large spaces

TOR

Paper towel dispensers in washrooms to better control amounts dispensed

CGY, TOR

Replace existing note books with 100% post-consumer recycled paper

TOR

Labels and signage to simplify recycling

TOR

Majority of desk lamps use energy efficient CFL or LED light bulbs

TOR, VAN Carbon Action Plan | 4

3. WHAT DID WE MEASURE, HOW DID WE MEASURE IT, AND WHY DID WE MEASURE IT? The Method Our approach is based on The Greenhouse Gas Protocol, an international accounting tool used to measure and report on GHG emissions. Using the standards outlined by the Protocol, we selected 6 categories to capture our 2012 emissions: 1. General Electricity 2. Server Loads 3. Natural Gas 4. Air Travel 5. Paper 6. Staff Commuting

General Electricity Electricity bills were obtained in kilowatt hours (kWh). Then the number of grams of CO2 per kWh was determined based on each Province’s energy supply. Each Province has a different mix of electrical power generation - fossil fuels, large-scale hydro, and nuclear are the main sources nationally, with increasing growth in renewables such as solar and wind. Each source emits a different amount of GHG’s for every kWh of power generated, depending on the fuel source. Environment Canada’s Greenhouse Gas Inventory lists the average environmental impact of the energy produced in each province based on generation types. This Inventory was used to calculate the GHG emissions from electricity.

Server Loads The main servers for the DIALOG offices reside in the Calgary studio, but are not separately metered. Since the main servers represent a significant energy load that serves all of DIALOG, their approximate energy consumption was calculated and distributed across all staff. To do this, the energy consumption of the server loads must be separated from Calgary’s ‘other’ energy consumption. The Edmonton studio is an ideal point of reference for estimating the amount of electricity associated with the server loads because it has a similar climate to Calgary. The server loads were calculated using the following approach: 1. The Edmonton studio’s overall electricity was recorded from energy bills. 2. The total electrical consumption for the Edmonton studio was applied to the Calgary studio, and adjusted based on staff ratio of Calgary to Edmonton. This is Calgary’s ‘other’ (non-server load) energy consumption. 3. Calgary’s ‘other’ (non-server load) energy consumption is subtracted from Calgary’s total metered electricity. The result of this calculation is the electrical consumption of the servers. 4. This server load was then allocated to each studio based on number of staff – Calgary 37%, Edmonton 28%, Toronto 25%, Vancouver 10%. Further research is going into measuring the real time energy usage of the servers.

Natural Gas Where available, gas heating usage in gigajoules was obtained from utilities. Where gas usage data was not available, an estimate was made based on the previous year’s usage and staff counts. Toronto gas usage was not available, so Calgary data was used and extrapolated based on the Heating Degree Day (HDD) index for the two cities. Calgary was used because it had the most similar climate, HDDs, and physical building/studio characteristics to Toronto. Gas usage was converted to CO2 emissions using Environment Canada’s Fuel Combustion Emissions Factors. These Emission Factors site reports commonly used emission factors for fuel combustion from Canada’s National Inventory Report from 1990 – 2009. Carbon Action Plan | 5

Air Travel Kilometres flown were calculated based on flight information provided by accounting. The mileage was linked to the each employee’s home studio. Each employee’s travel distance was calculated and converted to CO2 emissions using the emissions factor from the GHG Protocol.

Paper The number of pounds of paper used was calculated based on information provided by each studio’s primary paper provider and confirmed by accounting. Based on the paper type, weight, and recycled content, the emissions factor was calculated using the online Paper Calculator tool.

Staff Commuting We conducted a staff commuting survey, asking staff how they commute to work during the summer and winter months, what mode of transportation they use during these months, and the distance they travelled to get to and from the office. Specifically, the survey collected information on driving, public transportation, biking, and walking as primary methods of transit. The emissions factors for driving, biking, and walking were determined using the GHG Protocol tool. Because the GHG Protocol tool did not provide a factor for public transportation, the emissions factor associated with this form of transit was determined using Poudenx and Merida’s (2007) equation from their research on emissions from public transportation in BC1.

1 Poudenx, Pascal and Walter Merida. (2007). Energy demand and greenhouse gas emissions from urban passenger transportation versus availability of renewable energy: The example of the Canadian Lower Fraser Valley. Energy, 32 (1), 1-9. Doi: 10.1016/j.energy.2006.01.002 Carbon Action Plan | 6

How did we do in 2012? The table below outlines DIALOGâ&#x20AC;&#x2122;s tons of CO2 emissions by category and by studio for 2012.

DIALOG OVERALL Summary for 2012 (tCO2e) Category (tCO2e)

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

Electricity

540

439

1,023

Server Loads

263

199

177

710

Natural Gas

194

154

105

455

Air Travel

328

135

213

214

890

206

106

396

1,552

1,041

592

338

3,523

8.04

6.63

4.39

5.83

6.49

Paper Staff Commuting Total tCO2e per person

Note: Calgary studio has the most staff and is located in a heating dominate climate with fossil fuel supplied heating and electricity. Conversely, Vancouver has the smallest staff count, less heating needs, and lower grid electricity emissions per kWh since Vancouverâ&#x20AC;&#x2122;s energy supply is largely hydroelectric. Carbon Action Plan | 7

Calgary Category

tCO2e

Electricity

539.8

37.8%

Server Loads

262.7

18.4%

Natural Gas

194.2

13.6%

Air Travel

203.9

14.3%

21.2

1.5%s

Staff Commuting

205.6

14.4%

Total

1,427

100%

Paper

Percent

Edmonton Category

tCO2e

Percent

Electricity

439.1

44.4%

Server Loads

198.8

20.1%

Natural Gas

154.4

15.6%

83.6

8.5%

7.6

0.8%

106.3

10.7%

990

100%

Air Travel Paper Staff Commuting Total

Toronto Category Electricity

tCO2e

Percent

41.8

8.2%

Server Loads

177.5

34.7%

Natural Gas

105.0

20.5%

Air Travel

132.2

25.9%

9.6

1.9%

45.2

8.8%

511

100%

Paper Staff Commuting Total

Vancouver Category Electricity

tCO2e

Percent

2.3

0.9%

71.0

27.6%

1.0

0.4%

132.7

51.6%

Paper

11.9

4.6%

Staff Commuting

38.5

15.0%

Total

257

100%

Server Loads Natural Gas Air Travel

Carbon Action Plan | 8

4. HOW IS DIALOG OFFSETTING ITS CARBON EMISSIONS? Carbon Offsets and Community Forests International Carbon offsetting is an important way for DIALOG to be accountable for our GHG emissions footprint, and to demonstrate to others that change is possible. In seeking out offsets, DIALOG desired to be an instrumental partner in the process and required that any carbon offsets purchased would need to ensure removal and storage of atmospheric GHG’s. DIALOG found an ideal partner in in Community Forests International - an innovative Canadian not-for-profit that DIALOG could have a trusting and meaningful long-term relationship with. Utilising an old-growth Acadian forest and farm, DIALOG and CFI have crafted a sustainable forestry conservation project to pull and store GHG’s out of the atmosphere. Without DIALOG’s support, CFI would not have been able to take the actions of reducing and removing these GHG’s from the atmosphere. Forest conservation based offsets come with many additional positive benefits, much more so then other readily available carbon offsets. Positive externalities of this Canadian sustainable forestry conservation project include: increased forestry jobs in a depressed rural economy; the restoration of the endangered Acadian Forest; improvement of the quality of wildlife habitat; and improved ecosystem services such as water filtration. CFI uses a five-step process to offset GHG emissions: Step 1 Interested offsetters quantify the amount of GHG emissions they wish to offset. Step 2 CFI identifies a property or a land steward with the capacity to sequester carbon on the offsetter’s behalf. By valuing the service of carbon storage in these well managed forests, these land stewards are able to sustain and enhance responsible forest management activities. Step 3 A working lands conservation easement forbidding clear-cutting and/or clearing of the forest for any reason is placed on the property to ensure that the carbon will be stored in perpetuity. This easement stays with the property regardless of changes in land ownership. Step 4 CFI works with land stewards and the local community to maintain and increase carbon stored on these lands through forest renewal, restoration, and sustainable management. Step 5

FI monitors the forests to ensure all carbon sampling and accounting is completed and accurate, C ensuring that all offsets are real and verifiable.

DIALOG’s Carbon Offsets DIALOG has contracted CFI to offset 3,523 tons of carbon (as detailed in the table below). Please see CFI’s detailed 2012 DIALOG Carbon Offsetting Report for further information.

Summary for 2012 (tCO2e)

Total

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

1,552

1,041

592

338

3,523

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5. PLANS FOR THE FUTURE DIALOG will continue to make efforts to reduce greenhouse gas emissions across the country.

Reduction Implementation DIALOG has a network of passionate individuals across the country actively working to reduce our carbon emissions and knowledge share with each other. The Carbon Action Plan and Program is administered by the national CAP team who coordinate efforts with local Green Teams and Admin staff to implement reduction-focused changes. Overall program leadership and strategic direction is provided by DIALOG’s Sustainability Team. Over the coming year, these team members will work to lower DIALOG’s overall footprint by implementing current initiatives across studios. There is great capacity for learning and information sharing, both within and among studios.

Calculation Methodology The US’s Environmental Protection Agency has identified the following six key GHG’s in our atmosphere: Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulphur hexafluoride (SF6). They then classified both direct and indirect emissions of these 6 GHG’s into three Scopes based on the source of the emissions. Scope 1

Emissions are direct from sources owned or controlled by the entity.

Scope 2

Emissions are indirect from purchased electricity, heating/cooling, and steam.

Scope 3 Includes a variety of indirect emissions from sources not owned or controlled by the entity, but related to the entity’s activities (such as commuting and paper use). For the 2013 calculations, DIALOG’s Sustainable Design team will explore compliance with EPA Scope 1, Scope 2 and Scope 3 calculation methodologies. We will also explore compliance with applicable ISO standards, including ISO 14064.

Summary Collectively, these efforts will provide DIALOG with a more robust set of calculations that can be used to compare DIALOG with other firms and continue our efforts to Make a Difference on a global scale.

Carbon Action Plan | 10

APPENDIX A: DETAILED CALCULATIONS The calculations outlined below are used to determine the equivalent number of tonnes of CO2 that are generated during each process.

1. General Electricity Energy use (kWh) x Emissions factora = # of tonnes of equivalent CO2 emissions factor obtained from Environment Canada

http://www.ec.gc.ca/ges-ghg/default.asp?lang=En&n=EAF0E96A-1#section10h

2. Server Loads Energy use (kWh) x Emissions factorb = # of tonnes of equivalent CO2 emissions factor obtained from Environment Canada

http://www.ec.gc.ca/ges-ghg/default.asp?lang=En&n=EAF0E96A-1#section10h

3. Natural Gas Energy use (megajoules) x Emissions factorc = # of tonnes of equivalent CO2 emissions factor obtained from Environment Canada

http://www.ec.gc.ca/ges-ghg/default.asp?lang=En&n=AC2B7641-1

4. Flights Distance (kilometres) x Emissions factord = # of tonnes of equivalent CO2 emissions factor obtained from Greenhouse Gas Protocol

www.ghgprotocol.org/files/ghgp/tools/co2-mobile.pdf

5. Paper a. Size (m2) x Weight (grams/m2) Âť convert to kilograms b. Total weight (kg) x emissions factore e

emissions factor determined by recycled content and obtained from the Paper Calculator

www.papercalculator.org

6. Staff Commuting a. Total distance (km) for mode of transport x Emissions factorf (for mode of transport) b. Add emissions for all modes of transport = # of tonnes of equivalent CO2 emissions factor determined based on mode of transport

car, walking, biking - Greenhouse Gas Protocol - www.ghgprotocol.org/files/ghgp/tools/co2-mobile.pdf public transit - Poudenx and Merida (2007) - Doi: 10.1016/j.energy.2006.01.002

Carbon Action Plan | 11

APPENDIX B: EMISSIONS BY CATEGORY Utilities: Electricity Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

613,462

499,034

417,743

95,713

1,625,952

Grams CO2e/kWh

880

100

1,884

tCO2e

540

439

1,023

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

298,503

225,894

201,691

80,676

806,765

Grams CO2e/kWh

880

N/A

tCO2e

263

199

177

710

kWh

Server Loads

kWh

Note: Server loads were allocated by studio headcount.

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Utilities: Total

tCO2e Footprint (whole studio) tCO2e Footprint (per employee)

Calgary

Edmonton

Toronto

Vancouver

DIALOG Average

997

792

324

547

5.2

5.0

2.4

1.3

3.5

PER STUDIO

PER EMPLOYEE

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Utilities: Natural Gas Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

Gas (in gigajoules)

3,750

2,982

2,069

8,819

HDD

5,135

5,772

4,051

2,995

N/A

Grams CO2/m3

1,918

1,879

1,916

N/A

194

154

105

455

tCO2e

Based in Climate Zone 6 & 7, Calgary, Edmonton, and Toronto are all in heating dominated climates. The heat is created by the combustion of natural gas. Vancouverâ&#x20AC;&#x2122;s Natural Gas consumption in the chart is solely for hot water generation as they have electric space heating.

Air Travel

Mileage (in kms) tCO2e

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

1,132,757

464,717

734,665

737,424

3,069,563

328

135

213

214

890

Carbon Action Plan | 14

Paper

tCO2e

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

The calculations depend on how many pounds of paper used and how much recycled content each type of paper has. Edmonton was the only studio to use 100% recycled paper in 2012.

Staff Commute Summary (includes driving, transit, biking, and walking)

kms tCO2e

Calgary

Edmonton

Toronto

Vancouver

DIALOG Total

389,322

433,763

414,182

151,759

1,389,026

206

106

396

Carbon Action Plan | 15