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THAN MEETS THE EYE

2013 Corporate Responsibility Report


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Message from the CEO

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Governance and leadership

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Value creation for customers

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Advancing science and industry

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Quality 14

E THE OB CL EA

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G O O D C H OI C

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CHOICE.

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OUR VISION

Health and Safety

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Fairness and opportunities for employees

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Contributing to our communities

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Respecting the environment

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2013 Maxxam snapshot

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We are always looking for ways to be better and to meet the needs of our customers and other stakeholders. We invite any comments or suggestions on how we can improve Maxxam’s annual Corporate Responsibility Report.

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AT MAXXAM, WE ARE MORE THAN 2,500 EMPLOYEES IN 42 LOCATIONS ACROSS CANADA. MORE THAN THE SUM OF OUR PARTS, WE ARE A GROUP COMMITTED TO PURSUING EXCELLENCE IN EVERYTHING WE DO. THERE IS NO STATUS QUO, NO ACCEPTABLE STANDARD. WE ARE ALWAYS RAISING THE BAR, CHALLENGING OURSELVES AND OUR INDUSTRY TO DO BETTER, TO BE BETTER. WHY? BECAUSE WE ARE MAXXAM. WE WANT TO BE MORE THAN A GOOD CHOICE FOR OUR CUSTOMERS. WE WANT TO BE THE CLEAR CHOICE.

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NOW IN ITS THIRD YEAR, MAXXAM’S CORPORATE RESPONSIBILITY REPORT summarizes the activities surrounding our six guiding principles for corporate responsibility: leadership and governance, value creation for customers, advancement of science and industry, fairness and opportunities for employees, respect for the environment, and contributions to our communities.

“Every single day, Canadian businesses and organizations across the country make critical decisions based on our results.”

In everything we do, we ask ourselves whether we are being true to these principles and hold ourselves accountable by sharing our initiatives and their results in this annual report. While doing so, we never lose sight of our corporate vision: to become the clear choice for analytical services and solutions. 2013 was an eventful year for Maxxam, making it even more important to maintain our focus. Our most recent news was clearly the most exciting. In December 2013, Bureau Veritas, a global leader in testing, inspection, and certification services, announced its intention to acquire Maxxam, and the acquisition was finalized in January 2014. While this change in ownership won’t result in any changes to our commitments and daily interactions with customers, we are very excited to leverage Bureau Veritas’ network and tap into an expanded suite of products and services that will be of value to our customers. At the same time, we remain committed to serving the Canadian market. Every single day, Canadian businesses and organizations across the country make critical decisions based on our results. We don’t take that responsibility lightly. We also remain deeply entrenched in our local communities; 2013 was a record year for community giving and community engagement at Maxxam. This report outlines how we strive to be more, and do more, so that choosing Maxxam isn’t just a good choice; it’s the clear choice.

JON HANTHO President & CEO CORPORATE RESPONSIBILITY REPORT 3


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THAN GOOD MANAGEMENT GOVERNANCE AND LEADERSHIP AT MAXXAM, RESPONSIBLE, ACCOUNTABLE, AND TRANSPARENT LEADERSHIP IS BASED ON THE COMPANY’S CORE VALUES OF INTEGRITY, COLLABORATION, INNOVATION, AND PERFORMANCE – VALUES THAT HAVE BEEN AT THE HEART OF MAXXAM FOR MANY YEARS.

While 2013 saw changes to Maxxam’s ownership and governance structure, its experienced senior leadership team remains unchanged, and is integral in guiding the company towards achieving its vision of being the clear choice for analytical services and solutions. A VALUES-DRIVEN APPROACH While the change in ownership from OMERS Private Equity to Bureau Veritas will not impact the day-to-day interactions between Maxxam and its customers, new ownership does bring with it a new governance structure – one that is a perfect fit for Maxxam and its customers. Founded over 180 years ago, Bureau Veritas is a global leader in testing, inspection, and certification services. This longevity is built on a solid and relentless commitment to integrity and ethics, one of Bureau Veritas’ core values. A vision of an accident-free workplace, one that causes no harm to people and minimizes the environmental impacts of business activities, is at the heart of Bureau Veritas’ Health, Safety, and Environmental statement. In day-to-day activities, this means enabling individuals to take responsibility for health and safety in the workplace, and managing potential risks through an active health and safety management system. As a public company listed on the Euronext Paris stock exchange (stock symbol: BVI), Bureau Veritas puts fiscal responsibility at the centre of its governance approach. The organization is governed by a Board of Directors and is accountable to its shareholders and other stakeholders. In addition to annual and interim financial reports, Bureau Veritas holds annual shareholder meetings, and conducts shareholder presentations throughout the year.

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OUTSTANDING ACHIEVEMENTS IN CHEMISTRY In April 2013, Jon Hantho, CEO of Maxxam Analytics, received the 2013 Purvis Memorial Award from the Society for Chemical Industry (SCI). Every year, the award is presented for outstanding achievements in the development and implementation of strategies that have strengthened Canadian industry or academic institutions in the field of chemistry. CARING ABOUT OUR COMMUNITIES In a recent leadership meeting held in Collingwood, Ontario, Maxxam’s long-standing senior leadership team spent part of their time working on their team building skills and giving back to the local Collingwood community. Conversations during these meetings usually revolve around strategic planning, best practices, or industry trends, but in this case the group rolled up their sleeves and built theme-based children’s wagons, which were donated to “My Friend’s House”, a local shelter for abused women and their children. In addition to the wagons and children’s gifts, the group made a generous monetary donation.

“We decided to make an additional donation on behalf of Maxxam’s leadership team in honour of Jon [Hantho, CEO] and Chris [Jeppesen, CFO], whose exemplary leadership and tireless work ethic are an inspiration to all of us.”

E M P L O Y 2,500 E E S+

42LOCATIONS +

2.4M SAMPLES

+

43M

TEST RESULTS

MAXXAM BY THE NUMBERS

DR. RANDY LEAVITT Vice President - Pharmaceutical, DNA & Forensic Services

CORPORATE RESPONSIBILITY REPORT 5


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THAN TEST RESULTS VALUE CREATION FOR CUSTOMERS WHILE MAXXAM SERVES A WIDE VARIETY OF INDUSTRIES RANGING FROM ENVIRONMENTAL AND ENERGY TO FOOD AND DNA, THE COMMON THREAD THAT UNIFIES MAXXAM’S APPROACH TO SERVICE DELIVERY IS VALUE CREATION FOR CUSTOMERS.

As the Canadian market leader in analytical services and solutions, Maxxam has a relentless commitment to looking for and executing upon new ideas that meet the current and future requirements of our customers to help them be successful. ADDRESSING CRUDE (OIL) BY RAIL CHALLENGES Many of Maxxam’s customers in the crude oil industry transport an increasingly significant amount of their product by rail, resulting in a number of challenges relating to the crude’s quality, handling, transport, and efficient processing. In 2013, Maxxam’s experts increased their efforts to help address the complex challenges related to the transportation and characterization of crude oil by rail and developed a number of sophisticated analytical methods supported by field service sampling capabilities. To address the issue of crude oil solidifying in rail cars during cold winter months, Maxxam developed an innovative characterization process to determine the specific freezing point of each load of crude tested. Based on this information, Maxxam experts advise customers whether the oil will be readily removed from the train cars at the destination refinery, or if it needs to be handled in an alternate manner (such as steam heating). Maxxam’s results are also being used to determine whether crude transported by rail meets the customers’ expectations, whether it will require special processing at the receiving end, or even be rejected due to contamination concerns. As one of only a few laboratories that can produce detailed characterizations of specific refined portions of crude oil, Maxxam’s Petroleum group has seen new customers from across North America in the past 12 months and continues to work on new methods for its crude oil customers. 24/7 EMERGENCY RESPONSE PROGRAM On July 6, 2013, disaster struck the small town of Lac-Mégantic, Quebec, as a train carrying crude oil derailed, followed by the explosion of multiple tank cars that destroyed a large section of the downtown core and claimed the lives of 47 people. It was immediately apparent that the environmental impact of the event would be severe. Within a few hours of the disaster, senior Maxxam staff from both our Environmental and Petroleum divisions were engaged in consultation with customers to determine how to assess the extent of the contamination in the fastest possible way.

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An emergency sampling program was quickly put into place, including daily site pick-up in Lac-Mégantic and transport of samples back to our laboratory in Montreal. Maxxam’s Petroleum staff consulted on sampling techniques and containers to ensure the integrity and safe transportation of the collected oil samples. In Montreal, experienced log-in, inspection, project management, technical services, drivers, and laboratory staff worked exclusively on Lac-Mégantic samples. Each day, the team analyzed the samples overnight and reported the results the following morning.

ENVIRONMENTAL Comprehensive environmental analysis for soil, water and air contaminants.

PETROLEUM Scientific leaders in oil and gas analysis and oil sands solutions.

Between July and October 2013, Maxxam provided hydrocarbon, volatile, and metals testing on over 3,900 samples from the disaster area. Due to the severe levels of contamination, remediation efforts in Lac-Mégantic are expected to continue for years and Maxxam is committed to working with its partners to ensure accurate, timely and cost effective analytical solutions. EASY, CONVENIENT ONLINE ACCESS In spring 2013, Maxxam’s new Customer Portal went online, giving Environmental and Food customers 24/7 access to projects, job confirmation details, and both preliminary and final results. The objective of the Portal was simple: to help customers easily access critical analytical results. With that in mind, the Portal was built from the ground up based on those customers’ requirements, integrating their feedback throughout the development process. Our customers’ invaluable input allowed Maxxam’s developers to overcome an all-too-common industry challenge: bridging the gap between the job-based data approach commonly used by laboratories and the project-based data management required by customers. Some of the most popular features of the Customer Portal are its custom reports, which allow for easy cutting, pasting, and manual comparison of data, with minimal risk of error. Most importantly, the Portal represents significant time savings for customers.

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FOOD SCIENCE AND SAFETY SERVICES Analytical services to verify the quality, safety, reputation, and regulatory compliance of food operations. FORENSIC / DNA AND PRODUCT TESTING SERVICES The leading private forensic lab in Canada and provider of advanced specialty testing services.

FOUR LINES OF BUSINESS

While the new Customer Portal has had early successes, the tool is far from complete: an ambitious project roadmap sees the release of several new features in 2014.

CORPORATE RESPONSIBILITY REPORT 7


+ BEST PRACTICES FOR FOOD CUSTOMERS Three years ago, Maxxam’s Food Science and Safety group was approached by a customer operating an internal laboratory, who was looking for best practices and support for operational processes and quality assurance. As Maxxam’s experts began sharing their knowledge and experience, a new support and consulting service was created.

INTEGRATED SOFTWARE AND ANALYTICAL SERVICES FOR THE OIL SANDS INDUSTRY In 2013, Maxxam acquired Calgary-based Henderson & Associates (H&A), the leading geological software and services provider to the oil sands industry. This acquisition has provided Maxxam with a platform on which to develop value-added technical services to meet the growing needs of our customers.

By the end of 2013, Maxxam’s Food group had assisted a wide variety of food processing companies in optimizing their internal laboratory operations. Our senior staff have helped customers across the country successfully address challenges ranging from technology selection to workflow improvements and ISO/IEC 17025 compliance.

While H&A continues to work independently from Maxxam’s oil sands laboratory operations, the acquisition has enabled Maxxam to develop unique features only made possible through the combined strengths of both companies. New processes include a method that prevents reversed or flipped core tubes from disrupting the core logging process, avoiding program delays, incorrect sampling, and out-ofsequence analytical results. Another collaborative project resulted in data quality algorithms that provide an additional level of statistical quality control, linking digital images with analytical results.

SCIENTIFIC COLLABORATION CREATES VALUE A recent contract issued to Maxxam by the Canadian Food Inspection Agency (CFIA) included methodologies for phthalate testing in a variety of food matrices. Because phthalates are used in many different plastics, including equipment and instruments in laboratories, this is a service many laboratories are not able to offer. Maxxam’s Food Science and Safety Services and Product Testing teams went into collaboration mode. The Product Testing group utilized a method for phthalate testing that was developed for a pharmaceutical client, and adapted it to include the analytes needed by the CFIA. Maxxam’s analysts validated this method in a variety of food matrices. The quick work to validate the new method was achieved thanks to the contributions and support from scientific experts in both Maxxam departments, proof that collaboration is an integral value at Maxxam and, when coupled with scientific expertise, provides significant value to our customers.

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Ultimately, these improvements allow our customers to develop more timely and accurate geological models to assess their petroleum reservoirs. The degree of integration between geological software, logging services, analytical services, and data reporting has never been higher. This unprecedented level of collaboration and alignment between geological consultants, customers, and laboratories has led to remarkably successful and cost-effective annual drill core programs for Maxxam’s oil sands customers. “The tight collaboration between Maxxam and H&A makes the process more efficient for customers, reducing time and improving quality. Working together and with our customers to design, monitor, and execute their annual drill core programs is what we do every day,” says Phil Heaton, General Manager, Oil Sands and Upgrading for Maxxam’s Petroleum Services group.


“From the questions that food companies and their internal labs were asking us, it was clear that there was an opportunity to play a larger role than the analytical support we were providing. The systems and processes that we rely on in servicing our clients, as well as the way that we continuously evaluate and audit our lab, proved to be useful to our clients’ efforts to increase the value that their labs were able to deliver. We see demand for these services increasing as the demands on food companies become increasingly complex.” ROBERT WIEBE Vice President and General Manager, Food Science and Safety Services

CORPORATE RESPONSIBILITY REPORT 9


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THAN ROUTINE PROCEDURES ADVANCING SCIENCE AND INDUSTRY INDUSTRY INNOVATION, CLIENT ENGAGEMENT, AND COMMERCIAL VIABILITY DRIVE RESEARCH AND DEVELOPMENT AT MAXXAM. MAXXAM IS COMMITTED TO BEING AT THE FOREFRONT OF OUR INDUSTRIES AND ENSURING CUSTOMERS BENEFIT FROM NEW DEVELOPMENTS.

As our industry continues to evolve at a rapid pace, scientists – often in close collaboration with customers – identify technologies and procedures that may have recognized limitations, or are not sufficient to comply with new and upcoming regulations. In 2013, Maxxam’s Research & Development group worked on a wide range of projects to help advance the technology and protocols available to our customers across all industries. FROM RESEARCH TO BEST PRACTICES A survey of in-situ oil sands industry members identified an issue common to all operators: fouling and water treatment problems associated with dissolved inorganic and organic material. Throughout 2012 and 2013, Maxxam partnered with an oil sands industry group. We worked as the exclusive researcher to help develop best practices in the analysis of thermal waters that address corrosion as well as fouling in thermal water treatment facilities and steam generators. Maxxam’s research centred on ways to measure important parameters and ratios in thermally produced waters. Working in partnership with industry, the Maxxam team developed analytical best practices and programs to better support in-situ oil sands projects. These enhancements help our customers minimize equipment fouling and corrosion to improve uptime and reduce maintenance costs, while simultaneously maintaining good economics, maximizing recycling, and responsible use of water resources. Along with industry partners, Maxxam will continue to work diligently to contribute to the body of knowledge in the area of thermal water chemistry.

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INTEGRITY

Do the right thing, always.

HE

NDATION

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CORE VALUES

LU VA

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Maxxam has been collaborating with industry, government agencies, academic institutions and clients on a number of related projects. To date, passive water sampling is still an emergent technology in Canada, and Maxxam’s Research & Development team is working in the same field as leading researchers around the world to make the technology available to our customers.

Work as a team.

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Passive sampling allows for the measurement of ultra-low concentrations of contaminants in water samples. Many of Maxxam’s customers see the benefits of the technology, in particular for risk assessments, when low concentrations as well as average concentrations over a period of time are highly relevant or where sediments confound conventional analysis.

COLLABORATION

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AT THE FOREFRONT OF PASSIVE WATER SAMPLING An important development in water sampling in recent years has been the evolution of low-density polyethylene (LDPE) passive samplers.

INNOVATION Make it better.

PERFORMANCE Results matter.

CORPORATE RESPONSIBILITY REPORT 11


“Maxxam worked closely with Dr. Luong in the late 1990s on sulphur compound speciation and other complex chromatography challenges. He has continued to provide global leadership in gas chromatography technology developments and we are delighted to honour Dr. Luong’s achievements.” DR. TARAS (TERRY) OBAL Director of Scientific Services and Development

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FINDING THE ANSWER FOR A FIRST NATIONS BAND In the summer of 2013, Maxxam’s Environmental group was approached by a consultant retained by a First Nations band in Alberta. Band members were observing a significant change in the taste of fish captured from a local lake. Instead of solely relying on our established method for testing the water for compounds that could have caused this change, the Maxxam team went one step further and verified whether a new method could be used to test actual fish tissue samples.

REWARDING SCIENTIFIC ADVANCEMENTS Each year the Maxxam Award is presented to a Canadian scientist who has made distinguished contributions to the field of analytical chemistry. The nominations and selection process is overseen by the Chemical Society of Canada (CSC). The 14th Annual Maxxam Award was presented to Dr. Jim Luong at the CIC and CSC 2013 Awards Banquet in Quebec City. Dr. Luong is the Associate Technology Director of the Analytical Technology Centre at Dow Chemical Canada ULC in Calgary, Alberta.

Using solid-phase microextraction (SPME) in addition to more established gas-chromatograph highresolution mass spectrometer (GC-HRMS) technology, the scientists confirmed the presence of geosmin, an organic compound with a very distinct flavour and odour, in the submitted fish samples. While naturally occurring and harmless for humans, geosmin is known to render fish unpalatable. Not only did this project provide the answers our customers were looking for, it also allowed our Research & Development team to modify an established method for tissue analysis and evaluate a new technology for both water and tissue analysis – both of which we will now be able to use in future projects.

CORPORATE RESPONSIBILITY REPORT 13


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N A L A U DI T S

R TE

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THAN ACCREDITATION QUALITY OUR COMMITMENT TO QUALITY IS UNWAVERING. MAXXAM CONSISTENTLY HOLDS OUR LABORATORIES ACCOUNTABLE THROUGH AUDITS AND

In 2013, Maxxam’s Quality Assurance (QA) team continued to grow. With 47 professionals on board, it is the largest dedicated quality team in the Canadian laboratory industry. With this growth came another year-over-year increase of internal audits across all laboratories, as well as a significant increase in the number of proficiency testing samples.

STRINGENT QUALITY CHECKS,

2013 QA STATISTICS

AND WE CONTINUE TO BE AT

QA EXPERIENCE (YEARS)

307

INDUSTRY-LEADING LEVELS.

LAB EXPERIENCE (YEARS)

320

OUR CORE VALUE OF INTEGRITY

QA STAFF

(“DO THE RIGHT THING,

INTERNAL AUDITORS

ALWAYS.”) REMAINS EMBEDDED

INTERNAL AUDITS

2406

THROUGHOUT THE COMPANY

EXTERNAL AUDITS

56

47 182

AND IS DRIVEN BY THE KNOWLEDGE THAT OUR CUSTOMERS RELY ON OUR RESULTS AND EXPERTISE TO MAKE CRITICAL DECISIONS EVERY DAY.

ETHICS AND INTEGRITY AWARENESS It is one thing to have employees sign a code of ethics every year. It is another thing to have the CEO hold face-to-face sessions on ethics and integrity with our supervisors and managers and get everyone in the organization to openly discuss real-life ethical pitfalls and dilemmas. In October 2013, these kinds of conversations were encouraged at Maxxam, as employees across the country renewed their commitment to the company’s core value of Integrity. Through online activities, presentations, contests and challenges, the week-long campaign emphasized Maxxam’s commitment to the integrity of our data and our people, as well as sound ethical business practices. Employees attended integrity training sessions led by managers, where they discussed ethics and integrity, both in relation to their work at Maxxam and in everyday situations. Employees could also complete questionnaires to discover their personal ethical styles, and a short video was developed featuring Maxxam employees sharing their thoughts about integrity.

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RECOGNIZED QUALITY PERFORMANCE In 2013, Maxxam received a Ford Motor Company Laboratory Quality Award for the second consecutive year. The recognition as “Best All Around Quality in Ford Laboratory Program” is a testament to the consistent and high-quality work performed by Maxxam for this multinational client and a confirmation of the effectiveness of our Quality Management System.

“We have four core values, and integrity is our cornerstone. In its most simple terms, integrity is about doing the right thing, and about doing the right thing always, every day, in every way.” PAUL FEWER National Director - Quality & EHS

CREATE

SHARE

24/7

3,000

Enhanced emergency response program

Best practices to address corrosion and fouling in thermal water treatment facilities

A new method for phthalate testing in food matrices

Attendees at customer training events

150

Lab Ops Boot Camps, workshops, conferences and Science Summits

9,000

Views of customer “How to...” training videos

CORPORATE RESPONSIBILITY REPORT 15


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THAN STATISTICS HEALTH AND SAFETY

MAXXAM EMPLOYEES AND MANAGERS SHARE A DEEP COMMITMENT TO MAKING SURE THAT EVERYONE GOES HOME SAFELY, EVERY DAY.

Maxxam has many positive stories to tell about health and safety in 2013. At the same time, the company’s overall performance shows room for improvement, and will require renewed efforts in 2014. Maxxam has grown at an impressive rate, and with this growth, it becomes even more important to ensure safety remains the number one priority, for new employees and seasoned veterans alike.

HEALTH & SAFETY STATISTICS 2013 HOURS WORKED NEAR MISS FIRST AID MEDICAL AID

4805974 2380 158 11

MODIFIED WORK

3

LOST TIME ACCIDENT (LTA)

4

TOTAL RECORDABLE INCIDENTS (TRI)

18

FATALITIES 0 TOTAL RECORDABLE INCIDENT RATE (TRIR)

0.75

LOST TIME INCIDENT RATE (LTIR)

0.17

LTA = Lost Time Accident – a worker misses at least one day of work due to a work related injury LTIR = Lost Time Incident Rate (Rate = # of incidents x 200,000, divided by hours worked) TRI = Total Recordable Incidents (medical aid + modified work + Lost Time Incidents) TRIR = Total Recordable Incident Rate (Rate = # of recordable incidents x 200,000, divided by hours worked)

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BRINGING HEALTH AND SAFETY HOME In April 2013, to celebrate North American Occupational Safety and Health (NAOSH) week, Maxxam held a national kids’ art contest. Under the umbrella of our Health and Safety motto “It Starts With Me”, artwork submissions represented one of three safety themes: • Being safe at home • Being safe in the car • Being safe in the park Young family members of Maxxam employees were eligible to enter and compete in their age group to win great prizes. Over 220 young artists submitted their pictures, and all received a special edition Maxxam “It Starts With Me” shirt. Maxxam employees reported that the competition opened up conversations at home about the importance of safety in the home, in parks, and while driving.

LTA MODIFIED WORK

MEDICAL

FIRST AID

NEAR MISSES

4 3 11 158 2,380

2013 NATIONAL SAFETY PYRAMID Total recordable injury rate (TRIR) = 0.75 Lost time injury rate (LTIR) = 0.17 Number of exposure person hours = 4,805,974

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“Front line employees are often the most at risk when working in laboratories or in the field, so it’s critically important that we work together as a team to work through any potential safety risks.” FERNANDO AZEVEDO Regional EHS Advisor, Western Canada

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+ STANDING DOWN FOR SAFETY To continue to move our industry-leading safety program forward, Maxxam’s Petroleum group has instituted regular Safety Stand Downs.

A DIFFERENT TAILGATE CULTURE At traditional tailgate parties, people gather to socialize and celebrate the event they are attending, creating a sense of community and support.

The program is a proactive measure to ensure employees are aware of potential hazards and encourage them to take ownership of the safety of their work area. No topic is off limits: everything from work practices, equipment function, and workplace set-up is openly discussed and scrutinized.

Maxxam’s bi-weekly tailgate meetings, held in all locations across the country, are attended by laboratory, field, and office staff. They centre on our commitment to ensure all employees go home safely every day. In a quick five-minute huddle, the week’s tailgate topic is presented and discussed by all attendees, keeping safety awareness front and centre in daily interactions.

During Safety Stand Downs, managers take employees on walk-throughs of their work areas to identify potential hazards posed by everyday working conditions. This activity leads to an active and collaborative discussion about the workplace, and includes an overview of all the tasks completed in the laboratory and any issues or hazards associated with executing these responsibilities.

Tailgate topic areas are broad and span both work and personal lives. Some popular topics in 2013 included texting and driving, fatigue management strategies, and safe snow removal, with many topics inspiring further conversations on our intranet.

While the discussions are facilitated by management, Safety Stand Downs are truly owned by Maxxam employees, who are encouraged to bring forward any safety-related ideas and concerns. During Safety Stand Downs, employees and managers jointly develop and assign corrective actions. To ensure completion, action items are reviewed during monthly meetings. Maxxam’s Health and Safety Team is currently planning the roll-out of Safety Stand Downs across all our laboratories.

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THAN A JOB FAIRNESS AND OPPORTUNITIES FOR EMPLOYEES

WITH AN AVERAGE TENURE OF 12 YEARS FOR MANAGERS AND SUPERVISORS, AND A NATIONAL TURNOVER RATE OF 8.5%, MAXXAM HAS ONE OF THE MOST STABLE, EXPERIENCED TEAMS IN THE INDUSTRY. OUR SUCCESS IS BUILT ON THE COUNTLESS CONTRIBUTIONS OF OUR EMPLOYEES.

We acknowledge and celebrate the dedication and successes of individual employees as key factors to Maxxam’s success. In 2013, Maxxam’s recognition and rewards program “Bravo” saw a record year. Over 4,500 “Spot Awards” recognized colleagues for living Maxxam’s values of Integrity, Collaboration, Innovation, and Performance. An additional 4,500 “Everyday Recognitions” in Bravo acknowledged the many acts of thoughtfulness, compassion, and consideration shown by our employees across the country on a daily basis. A PLACE WHERE IDEAS THRIVE Innovation is one of Maxxam’s core values and a key factor in maintaining the company’s on-going leadership role in the laboratory industry. It is integral to innovation that employees understand that a simple idea can improve their workplace and help many more across Canada. Launched in August 2013, Maxxam’s Idea Bank provides an online forum for employees to suggest and discuss ideas they may not be able to execute themselves, but have the potential for positive change in the company. The Idea Bank’s true purpose and value lies in its ability to foster communication among employees across the country. In the first four months since its launch, over 30 ideas were entered into the Idea Bank, ranging from enhanced training opportunities for First Aid qualified staff to the implementation of a pay slip system. Many of these ideas have already been put into action, others have become the source of further brainstorming and conversation.

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REWARDING VALUES AND LEADERSHIP Maxxam’s Values Awards recognize outstanding individuals who are consistent role models and show leadership in living our values and creating a corporate culture that sets Maxxam apart. Employees are nominated by peers and managers, and the recipients are selected by a committee of Maxxam senior leaders.

ALBERTA Lukasz Legutko (Scientific Specialist, Petroleum Properties Lab) “Words such as ‘no’ or ‘maybe’ do not exist in his vocabulary.” Mansoor Jamaluddin (Shipper/Receiver)

2013 VALUES AWARD RECIPIENTS

“He is an outstanding role model; he leads by example and gets the job done no matter what the circumstances are. He goes above and beyond what is needed for our clients and staff members alike.”

ATLANTIC REGION Byron Angevine (Analyst II, Inorganics Lab)

BRITISH COLUMBIA Andrew An (Analyst, Trace Metals Lab)

“Byron can always be counted on to provide the same exceptional commitment to quality day in and out, regardless of the task at hand.”

“With his instrumental knowledge, he helps the more junior analysts solve problems, ensuring success for himself, his colleagues, customers and Maxxam as a whole.”

QUEBEC Nathalie Marion (Senior Client Service Representative) “Nathalie is always looking for ways to improve our existing procedures and processes.” Marcello Manocchio (Scientific Specialist) “He will never compromise quality over quantity. He is someone who is very consistent in his work and always strives for success.” ONTARIO Marta Snijders (Operations Manager, Petroleum Outsourcing Lab) “Under her leadership, the business has grown into one that successfully delivers on its promise to customers.” Mayank Patel (Group Leader, Organic Processing Lab) “He understands the importance of our safety program and has shown great leadership in this area.”

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THAN BUSINESS CONTRIBUTING TO OUR COMMUNITIES GIVING BACK TO THE COMMUNITIES IN WHICH WE LIVE AND WORK IS AN ESSENTIAL PART OF MAXXAM’S CULTURE. THIS HAS BEEN THE CASE FOR 45 YEARS AND OUR TRADITION OF GIVING HAS PROUDLY EXPANDED. IN 2013, MAXXAM HAD A RECORD YEAR FOR COMMUNITY GIVING AND ENGAGEMENT.

In 2013, some of the highlights of community giving at Maxxam included an extremely successful Food Drive, dedicated typhoon and flood relief efforts, a United Way fundraising campaign, and NHL playoff fundraising for children’s charities. In total, Maxxam raised a record-breaking $190,000 for charities across Canada. More than raising funds, Maxxam employees were directly engaged in communities. ANNUAL FOOD BANK DRIVE For the 12th year in a row, Maxxam employees raised money for local food banks, bringing in a total of $41,800. This number was matched dollar-for-dollar by Maxxam, bringing the total donated contribution to a record-breaking $83,600. HELP FOR TYPHOON VICTIMS To assist relief efforts after the devastating impact of Typhoon Haiyan, Maxxam raised a total of $24,000 in support of the victims in the Philippines. Employees raised $7,000; Maxxam matched that amount, and committed an additional $5,000. ALBERTA FLOOD RELIEF EFFORTS In June 2013, over 100 Maxxam volunteers assisted Calgary communities in emergency flood relief efforts. Employees worked on site and cleaned up homes with Samaritan’s Purse, assembled food hampers at the Siksika Reserve, prepared warm meals with Neighbourlink and Community Kitchen, and put together personal hygiene kits to assist senior citizens displaced by the flood.

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NHL CAMPAIGN FOR CHILDREN’S CHARITIES With four Canadian teams in the NHL playoff season early in the year, Maxxam employees challenged one another to raise money for children’s charities supported by their favourite teams. These included Canuck Place Children’s Hospice, Montreal Canadiens Children’s Foundation, Sens@ School, and MLSE Foundation. Maxxam donated an initial $10,000 to those charities and matched each employee donation, bringing the total amount raised to $23,000. SUPPORTING THE UNITED WAY During the holiday season, Maxxam employee and corporate donations for the United Way totaled $15,000. THE GIFT OF TIME (AND HARD WORK) Besides raising money for community giving programs, Maxxam employees take their efforts even further. In 2013, as part of Maxxam’s Day of Caring program, employees dedicated over 3,400 hours (over 400 days) to volunteer for causes they care about. Implemented in 2012, the Day of Caring program encourages employees to spend one paid day per year volunteering for the charity of their choice.

RECOGNIZE

CARE

14th

3,400+

4500

200,000

Over

$83K+

Annual Maxxam Award for outstanding scientific achievements

Spot awards for day-to-day recognitions handed out via ‘Bravo’

220

Internal promotions

Day of Caring hours

Resealable plastic bags diverted from landfills

Donated to Food Banks across Canada

$190K+

Raised for charitable causes

CORPORATE RESPONSIBILITY REPORT 23


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SOME OF THE ORGANIZATIONS THAT EMPLOYEES HELPED OUT

Canadian Blood Services Feed Nova Scotia Sun Youth Dixon Society Eden Community Food Bank Sketch Fraser Valley Gleaners Terra Cotta Invasive Species Workday, hosted by Credit River Conservation TELUS Walk to Cure Diabetes Green Legacy Nursery Annual Alberta Highway Cleanup Campaign

“We take enormous pride in encouraging and supporting our employees’ energy and enthusiasm to raise money and donate their time for those in need. Maxxam is deeply entrenched in our local communities across the country, and we take our commitment to helping fellow Canadians very seriously.” JON HANTHO CEO

24 MAXXAM

Fingerling Festival Spring Sprint – Brain Tumour Foundation of Canada Balik Alay Medical Mission Pet Expo Adoption – Country Kennels Bed & Biscuit First United Church Calgary Women’s Centre Halifax Cat Rescue Food Banks across the country


CORPORATE RESPONSIBILITY REPORT

25


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THAN A BLUE BIN RESPECTING THE ENVIRONMENT

AT MAXXAM, OUR EFFORTS TO REDUCE THE ORGANIZATION’S IMPACT ON THE ENVIRONMENT SPAN ACROSS THE COUNTRY, BEYOND BASIC RECYCLING INITIATIVES.

In 2013, we continued our commitment to sustainability by following through with a number of innovative initiatives, with positive results in several key areas. REDUCING GHG EMISSIONS Carpooling reduces greenhouse gas emissions and dramatically cuts the costs of commuting for employees. To motivate employees to commute with one or more colleagues, many Maxxam locations have special carpooling parking spaces near entrances. In October 2013, Maxxam’s largest laboratory (Mississauga, Ontario) began a new carpooling initiative that has saved over 32,000 kilometres in single car usage since its launch. The program now includes 8 carpools and 87 registered carpool users. Savings include: • 504 round trips • 2,064 km • 6,962 kg GHG emissions In a related effort, Maxxam upgraded our Field Services fleet to include eco-boost engines, resulting in a savings of 20,000 litres of fuel in 2013. A SOPHISTICATED RECYCLING PROGRAM In 2013, Maxxam’s second-largest laboratory (Burnaby, British Columbia) began to specifically target plastic, glass, and food waste for recycling and repurposing. New recycling bins were established throughout the buildings to effectively sort materials for easy organization and simple removal. Thanks to this effort, 75-80% of waste has been successfully redirected to proper channels. Following in Burnaby’s footsteps, a similar recycling program at the Mississauga location is scheduled to launch in Spring 2014, with other locations to follow.

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DIVERTING MATERIAL FROM LANDFILLS To further reduce our environmental footprint, Maxxam partnered with TerraCycle, an awardwinning upcycling and recycling company that collects and repurposes difficult-to-recycle packaging and products. As a result, Maxxam successfully diverted over 200,000 plastic bags from landfills to be recycled into packaging for commercial products. In addition, Maxxam recycled 35 kilograms of batteries and 102 cell phone batteries, as well as launched a program for plastic pen cartridges. Through its partnership with TerraCycle, Maxxam accumulated over $6,000 in credits which will be donated to charity.

REWARDING SUSTAINABILITY Every year, Maxxam’s Kaizen Awards recognize five individuals who improve standards and procedures. These winners have proposed ideas, created solutions, and instituted actions to gradually refine procedures at Maxxam to be more efficient, costeffective, and sustainable. In 2013, the annualized dollar value of sustainabilityrelated cost savings realized by Maxxam through the Kaizen program was $210,500.

CORPORATE RESPONSIBILITY REPORT 27


E M P L O Y 2,500 E E S+

42LOCATIONS 2.4M SAMPLES

43M

TEST RESULTS

MORE THAN THE SUM OF OUR PARTS Maxxam is the Canadian market leader in analytical services and solutions to the energy, environmental, food and DNA industries and a member of the Bureau Veritas Group of companies—a world leader in testing, inspection and certification services. 2 MAXXAM

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THAN MEETS THE EYE FOUR LINES OF BUSINESS ENVIRONMENTAL Comprehensive environmental analysis for soil, water and air contaminants.

PETROLEUM Scientific leaders in oil and gas analysis and oil sands solutions.

FOOD SCIENCE AND SAFETY SERVICES Analytical services to verify the quality, safety, reputation, and regulatory compliance of food operations. FORENSIC / DNA AND PRODUCT TESTING SERVICES The leading private forensic lab in Canada and provider of advanced specialty testing services.


Do the right thing, always.

OF

LU VA

CORE VALUES

RECOGNIZE

NDATION

E R Y T HI N G W

E S AT T

U FO

EV

HE

Work as a team.

200,000

E

DO

CO

RE

SHARE CREATE

Make it better.

PERFORMANCE Results matter.

14th

Annual Maxxam Award for outstanding scientific achievements

Attendees at customer training events

IN

220

Spot awards for day-to-day recognitions handed out via ‘Bravo’

Internal promotions

150

9,000

Lab Ops Boot Camps, workshops, conferences and Science Summits

Views of customer “How to...” training videos

24/7

Best practices to address Enhanced corrosion and emergency response program fouling in thermal water treatment facilities

A new method for phthalate testing in food matrices

HEALTH AND SAFETY

tin

a c ro s s t h e

2,968

N

A

TO CORPORATE RESPONSIBILITY REPORT 1

ry

A rigorous, non-negotiable dedication to safety

gs

CHOICE.

G O O D C H OI C

Over

unt

R

OUR VISION

4,500

Raised for charitable causes

co

EA

BE THE C TO L . E

$190K+

Donated to Food Banks across Canada

Resealable plastic bags diverted from landfills

3,000 INNOVATION

$83K+

gate m Tail ee

CARE

COLLABORATION

Day of Caring hours

AL AUD IT

2,406

Our commitment to deliver accurate, defensible results.

3,400+

RN

S

DELIVERING ACCURATE RESULTS

INTEGRITY

TE

BE

MORE T H

A


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500 – 1919 Minnesota Court Mississauga, ON L5N 0C9 Tel. 905.288.2150 Toll Free 866.611.1118 Fax 905.288.2169 communications@maxxam.ca maxxam.ca

Many of the photographs in this report were taken by Maxxam staff as part of a recent photo contest entitled “Our People. Our Science.” Many thanks to all employees who participated and found creative ways to show that there is more to Maxxam than meets the eye.


2013 Corporate Responsibility Report