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building sustainability at snc-lavalin o&m

A Clear Vision Sustainability is a key part of SNC-Lavalin O&M’s strategy

While trends in the business world may come and go, Justin Sharp knows that environmental sustainability will only grow in importance. Sharp, Senior Vice-President of Property, Facility and Project Management at SNC-Lavalin O&M, has helped build the sustainability services his team offers to its customers and clients over the past several years. SNC-Lavalin O&M manages facilities, properties and projects across 110 million square feet of industrial, governmental, institutional, healthcare, television & radio broadcasting, telecommunications and critical environments. Now, it offers a diverse package of sustainability services to its customers and clients to help improve their green scorecard. “There is an economic imperative that is now working together with the social imperative. It is the new world. It is part of the rest of our future. This isn’t a fad that is going to come and go. The legacy and social issues are much more prevalent in people’s minds today than they have ever been,” said Sharp. Sharp knows that a company needs to have a sound business plan to compete in today’s changing world where the environment and sustainability are more than mere words or a slick public relations plan - they are a part of the company’s business strategy. “To me it all makes economic sense. It is this convergence of the social and the economic imperatives. This isn’t about hugging trees, it’s about doing things that are smart and make good sense,” he said. “Certainly without a solid sustainability plan and a corporate commitment to execute, your company could easily fall into the category of environmental laggards, and that clearly isn’t sound competitive positioning.” And Sharp knows that a sustainability plan makes sense beyond the social value of doing what’s right for the planet. Instead, a company is most often looking at new ideas and programs with an eye on both the top and bottom line. 2

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“Now we can easily demonstrate the value of sustainability to our clients - whether the solution involves a high capital outlay, capital investment, or whether it is a low cost, no cost, there is a business case that can be made for all of these things,” he said. And the company can also draw on the experience of its various groups - including engineering, financial and operational resources - to build solutions for its clients and prospective customers alike. “We can build plans for individual clients by drawing on so much experience and expertise - we have been doing this for a long time. We have always had a significant investment in our environment groups and energy groups because it is an important thing to do, and it drives needed results for our clients in multiple areas.”

A league of its own Over the years SNC-Lavalin O&M has developed an impressive game plan which emphasizes its strategic vision for environmental sustainability. From its unique multi-layered Sustainability Management Framework to its Sustainability Forums, these features show the importance the company attaches to this ever evolving trend. Proving it is a leader in the industry, SNC-Lavalin O&M developed its Sustainability Management Framework, a seven-point plan that includes a Green Operations Model, Corporate Social Responsibility, Greenhouse Gas Management, Energy Management, Environmental Management, Planned Maintenance, and Communications. Although Sharp concedes the plan, whose purpose is to help clients reach their sustainability goals, is not unique to the industry, he does contend that their product involves a consultative process that goes beyond what most companies offer. “The Sustainability Management Framework is really all about having the discipline to manage all the different components,” Sharp said.

“It is not just lip service because it involves a process of firm commitments that are made by both us and our clients. Firm resources, whether human or financial, are committed, and it you can measure and manage as you go forward.” Sharp lists the company’s Sustainability Forums, which bring together customers for national and regional informational sessions, as yet other examples of the company’s commitment to sustainability. And the company also plans to invite some of the top executives in the country for its newly minted Executive Forum. “The profile of sustainability and environmental and energy management has risen so much that it is a great way to bring very senior customers and clients together,” he said. Although the parent company SNC-Lavalin as well as SNC-Lavalin O&M have been offering these types of services focused on sustainability for years, Sharp said it is only recently that it has become a must-have in the business world. And he also knows that the company must continue to evolve its services in this field to remain leaders. “I think we have seen a lot more traction in the last five years as executives realize that this isn’t just a social imperative to leave the earth at least as good as we’ve found it. It just makes good economic sense to do these things and it is really going to galvanize resources and move us a long way forward.” Justin Sharp Senior Vice-President, Project Property & Facility Management

SNC-Lavalin O&M’s Technical Operations Sustainability – keeping it real In response to the growing demand to provide sustainability solutions to their clients, SNC-Lavalin O&M’s Technical Operations department crafted its Sustainability Management Framework (SMF); a comprehensive multi-point plan that ensures the company operates buildings sustainably, while helping clients meet their sustainability goals. The seven-element document touches on all areas of sustainability including a Green Operations Model, Corporate Social Responsibility, Greenhouse Gas Management, Energy Management, Environmental Management, Planned Maintenance, and Communications. The framework came after management realized that there was a lot of good work being done nationally towards green building management, yet there was no common process to define clients’ sustainability goals, or what could be done tactically to deliver upon these objectives. “We are genuinely committed to sustainability, both as an organization in our own practices, as well as establishing sound environmental practices in our clients’ facilities. But saying that and executing it consistently across the country in a planned and logical way are two very different things,” said George Mitsopulos, P.Eng., SNC-Lavalin O&M’s Senior Director of Technical Operations. “We needed to get pragmatic about this product, and say to ourselves, ‘What are we actually doing to be sustainable in the operations and maintenance of the buildings?’” As a result, the company created an approach to sustainability which a number of large corporations have now adopted to help them define their sustainability goals, and then plan the tactical steps towards reaching them. “This was a critical step towards defining what sustainability meant to us,” Mitsopulos said. “It is not just a static document. It is exactly what we are doing and what makes us sustainable in our operation. It is very clear. It

is very concise and it has resonated very well with our clients.” SNC-Lavalin O&M’s Technical Operations group encompasses a number of areas including centres of excellence for energy management, environmental management, and asset management, as well as a technical delivery group. However, sustainability has gained so much prominence in the past few years, it was added as a fourth centre of excellence, complete with its own director. SNC-Lavalin O&M has implemented a number of measures to drive its sustainability strategy, including the management framework, and a series of national, regional, and an executive sustainability forums. “One of the larger challenges in implementing a sustainability plan is knowing where to start,” Mitsopulos said, “and these forums are an excellent vehicle to share information and expose our clients to some of the best practices in sustainability from around the world.” The group has also launched sustainability committees for many of its clients which meet on a regular basis to gauge the progress of their individual programs. The framework defines the function of the committee, and instills a grassroots approach to achieving green goals. “Ultimately the best result of a sustainability program is one that the employees embrace and even take home with them. The sustainability committee is a critical aspect of the Sustainability Management Framework and is vital to a successful greening initiative.” This is all with the aim of helping clients reduce their carbon footprint and score points towards BOMA BESt or LEED building certifications. “We have clear action plans and we are starting to see some traction. It is moving right across all of our client units and there is a great deal of attention and interest,” Mitsopulos said. “When it comes to sustainability it has to be an open book. We all need to reveal our

successes and expose our challenges too. We want to take an honest approach to discussing what work still needs to be done to move to a more sustainable model of operations for our clients from coast to coast,” Mitsopulos said. And by offering all these services, it gives SNC-Lavalin O&M clients an advantage over their competitors. “It helps us support our clients’ bottom line and it helps us make them more competitive and more attractive in the marketplace. This framework clearly defines our clients’ commitment to environmental sustainability which they can then take to the market as part of their overall value proposition”, Mitsopulos said. And with the burgeoning demand for corporate environmental sustainability over the past few years and the growing prominence within the company, he is excited about the future. “We are uniquely positioned to be able to make a significant impact on our clients’ sustainability goals and the fact that there is interest and people are taking notice both internally and externally – that makes the work truly gratifying,” he said. “It is very exciting to be a part of this team because a lot of changes are happening and we have a pragmatic approach that our clients appreciate. It is always interesting to be a part of a team when there is innovation and growth”. George Mitsopulos Senior Director Technical Operations

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Growth in sustainability SNC-Lavalin O&M is continually seeking new ideas With the spotlight on the environment, more and more companies are assessing how their operations stack up from a sustainability point of view. Service providers have to constantly develop new programs and services to help their clients stay on top. SNC-Lavalin O&M is a leader in providing innovative, value-added solutions to help its clients make their facilities more environmentally sustainable. “Building sustainable business practices is becoming the price of entry as our clients compete in their respective industries, so if we we want to be true partners, we have to support their efforts,” said Adriana Bitonte-Recourt, Vice-President Business Development at SNC-Lavalin O&M. “We have the resources, locally and globally, to support this market demand.” Most greenhouse gas generation comes from facilities. SNC-Lavalin O&M can make a difference for its clients with its expertise in smart building technology, remote monitoring, workplace greening, energy efficiency, and planning, designing tendering and managing leasehold improvements. And the company boasts an impressive collection of clients and facilities, from hospitals and broadcasters such as the Canadian Broadcasting Corporation (CBC), to office buildings and big banks including BMO Bank of Montreal. Further, more than 9,000 facilities spread across 110 million square feet and 250,000 infrastructure sites currently benefit from SNC-Lavalin O&M’s integrated portfolio of services, making it the largest property and facility management provider in the country. “This is a lot of real estate that can be transformed with our help into environmental champions,” said Bitonte-Recourt. “The carbon emissions saved from just managing that much lighting is remarkable, but we can go much further than that. We are masters at the fundamentals of building management and energy efficiency, but we can go far deeper into building technologies that can literally tell you when any facet of the facility is consuming too much energy.”

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SNC-Lavalin O&M is not resting on its laurels, it continues to develop ideas to foster new relationships while nurturing existing partnerships. “We have to constantly look for innovative ways to meet market demand. We are continually investigating and investing in new technology before the market even asks for it. New information is coming out almost daily regarding sustainability and we need to make sense of it all and be the trusted advisor for our clients on what is available,” said Bitonte-Recourt. At the end of the day, our clients have businesses to run, and their facilities each serve a different purpose depending on their business objectives,” she said. “We need to develop sustainability programs that address both those business objectives and our clients’ specific sustainability mandates. Through innovative offerings such as its Sustainability Management Framework, a sevenelement plan that helps SNC-Lavalin O&M’s clients meet their sustainability goals, to educational forums for its present and future clients, the company strives to remain a leader in sustainability. SNC-Lavalin O&M has also entered into operations and maintenance agreements with a number of Canada’s largest public-private partnerships, which Bitonte-Recourt said are all being built to green design specifications. As such, it adds value by working sustainable practices into the buildings’ operations and maintenance features right from the design phase. Indeed, the demand for new sustainable ideas grows as customers become more knowledgeable about the issues. “Customers are increasingly aware of the environmental impact of their operations. We need to take the lead in bringing added value to our clients by giving them a variety of options because, in spite of the obvious benefits to the planet, there is still the question of ‘how much is this going to cost me?’” Bitonte-Recourt said. “We have to offer a menu of sustainable options our clients can choose from that will meet any number of fiscal constraints and align with their corporate culture.”

Return on Investment And what if a company misses the sustainability boat? Sustainability is showing up earlier and earlier in the business cycle, and companies risk being shut out of potential business opportunities as early as the tender stage if they do not demonstrate a clear and concise policy around sustainability. “We are seeing a lot more need for environmental sustainability in RFPs (requests for proposals) as part of the evaluation process, not just the practices you have in place, but the resources you have dedicated to sustainability and how you turn the principles into practice.,” Bitonte-Recourt said. There are clear benefits to having a sustainabilty plan in place. Reducing your carbon footprint normally lowers energy consumption and waste, which can lead to savings for the client. And it demonstrates sound corporate responsibility at the same time. “I think it is of the utmost importance to have to have a sustainability plan because it demonstrates leadership - in your industry, to your employees, and in the communities in which you operate. It demonstrates commitment to the world that we live and operate in,” Bitonte-Recourt said. “We all have a responsibility whether you are a customer or a vendor to participate in keeping our planet healthy, and employees and ultimately business migrates to organizations that invest in this commitment.” The industry has made significant strides in promoting sustainability and Bitonte-Recourt said the work will continue. “Our clients all have environmental sustainability objectives. We need to provide tangible value to our clients to help them identify what they can accomplish in the short and long term, and then communicate these objectives to all levels of their organizations to gain buy-in,” she said. “There are real business rewards relative to sustainability, so we help our clients define that value and then package and implement the program to ensure it performs for both the bottom line and the planet.” Adriana Bitonte-Recourt Vice-President Business Development

SNC-Lavalin O&M values its client relationships

When SNC-Lavalin O&M was founded in 1993 its purpose was to provide facilities management for a single client. Now, nearly 20 years later, it is recognized as one of Canada’s leading outsourced operations and maintenance solutions experts. It boasts a portfolio of more than 110 million square feet of real estate in over 9,000 facilities, more than 117 MW of power, approximately 50 naval vessels and hundreds of kilometres of highway. It has also grown beyond Canada’s borders to areas including the Middle East, Europe and Latin America. And along the way it has attracted some top companies including BMO Bank of Montreal, Standard Life, Public Works & Government Services Canada (PWGSC), Canada Post, Canadian Broadcasting Corporation and Bell Canada. In the Middle East SNC-Lavalin O&M is involved in many projects; in Qatar its clients include Al Waab City, Al Rayyan Village and Lagoon Mal, and in the Kingdom Of Saudi Arabia the company is working with Saudi Aramco on the King Abdullah Petroleum Studies and Research Centre located in Riyadh.

“We are really glad to work with SNC-Lavalin O&M. They have shown us that they create value,” said Benoit Germain, National Director of real estate at Standard Life. “We would probably not have been able to achieve the sustainable development policy we have without the partnership of SNC-Lavalin O&M. They have experts to support us in each and every category in the sustainable development plan.” Under the terms of SNC-Lavalin O&M’s five-year mandate, the company manages the day-to-day operations of more than seven million square feet of investment real estate for Standard Life across Canada, and works with them to maximize the value of its nearly 60 buildings. SNC-Lavalin O&M’s team also meets regularly with representatives from Standard Life to provide feedback on the progress of its sustainability goals.

Having a clearly defined sustainability management plan was key for the company given its socially responsible investment policy. Germain said under the guidelines of the Canadian investment committee it is mandatory for Standard Life to ensure that it is socially responsible in all of its investments. “It is working well. We have clear objectives and we are measuring every quarter to ensure the outsourcing arrangement’s objectives are closely tied to our business plan,” he said. “It’s really important that SNC-Lavalin O&M is also included in our business plan through that outsourcing arrangement.” The relationship with the two companies dates back to 2006 when Standard Life chose to outsource the dayto-day operations of its real estate portfolio to focus instead on its core business of asset management. After a rigourous tendering process, Standard Life chose SNC-Lavalin O&M.

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Sustainability Management Framework Seven-element plan helps clients meet their sustainability goals SNC-Lavalin O&M’s Sustainability Management Framework (SMF) Green operations model helps to facilitate co-operation across client groups, disciplines and With the Green Operations Model, SNC-Lavalin O&M has aligned its teams, providing a common language and understanding of what internal departments’ procedures with industry-recognized green sustainability means for facility management. standards including BOMA BESt, LEED EBOM, SA8000 to help its The SMF is a comprehensive multi-point platform ensures that clients obtain LEED-EBOM and BOMA BESt certification. Since 2006, SNC-Lavalin O&M operates buildings sustainably, while helping its Paul Parsons, Director of Environment, has led the BOMA BESt clients meet their sustainability goals, and achieve and maintain a (formally Go Green Plus) certification of 168 buildings across Canada. balance that benefits the environment, society, and the bottom line. The model looks at how the company “Our ultimate goal is to help our clients operates internally and the measures reach their sustainability goals, as it adopts to green its processes in such each one of them has in some shape areas as project management, lease “The SMF is just one way SNC-Lavalin O&M or form a sustainability strategy and administration, strategic procurement, incorporates leading-edge sustainable public commitment. And we want to or operations, a business model which technologies and practices into its business. be their partner on this sustainability is unique to SNC-Lavalin O&M. journey,” said Alina Racoviceaunu, It improves its clients’ environmental As a result, the company has P.Eng., SNC-Lavalin O&M’s Director of developed a number of instruments practices, policies and procedures to Sustainability. and tools for sustainable project help them become industry leaders in The SMF is just one way that practices, performance assessments SNC-Lavalin O&M demonstrates that sustainability.” of new leases or lease renewal it is true to its sustainability policy projects using industry-recognized commitments of incorporating leading assessment tools. Additionally, edge sustainable technologies and SNC-Lavalin O&M has started sustainability assessments of its key practices into its business. SNC-Lavalin O&M improves its clients’ global suppliers and will continue to expand this work. environmental practices, policies and procedures in an effort to make SNC-Lavalin O&M is working with its internal teams, assessing their them industry leaders in sustainability. current practices and suggesting ways to operate in a more sustainable To take full advantage of the seven-element framework and help its way. clients reach their sustainability goals, a sustainability committee unique to each client develops an action plan tailored to their individual Corporate social responsibility needs. (CSR) reporting This helps to create a structured way in which SNC-Lavalin O&M’s Although the company does not write the Corporate Social clients can identify priorities, set goals aligned with their sustainability Responsibility report for its clients, it can help them in the critical commitments, and monitor progress towards these targets. The key area of Supplier Relations and the Environment by providing them with elements of the framework can be used as building blocks to develop industry-leading advice, data and information. the action plan.

The seven key elements The seven key areas of the framework include; › Green Operations Model › Corporate Social Responsibility (CSR) Reporting › Greenhouse Gas Management › Energy Management › Environmental Management › Planned Maintenance › Communications

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Greenhouse gas management With an eye on Greenhouse Gas inventory (carbon footprint), the framework’s GHG Management service can create a carbon footprint and reduction strategy to help clients manage GHG risks, identify reduction opportunities and operational improvements, and benchmark against peer companies. By managing the energy data for its clients as part of its energy management service, SNC-Lavalin O&M can quickly and easily calculate their Scope 1 and 2 carbon footprint. The client can use this information to participate in voluntary greenhouse gas programs, or to enter into carbon finance markets and use this as potential revenue streams. Using its Utility Bill Management software EnergyCAP,

SNC-Lavalin O&M’s Energy Tracking and Analysis team, led by Warren Moulaison, CET, Director of Technical Delivery, tracks all utility consumption and respective costs on a per building basis, including the verification of all utility bills.

Energy management Since 2001, SNC-Lavalin O&M has completed more than 400 detailed energy audits and retro-commissioning studies for its clients. Leo DiPaola, P.Eng., Director of Energy, keeps track of the thousands of energy conservation measures identified through the audits with the help of SNC-Lavalin O&M’s Computerized Audit Management System (CAMS). CAMS houses all of SNC-Lavalin O&M’s detailed energy audits and retro-commissioning studies for its clients. The data is used to identify areas such as cost, payback, energy savings, and greenhouse gas reduction associated with that particular project. This data can be used for the clients when SNC-Lavalin O&M makes strategic capital expenditure decisions. CAMS provides a unique project management and decision making tool that has proven useful for SNC-Lavalin O&M’s clients during their strategic capital investment planning. CAMS helps to identify the most financially and technically feasible projects or those projects that best suit the clients’ energy reduction goals.

Environmental management Much like ISO 14001, SNC-Lavalin O&M’S Environmental Management is a set of policies and procedures that ensure facilities and operations meet or exceed industry environmental standards. This includes halocarbon management plans, hazardous material handling, air emissions reporting, and integrated pest management and site contamination. SNC-Lavalin O&M considers Environmental Management to be extremely important for clients because environmental noncompliance can be unsafe for the community, costly to remediate, and could seriously jeopardize a client’s reputation.

building operations is greatly lowered. In turn, greenhouse gas emissions are also reduced.

Communications As is so often the case, good communications is key. Calling it “the glue that holds everything together,” Racoviceanu considers communications with clients a crucial component in the sustainability framework. “Without communication, none of this will happen.” His team meets with clients to assess their needs from their own unique perspective. From that meeting, joint sustainability committees are formed to develop and implement customized sustainability action plans. These committees then hold regular multi-stakeholder meetings to review the action plan’s progress. Finally, through its Tenant Engagement Program, SNC-Lavalin O&M communicates and shares sustainability action plans, green events, and sustainability-related achievements with the building occupants.

A unique plan SNC-Lavalin O&M believes that its SMF is a differentiator in the sustainability landscape because it is not just “green washing,” it is a tactical, clear and concise approach to what sustainability is in the operations and maintenance of buildings. The SMF’s multi-layered platform ensures that SNC-Lavalin O&M’s clients’ buildings are operated sustainably. Furthermore, it helps clients achieve their sustainability goals, while benefiting the environment, society and their bottom line.

Planned maintenance The Planned Maintenance program ensures timely preventive maintenance for buildings, which not only extends the life of its operations, but improves energy efficiency as well. Raymond Chan, P.Eng., the company’s Director of Asset Management, uses a sophisticated software package, Computerized Maintenance Management System (CMMS), to analyze the buildings assets. A master plan is prepared outlining a maintenance schedule for each asset in the building. Regularly scheduled maintenance ensures equipment runs efficiently over its entire life cycle. Energy usage is reduced and the cost of www.snclavalinom.com

Tuning into Savings CBC gains huge savings with lighting retrofit program The Canadian Broadcasting Corporation’s Toronto Broadcasting Centre (TBC) is one of the public broadcaster’s largest real estate properties in the country. A landmark on Front Street West since it opened in 1992, it is home of both nationally and locally produced television and radio programs. In addition to an impressive atrium and playful public space, the building boasts numerous large, state-of-the-art production studios, as well as office space for its staff.

The challenge The lighting used in TBC’s television studios comes from high-powered incandescent lamps of 1,000 to 2,000 Watts. However, LED technology has become an increasingly economical alternative, offering significant energy savings and lamp lives of about 50,000 hours. SNC-Lavalin O&M’s Technical Operations Energy Management team, led by Leo DiPaola, P.Eng., Director of Energy, provided the LED expertise CBC needed replace the incandescent lamps with LEDs in two large studios at its broadcast centre.

Verifying the solution In addition to reviewing the technical specifications for both the existing incandescent lamps and the LED lighting, SNC-Lavalin O&M installed two power meters to measure the actual energy consumed by the incandescent lighting and, after the conversion, the energy consumed by the LEDs.

Making it happen SNC-Lavalin O&M worked closely with CBC Real Estate and CBC Production to successfully implement the LED lighting project in the studios. It also analyzed unexpected meter readings and did 8

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a post-installation savings verification to help the government in its planning processes. Furthermore, SNC-Lavalin O&M’s Corporate Technical Operations provided analysis on unexpected meter readings and post installation savings verification to aid in the acquisition of government incentives.

The results Initially, the studios consumed a daily average of 77.25 kW; however, after the conversion to LEDs, the daily average was reduced to 12.66 kW. Furthermore, the annual energy consumption was reduced by 84% to 55,328 kWh from 337,428 kWh, resulting in a yearly energy cost savings of $24,577. Apart from energy savings, there was also a significant labour cost savings from the incandescent bulb replacements. The typical life cycle for incandescent lamps was 250 hours, while the LEDs can last up to 50,000 hours. This resulted in an estimated annual bulb replacement cost savings of $139,977 with a simple payback of 3.8 years.

More than just dollars But the project delivered more than just cost savings. After all, saving energy helps reduce greenhouse gas emissions to the environment. The 282,100 kWh saved annually from using LEDs resulted in a reduction of 47,957 kg of CO2

emissions, the equivalent of eliminating some 37 cars from the road. Furthermore, LEDs do not release nearly as much heat as incandescent lamps, thus reducing the cooling load for the studios during summer months and making it more comfortable for occupants. “The incredible 84% reduction in energy consumption achieved by using LEDs without sacrificing light output is very exciting,” said Paul Tardif, CBC Real Estate Services, Director of Project Management.

Ontario Hit List Multiple benefits from province-wide initiative

Concerned about high energy consumption at several Public Works Government Services Canada (PWGSC) facilities across Ontario, SNC-Lavalin O&M and PWGSC decided some six years ago to work together and focus on resolving the problem. In 2005, the company’s Technical Services and Energy specialists strategically targeted high energy consuming facilities to determine the causes of increased energy usage and to implement a series of measures aimed at reducing energy consumption. The team prioritized facilities based on a number of factors, including energy intensity, hours of operation, and if there were any operational issues.

The challenge To bring energy consumption down as much as possible, the company’s energy team worked with SNC-Lavalin O&M experts in the field including facility managers, maintenance supervisors and building technicians to identify the root causes of the problems plaguing these facilities.

The solution Once key stakeholders had agreed to the list of participating facilities, SNC-Lavalin O&M’s team set to work, visiting and inspecting the facilities to determine what the root issues were. This included conducting energy audits of the facilities, consulting with building operations staff, conducting lights-out audits and reviewing past

engineering studies. To achieve the desired results, SNC-Lavalin O&M proposed measures such as lighting retrofits, demand-controlled ventilation, free cooling, installation of variable speed drives, tightening of equipment schedules, and building automation system upgrades. Once the problems and solutions had been determined, PWGSC swiftly provided funding to implement them.

The result The end result was a substantial reduction in energy consumption. At the start of the project, in 2005, the five facilities on the Energy Hit List spent in excess of $2 million annually on energy. By the end of 2010, overall energy consumption had decreased by more than 27 per cent, and heating, ventilating, air conditioning related complaints from building tenants had dropped by well over 30%. Meanwhile, greenhouse gas emissions were cut by nearly a third from 4,635 tonnes to 3,143 tonnes, and energy costs dropped below $1.4 million.

Hit List initiative generated energy and cost savings, substantially reduced greenhouse gas emissions and improved occupant comfort satisfaction. By ensuring properly regulated heating and cooling systems and optimum lighting levels, the building occupants enjoyed improved working conditions and PWGSC benefited from greater productivity.. “This is clearly a case where everyone wins – our client PWGSC, building operations staff, building occupants, and the environment,” said David Faltenhine, SNC-Lavalin O&M National Energy Manager.

The benefits Reducing energy consumption helps fight climate change and improves the air we breathe. The www.snclavalinom.com

walking the walk If actions speak louder than words, then SNC-Lavalin O&M’s employees are shouting their sustainability message. From coast to coast its employees are not only talking the talk but are also walking the walk when it comes to living an environmentally friendly lifestyle. From doing the simple things in their daily lives like adhering to the 3Rs, to keeping a watchful eye on their carbon footprints, SNC-Lavalin O&M’s employees have truly shown that they care about the environment.

Cheryl Miller

Sean Wiley

I am proud of my sustainability choices and my ability to minimize my impact on the environment. I realize that not everyone can follow all these practices, but we can all make a contribution by adopting small changes in our daily routines.

I was recently appointed a member of the Pickering Waterfront Advisory Committee. I’m happy to have this opportunity to help develop a vision for Pickering’s waterfront. Seeing and interacting with our environment is one of the best ways to encourage people to adopt more sustainable practices and appreciate our environment.

Technical Support Manager, Pacific Technical Operations

Lora Ferrarotto Regional Director PWGSC Portfolio Operations

Greener options can be more expensive and often less convenient than their traditional alternatives and, in our home, we often struggle to maintain a balance between the two. To confront this challenge, our first priority is buying local produce and organic meat where possible. We also support local businesses and are conscious of energy conservation in the home

Jane Chapman Director, Business Development

I made a decision two years ago to reduce my carbon footprint by using my car less frequently. On days when I do not have offsite appointments, I will run to work and take the bus home. It takes some effort, as I need to plan and bring clothes in the day before, and I take three buses to get home, but I’ve reduced my driving by nearly half. I am helping to preserve the planet for my daughter and generations following, plus I am getting fit at the same time!

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Vice-President, Project Management

Amanda Gorman Manager, Environment, Health & Safety Compliance, Technical Operations

I was chosen to outline my sustainable life choices after offering up a stash of mugs I keep to our sustainability Director before a meeting. Or it could have been that I chose a “staycation” for my time off or that I bathed in rain water for Earth Day. These things are little efforts that are easy, and yet, in their own small way, they have motivated me to do more.

Valerie Desroches Regional Director Standard Life Operations

As part of my job at Standard Life, I work with our client on sustainable development. In 2011, we developed a Sustainability Action Plan for eight different topics. This action plan has made me to consider not only all the things we can do to achieve sustainability in the work place, but also what I can do as a citizen.

Alina Racoviceanu

Director, Sustainability Technical Operations

What credibility would I have when talking about sustainability if I did not walk the walk? I’d like to believe that through the lifestyle and career I have chosen, I am able to create a ripple effect in my actions by educating and inspiring others to follow suit in this rewarding yet challenging journey towards a sustainable world.

Sally Inglis

Environmental Coordinator, Atlantic Technical Operations

Deciding to buy my first home from a local builder was the right choice. Newer homes are very sustainably built and feature a tightly sealed envelope, energy-efficient windows and doors, efficient furnace, and instant hot water heating. The best part of choosing a new build was the builder only cut down a small percentage of trees on the lot to minimize the ecological damage.

David Faltenhine National Energy Manager Technical Operations

Living a sustainable lifestyle was always just the right thing to do. I’m active in my community with environmental concerns and engage my local, provincial and federal government representatives, friends and family, and various environmental groups frequently. I feel that I’m on the right track, but there’s certainly room for improvement.

WE CARE NOUS VEILLONS

WE CARE embodies SNC-Lavalin O&M’s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve our clients and therefore affect how we are perceived by our external partners. WE CARE is integral to the way we perform on a daily basis. It is both a responsibility and a source of satisfaction and pride by providing such important standards to all we do.

Julie Turgeon

Environmental Specialist, Gatineau Technical Operations

From the moment I heard “we do not inherit the earth from our parents, but borrow it from our children,” I knew I wanted to be part of the solution. But being part of the solution doesn’t mean only recycling and composting, it means promoting it. I do not protect the environment for myself, but for my kids. The planet is already in bad shape, but if all of us think about the future, maybe the earth we give to our kids will be greener.

Agnès RousseauMcCann

Environmental Coordinator, Quebec Technical Operations

The biggest environmental choice I made was to do a job that I can be proud of and that corresponds with my values. I simply believe that, in the long run, we will be better off socially and economically if we reduce our environmental impacts, and I get great motivation from working towards that vision. I try to lead by example, and I take the time to explain my choices to people. It does have an impact through time!

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corporate social responsibility report SNC-Lavalin O&M is poised to release its first Corporate Social Responsibility (CSR) report by the end of the year. Here is a preview of the report reflecting how the company incorporates social and environmental concerns into its own operations while helping its clients achieve their sustainability goals. This long-standing practice, which SNC-Lavalin O&M has maintained for over 15 years, is a true testimony of the company’s deep commitment to its WE CARE principles.

For more than 15 years, before it was mainstream, SNC-Lavalin O&M has been committed to Corporate Social Responsibility and Sustainability. In our early days, when we had a single line of business, our focus was on understanding how poor energy use impacted the bottom line of our customers. Today, with three unique lines of business – Property, Facility and Project Management; Transportation and Industrial; and, Defence and Logistics – our focus is on being leaders by example while helping our clients minimize their overall environmental impact to reduce and manage costs. We are in a unique position to partner with our clients to help them meet their corporate social responsibility and sustainability targets. Working with clients to implement innovations and best practices, we can have a broader positive impact than we could by simply focusing on our own corporate initiatives. Yet, our commitment to corporate social responsibility is deeper than working with our clients. It is also an integral part of the way we do business and allows us to meet specific commitments we have made to our employees, our communities and the environment. Charles Rate, President of SNC-Lavalin O&M

Human Rights and Procurement SNC-Lavalin O&M has a strict policy ensuring that all suppliers of goods and services to the Company, or our clients, meet and provide written confirmation of adherence to our stringent Business Code of Ethics. To be eligible to work for the Company, a vendor must first complete a detailed Supplier Compliance Package (SCP) which outlines multiple requirements that must be adhered to, including: › Good standing with regards to Workers Compensation › Appropriate insurance › Disclosure of any Conflict of Interest

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› Privacy of client documentation and work › Environmental Protection › Health and Safety for employees, tenants, subcontractors and other stakeholders › All employees of the supplier must be skilled, qualified and have appropriate licenses where required › All work performed must comply with all applicable laws, regulations, industry standards and codes

Energy Initiatives Driven by a Corporate Sustainability Policy endorsed by its President, SNC-Lavalin O&M encourages its clients to participate in building environmental assessment programs. These programs will look at the environmental performance of a building and provide resource reduction suggestions to lessen the burden on our environment and serve as benchmarks for internal performance and comparisons against the industry as a whole. The most frequently used program in Canadian operations is BOMA BESt (formally Go Green Plus). Under this program SNC-Lavalin O&M has certified 168 buildings since 2006.

Resource Use Providing facility management services to clients can sometimes require having to travel distances between buildings to ensure they are in good working order. SNC-Lavalin O&M operates a fleet of vehicles to support this purpose. In recent years, SNC-Lavalin O&M has implemented various initiatives to reduce the fuel used in travelling between buildings, thus reducing greenhouse gas emissions. 75% of the vehicles are now smaller than they were previously and run more efficiently. The fuel efficiency on average has gone down 11% from 18L per 100km to 16L per 100km and a program tracks the fill ups allowing the company to investigate and track any anomalies. Finally, in a pilot study in 2009, we installed black boxes in 25 trucks to track the driving habits of the drivers. This led to an 18% improvement in fuel consumption.

A MESSAGE FROM

Table 10

charles rate President of SNC-Lavalin O&M

employees: For more than 15 years, before • At SNC-Lavalin O&M, our 3,000+ employees are our it was mainstream, SNC-Lavalin only asset – they are the ones who deliver services O&M has been committed to Corand interact with our clients on a regular basis. As such, we have adopted a simple philosophy that porate Social Responsibility and drives us an organization – People First. This Sustainability. philosophy empowers our employees to make decisions on the spot to ensure we are always doing In our early days, when we had a single line of business,

the right thing – for our clients, for the environment

our focus was on understanding how poor energy use

and for our local communities.

three unique lines of business – Property, Facility and

•

Project Management; Transportation and Industrial; and, Defense and Logistics – our focus is on being leaders by example while helping our clients minimize their overall environmental impact to reduce and manage costs. We are in a unique position of helping our clients meet their targets by being their partner. Working with clients to implement innovations and best practices, we are able

•

employees, our communities and the environment.

Q4.a

Did you request follow-up

22%

"YES" Answers from the Client

Q4.B

Did you receive follow-up

62%

"YES" Answers from the Client

Q.5

What is your overall satisfaction with the Customer Support Center

89%

Overall satisfaction rating from

Q6.

Was the request handled in reasonable period of time

86%

"YES" Answers from the Client

Q.7

Was the work done as requested

88%

"YES" Answers from the Client

Q.8

Was the area left clean and in tidy condition

79%

"YES" Answers from the Client

Q.9

Did the technician handle the request in professional/courteous way

82%

"YES" Answers from the Client

Q.10a

What is your overall satisfaction with the work done by technician/supplier

85%

Overall satisfaction rating from

the client

In order to be eligible to work for the Company a vendor must first complete a detailed Supplier Compliance

regular meetings established between all levels of em-

Package (SCP) which outlines multiple requirements that

ployees to discuss ongoing actions by both client and

must be adhered to, including:

Having these opportunities available to our employees

service provider. This synergy encourages efficiencies

allows them to continue to grow and progress in their

and ensures that when various diverse types of projects

careers with our company.

are started that the goals and expectations of the client

At SNC-Lavalin O&M, we host an annual employee

without repercussion on items such as compensation, company culture, work environment and opportunity for growth. These results, which contribute to our future strategic planning, are collected, reviewed and acted on by our senior management team. An additional venue for our employees to engage with senior management is through aprogram called My

Good standing with regards to Workers Compensation

are well understood which provides the Company with

Appropriate insurance

a more focused approach towards project completion.

Disclosure of any Conflict of Interest

Privacy of client documentation and work

Environmental Protection

Health and Safety for employees, tenants,

This openness between both parties is appreciated and creates a respect and trust which allows everyone to work in a more positive environment towards even more positive results.

subcontractors and other stakeholders

Human Rights and Procurement

A requirement that all employees of the supplier will be skilled, qualified and have appropriate licenses where required

SNC-Lavalin O&M has a strict policy ensuring that all -

suppliers of goods and services to the Company, or

The requirement that all work performed will

our clients, meet and provide written confirmation of

comply with all applicable laws, regulations,

adherence to our stringent Business Code of Ethics.

industry standards and codes

Table 9

potential for facility management companies and their

archive the audits in electronic format but it provides

clients to have a positive impact on the communities at

easy to run reports that assist in the analysis of vast

large. SNC-Lavalin O&M has a Corporate Energy Policy

numbers of audits and recommendations to support

endorsed by the President of the Company that directs

implementation and business decisions flowing from

GHG Emissions from business travel (tonnes of CO2e)

our focus towards energy reduction and conservation

the audits. Combining energy expertise, both innovative

Reduction rate (compared to the previous year)

due to the intricate link “between energy use and our

and well proven technologies with a day-to-day working

etconomic, social and global environment”.

knowledge of the building and its needs, each energy

To support the Policy, the SNC-Lavalin O&M Centre

SNC-Lavalin O&M employs Energy Managers across

to strategic client units via a number of routes.

Canada that work directly with facility managers to

saving technologies from vendors and manufacturers through monthly and quarterly sessions known as M-TEE (Monthly Technology and Energy Exchanges) and Q-TEE (Quarterly Technology and Energy Exchanges). These forums bring together clients, facility staff, internal specialists and industry experts to learn and share their experiences. Materials gathered are archived

972.51

-4.95%

-3.71%

2010

that will save energy and money for the client. Some examples of local initiatives that have been implemented include: -

Installing solar energy panels

Investigating green roofing alternatives

Working with the project teams to ensure that energy efficiency is considered for all projects

“SharePoint” sites.

Using life-cycle costing

Customized conservation training sessions are provided

Educating tenants on energy saving initiatives

Using remote monitoring devices to measure

duce specific no-cost or low-cost techniques to reduce

2009 1010.00

N/A

provide regional and building specific energy initiatives

in electronic form making use of web accessible

for facility managers and building operators and intro-

2008 1062.55

GHG emissions from Business Travel

audit provides a plan of action for improvement.

of Excellence for Energy provides technical support

It provides information of new and emerging energy

Resource Use

this initiative provide driver training for more fuel

is extended in a cost effective manner to energy manag-

Driven by a Corporate Sustainability Policy endorsed

ers across Canada via monthly teleconferences including

Providing facility management services to clients can

by the President, SNC-Lavalin O&M encourages our

an example) and reduction of overall km’s driven through

webinar technologies. In turn, these managers conduct

sometimes require having to travel distances between

clients to participate in building environmental assess-

route optimization.

similar training sessions for clients in their own areas.

buildings to ensure they are in good working order.

ment programs. These programs will look at the envi-

SNC-Lavalin O&M operates a fleet of vehicles to sup-

ronmental performance of a building and will provide

port this purpose. In recent years, SNC has implemented

resource reduction suggestions to lessen the burden on

various initiatives to reduce the fuel used in travelling

energy waste in the buildings they manage. This training

The Retro-commissioning team is available to conduct facility audits with a special focus on HVAC and building 2010 Corporate SoCial reSponSibility report | SnC-lavalin o&M

Overall satisfaction rating from

has unique differences, but similarities in all cases are

90%

Each relationship with individual strategic client units

opportunity to rate the company anonymously and

to meet specific commitments we have made to our

What is your overall satisfaction with Customer Support Center understanding the request

programs to optional email etiquette modules.

on our own corporate initiatives.

integral part of the way we do business and allows us

"YES" Answers from the Client

Q.3

These range from mandatory health and safety

to have a broader positive impact than simply focusing

is deeper than working with our clients. It is also an

"YES" Answers from the Client

99%

and modules available to our all of our employees.

survey where all of our employees are afforded the

Yet, our commitment to Corporate Social Responsibility

99%

Did the CSC answer in the language the respondent was calling

have implemented a number of training programs

controls. An audit will typically identify operational issues, energy saving recommendations for quick payback and list concerns that may require capital investment to correct. The audits are conducted on site and typically include involvement by the local facility team providing them with additional training and documentation helping

and track energy usage

our environment and serve as benchmarking for internal performance and comparisons against the industry as a whole. The most frequently used program in Canadian operations is BOMA BESt (formally Go Green Plus). Under this program SNC-Lavalin has certified 168 buildings since 2006.

to make their operational practices ‘energy smart’. Detailed energy audits are also coordinated through the Energy group. These provide competitively priced consultant reports in a vetted and consistent format. Both detailed energy audits and retro-commissioning audits are delivered in a web-accessible database tool called CAMS (Centralized Audit Management System) developed by SNC-Lavalin O&M. Not only does CAMS

Total BOMA Certified

Buildings

Sq. Footage

168

34,423,226

2010 Corporate SoCial reSponSibility report | SnC-lavalin o&M

own Corporate Social Responsibility and Sustainability

Was the call handled in a professional/courteous way

Q.2

We are committed to employee development and

2010 Corporate SoCial reSponSibility report | SnC-lavalin o&M

impacted the bottom line of our customers. Today, with

Q.1a

conscious driving (less aggressive starting and stopping as

These initiatives along with a common desire to reduce fuel consumption will help the company realize real savings regards to the cost of fuel, trucks and a reduction in overall greenhouse gas emissions.

between buildings thus reducing the greenhouse gas emissions. 75% of the vehicles are now smaller than they were previously thereby running more efficiently. The fuel efficiency on average has gone down 11%

energy Initiatives The day to day operations of SNC-Lavalin O&M (office

from 18L per 100km to 16L per 100km and a program

administration) does not generate a significant amount

is used to track the fill ups allowing the company to investigate and track any anomalies. Finally, a pilot study was implemented in 2009 where black boxes were

of energy usage compared to industrial or manufacturing companies. However, SNC-Lavalin O&M has the opportunity to have a strong influence on the energy

installed in 25 trucks to track the driving habits of the drivers. This initiative has resulted in an 18% improvement in fuel consumption while non-pilot trucks did not realize a reduction at all.

demand of the buildings that we manage on behalf of our clients through education, project recommendations and project implementation. It has been reported that office buildings account for approximately 33% of total

Moving forward SNC will continue with the black box

energy use annually in Canada, which represents a huge

installation to track driver habits and in conjunction with

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Towards Zero Waste Sustainability forums help SNC-Lavalin O&M get its message out

If a company wants to be seen as a thought leader in its industry, it must invest in and demonstrate a commitment to its market at every turn. Through SNC-Lavalin O&M’s numerous sustainability forums, the company has gone beyond its commitment to provide sustainability products to its clients, and is bringing the marketplace together to truly understand sustainability at a fundamental level.

With an eye on presenting market trends, fostering environmental stewardship and integrating sustainability into its business practices, SNC-Lavalin O&M educates and engages its clients and employees through a series of formal and informal forums throughout the year on a national and regional level. It is also bringing these forums to the CEO’s office through a unique executive event. “These give us the opportunity to re-emphasize that SNC-Lavalin O&M is very serious about sustainability, about moving operations to a more sustainable model, and really working with our clients to help them achieve their goals and targets,” said Justin Sharp, Senior Vice-President of Property, Facility and Project Management at SNC-Lavalin O&M. The company held its annual Building Sustainability forum in early June at the Toronto Botanical Gardens. More than 100 attendees including clients and operational leaders, along with industry practitioners, representatives from academia, and non-governmental organizations attended. The day featured educational presentations in the morning followed by three parallel focus tracks in the afternoon to promote interdisciplinary collaboration. Three topics -- sustainable procurement, green project management, and planned maintenance, all integral parts of the company’s Sustainability Management Framework -- were selected for these panel discussions to highlight the company’s crossfunctional work with Strategic Procurement and Project Management teams. Participants learned about present market trends of integrating sustainability into procurement practices, the concepts and principles of Green Screening, the benefits and challenges 14

SNC-Lavalin O&M

of a sustainable approach to project manageclients were very enthusiastic about these ment, and gained insights on how equipment events and initiatives. manufacturers incorporate life cycle impacts “Our clients appreciate that we are all taking a into their new highly efficient products. day out of our busy schedules to focus on this Guest speakers included Stephen Carpenter, topic,” said Wiley. “It is one of those things that President of EnerModal, and Gerald Butts, President of the World Wildlife “Towards Zero Waste” is a commonly used term, Foundation Canada, who referring to the concept of preventing and eliminating discussed the impacts of climate change and corwaste of all kinds through careful planning, reuse porations’ roles in taking and recycling. action. And to demonstrate its commitment to sustainability, SNC-Lavalin O&M planned the forum we all want to do well but we need somebody as a “Towards Zero Waste” event to minimize to provide us with guidance and leadership, its impact on the environment. otherwise we can get lost in the enormity of it.” Towards Zero Waste is a commonly used term Regional events referring to the concept of preventing and eliminSmaller scale regional gatherings were also held ating waste of all kinds through careful planning, in Montreal and Toronto, and there are plans to reuse and recycling. Absolute zero waste is the host similar events in Western and Eastern Canada visionary goal that SNC-Lavalin O&M strives before the end of the year. for when organizing events. The Montreal event, held in late August, hosted The forum was powered with 100% green more than 40 clients, operational leaders and electricity by Bullfrog Power, which injected industry representatives with presentations, carbon-free green power into the Ontario electrigolfing, lunch and dinner. The day featured an city grid to match the amount of electricity used educational component consisting of three panels by the event. Other zero waste efforts included on innovative sustainability products in the morthe use of reusable, recyclable, compostable ning, followed by a networking event. and biodegradable materials, and a sustainable The company hired a waste management company menu and catering services by caterer L-Eat. To top everything off, SNC-Lavalin O&M purto collect and dispose of the recyclable materials generated during the event, and used electronic chased 16.6 tonnes of premium quality Gold event registration. Like the larger event in Toronto, Standard renewable credits, sourced from a it purchased some 6.4 tonnes of premium quality certified wind project, to offset travel emissions Gold Standard renewable energy sourced from for participants in the forum. a certified wind farm to offset air and car travel. Sean Wiley, Vice-President of Project A similar event in Toronto in late September Management at SNC-Lavalin O&M, noted that

consisted of presentations from seven industry representatives followed by a network event and dinner. Similar to the Montreal event and the larger event at the Botanical Gardens, recyclable materials were collected and disposed of, electronic event registration was once again used, and premium quality Gold Standard carbon credits were purchased to offset emissions from car and air travel.

A top level event Although the annual national Sustainability Forum and the smaller regional events were successful, the company felt it could still do more to promote the sustainability message on all levels. Since the C-suite buy-in on sustainability initiatives is essential, SNC-Lavalin O&M wanted to ensure the engagement of its

client’s senior management. With that in mind, SNC-Lavalin O&M’s President, Charles Rate, will invite a select group of chief executives from its existing client base as well as from prospect companies to an Executive Forum to be held in the spring of 2012. Using Karl-Henrik Robèrt’s book The Natural Step Story - Seeding a Quiet Revolution as a touch point, the guests will hear Dr. Robèrt speak about the challenges he faced in pursuing sustainability at a number of top international companies. Dr. Robèrt’s keynote address will be followed by a panel discussion organized to encourage the CEOs and the panelists to discuss the challenges of moving from sustainability strategy to action. The forum will be facilitated by Bob Willard, founder and author of The Sustainability Advantage. On the panel will be Gerald Butts, President of World Wildlife

Foundation (WWF) Canada, Kathy Bardswick, CEO of The Cooperators, and Jim Hartzfeld, Managing Director of InterfaceRAISE. “We want to take an open approach to discussing what the next steps are and what needs to be done to move towards a more sustainable model of operations,” said Rate.

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