GRI Tables

GRI Tables

GENERAL STANDARD DISCLOSURES

GRI Description Disclosure
Level (F=Full, P=Partial, AC= specific to Air Canada)
2015 Information Location and Details Omissions External Assurance
G4-1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position)about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability. F Citizens of the world 2015 p. 5 n/a  
G4-2 Provide a description of key impacts, risks, and opportunities. F 2015 Annual Report p. 4-6;10-18; 66-76 n/a Yes, p.85 for
the Annual
Report
Organizational Profile
G4-3 Report the name of the organization. F 2015 Annual Report p. 9
2015 Annual Information form Open PDF file p. 3-4
n/a Yes, p.85 for
the Annual
Report
G4-4 Report the primary brands, products, and services. F 2015 Annual Report p. 9
2015 Annual Information form Open PDF file p. 3-4
n/a Yes, p.85 for
the Annual
Report
G4-5 Report the location of the organization´s headquarters. F 2015 Annual Report p. 90; 137
2015 Annual Information form Open PDF file p. 2
n/a Yes, p.85 for
the Annual
Report
G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. F 2015 Annual Information form Open PDF file p. 3-9 n/a  
G4-7 Report the nature of ownership and legal form. F 2015 Annual Information form Open PDF file p. 3 n/a  
G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). F 2015 Annual Information form Open PDF file p. 3-9; 24-28 n/a  
G4-9 Report the scale of the organization, including:
- Total number of employees
- Total number of operations
- Net sales (for private sector organizations) or net revenues (for public sector organizations)
- Total capitalization broken down in terms of debt and equity (for private sector organizations)
- Quantity of products or services provided

In addition to the above, organizations are encouraged to provide additional relevant information, such as:
- Total assets
- Beneficial ownership (including identity and percentage of ownership of largest shareholders)
- Breakdowns by country or region of the following:
– Sales and revenues by countries or regions that make up 5% or more of total revenues
– Costs by countries or regions that make up 5% or more of total costs
– Employees
F 2015 Annual Report p. 2; 9; 45-46; 86
2015 Annual Information form Open PDF file p. 3-4; 10; 16; 37-38
n/a Yes, p.85 for
the Annual
Report
G4-10 a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
F Refer to chart Open PDF file otherwise see below

c. Supervised workers are not applicable as the number of contractors is not material
e. Air Canada does not have a substantial portion of the organization’s work performed by workers who are legally recognized as self-employed or contractors.
f. Not applicable

This is the second year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table
n/a  
G4-11 Report the percentage of total employees covered by collective bargaining agreements. F Citizens of the world 2015 p. 38

There are no employees covered by collective bargaining agreements at Air Canada Vacations. For Air Canada rouge, the flight attendants are covered by a collective bargaining agreement and the pilots which were seconded Air Canada employees were also covered by a collective bargaining agreement.
This is the second year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table.
n/a  
G4-12 Describe the organization’s supply chain.
Examples of elements that may define the structure and characteristics of an organization’s supply chain include:
- Sequence of activities or parties that provides products and services to the organization
- Total number of suppliers engaged by the organization and estimated number of suppliers in the supply chain
- Location of suppliers by country or region
- Types of suppliers (such as contractors, brokers, wholesalers, licensees). See the definition of supplier for examples of suppliers
- Estimated monetary value of payments made to suppliers
- Sector-specific characteristics of the supply chain (such as labor intensive)
F Citizens of the world 2015 p.31; 33

For Air Canada Vacations, there were 940 suppliers for which payments in excess of $5000 were made in 2015. The top three suppliers are Air Canada, hotel and ground operators and travel agencies.
n/a  
G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:
- Changes in the location of, or changes in, operations, including facility openings, closings, and expansions
- Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations)
- Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination
F 2015 Annual Information form Open PDF file p. 3; 17-18; 30-34 n/a  
G4-14 Report whether and how the precautionary approach or principle is addressed by the organization. F 2016 Management Proxy Circular p. 37-38 n/a  
G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. F Citizens of the world 2015 p. 25, 34-35
We endorse IATA and NACC goals
n/a  
G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:
- Holds a position on the governance body
- Participates in projects or committees
- Provides substantive funding beyond routine membership dues
- Views membership as strategic

This refers primarily to memberships maintained at the organizational level.
F Citizens of the world 2015 p. 25, 34-35
Various Chambers of Commerce and Boards of Trade
n/a  
Identified material aspects and boundaries
G4-17 a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.
F 2015 Annual Report p. 91
2015 Annual Information form Open PDF file p. 3
n/a  
G4-18 a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. F Citizens of the world 2015 p. 4
The report has been prepared in accordance with the principles developed by the Global Reporting Initiative (GRI), an internationally-recognized standard for corporate reporting of economic, environmental and social performance. Development of the report was the responsibility of a 15-member steering committee composed of senior managers representing all major branches of Air Canada and chaired by the Vice President of Corporate Communications. Air Canada declares that its 2015 report has been prepared in accordance with the Core option of the Global Reporting Initiative G4 guidelines.

Air Canada's process for defining the report content and the Aspect boundaries included the following steps:
  • Identification of the sustainability topics that were relevant to Air Canada and related GRI aspects in 2014 (based on discussions with the CSR steering committee, executive interviews and stakeholder consultations)
  • Prioritization of sustainability topics and identification of material GRI aspects using the Principles of Materiality and Stakeholder Inclusiveness. Prioritization was based on stakeholder opinion information collected via interviews, workshops and surveys (employees, customers, suppliers)
  • Validation of material sustainability topics and related GRI aspects by the CSR steering committee in November 2014
  • Review of the material sustainability topics by the CSR steering committee in November 2014 and revalidation of the material GRI aspects in April 2015.
n/a  
G4-19 List all the material Aspects identified in the process for defining report content F The material Aspects identified in the process for defining report content are Economic Performance, Society Compliance including Product Responsibility Compliance, Environmental Compliance, Anti-Corruption, Anti-Competitive Behavior, Customer Health and Safety, Energy, Emissions, Labour/Management relations, Occupational Health and Safety, Product and Service Labeling, Marketing Communications and Customer Privacy. n/a  
G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows:
- Report whether the Aspect is material within the organization
- If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or the list of entities or groups of entities included in G4-17 for which the Aspects is material
- Report any specific limitation regarding the Aspect Boundary within the organization
F Citizens of the world 2015 p. 12
The material Aspects apply to all of Air Canada.
n/a  
G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows:
- Report whether the Aspect is material outside of the organization
- If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified
- Report any specific limitation regarding the Aspect Boundary outside the organization
F Citizens of the world 2015 p.12

Based on our stakeholder analysis, our report includes the Aspects which they have identified as being material to them. For our suppliers, the top five material Aspects were Fuel management and Safety, Employee Health, Regulatory compliance and Ethical business practices. For our customers, the top five material Aspects were Safety, Customer experience, Regulatory compliance, Customer Engagement and Ethical business practices.
n/a  
G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements F No material effect on the 2013 CSR re-statements. n/a  
G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. F Citizens of the world 2015 p. 4

Similar to 2014, the current report expands on the 2012 and 2013 reports, notably with the inclusion of the Air Canada Leisure Group, consisting of Air Canada rouge and Air Canada Vacations®, two wholly-owned operating subsidiaries of Air Canada.
n/a  
Stakeholder Engagement
G4-24 Provide a list of stakeholder groups engaged by the organization. F Employees, shareholders, investors, NGOs, Canadian governments, customers, suppliers n/a  
G4-25 Report the basis for identification and selection of stakeholders with whom to engage. F NGOs are identified through the Air Canada Foundation. Air Canada also engages government officials at various levels on an ongoing basis as it is regulated by authorities within these bodies.

For the purposes of the Corporate Sustainability report, Air Canada identified and engaged employees, major suppliers and its frequent flyers through targeted surveys. Air Canada also made a feedback mechanism available through its website at www.aircanada.com.
n/a  
G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. F Meetings, surveys, letters, emails, phone calls, focus groups, social media, and conferences and symposiums. Surveys are conducted on a monthly and adhoc basis at Air Canada and on a yearly basis at Air Canada Vacations. Specifically, one of the monthly surveys in 2014 was used to develop the stakeholder analysis. n/a  
G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. F For the 2014 Corporate Sustainability Report, Air Canada sought input from its 3 major stakeholder groups (customers, employees and suppliers) via a materiality survey conducted in 2014. The key areas of interest were safety, environment, employees and community which were key pillars of the 2011, 2012 and 2013 reports and which remain relevant. Also identified were issues such as employee relations and engagement, energy consumption and greenhouse gas emissions, economic performance, customer experience and engagement, regulatory performance and ethics which are all areas that are being addressed at Air Canada on an ongoing basis. n/a  
Report Profile
G4-28 Reporting period (such as fiscal or calendar year) for information provided. F 2015 n/a  
G4-29 Date of most recent previous report (if any). F 2014 n/a  
G4-30 Reporting cycle (such as annual, biennial). F Annual n/a  
G4-31 Provide the contact point for questions regarding the report or its contents. F Send Mail n/a  
G4-32 a. Report the ‘in accordance’ option the organization has chosen.
b. Report the GRI Content Index for the chosen option (see tables below).
c. Report the reference to the External Assurance Report, if the report has been externally assured.
GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.
F Air Canada declares that its 2015 CS report has been prepared in accordance with the Core option of the GRI G4 guidelines. n/a  
G4-33 Report the organization’s policy and current practice with regard to seeking external assurance for the report
- if not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided
- report the relationship between the organization and the assurance providers
- report whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report
F Limited Assurance was provided on certain sustainability disclosures that are specific to the Corporate Sustainability report as indicated further in this table n/a  
Governance
G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. F 2016 Management Proxy Circular p. 31-32
Corporate Policy and Guidelines on Business Conduct
n/a  
Ethics and integrity
G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and code of ethics. F Citizens of the world 2015 p. 10 n/a  
SPECIFIC STANDARD DISCLOSURES
Economic Performance
  Description Disclosure Level 2015 Information Omissions External Assurance
DMA Disclosure on Management Approach F 2015 Annual Report
2015 Annual Information form Open PDF file
n/a  
G4-EC1 Direct economic value generated and distributed F Citizens of the world 2015 p. 7
2015 Annual Report
n/a  
G4-EC3 Coverage of the organization's defined benefit plan obligations. F 2015 Annual Report p. 50-51 n/a  
Regulatory Compliance and Ethical Business Practices
Society Compliance
DMA Disclosure on Management Approach F Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through a periodic risk assessment, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s business and activities are heavily regulated and compliance with a vast number of laws, regulations, standards, and internal policies is critical to the Company’s continued operation. Compliance is embedded in the Air Canada management system through an effective Compliance Program, which includes adequate compliance standards and procedures, training and education, monitoring and auditing, corrective action plans, periodic reviews and compliance oversight. Impacts of potential non-compliance are wide ranging and include financial, reputational, operational and strategic impacts.
The General Compliance Officer (GCO) who is part of the Law Branch of Air Canada, has developed a detailed, consistent compliance risk assessment (CRA) process, methodology and related tools for evaluating and measuring material legal / compliance / policy / contract risks managed by the Legal Department. Such risks are then managed through an annual Compliance Plan responding to the CRA determinations and priorities, using effective working tools to help Air Canada mitigate such risks, maintain ethically sound business practices and achieve the highest possible level of compliance. This CRA/Compliance Plan is an annual process and is fully aligned and integrated into Air Canada’s Enterprise Risk Management Program.
In addition, Audit, Risk & Compliance (Internal Audit) conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of key risk areas, their impact on the Company and the status and strength of Air Canada’s key risk management activities.
n/a  
G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. F Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011. On December 16, 2015, the European General Court cancelled the EC decision that had imposed the fine. The European Commission has refunded the fine to Air Canada. n/a  
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. F No significant fines in 2015. Air Canada is subject to various routine enforcement actions in relation to various operational matters including customs and immigration which can result in periodic warnings and other non-monetary sanctions. n/a  
Environmental Compliance
DMA Disclosure on Management Approach F Citizens of the world 2015 p. 24-36 n/a  
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations F Refer to chart Open PDF file

For Air Canada Vacations there were no significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations.
n/a  
Anti-Corruption
DMA Disclosure on Management Approach F The Audit, Risk & Compliance (internal audit) department performs a periodic risk assessment in conjunction with the Enterprise Risk Management (ERM) process. In addition, Internal Audit conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of key risk areas, their impact on the Company and the status and strength of Air Canada’s key risk management activities. One of the risks identified for 2014 was compliance with anti-corruption laws and regulations. There has been a proliferation of new, and often expansive anti-corruption law regimes globally with significant enforcement powers and extra-territorial reach. Impacts of potential non-compliance are material and could include substantial regulatory penalties and sanctions, private damage actions and criminal penalties against company officers and directors. Compliance efforts had been historically centered on certain provisions of the Air Canada Code of Conduct. A risk assessment was conducted with the SVP Chief Legal Officer, the senior legal counsel responsible for subject-matter areas (e.g. anti-corruption law compliance) and the General Compliance Officer, to review the approach to managing this risk. The decision was made to develop a specific comprehensive anti-corruption compliance program, which included: Conducting interviews and focus group sessions on anti-bribery risks and practices; drafting a new global Anti-Corruption Policy and detailed Guideline documents; a comprehensive anti-corruption communication plan and a risk-based training program, conducting in-person training sessions with executives and all higher risk groups; and coordinating with Internal Audit the periodic monitoring/auditing of specific compliance requirements.

Refer to G4-S03 and G4-S05 for additional details.

The Air Canada Foundation has in place guidelines on how its resources are allocated to support its goals. These guidelines also specify how managers must report or seek approval for grants, depending on the amounts involved.
n/a  
G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified. F In 2015 a risk assessment was performed by the Law Branch and included discussions with the SVP Chief Legal Officer, the senior legal counsel responsible for subject-matter areas (e.g. anti-corruption law compliance) and the General Compliance Officer. A review was undertaken to assess the approach to managing this risk. Compliance efforts have been centered on certain provisions of the Air Canada Code of Conduct and a decision was made to develop a specific anti-corruption compliance program, which included: Conducting interviews and focus group sessions on anti-bribery risks and practices; drafting a new global Anti-Corruption Policy and detailed Guideline documents; a comprehensive anti-corruption communication plan and a risk-based training program.

In addition, the Audit, Risk & Compliance (internal audit) department performs a periodic risk assessment in conjunction with the Enterprise Risk Management process and uses this to assist in the development of the annual internal audit, advisory and compliance plan. All of Air Canada’s branches are in scope for this risk assessment. In addition, a specific risk assessment is performed annually on all AC stations worldwide (approximately 100 in 2015) which uses the Corruption Perception Index published by Transparency International as one of the risk criteria. All business, IT and field audits are conducted following generally accepted auditing standards, which include the consideration of fraud and corruption risk in each audit. Given the size of Air Canada, it is not possible to perform audit work on all the branches in a given year. However, the annual audit, advisory and compliance plan covers activities in 15-18 of the 36 branches of the Company (including Cargo, ACV and rouge).

b) For 2015, were there objectives set? If yes, please state the objective and explain how you reached it (or not) and why.

The Law Branch objectives for the anti-corruption program in 2015 were to update the global Anti-Corruption Policy, related Guideline documents, and training material, complete all in-person Anti-Corruption training sessions to targeted higher risk groups, develop a comprehensive database of anti-corruption laws and regulations in countries where Air Canada does business and develop and implemented a recurring anti-corruption communication plan and risk-based training program. All objectives were met. The Internal Audit 2015 objective was to meet or exceed the target of 15-18 branches or (42%-50%). We exceeded this objective by performing work in 23 of the 36 branches in 2015 which equals 64%. We were able to get better coverage in 2015 due to the ability to better scope our audits and perform more advisory work in various branches that were not being audited.
n/a  
G4-SO5 Confirmed incidents of corruption and actions taken. F There were no incidents of corruption in 2015 that the General Auditor is aware of. However, should an incident of corruption be reported via the Ethics Reporting Line, or directly to management, it would be investigated. Investigation includes a coordinated response by the following departments: Law, Corporate Security, HR and Internal Audit.

Management takes appropriate action to address all confirmed breaches to the Code of Conduct, including fraud and conflicts of interests. This action may include discipline, termination, and – when necessary – communication with the authorities to file applicable charges.
n/a  
Anti-Competitive Behavior
DMA Disclosure on Management Approach F Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through an annual risk assessment framework, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s policy is to fully comply with all competition laws applicable to its worldwide activities. Competition law compliance is a material risk due to profound changes that our industry has experienced as a result of deregulation, liberalization and globalization. There has been a proliferation of new, and often strict, competition law regimes globally with significant enforcement powers. Compliance efforts are embedded in the Air Canada management system and include policies, specific guidelines, regular targeted trainings and periodic monitoring of such measures. Impacts of potential non-compliance are material and could include substantial regulatory penalties and sanctions, private damage actions and criminal penalties against company officers and directors. n/a  
G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. F The Competition Bureau in Canada, the European Commission and the United States Department of Justice investigated, alleged anti-competitive cargo pricing activities, including the levying of certain fuel surcharges, of a number of airlines and cargo operators, including Air Canada, between 1999 and 2006. The Competition Bureau in Canada and the US Department of Justice concluded that no proceedings be instituted against Air Canada. The European Commission rendered a decision against 12 air cargo carriers, which included Air Canada, and imposed a fine of 21 million Euros (approximately CA$29M) on the latter. Air Canada appealed this decision. On December 16, 2015, the European General Court cancelled the EC decision that had imposed the fine. The European Commission has refunded the fine to Air Canada.
  • Air Canada was also named as a defendant, and may otherwise become implicated, in a number of class action lawsuits and other proceedings in Canada, the U.S. and Europe in connection with these allegations. Air Canada has settled the U.S. suit without any admission of liability and is contesting the other suits.
  • Two unrelated class action lawsuits in Canada alleging anti-trust behaviour by Air Canada have been dormant for many years.
  • In 2015 and recently in 2016, Air Canada was served with a series of class action proceedings alleging anti-trust behaviour in the control of capacity in the intra-US and cross border markets. (Air Canada does not operate intra-US)
  • There were complaints of anti-competitive behaviour filed against Air Canada by travel agents associations in India and Israel alleging collusion in the removal of commissions to travel agents. These complaints were rejected in India. However, the travel agents’ association is appealing. In Israel, the file is dormant.
n/a  
Safety
Customer Health and Safety
DMA Disclosure on Management Approach F Citizens of the world 2015 p. 14-22

In each of the following life cycle stages, describe whether the health and safety impacts of products and services are assessed for improvement:

Development of product concept - Yes
Research and development - Not Applicable
Certification - Not Applicable
Manufacturing and production - Not Applicable
Marketing and promotion - Not Applicable
Storage distribution and supply - Not Applicable
Use and service - Not Applicable
Disposal, reuse, or recycling - Not Applicable
n/a  
G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes. F Refer to chart Open PDF file

In 2015, we had 3 Directives and 2 Assurance of Voluntary Compliance (AVC)s. The Hazard Prevention Program (HPP) required review at the Operations Centre facility, our Hazardous Occurrence Incident Report (HOIR) submission was out of limits for 14 day submission and a work refusal highlighted some areas of concern with the In-Flight Service group. Changes in AVCs and directions year over year are dependent on the health and safety officer and are no longer relevant once a corrective action is put in place.

There were no AVCs or Directives for Air Canada rouge. For Air Canada Vacations there was one incident of non-compliance.
n/a  
Environment
Energy
DMA Disclosure on Management Approach F Citizens of the world 2015 p. 24-36    
G4-EN3 Energy consumption inside of the organization. F Refer to chart Open PDF file

For aircraft fuel: In 2015, the strategic growth plan for Air Canada and Air Canada rouge drove variation in aircraft and routes which continued to modify energy usage and efficiency. For diesel, gasoline and propane: A rise in fuel use in 2015 could be attributed to the growth in Air Canada business in 2015 as well as a change in conversion factors used. Prior year's figures were adjusted to reflect more consistent application of the control approach in setting operational boundaries for classifying energy use and emissions. For natural gas and electricity: Year-over-year fluctuation may be attributed to changes in weather, changes in tenants' use of energy at Air Canada owned and operated buildings, and growth and/or changes in lease agreements. Prior year's figures were adjusted to reflect more consistent application of the control approach in setting operational boundaries for classifying energy use and emissions.

a) Report standard, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net) for report standards, methodologies, and assumptions used.

b) Report the source of the conversion factors used.
Energy and emissions factors were derived from the following reports: Canada, National Inventory Report 1990–2013—Part 3, Annex 11 (http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/8812.php Opens in New Window); Canada, National Inventory Report 1990–2013—Part 2, Table A4-2; World Resource Institute, The GHG Protocol calculation tools Opens in New Window: and World Resource Institute, Emission-Factors-from-Cross-Sector-Tools-(April-2014) inside Référence-GHG Protocol (see onglet Transport Fuel Use).
n/a Yes, Limited Assurance by
Ernst & Young
LLP Open PDF file
G4-EN4 Energy consumption outside of the organization. F Refer to chart Open PDF file

In 2015, the strategic growth plan for Air Canada drove variation in aircrafts and routes which continued to modify energy usage and efficiency. Figures were adjusted for fuel for ground support equipment and upstream leased assets to reflect more consistent application of the control approach in setting operational boundaries for classifying energy use and emissions.

[As of 2013 we adjusted factors such that we are calculating CO2e for all categories. 2012 and 2011 have been restated to reflect this.]

a) Report standard, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

b) Report the source of the conversion factors used. Energy and emissions factors were derived from the following reports: Canada, National Inventory Report 1990–2013—Part 3, Annex 11 (http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/8812.php Opens in New Window); Canada, National Inventory Report 1990–2013—Part 2, Table A4-2; World Resource Institute, The GHG Protocol calculation tools Opens in New Window: and World Resource Institute, Emission-Factors-from-Cross-Sector-Tools-(April-2014) inside Référence-GHG Protocol (see onglet Transport Fuel Use).
n/a  
G4-EN5 Energy intensity. F Refer to chart Open PDF file

Fuel efficiency can change for many reasons: changes to the load factors, changes to the capacity, changes to the amount of cargo carried and changes to the schedule.
The primary reason for the improvement in fuel efficiency from 2014 to 2015 was a significant growth in number of passengers carried and hence an increase in load factors.
Year over year, we have implemented fuel saving initiatives. In addition to the specific fuel savings initiatives outlined in EN6 and EN19, there are many factors which influence overall fuel consumption and are hard to evaluate on their own. Such factors are the on time performance of the system and the general cultural awareness towards our environmental impact. When the network is operating as designed, there are less disturbances that will degrade the process and significant benefits can be seen. Additionally, employee support of our environmental goals, which is difficult to measure at an individual level, can have a significant cumulative result.
To evaluate the magnitude of these hard to measure benefits we have applied a top down approach which considers our overall fuel consumption per flight hour compared to the previous year taking into account changes in schedule, load factor and how aggressively we are operating our fleet. The impact of these factors can be isolated and the overall fuel consumption per flight hour normalized. The analysis demonstrated that, keeping all the above mentioned significant factors equal, our overall fuel consumption has decreased by more than 30 million kilos year over year.

b) Report the types of energy included in the intensity ratio: fuel, electricity, heating, cooling, steam or all.
The energy included in this ratio is the amount of jet fuel consumed, on an annual basis, by Air Canada and Air Canada rouge aircraft.

c) Report whether the ratio uses energy consumed within the organization, outside of it or both.
The ratio uses energy consumed within the organization.
n/a  
G4-EN6 Reduction of energy consumption. F Refer to chart Open PDF file

Air Canada has many initiatives underway to reduce its environmental impacts. Each year, new initiatives are implemented, which accounts for the variation in type of projects listed and amount of energy reduced. The energy reductions indicated above do not indicate the total number of initiatives nor the extent of energy reductions occurring from all the initiatives. These reductions relate only to the initiatives for which Air Canada can estimate the results. For more details on these initiatives, please refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window).

In terms of the offsets, for 2012 EU ETS compliance reporting Air Canada purchased 289 offsets which were surrendered in 2013. The compliance requirements for the 2013 and 2014 reporting year were combined per the revised EU ETS regulations, and the requirement to remit allowances and purchase credits for those years was postponed until 2015. Therefore, Air Canada’s purchase and the surrender of 725 offsets for the 2013 reporting year and 473 offsets for the 2014 reporting year occurred in 2015. These offsets for 2013 and 2014 were for Air Canada and Air Canada rouge combined, whereas the offsets purchased for the 2012 reporting year were only for Air Canada.

a) Report standard, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

b) Report the basis for calculating reductions in energy consumption such as base year or baseline, and the rationale for choosing it.
The energy savings associated with specific initiatives above are modeled. For instance, we can calculate the fuel saved when onboard weight is reduced (for each aircraft type) but the actual amount of fuel saved is dependent on many factors including weather, aircraft type, compliance to the procedures etc..

c) Report the types of energy included in the reductions: fuel, electricity, heating, cooling and steam.
The energy source included is aircraft jet fuel or jet kerosene.
n/a  
Emissions
DMA Disclosure on Management Approach F Air Canada is subject to both regulatory and voluntary emissions policies. Regarding emissions regulations, Air Canada is subject to a carbon tax in the Province of British Columbia for jet fuel uploaded in the province for intra-provincial flights only. Air Canada is also subject to the EU Emission Trading Scheme (EU ETS). The EU ETS is a cap and trade emissions scheme for the European Union. Currently it applies to intra-EU flights until at least the 2016 reporting year in order to provide ICAO with an opportunity to negotiate a global aviation emissions’ agreement. With respect to voluntary agreements, Air Canada has endorsed the International Air Transport Association (IATA) voluntary industry emissions targets. Furthermore, Air Canada is a signatory, through the National Airlines Council of Canada (NACC), to the Canadian Action Plan to Reduce Greenhouse Gases Emissions from Aviation - a multiparty agreement between the industry and the government.

In addition to using the DMA Guidance for reporting on targets, when reporting on GHG emissions targets, identify whether offsets are used to meet the target. Specify the type, amount, criteria or scheme of which they are part:

Depending on the amount of allowances allocated, Air Canada may purchases credits to meet its EU ETS requirements. For the 2013 and 2014 reporting years, Air Canada was not required to remit allowances or purchase credits as the requirement was postponed to 2015. In 2015, Air Canada surrendered offsets totaling 1,198 tonnes of CO2 for the 2013 and 2014 reporting years.
n/a  
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) F Refer to chart Open PDF file

Please see EN3. In addition, updated emissions factors for calculating CO2e were applied to jet fuel and fuel for ground support equipment; this has also caused some small changes to numbers reported in previous years.

a) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all)
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window).

b) Report chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions.
Air Canada's base year for aircraft related emissions is 2005. In addition, Air Canada has been collecting and disclosing emissions related data to the Carbon Disclosure Project since 2007.

c) Report standards, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

d) Report the source of the emissions factors used and the global warming potential (GWP) rates used or a reference to the GWP source. International electricity emissions intensity factors: www.eia.gov/oiaf/1605/pdf/Appendix%20F_r071023.pdf Opens in New Window All other emissions factors: 2012 NIR report provided to the UNFCCC at http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/7383.php Opens in New Window
For fugitive emissions (HFC134a, HFC22, Halon1301), the GWP is found in the IPCC AR5 WG1 report (Appendix 8A). For all other fuels, the GWP is found IPCC SAR SYR (1996), Climate Change 1995: A report of the Intergovernmental Panel on Climate Change, Second Assessment Report.

e) Report the chosen consolidation approach for emissions (equity share, financial control, operational control).
Air Canada uses the operational control approach.
n/a Yes, Limited Assurance by
Ernst & Young
LLP Open PDF file
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) F Refer to chart Open PDF file

Changes in facility electricity use may be attributable to many factors - weather, building efficiency, and changes in provincial emissions factors. Figures were adjusted to reflect more consistent application of the control approach in setting operational boundaries for classifying energy use and emissions.

b) Report chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions.
The base year for scope 2 emissions is 2012. Emissions in 2012 were 10471 tonnes.

c) Report standards, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

d) Report the source of the emissions factors used and the global warming potential (GWP) rates used or a reference to the GWP source. Energy and emissions factors were derived from the following reports: Canada, National Inventory Report 1990–2013—Part 3, Annex 11 (http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/8812.php Opens in New Window); Canada, National Inventory Report 1990–2013—Part 2, Table A4-2; World Resource Institute, The GHG Protocol calculation tools Opens in New Window: and World Resource Institute, Emission-Factors-from-Cross-Sector-Tools-(April-2014) inside Référence-GHG Protocol (see onglet Transport Fuel Use).
n/a  
G4-EN17 Other indirect greenhouse gas emissions (Scope 3) F Refer to chart Open PDF file

See EN4. Figures were adjusted to reflect more consistent application of the control approach in setting operational boundaries for classifying energy use and emissions.

b) Report chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions.
Air Canada has not chosen a base year for Scope 3 emissions, but has been collecting and disclosing emissions data to the Carbon Disclosure Project (CDP) since 2007.

c) Report standards, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

d) Report the source of the emissions factors used and the global warming potential (GWP) rates used or a reference to the GWP source. Scope 3 emissions are a result of operations by our regional carriers. The vast majority of the emissions are related to jet fuel combustion. Other emissions associated with the regional carrier include natural gas combustion in facilities, ground vehicle fuel combustion, and electricity use for facilities.
n/a  
G4-EN18 Greenhouse Gas Emissions Intensity F Refer to chart Open PDF file

See EN5.
A more accurate conversion factor for calculating CO2e was applied, which causes some discrepancies with previously reported numbers. However, the rate of improvement in GHG emissions intensity year over year remains the same.

a) Report the types of GHG emissions included in the intensity ratio: scope 1, scope 2, scope 3.
CO2e of GHG emissions related to the combustion of Air Canada and rouge aircraft fuel (scope 1).

b) Report gases included in the calculation. This includes CO2e emissions at a 2.582 g of CO2e per 1 litre of jet fuel combusted. See Canada’s 2015 UNFCCC Submission, Part 2, pg. 100 for g CO2 / l of jet turbo fuel: http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/8812.php Opens in New Window.
n/a  
G4-EN19 Reduction of greenhouse gas emissions. F Citizens of the world 2015 p. 28-29

Refer to chart Open PDF file

Each year, new initiatives are implemented, which accounts for the variation in type of projects listed and amount of energy reduced.

a) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PCFs, SF6, NF3, or all).
Information will be reported in the annual CDP submission. Gases included are CO2e associated with aircraft fuel burn.

b) Report chosen base year, the rationale for choosing it.
Base year calculations for scope1 emissions is 2005. It was chosen as our environmental targets are based on 2005 emissions.

c) Report standards, methodologies, and assumptions used.
Refer to Air Canada's annual CDP Climate Change submissions (at www.cdproject.net Opens in New Window) for report standards, methodologies, and assumptions used.

d) Report whether the reductions in GHG emissions occurred in scope 1, scope 2, scope 3 emissions.
All reductions are regarding scope 1 emissions - including offsets purchased as part of the EU ETS.
n/a  
GRI Description Disclosure
Level (F=Full, P=Partial, AC= specific to Air Canada)
2015 Information Location and Details Omissions External Assurance
Employees
Labor/Management relations
DMA Disclosure on Management Approach F Citizens of the world 2015 p. 38-40 n/a  
G4-LA4 Minimum notice period regarding operational changes, including whether these are specified in collective agreements. F Notice periods depend on any statutory and/or contractual requirements applicable to employees in different jurisdictions. For example, the Canada Labour Code which applies to most Air Canada employees, requires 120 days' notice of technological change affecting the employment of a significant number of employees. Policies and collective agreements applicable to Canadian-based employees must respect this minimum, but can be supplemented by Air Canada or in collective agreements. For example, the collective agreement with maintenance and ramp employees also contains a technological change provision. Another example is the Canada Labour Code requirement of sixteen weeks' notice of group termination of employment. n/a  
Occupational Health and Safety
DMA Disclosure on Management Approach F Citizens of the world 2015 p. 18, 49 n/a  
G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. F Refer to chart Open PDF file

Air Canada: All Employees are accounted for within joint management - worker Health and Safety Committees
  • Airports - 30 across our entire system, including 2 Policy Committees which oversee the entire operation (Ground Service Equipment/Grooming/Passsenger Services/Ramp)
  • Maintenance - 7 across Canada as well as incorporated into Airports if smaller base
  • Cargo - 9 Standalone Cargo - Others incorporated into Airports, including Policy committee
  • Flight Operations - 6 across entire system, including Policy Committee and Joint Committee
  • In-Flight Service - 5 across the entire system, including Policy Committee
  • US Stations - 1 - All Safety Committee
  • International Stations - 2 Cargo / 1 - All Other Safety Committee
  • Call Centres - 5 Call Centres / Customer Relations
  • Other - Headquarters (Operations Centre / Montreal Headquarters / Toronto Flight Operations) - All other employees
Air Canada rouge: One Committee representing all employees with both labour groups and management

At Air Canada Vacations there are six members on the OHS committee out of a total headcount of 470.
n/a  
G4-LA6 Type of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender - Air Canada P Refer to chart Open PDF file for Air Canada only

Over the course of a year, there are many variations that change the results for injuries. Late reporting, injury status and workers compensation board decisions are the main reasons for variation between the years. Late submissions may occur over the course of the year due to employees submitting a claim that at the time was deemed not an injury but ended up resulting in an injury. Injury status and workers compensation board decisions also provide variations in the numbers as Lost Days and Lost Time Injuries are only represented as an Approved or Pending rate (to stay consistent year over year). When a claim is challenged, it can either be overturned from a denied to an approved or vice versa.

In 2015, Air Canada had two accidents involving aircraft. The initial accident was flying into Halifax (AC624-March 2015);refer to Citizens of the world 2015 pages 14-16. The second was (AC088 - December 2015) from Shanghai, China to Toronto that experienced severe turbulence with a diversion to Calgary due to various injuries among the passengers. With the AC624 accident, we activated the airline’s emergency response protocol. Due to significant education opportunity gained from actual events at Air Canada and at our regional carriers, where we were involved, we limited our table top exercises in an attempt to implement many effective program enhancements that were highlighted during the event.

We are disclosing at the same level as in previous years. Air Canada does not report on "Absentee rate" nor "Occupational disease rate" for workers and supervised workers; and "Days Lost rate" (Air Canada reports Days Lost only).

Ernst & Young LLP provided limited assurance on these three indicators: 2015 Total Injuries: Number of occupational health and safety reports submitted by employees in 2015; 2015 Total Lost Time Injuries: Number of 2015 injuries causing the employee to lose time that has been approved or pending; 2015 Total Lost Time Injury Days: Number of days lost as a result of new lost time injuries that occurred in 2015 which have been approved or pending.
Air Canada Vacations and Air Canada rouge Yes, Limited Assurance by
Ernst & Young
LLP Open PDF file
G4-LA6 Type of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender - Air Canada rouge P Refer to chart Open PDF file for Air Canada rouge

No significant deviations from consistency year over year. Any increases in events/occurrences are directly correlated to an increase in flight frequency year over year.

b) Identify the system of rules applied in recording and reporting accident statistics and the system used to track and report on H&S incidents and performance.

Air Canada rouge uses the AQD software tool to capture all Accidents, Incidents and Occurrences including injuries to ensure that they are tracked, trended, assessed and mitigated in a consistent way.
Air Canada Vacations and Air Canada  
G4-LA8 Health and safety topics covered in formal agreements with trade unions P Formal Agreements capture Health and Safety for all of our trade unions. As a federally legislated employer, we follow the Canadian Labour Code Part II for all Health and Safety topics. Additionally, we have collective agreement provisions that stipulate details such as number of meetings, number of full time personnel and roles and responsibilities of the Health and Safety Committee(s).

b) If yes, report the extent, as a percentage, to which various health and safety topics are covered by these agreements.

100% - All Health and Safety Topics are covered by the Canada Labour Code Part II.
n/a  
Customer Experience and Engagement
Product and Service Labeling
DMA Disclosure on Management Approach F This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Product and Service Labeling per say). Refer to G4-PR5 n/a  
G4-PR5 Results of surveys measuring customer satisfaction. F Air Canada continues to conduct customer satisfaction monitoring on a monthly basis with different customer segments. An average of 1500 completed responses are targeted on a monthly basis among a group comprised of Aeroplan members on North American, Transatlantic, Transpacific, South American mainline routes in all cabin class (Business Class, Premium Economy and Economy). Reports are generated quarterly. In addition, Air Canada conducts an ongoing survey specific for our Altitude Top Tier customers designed to gather feedback on their most recent flight experience; an average of 3000 completed responses are generated on a monthly basis. Trends for improvements are identified in various customer touch points from both surveys and reviewed with relevant stakeholders and service improvements implemented.

Air Canada also makes use of an online panel to collect customer feedback as required on product, services and new ideas. The online panel consists of a group of Air Canada customers recruited annually on a voluntarily basis. An example in 2015 is the International Business Class Meal survey which helped the development of a culinary program with Chef David Hawksworth; another example is the Maple Leaf Lounge survey which assisted in the development of the design of various lounge projects around the system notably Montreal International Maple Leaf Lounge which is scheduled to open in summer 2016. In addition to this panel, Air Canada conducts ad-hoc surveys and focus groups with customers and employees to get feedback for any new product launch trials that are conducted.

Air Canada’s employees play a key role in increasing customer satisfaction as well by completing the employee management travel survey. The survey is sent out to all management employees traveling for business. This survey is designed to measure the consistency of service delivery and compliance to product & service specifications; trends for improvements are identified and regular debriefs are held with various branches to review results.

Air Canada continues to be active on social media, Air Canada strides to continually enhance the level of service that it provides to its customers on various social channels. Air Canada is dedicated to servicing customers online by providing them with up to date travel information, responses to general queries and assistance with reservations.
n/a  
G4-PR5 Results of surveys measuring customer satisfaction. F Air Canada Vacations also conducts online surveys to customers who visit their website on an ongoing basis. The results are reviewed and considered for future web enhancements. Requests for information or product assistance are handled by the call centre. A customer website usability study is conducted yearly with selected customers to identify issues. Short term fixes are addressed right away and long term fixes are implemented throughout the year as web enhancements or communicated to the appropriate departments. Customers can also provide feedback through various social network channels such as Facebook and Twitter. Some comments are addressed right away, others are rerouted and shared with the appropriate department. When needed, answers are provided on social media via a private message or through a public response. n/a  
Marketing Communications
DMA Disclosure on Management Approach F This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Marketing Communications per say). Refer to G4-PR5 n/a  
G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. F Air Canada received two notices of violation in 2015 (one related to web displays in 2014) from the Canadian Transportation Agency regarding non-compliance with the All-Inclusive Air Price Advertising regulations. We have since addressed all their concerns. n/a  
Customer Privacy
DMA Disclosure on Management Approach F 2015 Annual Incentive Form p.23
Privacy Policy

Privacy is an important issue for Air Canada, as a perceived or actual breach may seriously compromise third party personal data and impact the confidence of our customers and Air Canada’s brand image. Air Canada has always been committed to safeguarding the privacy of its customers and suppliers. Air Canada has designed its privacy policy to meet or exceed all applicable legal requirements, has developed processes to monitor the privacy impact of initiatives and to promptly respond to any query or complaint. It also has a program to strengthen its cyber-security resilience, including a privacy breach procedure, tested to assess our ability to respond appropriately. Moreover, Air Canada monitors whenever new legislative obligations may apply. For example, Air Canada implemented a comprehensive program with regards to the new Anti-Spam legislation that came into force in Canada on July 1, 2014 in order to ensure full compliance with its requirements, including a framework to respond to further legal developments.
n/a  
G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. F Air Canada received no complaint from the regulator regarding passenger privacy in 2015.
Air Canada received 21 complaints alleging breach of privacy by consumers. All were investigated. Of these, 3 were substantiated, all involved human error.

Refer to chart Open PDF file

For Air Canada Vacations, no complaints were received regarding breaches of customer privacy or customer data.
n/a  
OTHER ASPECTS
Materials
G4-EN23 Total weight of waste by type and disposal method. P Refer to chart Open PDF file

For non-hazardous waste, year over year variation can be accounted for by changes in reporting techniques and reporting scope. Between 2011 and 2012, Air Canada had reduced maintenance activities in its facilities which likely contributed to the decrease in some waste. In 2012, Air Canada started using a single vendor for management of its facilities. A single point of contact and better data collection techniques may account for some of the increase in non-hazardous waste between 2012 and 2013. In 2014 and 2015, efforts focused on improving our data collection.
For hazardous waste, year over year change can be explained by: the timing of maintenance operations, the consolidation of underlying data, and the accumulation of small changes in several stations across Canada. Up until 2014, quantities of hazardous waste were similar from one year to the next. In 2015, the higher percentage of recycled waste was due to the recycling of concrete at our Vancouver facility.

a) Report how the waste disposal method has been determined:
  • Disposed of directly by the organization or otherwise directly confirmed
  • Information provided by the waste disposal contractor
  • Organizational defaults of the waste disposal contractor
The waste data is for Canadian facilities only. The non-hazardous waste data was gathered by contacting the single vendor and then contacting vendors not covered under that contract. The hazardous waste was gathered by contacting the environmental vendor in each station. It is important to note that the hazardous waste data collected from the environmental vendor includes both hazardous materials (such as batteries) and sensitive but not non-hazardous materials (such as used oil cans). Regarding disposal of hazardous waste, the 1161 tonnes includes waste that is recycled, used as an alternate fuel, or recovered for energy etc. The 312 tonnes represents hazardous waste that the vendor has disposed of.
n/a  
Employment
G4-LA1 Total number and rates of employee hires and employee turnover by age group, gender and region P Refer to chart Open PDF file

   
Training and Education
G4-LA9 Average hours of training per year per employee by gender and by employee category. P Citizens of the world 2015 p. 45

Refer to chart Open PDF file

This is the second year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table
n/a  
G4-LA11 Percentage of employees receiving regular performance and career development reviews by gender. P Refer to chart Open PDF file

This is the second year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table

2011 to 2013 included Air Canada management/administrative and technical support program only. 2014 & 2015 included the following performance management programs: (1) Air Canada management/administrative and technical support, (2) Air Canada Maintenance-Licensed Aircraft Technician 5, (3) Air Canada Vacations, and (4) Air Canada rouge. The drop in percentage of employees that received reviews in 2015 versus 2014 is because of an increase in the union population at Air Canada and Air Canada rouge who are not subject to performance reviews.
n/a  
Equal Remuneration for Women and Men
G4-LA13 Ratio of basic salary of men to women by employee category. P For the majority of Air Canada employees, basic salary is determined by collective agreements.

Where there are no collective agreements, Air Canada's culture is a performance based culture where salaries are based on job descriptions and classifications and ultimately tied to individual and collective performance and targets. Ratio of basic salary remuneration of women to men is 1.
n/a  
Local Communities
G4-SO2 Operations with significant actual and potential negative impacts on local communities. P Airports are often located close to urban settings. For Air Canada, reducing the effect of noise to and from the airports we serve is a priority. We actively participate with multiple stakeholders, including airport authorities, local government, and air carriers on noise committees to improve noise conditions around airports. When investing in new aircraft, we consider the noise impact to ensure that we reduce the noise footprint. All of Air Canada's and Air Canada rouge’s fleet exceed the Chapter 3 noise standards set by the International Civil Aviation Organization. Our Boeing 777 and our new Boeing 787 Dreamliner meet ICAO’s more stringent Chapter 4 noise standard, which is 10 decibels quieter than Chapter 3.
Despite these efforts, sometimes due to safety, operational reasons or human factors, noise abatement procedures may not be followed and residents of local communities can be impacted. When Air Canada receives a notice of non-compliance with noise procedures from an authority, we investigate the incident and ensure appropriate corrective measures are implemented as required.

Airports facilitate the trade of goods and bring economic development; however, their operations also generate noise. In addition, cities are spreading and becoming more densely populated. As such, more people may live near airports and can be exposed to airport operations. To minimize the negative impact associated with noise on local communities, airports have developed noise abatement procedures and aircraft are getting quieter. As a result of technological improvements, aircraft produced today are 75% quieter than they were 50 years ago.
n/a  
Communities
AC_Comm Air Canada Foundation AC Citizens of the world 2015 p. 52-55; 57; 61 n/a  

GENERAL STANDARD DISCLOSURES

GRI Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
General Standard Disclosures
Strategy and Analysis
G4-1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position)about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability. Full Citizens of the World 2014 p.4 n/a  
G4-2 Provide a description of key impacts, risks, and opportunities. Full 2014 Annual Report p. 4-6
10-19
68-77
n/a Yes, p.87 for the Annual Report
Organizational Profile
G4-3 Report the name of the organization. Full 2014 Annual Report p. 8-9

2014 Annual Information form
p. 4-5
n/a Yes, p.87 for the Annual Report
G4-4 Report the primary brands, products, and services. Full 2014 Annual Report
p. 8-9

2014 Annual Information form
p. 4-5 n/a Yes, p.87 for the Annual Report
G4-5 Report the location of the organization´s headquarters. Full 2014 Annual Report
2014 Annual Information form
p. 92; 139
p. 3
n/a Yes, p.87 for the Annual Report
G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. Full 2014 Annual Information form p. 4-10 n/a  
G4-7 Report the nature of ownership and legal form. Full 2014 Annual Information form p. 3 n/a  
G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). Full 2014 Annual Information form p. 4-10
21-24
n/a  
G4-9 Report the scale of the organization, including:
  • Total number of employees
  • Total number of operations
  • Net sales (for private sector organizations) or net revenues (for public sector organizations)
  • Total capitalization broken down in terms of debt and equity (for private sector organizations)
  • Quantity of products or services provided

In addition to the above, organizations are encouraged to provide additional relevant information, such as:
  • Total assets
  • Beneficial ownership (including identity and percentage of ownership of largest shareholders)
  • Breakdowns by country or region of the following:
    • Sales and revenues by countries or regions that make up 5% or more of total revenues
    • Costs by countries or regions that make up 5% or more of total costs
    • Employees
Full 2014 Annual Report
2014 Annual Information form
p. 2; 8; 47-48; 88
p. 4-6; 10; 15; 32-33
n/a Yes, p.87 for the Annual Report
G4-10 a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
Full

Refer to chart Open PDF file

otherwise see below
c. Supervised workers are not applicable as the number of contractors is not material
e. Air Canada does not have a substantial portion of the organization’s work performed by workers who are legally recognized as self-employed or contractors.
f. Not applicable
This is the first year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table

n/a n/a  
G4-11 Report the percentage of total employees covered by collective bargaining agreements. Full Citizens of the World 2014 p. 37
There are no employees covered by collective bargaining agreements at Air Canada Vacations.
For Air Canada rouge, the flight attendants are covered by a collective bargaining agreement and the pilots which were seconded Air Canada employees were also covered by a collective bargaining agreement.

This is the first year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table.
n/a  
G4-12 Describe the organization’s supply chain.

Examples of elements that may define the structure and characteristics of an organization’s supply chain include:
  • Sequence of activities or parties that provides products and services to the organization
  • Total number of suppliers engaged by the organization and estimated number of suppliers in the supply chain
  • Location of suppliers by country or region
  • Types of suppliers (such ascontractors, brokers, wholesalers, licensees). See the definition of supplier for examples of suppliers
  • Estimated monetary value of payments made to suppliers
  • Sector-specific characteristics of the supply chain (such as labor intensive)
Full Citizens of the World 2014
p.33

For Air Canada Vacations, there were 1020 suppliers for which payments in excess of $5000 were made in 2014. The top three suppliers are Air Canada, hotel and ground operators and travel agencies.
n/a  
G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:
  • Changes in the location of, or changes in, operations, including facility openings, closings, and expansions
  • Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations)
  • Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination
Full 2014 Annual Information form p. 3; 16; 26-29 n/a  
G4-14 Report whether and how the precautionary approach or principle is addressed by the organization. Full 2015 Management Proxy Circular p. 34-35 n/a  
G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. Full Citizens of the World 2014 p. 26, 31
We endorse IATA and NACC goals
n/a  
  List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:
  • Holds a position on the governance body
  • Participates in projects or committees
  • Provides substantive funding beyond routine membership dues
  • Views membership as strategic
This refers primarily to memberships maintained at the organizational level.
Full Citizens of the World2014 p. 26, 31
Various Chambers of Commerce and Boards of Trade
n/a  
GRI Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
Identified material aspects and boundaries
G4-17 a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.
Full 2014 Annual Report
2014 Annual Information form
p. 92
p. 3
n/a  
G4-18 a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
Full Citizens of the World 2014 p. 3
The report has been prepared in accordance with the principles developed by the Global Reporting Initiative (GRI), an internationally-recognized standard for corporate reporting of economic, environmental and social performance. Development of the report was the responsibility of a 15-member steering committee composed of senior managers representing all major branches of Air Canada and chaired by the Vice President of Corporate Communications. Air Canada declares that its 2014 report has been prepared in accordance with the Core option of the Global Reporting Initiative G4 guidelines.

Air Canada's process for defining the report content and the Aspect boundaries included the following steps:
  • Identification of the sustainability topics that were relevant to Air Canada and related GRI aspects in 2014 (based on discussions with the CSR steering committee, executive interviews and stakeholder consultations)
  • Prioritization of sustainability topics and identification of material GRI aspects using the Principles of Materiality and Stakeholder Inclusiveness.Prioritization was based on stakeholder opinion information collected via interviews, workshops and surveys (employees, customers, suppliers)
  • Validation of material sustainability topics and related GRI aspects by the CSR steering committee in November 2014
  • Review of the material sustainability topics by the CSR steering committee in November 2014 and revalidation of the material GRI aspects in April 2015.
n/a  
G4-19 List all the material Aspects identified in the process for defining report content Full The material Aspects identified in the process for defining report content are Economic Performance, Society Compliance including Product Responsibility Compliance, Environmental Compliance, Anti-Corruption, Anti-Competitive Behavior, Customer Health and Safety, Energy, Emissions, Labour/Management relations, Occupational Health and Safety, Product and Service Labeling, Marketing Communications and Customer Privacy.   n/a  
G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows:
  • Report whether the Aspect is material within the organization
  • If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or the list of entities or groups of entities included in G4-17 for which the Aspects is material
  • Report any specific limitation regarding the Aspect Boundary within the organization
Full Citizens of the World 2014 p. 13
The material Aspects apply to all of Air Canada.
n/a  
G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows:
  • Report whether the Aspect is material outside of the organization
  • If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified
  • Report any specific limitation regarding the Aspect Boundary outside the organization
Full Citizens of the World 2014 p.13
Based on our stakeholder analysis, our report includes the Aspects which they have identified as being material to them.
For our suppliers, the top five material Aspects were Fuel management and Safety, Employee Health, Regulatory compliance and Ethical business practices.
For our customers, the top five material Aspects were Safety, Customer experience,Regulatory compliance, Customer Engagement and Ethical business practices.
n/a  
G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements Full No material effect on the 2013 CSR re-statements.   n/a  
  Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. Full Citizens of the World 2014 p. 3
The current report expands on the 2012 and 2013 reports, notably with the inclusion of the Air Canada Leisure Group, consisting of Air Canada rouge™ and Air Canada Vacations®, two wholly-owned operating subsidiaries of Air Canada.
n/a  
G4-24 Provide a list of stakeholder groups engaged by the organization. Full Employees, shareholders, investors, NGOs, Canadian governments, customers, suppliers   n/a  
G4-25 Report the basis for identification and selection of stakeholders with whom to engage. Full NGOs are identified through the Air Canada Foundation. Air Canada also engages government officials at various levels on an ongoing basis as it is regulated by authorities within these bodies.

For the purposes of the Corporate Sustainability report, Air Canada identified and engaged employees, major suppliers and its frequent flyers through targeted surveys. Air Canada also made a feedback mechanism available through its website at www.aircanada.com.
  n/a  
G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. Full Meetings, surveys, letters, emails, phone calls, focus groups, social media, and conferences and symposiums. Surveys are conducted on a monthly and adhoc basis at Air Canada and on a yearly basis at Air Canada Vacations. Specifically, one of the monthly surveys in 2014 was used to develop the stakeholder analysis.   n/a  
G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Full For the 2014 Corporate Sustainability Report, Air Canada sought input from its 3 major stakeholder groups (customers, employees and suppliers) via a materiality survey conducted in 2014. The key areas of interest were safety, environment, employees and community which were key pillars of the 2011, 2012 and 2013 reports and which remain relevant. Also identified were issues such as employee relations and engagement, energy consumption and greenhouse gas emissions, economic performance, customer experience and engagement, regulatory performance and ethics which are all areas that are being addressed at Air Canada on an ongoing basis.   n/a  
Report Profile
G4-28 Reporting period (such as fiscal or calendar year) for information provided. Full 2014   n/a  
G4-29 Date of most recent previous report (if any). Full 2013   n/a  
G4-30 Reporting cycle (such as annual, biennial). Full Annual   n/a  
G4-31 Provide the contact point for questions regarding the report or its contents. Full Send email   n/a  
G4-32 a. Report the ‘in accordance’ option the organization has chosen.
b. Report the GRI Content Index for the chosen option (see tables below).
c. Report the reference to the External Assurance Report, if the report has been externally assured.
GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.
Full Air Canada declares that its 2014 CS report has been prepared in accordance with the Core option of the GRI G4 guidelines.   n/a  
G4-33 Report the organization’s policy and current practice with regard to seeking external assurance for the report
  • if not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided
  • report the relationship between the organization and the assurance providers
  • report whether the highest governance body or senior executives are in involved in seeking assurance for the organization's sustainability report
Full 2015 Management Proxy Circular p. 35, 39-44
Limited Assurance was provided on the certain sustainability disclosures that are specific to the Corporate Sustainability report as indicated further in this table
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Governance
G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Full 2015 Management Proxy Circular p. 36
management proxy circulars
Corporate Policy and Guidelines on Business Conduct
corporate policy
n/a  
Ethics and integrity
G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and code of ethics Full Citizens of the World 2014 p. 11 n/a  
GRI Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
Specific Standard Disclosures
Economic Performance
DMA Disclosure on Management Approach Full 2014 Annual Report
2014 Annual Information Form
  n/a  
G4-EC1 Direct economic value generated and distributed Full Citizens of the World 2014 p. 6
2014 Annual Report p. 2
n/a  
G4-EC3 Coverage of the organization's defined benefit plan obligations Full 2014 Annual Report p. 52-53 n/a  
Regulatory Compliance and Ethical Business Practices
Society Compliance
DMA Disclosure on Management Approach Full Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through an annual risk assessment framework, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s business and activities are heavily regulated and compliance with a vast number of laws, regulations, standards, and internal policies is critical to the Company’s continued operation. Compliance is embedded in the Air Canada management system through an effective Compliance Program, which includes adequate compliance standards and procedures, training and education, monitoring and auditing, corrective action plans, periodic reviews and compliance oversight. Impacts of potential non-compliance are wide ranging and include financial, reputational, operational and strategic impacts.
The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management (ERM) process. One of the risks assessed in 2013 was “Compliance with Laws, Regulations, Policies and Operating Procedures”. The risk assessment highlighted areas of strength and some areas for improvement.One of the observations made was that, while there was strong management and oversight over areas such as safety and security, there was limited coordination and oversight of compliance outside of these areas. Management’s response was to create the role of General Compliance Officer (GCO) which now forms part of the Law Branch of Air Canada. The GCO has developed a detailed, consistent compliance risk assessment (CRA) process, methodology and related tools for evaluating and measuring all material legal / regulatory / policy / contract risks managed by for the Legal Department. This CRA is an annual process and is fully aligned and integrated into Air Canada’s Enterprise Risk Management Program.
In addition, Internal Audit conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of key risk areas, their impact on the Company and the status and strength of Air Canada’s key risk management activities.
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G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Full Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011 and the process is still ongoing.   n/a  
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Full No significant fines in 2014. Air Canada is subject to various routine enforcement actions in relation to various operational matters including customs and immigration which can result in periodic warnings and other non-monetary sanctions   n/a  
Environmental Compliance
DMA Disclosure on Management Approach Full Citizens of the World 2014 p. 24-35 n/a  
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Full In 2014 Air Canada paid $0 in fines for non-compliance with environmental laws and regulations.
In 2014, Air Canada received another fine at a European airport and the decision rendered by the court was for no sanction.
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Anti-Corruption
DMA Disclosure on Management Approach Full The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management (ERM) process.In addition, Internal Audit conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of key risk areas, their impact on the Company and the status and strength of Air Canada’s key risk management activities.One of the risks identified for 2014 was compliance with anti-corruption laws and regulations.There has been a proliferation of new, and often expansive anti-corruption law regimes globally with significant enforcement powers and extra-territorial reach. Impacts of potential non-compliance are material and could include substantial regulatory penalties and sanctions, private damage actions and criminal penalties against company officers and directors. The risk assessment included discussions with the SVP Chief Legal Officer, the senior legal counsel responsible for subject-matter areas (e.g. anti-corruption law compliance) and the General Compliance Officer, to review the approach to managing this risk. Compliance efforts had been centered on certain provisions of the Air Canada Code of Conduct. The decision was made to develop a specific anti-corruption compliance program, which included: Conducting interviews and focus group sessions on anti-bribery risks and practices; drafting a new global Anti-Corruption Policy and detailed Guideline documents; a comprehensive anti-corruption communication plan and a risk-based training program, conducting in-person sessions with executives and all higher risk groups; and coordinating with Internal Audit the periodic monitoring/auditing of specific compliance requirements.

Refer to G4-S03 and G4-S05 for additional details.

The Air Canada Foundation has in place guidelines on how its resources are allocated to support its goals. These guidelines also specify how managers must report or seek approval for grants, depending on the amounts involved.
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G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified. Full The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management process and uses this to assist in the development of the annual internal audit, advisory and compliance plan.All of Air Canada’s branches are in scope for this risk assessment. In addition, a specific risk assessment is performed annually on all AC stations worldwide (approximately 90) which uses the "Corruption Perception Index" published by Transparency International as one of the risk criteria.All business, IT and field audits are conducted following generally accepted standards, which include the consideration of fraud in each audit.Given the size of Air Canada, it is not possible to perform audit work on all the branches in a given year.However, the annual audit, advisory and compliance plan covers activities in 8-12 of the 36 branches of the Company.

The 2014 objective was to meet or exceed our target of 8-12 branches or (20%-30%).We exceeded this objective by performing work in 16 of the 36 branches in 2014 which equals 44%.
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G4-SO5 Confirmed incidents of corruption and actions taken. Full There were no incidents of corruption in 2014 that the General Auditor is aware of. However, should an incident of corruption be reported via the Ethics Reporting Line, or directly to management, it would be investigated.Investigation includes a coordinated response by the following departments: Law, Corporate Security, HR and Internal Audit.

Management takes appropriate action to address all confirmed breaches to the Code of Conduct, including fraud and conflicts of interests. This action may include discipline, termination, and – when necessary – communication with the authorities to file applicable charges.
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Anti-Competitive Behavior
DMA Disclosure on Management Approach Full Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through an annual risk assessment framework, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s policy is to fully comply with all competition laws applicable to its worldwide activities.Competition law compliance is a material risk due to profound changes that our industry has experienced as a result of deregulation, liberalization and globalization.There has been a proliferation of new, and often strict, competition law regimes globally with significant enforcement powers. Compliance efforts are embedded in the Air Canada management system and include policies, specific guidelines, regular targeted trainings and periodic monitoring of such measures. Impacts of potential non-compliance are material and could include substantial regulatory penalties and sanctions, private damage actions and criminal penalties against company officers and directors.   n/a  
G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Full The European Commission and the United States Department of Justice investigated, and the Competition Bureau in Canada is investigating, alleged anti-competitive cargo pricing activities, including the levying of certain fuel surcharges, of a number of airlines and cargo operators, including Air Canada, between 1999 and 2006. The US Department of Justice concluded that no proceedings be instituted against Air Canada. The European Commission rendered a decision against 12 air cargo carriers, which included Air Canada, and imposed a fine of 21 million Euros (approximately CA$29M) on the latter. Air Canada is appealing this decision.
  • Air Canada was also named as a defendant, and may otherwise become implicated, in a number of class action lawsuits and other proceedings in Canada, the U.S. and Europe in connection with these allegations. Air Canada has settled the U.S. suit without any admission of liability and is contesting the other suits. Two other unrelated class action lawsuits in Canada alleging anti-trust behaviour by Air Canada have been dormant for many years.
  • There were complaints of anti-competitive behaviour filed against Air Canada by travel agents associations in India and Israel alleging collusion in the removal of commissions to travel agents. These complaints were rejected in India. However, the travel agents’ association is appealing. In Israel, the file is dormant.
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GRI Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
Safety
Customer Health and Safety
DMA Disclosure on Management Approach Full Citizens of the World 2014 p. 14-23

In each of the following life cycle stages, describe whether the health and safety impacts of products and services are assessed for improvement:

Development of product concept - Yes
Research and development - Not Applicable
Certification - Not Applicable
Manufacturing and production - Not Applicable
Marketing and promotion - Not Applicable
Storage distribution and supply - Not Applicable
Use and service - Not Applicable
Disposal, reuse, or recycling - Not Applicable
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G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes. Full Refer to chart Open PDF file In 2014, we received 9 violations (7 of which were received on August 18th for concerns regarding our Flight Operations Hazard Prevention Program and the civil unrest that occurred in Tel Aviv which resulted in a work refusal). The Assurance of Voluntary Compliance (AVC), for 2014 was attributable to our training program. Changes in AVCs and directions year over year are dependent on the health and safety officer and are no longer relevant once a corrective action is put in place. n/a  
Environment
Energy
DMA Disclosure on Management Approach Full Citizens of the World 2014 p. 24-35 n/a  
G4-EN3 Energy consumption inside of the organization. Full Refer to chart Open PDF file For aircraft fuel: In 2014 (relative to 2013), Air Canada acquired new
aircraft and expanded its fleet, continued expanding its routes, including
through Air Canada rouge, and carried a record number of passengers. As such, jet fuel consumption increased.
For diesel, gasoline and propane: The decrease in diesel, gasoline and propane in 2014 can be attributed to an allocation of fuel consumption to individual Tier III carriers.
For natural gas: The fluctuation in natural gas can be attributed to changes among high usage tenants.
For electricity: Year-over-Year fluctuation may be attributed to changes in tenants and weather.
[2012 and 2011 values have been restated to reflect more accurate conversion factors (i.e. converting litres of fuel to kg using 3 decimals instead of 2)]

a) Report standard, methodologies, and assumptions used.
Jetfuel energy is calculated by a factor of .04459 GJ/kg of jet fuel.
Diesel energy is calculated by a factor of .0371 GJ/litre
Gasoline energy is calculated by a factor of .0344 GJ/litre
Propane energy is calculated by a factor of .024 GJ/litre
Natural gas energy is calculated by a factor of .03964 GJ/m3
Electricity is calculated from kWh to GJ by dividing by 277.777778

b) Report the source of the conversion factors used.
Heating values: Table 3: Default Emission factors and heating values for different transportation fuels, GHG Protocol - Mobile Guide (03/21/05) v1.3, co2 mobile PDF Open PDF file .
Jet Fuel Density- Table A-6, EPA, GREENHOUSE GAS INVENTORY PROTOCOL CORE MODULE GUIDANCE, May 2008 mobilesource guidance PDF Open PDF file as well a cross-reference of industry sources.
Natural Gas energy content factor: 2015 NIR, Part 2, Table A4-2, pg. 188: item/8812Opens in New Window
n/a Yes, Limited Assurance by Ernst & Young LLP Open PDF file
G4-EN4 Energy consumption outside of the organization. Full Refer to chart Open PDF file

Variations are due to many factors:
better data collection; updated conversion factors; better allocation of fuel consumption to individual carriers; increased scope; and aircraft being moved from Air Canada to regional carriers.
The increase from 2011 to 2012 can be attributed to more comprehensive fuel data.
The change in jet fuel consumption between 2012 and 2013 and 2014 may be the result of more flying being done by regional carriers.
The increase in fuel consumed for ground support equipment from 2013 to 2014 is largely attributed to a more refined process for allocating fuel consumption to individual carriers.
Note that Air Canada does not have operational control of affiliated regional carriers.
Air Canada purchases seats on these operators and pays for their fuel but does not develop operating procedures to reduce aircraft fuel use on their flights.

[As of 2013 we adjusted factors such that we are calculating CO2e for all categories. 2012 and 2011 have been restated to reflect this.]

a) Report standard, methodologies, and assumptions used.
Jet fuel is converted from litres to CO2e using the factor of 2.557 g of CO2e per litre of fuel.
Ground vehicle energy is calculated using the emissions factors found in Environment Canada's 2013 National Inventory Report (NIR Part 2.
See Annex 8, Table A8-11, page 198). Diesel = 2.663 g of CO2 per litre, 0.000068 g of CH4 per litre, 0.00021 g of N2O per litre.
Gasoline = 2.289 g of CO2 per litre, 0.00024 g of CH4 per litre, 0.00058 g of N2O per litre. Propane = 1.51 g of CO2 per litre, 0.00064 g of CH4 per litre, 0.000028 g of N2O per litre.
Facility electricity energy is calculated based on the regional emissions intensity factors. Canadian factors are from the National Inventory Report: GHG Sources and Sinks (1990 - 2013).
International emissions intensity factors are from a 2007 US Department of Energy (Energy Information Administration) report.

b) Report the source of the conversion factors used.
International emissions intensity factors at r071023 PDF Open PDF file
Canadian emissions intensity factors are found in the NIR report provided to the UNFCCC at item/7383Opens in New Window Natural Gas energy content factor: 2015 NIR, Part 2, Table A4-2,pg. 188: item/8812Opens in New Window

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G4-EN5 Energy intensity Full Refer to chart Open PDF file Fuel efficiency can change for many reasons: changes to the load factors, changes to the capacity, changes to the amount of cargo carried and changes to the schedule.
The primary reason for the improvement in fuel efficiency from 2013 to 2014 was a significant growth in number of passengers carried hence an increase in load factors.
Year over year, we have implemented fuel saving initiatives. In addition to the specific fuel savings initiatives (see EN6 and EN19), there are many factors which influence overall fuel consumption and are hard to evaluate on their own. Such factors are the on time performance of the system and the general cultural awareness towards our environmental impact.When the network is operating as designed, there are less disturbances that will degrade the process and significant benefits can be seen.Additionally, employee support of our environmental goals, which is difficult to measure at an individual level, can have a significant cumulative result.
To evaluate the magnitude of these "hard to measure" benefits we have applied a top down approach which considers our overall fuel consumption per flight hour compared to the previous year taking into account changes in schedule, load factor and how aggressively we are operating our fleet. The impact of these factors can be isolated and the overall fuel consumption per flight hour normalized. The analysis demonstrated that, keeping all the above mentioned significant factors equal, our overall fuel consumption has decreased by more than 30 million kilos year over year.
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G4-EN6 Reduction of energy consumption. Full Refer to chart Open PDF file Air Canada has many initiatives underway to reduce its environmental impacts.The energy reductions indicated above do not indicate the total number of initiatives nor the extent of energy reductions occurring from all the initiatives. These reductions relate only to the initiatives for which Air Canada can estimate the results. Refer to Air Canada's Carbon Disclosure Project SubmissionOpens in New Window

In terms of the offsets, for 2012 EU ETS compliance reporting we purchased 289 offsets which were surrendered in 2013. The compliance requirements for the 2013 and 2014 reporting year were combined per the revised EU ETS regulations; for the 2013 reporting year we purchased 725 offsets and for the 2014 reporting year we purchased 473 offsets. However, the offsets for 2013 and 2014were only purchased and surrendered in April 2015. That accounts for the "0" in 2014. Furthermore, the offsets purchased in 2013 and 2014 were for Air Canada and Air Canada rouge combined; the offsets purchased for the 2012 reporting year were only for Air Canada.
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Emissions
DMA Disclosure on Management Approach Full Air Canada is subject to both regulatory and voluntary emissions policies. Regarding emissions regulations, Air Canada is subject to a carbon tax in the Province of British Columbia for jet fuel uploaded in the province for intra-provincial flights only. Air Canada is also subject to the EU Emission Trading Scheme (EU ETS).The EU ETS is a cap and trade emissions scheme for the European Union. Currently it applies to intra-EU flights until at least the 2016 reporting year in order to provide ICAO with an opportunity to negotiate a global aviation emissions’ agreement.
With respect to voluntary agreements, Air Canada has endorsed the International Air Transport Association (IATA) voluntary industry emissions targets.Furthermore, Air Canada is a signatory, through the National Airlines Council of Canada (NACC), to the Canadian Action Plan to Reduce Greenhouse Gases Emissions from Aviation - a multiparty agreement between the industry and the government.

In addition to using the DMA Guidance for reporting on targets, when reporting on GHG emissions targets, identify whether offsets are used to meet the target. Specify the type, amount, criteria or scheme of which they are part:

Depending on the amount of allowances allocated, Air Canada may purchases credits to meet its EU ETS requirements.For the 2013 reporting year, Air Canada was not required to remit allowances or purchase credits as the requirement has been postponed to 2015.
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G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Full Citizens of the World p. 27
Refer to chart Open PDF file
Changes to 'transportation of materials' relate to the amount of jet fuel used in the year. Electricity, heating and cooling relates to facility natural gas use.
a) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all)
Refer to Air Canada's Carbon Disclosure Project Submission at Project SubmissionOpens in New Window
Electricity heating and cooling includes CO2, CH4 and N2O from the combustion of natural gas to heat/cool facilities. Transportation of product includes CO2e. Fugitive emissions includes accidental releases of halocarbons converted to CO2e by their global warming potential.
b) Report chosen base year, the rationale for choosing the base year, emissions in the base year, and the context for any significant changes in emissions that triggered recalculations of base year emissions.
Air Canada's base year for aircraft related emissions is 2005. In addition, Air Canada has been collecting and disclosing emissions related data to the Carbon Disclosure Project since 2007.
c) Report standards, methodologies, and assumptions used.
Facility energy data is based on energy used in Air Canada buildings and then prorated by square footage to account for tenants. While some tenants (such as maintenance operators) use more energy per square foot than other (office tenants) it is an estimate of Air Canada's energy use in its buildings. In addition this does not include facility energy use at leased space in most airport facilities as this energy consumption is included and embedded in a lease cost.
Stationary combustion of facility related fuels uses EPA's methodology to calculate emissions (see Stationary combustion [PDf] Open PDF file ).
Ground vehicles emissions are calculated using GHG protocol guide mobile emissions (2005).
d) Report the source of the emissions factors used and the global warming potential (GWP) rates used or a reference to the GWP source.
International electricity emissions intensity factors: International electricity emissions intensity factors [PDF] Open PDF file
All other emissions factors: 2012 NIR report provided to the UNFCCC at national inventories submissionsOpens in New Window
For fugitive emissions (HFC134a, HFC22, Halon1301), the GWP is found in the IPCC AR5 WG1 report (Appendix 8A). For all other fuels, the GWP is found IPCC SAR SYR (1996), Climate Change 1995: A report of the Intergovernmental Panel on Climate Change, Second Assessment Report.
e) Report the chosen consolidation approach for emissions (equity share, financial control, operational control).
The operational control option has been chosen and consistently applied at Air Canada.Scope1 includes Air Canada and Air Canada Vacations/rouge.It does not include Jazz, Sky Regional or other tier3 airline partners. These are included in scope3 emissions. The rationale is that even though Air Canada buys the majority of seats on the regional carriers it does not have control over the operating procedures and daily operations.
n/a Yes, Limited Assurance by Ernst & Young LLP Open PDF file
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) Full Citizens of the World p. 27

Refer to chart Open PDF file

Changes in facility electricity use may be attributable to many factors - weather, building efficiency, changes in tenants, and changes in provincial emissions factors. In 2014 (relative to 2013), Air Canada's electricity consumption increased; however, a change in provincial emissions factors resulted in a reduction of overall Scope 2 CO2e emissions. The energy used in Air Canada facilities accounts for tenants on a square footage basis; however, Air Canada does not have energy meters to measure tenants' actual energy usage and some tenants (such as heavy maintenance operators) use proportionally more energy than others (such as corporate offices).The change between 2011 and 2012 is mostly attributable to a heavy maintenance operator that was leasing space in Air Canada's building vacated their space.The change between 2012 and 2013 is mostly attributable to an increase in the quality and scope of data.

Refer to Air Canada's Carbon Disclosure Project Submission at Carbon Disclosure ProjectOpens in New Window for report standards, methodologies, and assumptions used.
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G4-EN17 Other indirect greenhouse gas emissions (Scope 3) Full Citizens of the World p. 27

Refer to chart Open PDF file

Air Canada's scope 3 emissions relate to operations by affiliated Tier 3 airlines.Air Canada has a capacity purchase agreement such that we buy most seats on aircraft that are operated by these third parties, pay for their jet fuel and lease facility space to them.But Air Canada has no control over the internal operations of these carriers. Consequently their direct emissions are considered to be indirect emissions to Air Canada.
The increase between 2012 and 2013 is largely accounted for by an increase in data scope, relating to the inclusion of Jazz ground vehicles for the first time.The increase in 2014 is largely attributed to an increase in aircraft and routes flown as well as the inclusion of other Tier 3 carriers in the allocation of fuel consumption for ground vehicle use.

Refer to Air Canada's Carbon Disclosure Project Submission at Carbon Disclosure Project SubmissionOpens in New Window for report standards, methodologies, and assumptions used.
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G4-EN18 Greenhouse Gas Emissions Intensity Full Refer to chart Open PDF file [Any discrepancies to previously reported numbers may be due to calculating CO2e versus CO2 or more accurate conversion factors.] n/a  
G4-EN19 Reduction of greenhouse gas emissions. Full Citizens of the World p. 30-31

Refer to chart Open PDF file
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  Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
Employees
Labor/Management relations
DMA Disclosure on Management Approach Full Citizens of the World 2014 p. 37-38 n/a  
G4-LA4 Minimum notice period regarding operational changes, including whether these are specified in collective agreements. Full Notice periods depend on any statutory and/or contractual requirements applicable to employees in different jurisdictions.For example, the Canada Labour Code which applies to most Air Canada employees, requires 120 days' notice of technological change affecting the employment of a significant number of employees. Policies and collective agreements applicable to Canadian-based employees must respect this minimum, but can be supplemented by Air Canada or in collective agreements. For example, the collective agreement with maintenance and ramp employees also contains a technological change provision.Another example is the Canada Labour Code requirement of sixteen weeks' notice of group termination of employment.   n/a  
Occupational Health and Safety
DMA Disclosure on Management Approach Full Citizens of the World p. 15, 45 n/a  
G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. Full

Refer to chart Open PDF file

All Employees are accounted for within joint management - worker Health and Safety Committees
  • Airports - 30 across our entire system, including Policy Committees which oversee the entire operation
  • Maintenance - 7 across entire system, including in Airports if smaller base
  • Cargo - 7 Standalone - Others incorporated into Airports, Including policy committee
  • Flight Operations - 5 across entire system, including Policy Commitee
  • In-Flight Service - 5 Across the entire system, including Policy Committee
  • US Stations - 1 Call Centre (TPA) / 1 - All Safety Committee
  • International Stations - 2 Cargo / 1 - All Other Safety Committee
  • Call Centres - 6 Call Centres or Baggage Office
  • Other - Headquarters (Operations Centre / Headquarters/ Flight Operations) - All other employees

At Air Canada Vacations there are six members on the OHS committee out of a total headcount of 450.

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G4-LA6 Type of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. AC

Refer to chart Open PDF file

Injuries: Air Canada's injury prevention program continues to show vast improvement with numerous initiatives coming to fruition. The automation of all injury reports has improved visibility and provided significant enhancements. In 2014, our days lost calculation changes from calendar days to work days (resulting in a 30% reduction), our removal of the 14 day pay continuance in 2014 (has netted a 15% reduction), the reduction in injuries (11%) and our on-going efforts to offer modified work and return to work activities (5-10%). The programs implemented this year that impact our Occupational Health and Safety Performance include Pristine Condition, Slip / Trip fall campaigns, Health and Safety Communication, among many risk assessments that created change
Emergency Response Exercises: It is now an established operational and performance metric that Air Canada target one emergency response exercise per month across various stations. The breadth of the program and frequency of exercises allows us to be prepared for a technical and humanitarian response.
Flight Safety Performance: No significant events for AC mainline operating certificate
Audit: Air Canada completed its IOSA audit in 2014 with another successful (0 findings) report. We followed up the audit success with 0 findings with the IATA potable water audit and the Health Canada Audit. These are bi-annual audits with IATA so we will have no target established for this in 2015. The Health Canada Water Audit will take place in February of 2015.

Ernst & Young LLP provided limited assurance on these three indicators:
2014 Total Injuries: Number of occupational health and safety reports submitted by employees in 2014;
2014 Total Lost Time Injuries: Number of 2014 injuries causing the employee to lose time that has been approved or pending;
2014 Total Lost Time Injury Days: Number of days lost as a result of new lost time injuries that occurred in 2014 which have been approved or pending.

Air Canada Vacations Yes, Limited Assurance by Ernst & Young LLP Open PDF file
G4-LA8 Health and safety topics covered in formal agreements with trade unions P Formal Agreements capture Health and Safety for all of our trade unions. As a federally legislated employer, we follow the Canadian Labour Code Part II for all Health and Safety topics. Additionally, we have collective agreement provisions that stipulate details such as number of meetings, number of full time personnel and roles and responsibilities of the Health and Safety Committee(s).   n/a  
Customer Experience and Engagement
Product and Service Labeling
DMA Disclosure on Management Approach Full This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Product and Service Labeling per say). Refer to G4-PR5   n/a  
G4-PR5 Results of surveys measuring customer satisfaction. Full Customer engagement and satisfaction continues to be important at Air Canada
Air Canada continues to conduct customer satisfaction monitoring on a monthly basis with different customer segments. An average of 1500 completed responses are targeted on a monthly basis with reports generated quarterly. Representative split by geographical area. In addition, Air Canada conducts an ongoing survey specific for our Altitude Top Tier customers designed to gather feedback on their most recent flight experience; an average of 3000 completed responses are generated on a monthly basis. Trends for improvements are identified in various customer touch points from both surveys and reviewed with relevant stakeholders and service improvements implemented.
Air Canada also makes use of an online panel to collect customer feedback as required on product, services and new ideas. The online panel consists of a group of Air Canada customers recruited annually on a voluntarily basis.An example in 2014 is the International Business Class Meal survey which helped the development of an upgraded redesigned inflight dining experience and successfully launched in October 2014.
Air Canada’s employees play a key role in increasing customer satisfaction as well by completing the employee management travel survey when traveling for business.This survey is designed to measure the consistency of service delivery and compliance to product & service specifications.
Air Canada continues to be active on social media, Air Canada strides to continually enhance the level of service that it provides to its customers on various social channels. Air Canada is dedicated to servicing customers online by providing them with up to date travel information, responses to general queries and assistance with reservations.
  n/a  
G4-PR5 Results of surveys measuring customer satisfaction. Full Air Canada Vacations also conducts online surveys to customers who visit their website on an ongoing basis. The results are reviewed and considered for future web enhancements. Requests for information or product assistance are handled by the call centre. A customer website usability study is conducted yearly with selected customers to identify issues. Short term fixes are addressed right away and long term fixes are implemented throughout the year as web enhancements or communicated to the appropriate departments. Customers can also provide feedback through various social network channels such as Facebook and Twitter. Some comments are addressed right away, others are rerouted and shared with the appropriate department. When needed, answers are provided on social media via a private message or through a public response.   n/a  
Marketing Communications
DMA Disclosure on Management Approach Full This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Marketing Communications per say). Refer to G4-PR5   n/a  
G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. Full Air Canada received a notice of violation in 2014 from the Canadian Transportation Agency regarding non-compliance with the All-Inclusive Air Price Advertising regulations. We have since addressed all their concerns   n/a  
Customer Privacy
DMA Disclosure on Management Approach Full

2014 Annual information form

Privacy Policy

p.20-21

It is material as a perceived or actual breach may seriously compromise the personal data and impact the confidence of our customers and Air Canada’s brand image. Air Canada has always been committed to safeguard the privacy of its customers and suppliers. Air Canada has processes to strengthen its cyber-security resilience, to monitor the privacy impact of initiatives and to promptly respond to any query or complaint. Moreover, Air Canada monitors whenever new legislative obligations may apply. For example, Air Canada implemented a comprehensive program with regards to the new Anti-Spam legislation that came into force in Canada on July 1, 2014 in order to ensure full compliance with its requirements.
n/a  
G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Full Air Canada received no complaint from the regulator regarding passenger privacy in 2014.
Air Canada received 21 complaints alleging breach of privacy by consumers.All were investigated. Of these, 8 were substantiated, all involved human error.

Refer to chart Open PDF file

For Air Canada Vacations, no complaints were received regarding breaches of customer privacy or customer data.
  n/a Yes, Limited Assurance by Ernst & Young LLP Open PDF file
  Description Disclosure Level 2014 Information Location and Details Omissions External Assurance
Other Aspects
Materials
G4-EN23 Total weight of waste by type and disposal method. Partial

Refer to chart Open PDF file

The variation can be accounted for by changes in reporting techniques and reporting scope. Between 2011 and 2012, Air Canada had reduced maintenance activities in its facilities which likely contributed to the decrease in some waste.In 2012, Air Canada started using a single vendor for management of its facilities.A single point of contact and better data collection techniques may account for some of the increase in non-hazardous waste between 2012 and 2013.
Regarding hazardous waste, the year over year change is within reason and can be explained by: the timing of maintenance operations, the consolidation of underlying data, and the accumulation of small changes in several stations across Canada.It is important to note that the total hazardous waste is very similar to previous years.
n/a  
Employment
G4-LA1 Total number and rates of employee hires and employee turnover by age group, gender and region Partial

Refer to chart Open PDF file

  n/a  
Training and Education
G4-LA9 Average hours of training per year per employee by gender and by employee category. Partial Citizens of the World p. 43

Refer to chart Open PDF file

This is the first year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table
n/a  
G4-LA11 Percentage of employees receiving regular performance and career development reviews by gender. Partial

Refer to chart Open PDF file

This is the first year that Air Canada, Air Canada Vacations and Air Canada rouge data are combined in the table n/a  
Equal Remuneration for Women and Men
G4-LA13 Ratio of basic salary of men to women by employee category. Partial For the majority of Air Canada employees, basic salary is determined by collective agreements.

Where there are no collective agreements, Air Canada's culture is a performance based culture where salaries are based on job descriptions and classifications and ultimately tied to individual and collective performance and targets.
Ratio of basic salary remuneration of women to men is 1.
  n/a  
Local Communities
G4-SO2 Operations with significant actual and potential negative impacts on local communities. Partial For the majority of Air Canada employees, basic salary is determined by collective agreements.

Where there are no collective agreements, Air Canada's culture is a performance based culture where salaries are based on job descriptions and classifications and ultimately tied to individual and collective performance and targets.
Ratio of basic salary remuneration of women to men is 1.
  n/a  
Local Communities
G4-SO2 Operations with significant actual and potential negative impacts on local communities. Partial Airports are often located close to urban settings. For Air Canada, reducing the effect of noise to and from the airports we serve is a priority. We actively participate with multiple stakeholders, including airport authorities, local government, and air carriers on noise committees to improve noise conditions around airports. When investing in new aircraft, we consider the noise impact to ensure that we reduce the noise footprint. All of Air Canada's and Air Canada rouge’s fleet exceed the Chapter 3 noise standards set by the International Civil Aviation Organization. Our Boeing 777 and our new Boeing 787 Dreamliner meet ICAO’s more stringent Chapter 4 noise standard, which is 10 decibels quieter than Chapter 3.
Despite these efforts, sometimes due to operational reasons or human factors, noise abatement procedures are not followed and residents of local communities can be impacted.When Air Canada receives a notice of non-compliance with noise procedures from an authority, we investigate the incident and ensure appropriate corrective measures are implemented as required.
Air Canada received notice of three noise infractions in 2014.
  n/a  
Communities
AC_Comm Air Canada Foundation AC Citizens of the World p. 51-54 n/a  

General Standard Disclosures

Note: This GRI index was modified on October 17, 2014 to add details to G4-PR8 and to correct G4-PR7, G4-18, G4-20 and G4-21. This list contains GRI indicators to be reported by Air Canada (i.e. GRI indicators not being reported at all have been removed from this list)

GRI Description Disclosure Level Information location Details Omissions External Assurance
General Standard Disclosures
Strategy and Analysis
G4-1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability. Full Citizens of the World 2013 p. 3 n/a  
G4-2 Provide a description of key impacts, risks, and opportunities. Full 2013 Annual Report
Citizens of the World 2013
p. 4-5; 8-16; and 67-76


p.6-10
n/a Yes, p.85 for the Annual Report
Organizational Profile
G4-3 Report the name of the organization. Full 2013 Annual Report
2013 Annual Information form
p. 7

p. 5-6
n/a Yes, p.85 for the Annual Report
G4-4 Report the primary brands, products, and services. Full 2013 Annual Report

2013 Annual Information form
p. 7

p. 5-6
n/a Yes, p.85 for the Annual Report
G4-5 Report the location of the organization´s headquarters. Full 2013 Annual Report
2013 Annual Information form
p. 90; 147

p. 4
n/a Yes, p.85 for the Annual Report
G4-6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. Full 2013 Annual Information form p. 5-10
n/a  
G4-7 Report the nature of ownership and legal form. Full 2013 Annual Information form p. 3-4
n/a  
G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). Full 2013 Annual Information form p. 5-10; 23-26
n/a  
G4-9 Report the scale of the organization, including:
  • Total number of employees
  • Total number of operations
  • Net sales (for private sector organizations) or net revenues (for public sector organizations)
  • Total capitalization broken down in terms of debt and equity (for private sector organizations)
  • Quantity of products or services provided
In addition to the above, organizations are encouraged to provide additional relevant information, such as:
  • Total assets
  • Beneficial ownership (including identity and percentage of ownership of largest shareholders)
  • Breakdowns by country or region of the following:
    • Sales and revenues by countries or regions that make up 5% or more of total revenues
    • Costs by countries or regions that make up 5% or more of total costs
    • Employees
Full 2013 Annual Information form
2013 Annual Report
p.5-6; 11; 15; 35-36


p. 2; 7; 43-44; 86

n/a Yes, p.85 for the Annual Report
G4-10 a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
Full GRI Table c. Supervised workers are not applicable as the number of contractors is not material
e. Air Canada does not have a substantial portion of the organization’s work performed by workers who are legally recognized as self-employed or contractors.
f. Not applicable
n/a  
G4-11 Report the percentage of total employees covered by collective bargaining agreements. Full Citizens of the World 2013

GRI Table
p. 41 n/a  
G4-12 Describe the organization’s supply chain.
Examples of elements that may define the structure and characteristics of an organization’s supply chain include:
  • Sequence of activities or parties that provides products and services to the organization
  • Total number of suppliers engaged by the organization and estimated number of suppliers in the supply chain
  • Location of suppliers by country or region
  • Types of suppliers (such as contractors, brokers, wholesalers, licensees). See the definition of supplier for examples of suppliers
  • Estimated monetary value of payments made to suppliers
  • Sector-specific characteristics of the supply chain (such as labor intensive)
Full Citizens of the World 2013

GRI Table
p. 34

For Air Canada Vacations, there were 852 suppliers for which payments in excess of $5000 were made in 2013. The top three suppliers are Air Canada, hotel and ground operators and travel agencies."
n/a  
G4-13 Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain, including:
  • Changes in the location of, or changes in, operations, including facility openings, closings, and expansions
  • Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations)
  • Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination
Full 2013 Annual Information form p. 3-4; 16-17; 28-32
n/a  
G4-14 Report whether and how the precautionary approach or principle is addressed by the organization. Full 2014 Management Proxy Circular p. 36, 37
n/a  
G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. Full Citizens of the World 2013 p. 24, 31
We endorse IATA & NACC goals
n/a  
G4-16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization:
  • Holds a position on the governance body
  • Participates in projects or committees
  • Provides substantive funding beyond routine membership dues
  • Views membership as strategic
This refers primarily to memberships maintained at the organizational level.
Full Citizens of the World 2013 p. 24, 31

Various Chambers of Commerce and Boards of Trade
n/a  
Identified material aspects and boundaries
G4-17 a. List all entities included in the organization’s consolidated financial statements or equivalent documents. b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report. Full 2013 Annual Information form
2013 Annual report
p. 3-4


p. 6; 90

n/a  
G4-18 a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. Full Citizens of the World 2013
GRI Table
p. 2
The report has been prepared in accordance with the principles developed by the Global Reporting Initiative (GRI), an internationally-recognized standard for corporate reporting of economic, environmental and social performance. Development of the report was the responsibility of a 15-member steering committee composed of senior managers representing all major branches of Air Canada and chaired by the Vice President of Corporate Communications. Air Canada declares that its 2013 report has been prepared in accordance with the Core option of the Global Reporting Initiative G4 guidelines.

Air Canada's process for defining the report content and the Aspect boundaries included the following steps:
  • Identification of the sustainability topics that were relevant to Air Canada and related GRI aspects in 2013 (based on discussions with the CSR steering committee, executive interviews and stakeholder consultations)
  • Prioritization of sustainability topics and identification of material GRI aspects using the Principles of Materiality and Stakeholder Inclusiveness. Prioritization was based on stakeholder opinion information collected via interviews, workshops and surveys (employees, customers, suppliers)
  • Validation of material sustainability topics and related GRI aspects by the CSR steering committee in April 2013
  • Review of the material sustainability topics by the CSR steering committee in December 2013 and revalidation of the material GRI aspects in May 2014.
n/a  
G4-19 List all the material Aspects identified in the process for defining report content Full GRI Table The material Aspects identified in the process for defining report content are Economic Performance, Society Compliance including Product Responsibility Compliance, Environmental Compliance, Anti-Corruption, Anti-Competitive Behavior, Customer Health and Safety, Energy, Emissions, Labour/Management relations, Occupational Health and Safety, Product and Service Labeling, Marketing Communications and Customer Privacy. n/a  
G4-20 For each material Aspect, report the Aspect Boundary within the organization, as follows:
  • Report whether the Aspect is material within the organization
  • If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or the list of entities or groups of entities included in G4-17 for which the Aspects is material
  • Report any specific limitation regarding the Aspect Boundary within the organization
Full Citizens of the World 2013

GRI Table
p. 11

The material Aspects apply to all of Air Canada.
n/a  
G4-21 For each material Aspect, report the Aspect Boundary outside the organization, as follows:
  • Report whether the Aspect is material outside of the organization
  • If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified
  • Report any specific limitation regarding the Aspect Boundary outside the organization
Full Citizens of the World 2013
GRI Table
p.11
Based on our stakeholder analysis, our report includes the Aspects which they have identified as being material to them. For our suppliers, the top five material Aspects were Safety, Regulatory compliance, Ethical business practices, Customer experience and engagement. For our customers, the top five material Aspects were Safety, Regulatory compliance, Customer experience and engagement, and Ethical business practices.
n/a  
G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements Full GRI Table No material effect on the 2012 CSR re-statements. Refer to GRI G4-23. n/a  
G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. Full Citizens of the World 2013

GRI Table
p. 2

The current report expands on previous reports, notably with the inclusion of the Air Canada Leisure Group, consisting of Air Canada rouge™ and Air Canada Vacations®, two wholly-owned operating subsidiaries of Air Canada."
n/a  
Stakeholder Engagement
G4-24 Provide a list of stakeholder groups engaged by the organization. Full GRI Table Employees, shareholders, investors, NGOs, Canadian governments, customers, suppliers n/a  
G4-25 Report the basis for identification and selection of stakeholders with whom to engage. Full GRI Table NGOs are identified through the Air Canada Foundation. Air Canada also engages government officials at various levels on an ongoing basis as it is regulated by authorities within these bodies.

For the purposes of the Corporate Sustainability report, Air Canada identified and engaged employees, major suppliers and its frequent flyers through targeted surveys. Air Canada also made a feedback mechanism available through its website at www.aircanada.com. The role of Government Affairs and Community Relations was expanded in 2013 to more actively engage a number of stakeholders on multiple issues including sustainability.
n/a  
G4-26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. Full GRI Table Meetings, surveys, letters, emails, phone calls, focus groups, social media, and conferences and symposiums. Surveys are conducted on a monthly and adhoc basis at Air Canada and on a yearly basis at Air Canada Vacations. Specifically, one of the monthly surveys in 2012 was used to develop the stakeholder analysis. n/a  
G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Full GRI Table For the 2013 Corporate Sustainability Report, Air Canada sought input from its 3 major stakeholder groups (customers, employees and suppliers) via a materiality survey conducted in 2013. The key areas of interest were safety, environment, employees and community which were key pillars of the 2011 and 2012 reports and which remain relevant. Also identified were issues such as employee relations and engagement, energy consumption and greenhouse gas emissions, economic performance, customer experience and engagement, regulatory performance and ethics which are all areas that are being addressed at Air Canada on an ongoing basis. n/a  
Report Profile
G4-28 Reporting period (such as fiscal or calendar year) for information provided. Full GRI Table 2013 n/a  
G4-29 Date of most recent previous report (if any). Full GRI Table 2012 n/a  
G4-30 Reporting cycle (such as annual, biennial). Full GRI Table Annual n/a  
G4-31 Provide the contact point for questions regarding the report or its contents. Full GRI Table Email Sustainability n/a  
G4-32 32 a. Report the ‘in accordance’ option the organization has chosen. b. Report the GRI Content Index for the chosen option (see tables below). c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines. Full Citizens of the World 2013 Air Canada declares that its 2013 CS report has been prepared in accordance with the Core option of the GRI G4 guidelines. n/a  
G4-33 Report the organization’s policy and current practice with regard to seeking external assurance for the report
  • if not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided
  • report the relationship between the organization and the assurance providers
  • report whether the highest governance body or senior executives are in involved in seeking assurance for the organization's sustainability report
Full 2014 Management Proxy Circular GRI Table p. 31, 36-41 Management Proxy Circular No external assurance was provided on the sustainability disclosures that are specific to the Corporate Sustainability report. n/a  
Governance
G4-34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Full 2014 Management Proxy Circular Corporate Policy and Guidelines on Business Conduct p. 33
See Management Proxy Circular

See Corporate Policy and Guidelines on Business Conduct
n/a  
Ethics and integrity
G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and code of ethics. Full Citizens of the World 2013 p. 9 n/a  
GRI Description Disclosure Level Information location Details Omissions External Assurance
Specific Standard Disclosures
Economic Performance
DMA Disclosure on Management Approach Full 2013 Annual Report
2013 Annual Information form
  n/a  
G4-EC1 Direct economic value generated and distributed Full Citizens of the World 2013
2013 Annual Report
p. 5
p. 2
n/a  
G4-EC3 Coverage of the organization's defined benefit plan obligations. Partial 2013 Annual Report p. 47-49 n/a  
Regulatory Compliance and Ethical Business Practices
Society Compliance
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p. 9
Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through an annual risk assessment framework, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s business and activities are heavily regulated and compliance with a vast number of laws, regulations, standards, and internal policies is critical to the Company’s continued operation. Compliance is embedded in the Air Canada management system through an effective Compliance Program, which includes adequate compliance standards and procedures, training and education, monitoring and auditing, corrective action plans, periodic reviews and compliance oversight. Impacts of potential non-compliance are wide ranging and include financial, reputational, operational and strategic impacts. The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management (ERM) process. One of the risks assessed in 2013 was “Compliance with Laws, Regulations, Policies and Operating Procedures”. The risk assessment includes discussions with the SVP Chief Legal Officer, the senior legal counsel responsible for subject-matter areas (e.g. competition law compliance) and the General Compliance Officer, to review the approach to managing these risks. In addition, Internal Audit conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of the risk area, its impact on the Company and the status and strength of Air Canada’s key risk management activities. The area of Compliance with Laws, Regulations, Policies and Operating Procedures was the subject of an ERM study in 2013, and it highlighted areas of strength and some areas for improvement. One of the observations made was that, while there was strong management and oversight over areas such as safety and security, there was limited coordination and oversight of compliance outside of these areas. Management’s response was to create the role of General Compliance Officer who now forms part of the Law Branch of Air Canada.
n/a  
G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Full GRI Table Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011 and the process is still ongoing. n/a  
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Full GRI Table No significant fines in 2013. Air Canada is subject to various routine enforcement actions in relation to various operational matters including customs and immigration which can result in periodic warnings and other non-monetary sanctions. n/a  
Environmental Compliance
DMA Disclosure on Management Approach Full Citizens of the World 2013 p.23-39. n/a  
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Full GRI Table In 2013 Air Canada paid $0 in fines for non-compliance with environmental laws and regulations. In both 2013 and 2012 Air Canada received a fine for a noise violation at a European airport. The fines have not been paid as they are being contested (and the amount is immaterial). n/a  
Anti-Corruption
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p. 9
The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management (ERM) process. One of the risks assessed in 2013 was “Compliance with Laws, Regulations, Policies and Operating Procedures”. The risk assessment includes discussions with the SVP Chief Legal Officer, the senior legal counsel responsible for subject-matter areas (e.g. competition law compliance) and the General Compliance Officer, to review the approach to managing these risks. In addition, Internal Audit conducts ERM studies to understand, document & report to Management and the Board’s Audit, Finance & Risk Committee the nature of the risk area, its impact on the Company and the status and strength of Air Canada’s key risk management activities. The area of Compliance with Laws, Regulations, Policies and Operating Procedures was the subject of an ERM study in 2013, and it highlighted areas of strength and some areas for improvement. One of the observations made was that, while there was strong management and oversight over areas such as safety and security, there was limited coordination and oversight of compliance outside of these areas. Management’s response was to create the role of General Compliance Officer who now forms part of the Law Branch of Air Canada.
Refer to G4-S03 and G4-S05 for additional details.
The Air Canada Foundation has in place guidelines on how its resources are allocated to support its goals. These guidelines also specify how managers must report or seek approval for grants, depending on the amounts involved.
n/a  
G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified. Full GRI Table The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management process and uses this to assist in the development of the annual internal audit, advisory and compliance plan. All of Air Canada’s branches are in scope for this risk assessment. In addition, a specific risk assessment is performed annually on all 90 AC stations worldwide which uses the ""Corruption Perception Index"" published by Transparency International as one of the risk criteria. All business, IT and field audits are conducted following generally accepted standards, which include the consideration of fraud in each audit. Given the size of Air Canada, it is not possible to perform audit work on all the branches in a given year. However, the annual audit, advisory and compliance plan covers activities in 7-10 of the 35 branches in the Company.
The 2013 objective was to meet or exceed our target of 7-10 branches or (20%-30%). We exceeded this objective by performing work in 16 of the 35 branches in 2013 which equals 46%.
n/a  
G4-SO5 Confirmed incidents of corruption and actions taken. Full GRI Table There were no incidents of corruption in 2013 that the General Auditor is aware of. However, should an incident of corruption be reported via the Ethics Reporting Line, or directly to management, it would be investigated. Investigation includes a coordinated response by the following departments: Law, Corporate Security, HR and Internal Audit.
Management takes appropriate action to address all confirmed breaches to the Code of Conduct, including fraud and conflicts of interests. This action may include discipline, termination, and – when necessary – communication with the authorities to file applicable charges.
n/a  
Anti-Competitive Behavior
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p.9
Material risks to Air Canada are identified by the company’s Enterprise Risk Management (ERM) process through an annual risk assessment framework, which identifies and weights the impact, likelihood and vulnerability of each material risk of the company. Air Canada’s policy is to fully comply with all competition laws applicable to its worldwide activities. Competition law compliance is a material risk due to profound changes that our industry has experienced as a result of deregulation, liberalization and globalization. There has been a proliferation of new, and often strict, competition law regimes globally with significant enforcement powers. Compliance efforts are embedded in the Air Canada management system and include policies, specific guidelines, regular targeted trainings and periodic monitoring of such measures. Impacts of potential non-compliance are material and could include substantial regulatory penalties and sanctions, private damage actions and criminal penalties against company officers and directors.
n/a  
G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Full GRI Table Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011 and the process is still ongoing. There are representative actions that were filed against certain European carriers in the UK, the Netherlands and Norway who in turn, commenced third party actions against Air Canada. Air Canada is defending these claims.
There were two complaints of anti-competitive behaviour filed against Air Canada in India by travel agents’ associations alleging collusion in the removal of commissions to travel agents. These complaints were rejected. However, the travel agents’ association is appealing.
n/a  
Safety
Customer Health and Safety
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p. 13-21
p. 13-21

In each of the following life cycle stages, describe whether the health and safety impacts of products and services are assessed for improvement:
Development of product concept - Yes
Research and development - Not Applicable
Certification - Not Applicable
Manufacturing and production - Not Applicable
Marketing and promotion - Not Applicable
Storage distribution and supply - Not Applicable
Use and service - Not Applicable
Disposal, reuse, or recycling - Not Applicable
n/a  
G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes. Full GRI Table Air Canada has made significant improvements in our processes to ensure that we are complying with our legal obligations. Since 2011, we have seen significant advancements in the organization with the advancement of our Safety Information Management system and the use of automation in other safety related systems (web-OHS, FDA programs).
n/a  
Environment
Energy
DMA Disclosure on Management Approach Full Citizens of the World 2013 p. 23-39 n/a  
G4-EN3 Energy consumption inside of the organization. Full GRI Table Refer to chart Open PDF file

Air Canada's fuel burn will vary proportionally to the available tonne kilometre (the seats and cargo available on all the flights offered in a given year). From 2011 to 2012 there was an increase in total available tonne kilometre; from 2012 to 2013 the available tonne kilometre decreased. The increase in diesel/gasoline could be attributed to the extreme weather in eastern Canada in late 2013 and the need to leave engines running longer. The decrease in natural gas can be attributed to changes in high usage tenants.

a) Report standard, methodologies, and assumptions used.
Jetfuel energy is calculated by a factor of .04459 GJ/kg of jet fuel.
Diesel energy is calculated by a factor of .0371 GJ/litre
Gasoline energy is calculated by a factor of .0344 GJ/litre
Propane energy is calculated by a factor of .024 GJ/litre
Natural gas energy is calculated by a factor of .044 GJ/kg
Electricity is calculated from kWh to GJ by dividing by 277.777778

b) Report the source of the conversion factors used.
Heating value is from the GHG Protocol Open PDF file (see page 8) with the exception of natural gas which is from the EPA Open PDF file
n/a  
G4-EN4 Energy consumption outside of the organization. Full GRI Table Refer to chart Open PDF file

Variations are due to many factors: better data collection; increased scope; and aircraft being moved from Air Canada to regional carriers. The increase from 2011 to 2012 can be attributed to more comprehensive fuel data. The change between 2012 and 2013 may be the result of more flying being done by regional carriers such as Jazz and Sky Regional. Note that Air Canada does not have operational control of affiliated regional carriers.

a) Report standard, methodologies, and assumptions used.
Jet fuel is converted from litres to CO2e using the factor of 2.557 g of CO2e per litre of fuel.
Ground vehicle energy is calculated using the emissions factors found in Environment Canada's 2013 National Inventory Report (NIR Part 2. See Annex 8, Table A8-11, page 198). Diesel = 2.663 g of CO2 per litre, 0.000068 g of CH4 per litre, 0.00021 g of N2O per litre. Gasoline = 2.289 g of CO2 per litre, 0.00024 g of CH4 per litre, 0.00058 g of N2O per litre. Propane = 1.51 g of CO2 per litre, 0.00064 g of CH4 per litre, 0.000028 g of N2O per litre.
Facility electricity energy is calculated based on the regional emissions intensity factors. Canadian factors are from the National Inventory Report: GHG Sources and Sinks (1990 - 2013). International emissions intensity factors are from a 2007 US Department of Energy (Energy Information Administration) report.

b) Report the source of the conversion factors used.
International emissions intensity factors Open PDF file
Canadian emissions intensity factors are found in the NIR reportOpens in New Window provided to the UNFCCC
n/a  
G4-EN5 Energy intensity. Full GRI Table Fuel efficiency can change for many reasons: changes to the load factors, changes to the capacity, changes to the amount of cargo carried and changes to the schedule.

In addition to the specific fuel savings initiatives (see EN6 and EN19), there are many factors which influence overall fuel consumption and are hard to evaluate on their own. Such factors are the on time performance of the system and the general cultural awareness towards our environmental impact. When the network is operating as designed, there are less disturbances that will degrade the process and significant benefits can be seen. Additionally, as most employees understand and support our environmental goals, while day to day improvements are hard to measure individually, they will add up to significant numbers.
To evaluate the magnitude of these ""hard to measure"" benefits we have applied a top down approach which considers our overall fuel consumption per flight hour compared to the previous year taking into account changes in schedule, load factor and how aggressively we are operating our fleet. The impact of these factors can be isolated and the overall fuel consumption per flight hour normalized. The analysis demonstrated that, keeping all the above mentioned significant factors equal, our overall fuel consumption has decreased by more than 30 million kilos year over year.

Refer to chart Open PDF file
n/a  
G4-EN6 Reduction of energy consumption. Full GRI Table Refer to chart Open PDF file
Air Canada has many initiatives underway to reduce its environmental impacts. The energy reductions indicated above do not indicate the total number of initiatives nor the extent of energy reductions occurring from all the initiatives. These reductions relate only to the initiatives for which Air Canada can estimate the results. Refer to Air Canada's Carbon Disclosure Project SubmissionOpens in New Window
n/a  
Emissions
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p. 23-39
Explain whether the organization is subject to any country, regional or industry regulations and policies for emissions. Provide examples of such regulations and policies

Air Canada is subject to both regulatory and voluntary emissions policies. Regarding emissions regulations, Air Canada is subject to a carbon tax in the Province of British Columbia for jet fuel uploaded in the province for intra-provincial flights only. Air Canada is also subject to the EU Emission Trading Scheme (EU ETS). The EU ETS is a cap and trade emissions scheme for the European Union. Currently it applies to intra-EU flights until at least the 2016 reporting year in order to provide ICAO with an opportunity to negotiate a global aviation emissions’ agreement.
With respect to voluntary agreements, Air Canada has endorsed the International Air Transport Association (IATA) voluntary industry emissions targets. Furthermore, Air Canada is a signatory, through the National Airlines Council of Canada (NACC), to the Canadian Action Plan to Reduce Greenhouse Gases Emissions from Aviation - a multiparty agreement between the industry and the government.
“In addition to using the DMA Guidance for reporting on targets, when reporting on GHG emissions targets, identify whether offsets are used to meet the target. Specify the type, amount, criteria or scheme of which they are part.”
Depending on the amount of allowances allocated, Air Canada may purchases offsets to meet its EU ETS requirements. For the 2013 reporting year, Air Canada was not required to remit allowances or purchase offsets as the requirement has been postponed to 2015."
n/a  
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Full Citizens of the World 2013
GRI Table
p. 25

Refer to chart Open PDF file
Changes to 'transportation of materials' relate to the amount of jet fuel used in the year. In 2013, Air Canada consumed almost 50 million fewer litres of fuel. Electricity, heating and cooling relates to facility natural gas use and changes to this figure may be attributable to many factors (weather, more efficient HVAC systems installed during renovations etc.) but are most likely due to changes in tenants. In 2012 and 2013 Air Canada's natural gas consumption in Canadian facilities decreased due to the loss of a tenant that was an intensive user of energy.

c) Report standards, methodologies, and assumptions used.
Facility energy data is based on energy used in Air Canada buildings and then prorated by square footage to account for tenants. While some tenants (such as maintenance operators) use more energy per square foot than other (office tenants) it is an estimate of Air Canada's energy use in its buildings. In addition this does not include facility energy use at leased space in most airport facilities as this energy consumption is included and embedded in a lease cost.
Stationary combustion of facility related fuels uses EPA's methodology to calculate emissions Open PDF file .
Ground vehicles emissions are calculated using GHG protocol guide mobile emissions (2005).
n/a  
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) Full Citizens of the World 2013
GRI Table
p. 25

Refer to chart Open PDF file
Changes in facility electricity use may be attributable to many factors - weather, building efficiency, and changes in tenants. The energy used in Air Canada facilities does account for tenants on a square footage basis, however Air Canada does not have energy meters to measure the tenants actual energy usage and some tenants (such as heavy maintenance operators) use proportionally more energy than others (such as corporate offices). The change between 2011 and 2012 is mostly attributable to a heavy maintenance operator who vacated leased space in Air Canada's facility. The change between 2012 and 2013 is mostly attributable to an increase in the quality and scope of data.

Refer to Air Canada's Carbon Disclosure Project SubmissionOpens in New Window for report standards, methodologies, and assumptions used.
n/a  
G4-EN17 Other indirect greenhouse gas emissions (Scope 3) Full Citizens of the World 2013
GRI Table
p. 25

Air Canada's scope3 emissions relate to operations by affiliated Tier3 airlines. Air Canada has capacity purchase agreements with both Jazz Aviation and Sky Regional. The increase between 2012 and 2013 is largely accounted for by an increase in data scope (relating to the inclusion of Jazz ground vehicles for the first time). See EN4.
[Any changes in the 2012 and 2011 figures are due to recalculating emissions in CO2e.]
n/a  
G4-EN18 Greenhouse Gas Emissions Intensity Full GRI Table Refer to chart Open PDF file
This includes CO2e emissions at a 2.557 g of CO2e per 1 litre of jet fuel combusted.
n/a  
G4-EN19 Reduction of greenhouse gas emissions. Full Citizens of the World
GRI Table
p. 27-29 for details on report standards, methodologies, and assumptions used for the 2013 fuel efficiency initiatives

Refer to chart Open PDF file

Air Canada has many initiatives underway to reduce its environmental impacts. The energy reductions indicated above do not indicate the total number of initiatives nor the extent of energy reductions occurring from all the initiatives. These reductions relate only to the initiatives for which Air Canada can estimate the results. See EN6 and the CDP response for more details on these initiatives and the number of initiatives under investigation, to be implemented and those being implemented.

[In 2013, we bought (and consequently surrendered) 76 CERs and 213 EU allowances for a total of 289 credits bought/surrendered. The transactions took place in 2013 however it was surrendered for CO2 emissions generated in 2012.]
n/a  
Employees
Labor/Management relations
DMA Disclosure on Management Approach Full Citizens of the World 2013
GRI Table
p. 41-42

Over 90% of our staff worldwide are unionized. Engaging in collective bargaining with a focus on increased productivity and responsible costs, and maintaining that focus while managing the collective agreements, are foundational aspects of achieving the corporate goals of building an international powerhouse and culture change.
The Labour Relations Branch is responsible for coordinating collective bargaining and establishing a partnership with the operational branches for the purposes of ensuring a consistent approach to dealing with the unions at Air Canada and establishing and maintaining a working relationship with unionized employees while upholding the integrity of the collective agreements.
Maintain positive relationships with unions
- Ensure collective agreements are consistently implemented and interpreted in line with corporate priorities
- Once implemented, negotiated productivity improvements are measured against the initial value attributed to them via operational budget exercises
n/a  
G4-LA4 Minimum notice period regarding operational changes, including whether these are specified in collective agreements. Full GRI Table Notice periods depend on any statutory and/or contractual requirements applicable to employees in different jurisdictions. For example, the Canada Labour Code which applies to most Air Canada employees, requires 120 days' notice of technological change affecting the employment of a significant number of employees. Policies and collective agreements applicable to Canadian-based employees must respect this minimum, but can be supplemented by Air Canada or in collective agreements. For example, the collective agreement with maintenance and ramp employees also contains a technological change provision. Another example is the Canada Labour Code requirement of sixteen weeks' notice of group termination of employment. n/a  
Occupational Health and Safety
DMA Disclosure on Management Approach Full Citizens of the World 2013 Both the workplace committees (62) and policy committees (6) within the organization advise and monitor Health and Safety programs within the organization. All policy committee members have the opportunity to participate in programs developed by the organization. Air Canada has committees in Airports, Cargo, Air Canada Maintenance, Call Centres, International, Flight Operations and In-Flight Service along with management location meetings.

Air Canada has seen the merge of Health and Safety committees for smaller stations to ensure consistency within its policies and procedures. The committees are now designed to review the entire working environment. Air Canada utilizes 68 workplace committees that host 4, 9, or 12 meetings a year to ensure that their workforce is represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Refer to chart Open PDF file
Air Canada Vacations +  
G4-LA6 Type of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. AC specific Citizens of the World 2013
GRI Table3
p. 20
Refer to chart Open PDF file
n/a  
G4-LA8 Health and safety topics covered in formal agreements with trade unions Partial GRI Table3 Trade unions in formal agreements cover health and safety as pertains to Canada Labour Code Part II. Health and Safety topics covered in various collective agreements point to the Canada Labour Code Part II which outlines federal requirements. The IAMAW agreement outlines that Air Canada employer representatives and the union employee representatives will engage in 12 health and safety committee meetings annually to discuss issues, concerns and topics as required. All other collective agreements meet the CLC Part 2 mandate of 9 committee meetings annually n/a  
Customer Experience and Engagement
Product and Service Labeling
DMA Disclosure on Management Approach Full GRI Table This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Product and Service Labeling per say). Refer to G4-PR5 n/a  
G4-PR5 Results of surveys measuring customer satisfaction. Full GRI Table Customer engagement and satisfaction continues to be important at Air Canada.
For a number of years Air Canada has conducted and continues to conduct customer satisfaction monitoring on a monthly basis with different customer segments. An average of 1400 completed responses are targeted on a monthly basis. Representative split by geographical area. Trends for improvements are identified and reviewed with relevant stakeholders and service improvements implemented. Ex.: trending on food and beverage, cabin crew availability in the cabin

Air Canada also makes use of an online panel to collect customer feedback as required on product, services and new ideas. An example in 2013 is the inflight entertainment survey which helped adjust the audio-video content to adjust to customer feedback (increase Hollywood, Family and French content as an example). Two recently added tools have been implemented to further understand other dimensions of the customer experience:
  1. The frequent flyer post flight survey launched at the end of October 2013 which targets all Altitude tiers members and is released every two weeks.
    Tracks key experience dimensions on a regular basis. Provides key groups with timely data at a customer/service/airport level that can be actioned very quickly. Provides customers a way to recognize employees and identifying service failures proactively
  2. The employee management survey when travelling for business launched in October 2013 and which measures consistency of the service delivery and compliance to service specifications.
In 2013, to the following question, ""Based on your experience on this flight, is Air Canada's service overall becoming better, worse, or remaining about the same?"" more respondents rate us doing better and fewer respondents rate us doing worse than in 2012. An example given as to why our service is becoming better is good in-flight service which has improved from 2012 to 2013. An example given to better our service is improving on time performance which also improved from 2012 to 2013.

Active on social media since 2010, Air Canada strides to continually enhance the level of service that it provides to its customers on various social channels. With a community engagement team numbering six agents, Air Canada is dedicated to servicing customers online by providing them with up to date travel information, responses to general queries and assistance with reservations.
n/a  
G4-PR5 Results of surveys measuring customer satisfaction. Full GRI Table Air Canada Vacations also conducts online surveys to customers who visit their website on an ongoing basis. The results are reviewed and considered for future web enhancements. Requests for information or product assistance are handled by the call centre. A customer website usability study is conducted yearly with selected customers to identify issues. Short term fixes are addressed right away and long term fixes are implemented throughout the year as web enhancements or communicated to the appropriate departments. Customers can also provide feedback through various social network channels such as Facebook and Twitter. Some comments are addressed right away, others are rerouted and shared with the appropriate department. When needed, answers are provided on social media via a private message or through a public response. n/a  
Marketing Communications
DMA Disclosure on Management Approach Full GRI Table This aspect within Air Canada's context mostly relates to Customer satisfaction (and not Marketing Communications per say). Refer to G4-PR5 n/a  
G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes. Full GRI Table Air Canada received two warning letters in 2013 from the Canadian Transportation Agency regarding non-compliance with the All-Inclusive Air Price Advertising regulations. Air Canada Vacations has also received a warning letter in 2013 with respect to similar non-compliance. We have since addressed all their concerns. Air Canada has one pending alleged violation in Argentina regarding one print advertisement without the appropriate font size which is under appeal. n/a  
Customer Privacy
DMA Disclosure on Management Approach Full 2013 Annual Information Form
Air Canada's Privacy policy
GRI Table
p.22
2013 Annual Information Form Open PDF file
Air Canada's Privacy policy

It is material as a perceived or actual breach may seriously impact the confidence of our customers and Air Canada’s brand image.
Air Canada has always been committed to safeguard the privacy of its customers and suppliers. Air Canada has processes to evaluate the privacy impact of initiatives and to respond to any query or complaint.
Moreover, Air Canada monitors whenever new legislative obligations may apply. For example, Air Canada Legal Department is meeting all stakeholders with regards to the new Anti-Spam legislation coming into force in Canada on July 1, 2014 and ensure preparedness.
n/a  
G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Full GRI Table Air Canada received no complaint from the regulator regarding passenger privacy in 2013. Air Canada received 19 complaints alleging breach of privacy by consumers. All were investigated. Of these, 3 were substantiated, all involved human error. The explanation for the decrease seen above between 2012 and 2013 is that a revised procedure was put in place to avoid some of the errors that lead to the majority of complaints in 2012.

Refer to chart Open PDF file

For Air Canada Vacations, no complaints were received regarding breaches of customer privacy or customer data.
n/a  
GRI Description Disclosure Level Information location Details Omissions External Assurance
Other Specific Standard Disclosures
Materials
G4-EN23 Total weight of waste by type and disposal method. Partial GRI Table Between 2011 and 2012, Air Canada had reduced maintenance activities in its facilities which likely contributed to the decrease in some waste. In 2012, Air Canada started using a single vendor for management of its facilities. A single point of contact and better data collection techniques may account for some of the increase in non-hazardous waste between 2012 and 2013.
Regarding hazardous waste, the year over year change is explained by: the timing of maintenance operations, the consolidation of underlying data, and the accumulation of small changes in several stations across Canada. It is important to note that the total hazardous waste is very similar to previous years.

Refer to chart Open PDF file
n/a  
Employment
G4-LA1 Total number and rates of employee hires and employee turnover by age group, gender and region Partial GRI Table Refer to chart Open PDF file n/a  
Training and Education
G4-LA9 Average hours of training per year per employee by gender and by employee category. Partial Citizens of the World 2013 p. 45
Refer to chart Open PDF file
Air Canada Leisure Group+  
G4-LA11 Percentage of employees receiving regular performance and career development reviews by gender. Partial GRI Table p. 45
Refer to chart Open PDF file
Air Canada rouge+  
Equal Remuneration for Women and Men
G4-LA13 Ratio of basic salary of men to women by employee category. Partial GRI Table For the majority of Air Canada employees, basic salary is determined by collective agreements.

Where there are no collective agreements, Air Canada's culture is a performance based culture where salaries are based on job descriptions and classifications and ultimately tied to individual and collective performance and targets. Ratio of basic salary remuneration of women to men is 1.
n/a  
Local Communities
Operations with significant actual and potential negative impacts on local communities. Ratio of basic salary of men to women by employee category. Partial GRI Table Airports are often located close to urban settings. To limit the impact of noise on these communities Air Canada undertakes several efforts. First, newer aircraft are much quieter than older aircraft (Air Canada will be receiving its first Boeing 787 in 2014 and has recently committed to purchasing new Boeing 737 Max aircraft). Second, Air Canada operates according to procedures established by local authorities (such as local curfews and flight paths to minimize impacts on urban areas). Thirdly, we encourage procedures such as reduced thrust take-offs and, where allowable, idle descent that reduce noise on takeoff and landing. And finally, Air Canada is an active participant on multi-stakeholder airport noise committees and supports the airport in developing effective noise abatement procedures.

Air Canada received notice of three noise violations during all of 2013 (two in Canada and one in Europe). In all cases root cause analysis was provided to the airport authorities and no further action was taken against Air Canada.
n/a  
Communities
AC_Comm Charitable giving table AC specific Citizens of the World 2013 p. 59 n/a  

G3.1 Content Index - GRI Application Level B

Note: This list contains GRI indicators to be reported by Air Canada (i.e. GRI indicators not being reported at all have been removed from this list)

GRI Description Disclosure Level Where reported Details
1. Strategy and Analysis
STANDARD DISCLOSURES PART I: Profile Disclosures
1.1 Statement from the most senior decision-maker of the organization. Full Citizens of the World 2012 p. 5

1.2 Description of key impacts, risks, and opportunities. Full 2012 Annual Report p. 4-5, 8-13, 67-76

2. Organizational Profile
2.1 Name of the organization. Full 2012 Annual Report p. 7

2.2 Primary brands, products, and/or services. Full 2012 Annual Report p. 7

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Full 2012 Annual Report p. 7

2.4 Location of organization's headquarters. Full 2012 Annual Report p. 149

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Full 2012 Annual Information form p. 17-24

2.6 Nature of ownership and legal form. Full 2012 Annual Information form p. 3-4

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Full 2012 Annual Information form p. 12-18

2.8 Scale of the reporting organization. Full 2012 Annual Report p. 2,7,39

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Full 2012 Annual Information form p. 3-4

2.10 Awards received in the reporting period. Full Citizens of the World 2012 Back Cover
3. Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Full GRI Table 2012
3.2 Date of most recent previous report (if any). Full GRI Table 2011
3.3 Reporting cycle (annual, biennial, etc.) Full GRI Table Decision on reporting cycle to be taken in 2013
3.4 Contact point for questions regarding the report or its contents. Full GRI Table email
3.5 Process for defining report content. Full GRI Table The report was prepared in accordance with the principles set forth by the Global Reporting Initiative (GRI), which provides an internationally recognized standard for reporting on an organization’s economic, environmental and social performance. Responsibility for the report rests with a 14-member steering committee composed of senior managers drawn from all branches of the company. It is chaired by the Vice President of Corporate Communications. Air Canada declares its 2012 report compliant with GRI application Level B.

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. Full GRI Table We are reporting on Air Canada mainline activities unless otherwise stated. Air Canada operating results and statistics include Air Canada Vacations and third party carriers (such as Jazz Aviation LP ("Jazz") operating under capacity purchase agreements with Air Canada.
3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). Full GRI Table None
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. Full GRI Table Except where otherwise indicated, we are excluding the activities of AVEOS, Air Canada’s former Maintenance, Repair and Overhaul provider as well as Jazz and Sky Regional, two companies with which AC has capacity purchase agreements.
3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. Full Included throughout report This is included/explained under each specific indicator, as applicable.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Full GRI Table No material effect on the 2011 CSR re-instatements. Refer to GRI 3.11.
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Full Citizens of the World 2012

GRI Table
p.8


In late 2012, Air Canada unveiled plans for a new leisure travel group, which comprises the activites of the airline's tour operator business, Air Canada Vacations, and a new low-cost leisure airline which will operate under the brand name Air Canada rouge™.
3.12 Table identifying the location of the Standard Disclosures in the report. Full GRI Table Refer to www.aircanada.com>About Air Canada>Corporate Sustainability Reports2012 Corporate Sustainability Report2012 GRI
3.13 Policy and current practice with regard to seeking external assurance for the report. Full GRI Table None
4. Governance, Commitments, and Engagement
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Full 2013 Management Proxy Circular p. 24 - 27

4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Full GRI Table The Chairman of the Board, David I. Richardson, is a non-executive officer of the corporation.
4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. Full 2013 Management Proxy Circular p. 10-19

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Full GRI Table Shareholders and employees may communicate with the Board or individual Board members by contacting the Corporate Secretary or Shareholder Relations.
Shareholders may also submit proposals for the corporation’s annual meeting of shareholders in accordance with the provisions of the Canada Business Corporations Act.
The Corporation does not have work councils. One Board member (Roy Romanow) has been designated as the director nominee of the Corporation’s Canadian-based unions pursuant to the Pension Memorandum of Understanding entered into in July 2009.
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). Full 2013 Management Proxy Circular p. 21, p. 45 - 74

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Full 2013 Management Proxy Circular p. 29 - 30

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. Full 2013 Management Proxy Circular p. 29-30

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Full GRI Table Air Canada has several policies related to economic, environmental and social performance such as IATA and ICAO standards, its mission, vision and values, environmental policy, employee code of conduct, supplier code of conduct, Air Canada Foundation policy, etc.
4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Full GRI Table At each quarterly meeting of the Audit, Finance and Risk Committee, the General Auditor presents a report including any issues and concerns raised by employees on Air Canada's ethics reporting hotline and the Senior Director of Corporate Safety and Environment also presents a report on safety and the environment.
4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. Full GRI Table An annual Board evaluation is conducted by the Chair of the Governance and Corporate Matters Committee
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. Full 2013 Management Proxy Circular p. 33,34

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Full Citizens of the World 2012 p. 23,27
We endorse IATA and NACC goals.
4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. Full Citizens of the World 2012

GRI Table
p. 23, 27

Various Chambers of Commerce
4.14 List of stakeholder groups engaged by the organization. Full GRI Table Employees, shareholders, investors, NGOs, Canadian governments, customers, suppliers
4.15 Basis for identification and selection of stakeholders with whom to engage. Full GRI Table NGOs are identified through the Air Canada Foundation. Air Canada also engages government officials at various levels on an ongoing baisis as it is regulated by authorities within these bodies.

For the purposes of the Corporate Sustainability report, Air Canada identified and engaged employees, major suppliers and Aeroplan frequent flyer customers through targetted surveys. Air Canada also made a feedback mechanism available through its website at www.aircanada.com. The role of Government Affairs and Community Relations has also been expanded to be able to engage a number of stakeholders on multiple issues including sustainability.
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Full GRI Table Meetings, surveys, letters, emails, phone calls, focus groups, social media and symposiums.
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Full Citizens of the World 2012

GRI Table
p.10


For the 2012 Corporate Sustainability Report, Air Canada sought input from its 3 major stakeholder groups (customers, employees and suppliers) via a materiality survey based on feedback from the 2011 report. The key areas of interest were safety, environment, employees and community which were key pillars of the 2011 report and which remain relevant. Also identified were issues such as employee relations and engagement, energy consumption and greenhouse gas emissions, economic performance, customer experience and engagement, regulatory performance and ethics which are all areas that are being addressed at Air Canada on an ongoing basis.
STANDARD DISCLOSURES PART III: Performance Indicators Economic
Economic performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Full Citizens of the World 2012

2012 Annual Report
p. 6


p. 2

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change. Partial GRI Table Refer to Air Canada's Carbon Disclosure Project Submission at https://www.cdproject.net/en-US/Results/Pages/responses.aspx
EC3 Coverage of the organization's defined benefit plan obligations. Full 2012 Annual Report p. 44-46

EC4 Significant financial assistance received from government. Full GRI Table None received.
Market presence
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Partial GRI Table Currently, Air Canada does not have a formal policy regarding purchase from locally based suppliers as our biggest expenditures are fuel, aircraft, food and beverages. However, the Corporate Purchasing Policy outlines the business requirements to contract with vendors with the lowest Total Cost of Ownership that could be instrumental to locally based suppliers. The concept of TCO goes beyond the price of acquisition and takes into consideration evaluation of transportation costs, lead times and after sale support services where local suppliers have a competitive edge. Additionally, we consider the environmental footprint when developing specifications wherever practical and economically feasible, encouraging local purchase. As set in the Corporate Purchasing Policy, Air Canada will award contract to suppliers meeting the specifications and appropriate regulatory requirements, who offer the lowest Total Cost of Ownership (TCO), and whose technical competence, financial stability , quality, performance and capabilities meet our corporate requirements.
Indirect economic impacts
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Partial Citizens of the World 2012 p. 8
Environmental
Materials
EN1 Materials used by weight or volume. Partial Citizens of the World 2012 p. 54
Energy
EN3 Direct energy consumption by primary energy source. Full Citizens of the World 2012 p. 53
EN4 Indirect energy consumption by primary source. Full Citizens of the World 2012 p. 53
EN5 Energy saved due to conservation and efficiency improvements. Full Citizens of the World 2012

GRI Table
p. 20-24, 53

This measure uses current year revenue tonne kilometer (RTK) with previous year's fuel efficiency to estimate what the fuel use would have been if Air Canada had not implemented fuel saving measures.
Although fuel use and emissions did increase in 2012, Air Canada estimated that it saved 54 million litres of fuel (or 1.9 million GJ) in fuel efficiency.
Since 2005, Air Canada also estimated that it saved 356 million litres of fuel (or 12 million GJ of energy) related to fuel efficiency.
Biodiversity
EN13 Habitats protected or restored. Partial GRI Table Air Canada is a long time partner to the Star Alliance Biosphere Connections. This organization supports biodiversity initiatives by flying environmental professionals to sites and events thereby enabling them to further their understanding of complex environmental issues.
In addition, Air Canada supported a small non-profit organization that is making a full length documentary about bear habitats. The organization has pledged to commit all money from its documentary (BearTrek) to conservation. Air Canada assisted the organization by contributing to the transportation for the film crew to the Artic.
Emissions, effluents and waste
EN16 Total direct and indirect greenhouse gas emissions by weight. Full Citizens of the World 2012

GRI Table
p. 20, 53

Aircraft emissions are calculated using actual fuel consumption (in litres) and an industry standard to calculate emissions (3.15 kg of emissions per kg of jet fuel).
Ground Support Equipment emissions are calculated using the GHG Protocol Mobile Guide and based on the quantity and type of fuel (as we cannot calculate distance travelled by vehicle).
Stationary combustion emissions are calculated using the fuel consumption and the EPA's Stationary Combustion Guide.
Facility emissions are calculated using actual energy consumption (from invoices) and the emissions intensity of electricity generation for the province (or country) is used to calculate emissions.
EN17 Other relevant indirect greenhouse gas emissions by weight. Full Citizens of the World 2012

GRI Table
p. 20, 53

The difference in emissions relate to a change in scope boundary. Sky regional signed a capacity purchase agreement in 2012 with Air Canada. Therefore the total Air Canada 2012 indirect (scope 3) emissions include Sky Regional as well as Jazz.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Full Citizens of the World 2012

GRI Table
p. 53


Air Canada contributes to the environmental targets established by IATA and NACC that are mandatory within the industry.
EN19 Emissions of ozone-depleting substances by weight. Partial Citizens of the World 2012 p. 54
EN22 Total weight of waste by type and disposal method. Partial Citizens of the World 2012

GRI Table
p. 54

The waste data is for Canadian facilities only. The non-hazardous waste data was gathered by contacting the new single vendor and then contacting the remaining vendors not covered under that contract.
EN23 Total number and volume of significant spills. Partial Citizens of the World 2012

GRI Table
p. 54

Similar to 2011, the majority of significant spills in 2012 were related to lavatories which have a very low quantitative threshold for reporting. The majority of all spills occurred on hard surfaces such as tarmac or concrete and were contained, resulting in minimal environmental impact. No spills were material enough to be reported in Air Canada's financial statements.
Products and services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Full Citizens of the World 2012

GRI Table
p. 54

Regarding materials use, as stated on page 54, Air Canada is working towards recycling recovered glycol to a re-certified de-icing product. Air Canada has already reduced glycol use by determining the amount required for each aircraft, but recertification further reduces waste, effluents, and material use. For emissions, we have many initiatives to reduce fuel use and for noise, as mentioned in SO9, Air Canada continues to make efforts to reduce the impact of our aircraft.
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Full GRI Table In 2012, AC paid out $0 for environmental fines related to spills.

For compliance with noise abatement procedures (distinct from laws and regulations), in 2012 there were 7 noise violations (4 in Edmonton, 1 in Los Angeles, 1 in New York City, 1 in Brussels). Of the 4 noise violations in Edmonton, 2 were investigated and the airport authority agreed that the deviation was justified).
In 2012, we received a fine of €5447 for noise violations that occurred in Brussels in 2011 but the fine has not been paid as it is under litigation.
Social: Labor Practices and Decent Work
Employment
LA1 Total workforce by employment type, employment contract, and region, broken down by gender. Full Citizens of the World 2012 p. 55
LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. Full Citizens of the World 2012 p. 56
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operations. Partial GRI Table Though varying by union group, the differences are generally the effective date of health, dental and disability coverage and the level of basic life insurance.
LA15 Return to work and retention rates after parental leave, by gender. Full Citizens of the World 2012 p. 56
Labor/management relations
LA4 Percentage of employees covered by collective bargaining agreements. Full Citizens of the World 2012 p. 31

This percentage pertains to Air Canada mainline employees only.
LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements. Partial GRI Table Notice periods depend on any statutory and/or contractual requirements applicable to employees in different jurisdictions. For example, the Canada Labour Code requires 120 days' notice of technological change affecting the employment of a significant number of employees. The collective agreement with maintenance and ramp employees also contains a technological change provision. Another example is the Canada Labour Code requirement of sixteen weeks' notice of group termination of employment.
Occupational health and safety
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. Full Citizens of the World 2012 p. 52

Air Canada utilizes 92 committees that host 4, 9, or 12 meetings a year to ensure that their workforce is represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. 23,031 employees are representated by committees in the following areas: Systems Operations Control, International, In-flight service, Flight Operations, Cargo, Call Centers, Airports and Air Canada Maintenance.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender. Partial Citizens of the World 2012 p. 14, 52

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Partial Citizens of the World 2012 p. 31-36
LA9 Health and safety topics covered in formal agreements with trade unions. Partial GRI Table Health and Safety topics covered in various collective agreements point to the Canada Labour Code Part II which outlines federal requirements. The IAMAW agreement outlines that Air Canada employer representatives and the union employee representatives will engage in 12 health and safety committee meetings annually to discuss issues, concerns and topics as required. All other collective agreements meet the CLC Part 2 mandate of 9 committee meetings annually. Compensation for work related accidents or diseases is governed by the applicable provincial legislation which is mandatory in every province.
Training and education
LA10 Average hours of training per year per employee by gender, and by employee category. Full Citizens of the World 2012 p. 34, 56
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Partial GRI Table Air Canada offers on-the-job training, classroom training, e-learning and reference tools/ documents.

In addition, management employees who are laid off involuntarily are offered support services to assist them in finding another job. There is a phased-in retirement program for some unionized employees to help them with this life transition.
LA12 Percentage of employees receiving regular performance and career development reviews, by gender. Full Citizens of the World 2012 p. 56
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. Full Citizens of the World 2012 p. 57
Equal remuneration for women and men
LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. Full GRI Table For the majority of Air Canada employees, basic salary is determined by collective agreements. Where there are no collective agreements, Air Canada's culture is a performance based culture where salaries are based on job descriptions and classifications and ultimately tied to individual and collective performance and targets. Ratio of basic salary renumeration of women to men is 1.
Social: Human Rights
Investment and procurement practices
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Partial GRI Table Training on policies and procedures relating to human rights relevant to operations are incorporated in the different types of training for pilots, flight attendants, airport personnel and customer relations.
Non-discrimination
HR4 Total number of incidents of discrimination and actions taken. Full GRI Table The reporting is limited to material incidents. In 2012, no material incident was identified and incidents were typically promptly resolved through informal processes rather than protracted litigation.
Security practices
HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations. Full GRI Table Air Canada maintains a strong fundamental training program for policies and procedures when reviewing human rights issues and their application to security. 8 employees in security are trained on how to conduct themselves within the realm of human rights concerns. Air Canada does not rely on third parties security personnel.
Indigenous rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Full GRI Table None
Remediation
HR11 Number of grievances related to human rights filed, addressed and resolved through formal
grievance mechanisms.
Partial GRI Table In 2012, 64 grievances were filed, however, none were material.
Social: Society
Local communities
SO9 Operations with significant potential or actual negative impacts on local communities. Partial GRI Table Airports are often located close to urban settings. To limit the impact of noise on these communities Air Canada undertakes several initiatives. First, newer aircraft are much quieter than older aircraft. Second, Air Canada abides by local curfews and flight paths (that avoid urban areas). Third, we use noise abatement procedures such as reduced thrust take-offs and idle descent. Finally, Air Canada is an active participant on multi-stakeholder noise committees at many of its major hubs.
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption. Full GRI Table The Audit, Risk & Compliance (internal audit) department performs an annual risk assessment in conjunction with the Enterprise Risk Management process and uses this to assist in the development of the annual internal audit plan. All of Air Canada’s branches are in scope for this risk assessment. In addition, a specific risk assessment is performed annually on all 90 AC stations worldwide using the "Corruption Perception Index" published by Transparency International as one of the risk criteria. All business, IT and field audits are conducted following generally accepted standards, which include the consideration of fraud in each audit. Given the size of Air Canada, it is not possible to audit all the branches in a given year. However, the annual audit plan covers activities in 7-10 (20%-28%) of the 35 branches in the Company.

The anonymous Ethics Hotline allows employees of Air Canada to report instances of perceived corrupt practices, including but not limited to: bribery, fraud, extortion, collusion, conflict of interest, and money laundering. All Hotline reports are reviewed and
investigated. In 2011 and 2012 there were no proven, material
cases of corrupt practices.
SO3 Percentage of employees trained in organization's anti-corruption policies and procedures. Partial Citizens of the World 2012

GRI Table
p.9


Air Canada employees are all subject to the Air Canada Code of Conduct which sets out anti-corruption policies and the procedures to report violations when they join the Company. All management employees are required to review and sign the Code of Conduct annually. We have an automated verification and reporting process to ensure compliance. All unionized employees must also respect the provisions of the Code of Conduct.
SO4 Actions taken in response to incidents of corruption. Full GRI Table There were no incidents of corruption in 2012 that the General Auditor is aware of. However, should an incident of corruption be reported via the Ethics Reporting Line, or directly to management, it would be investigated. Investigation includes a coordinated response by the following departments: Law, Corporate Security, HR and Internal Audit.

Management takes appropriate action to address all confirmed breaches to the Code of Conduct, including fraud and conflicts of interests. This action may include discipline, termination, and – when necessary – communication with the authorities to file applicable charges.
Public policy
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Full GRI Table None
Anti-competitive behavior
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Full GRI Table Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011 and the process is still ongoing.

There were two complaints of anti-competitive behaviour filed against us in India by travel agents’ associations alleging collusion in the removal of commissions to travel agents. These complaints were rejected. However, the travel agents’ association is appealing.
Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Full GRI Table In 2011 we reported that Air Canada paid $12 000 for violation of the Official Languages Act, for an incident that predates 2011. In 2012, this decision was overturned and the amount to be paid reduced to $3000.
Social: Product Responsibility
Product and Service Labeling
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Partial GRI Table Air Canada utilizes project or product-specific surveys to gauge customer interests, likes and dislikes in order to build or improve upon products and services. Surveys may be online or conducted face to face, depending on objectives.

Air Canada also conducts a monthly customer satisfaction survey (CSM) which measures customer satisfaction through a number of metrics ranging from flight satisfaction to value for money. Data is also collected on key service touch points such as the airports experience and service in the air. The CSM also identifies what is most appreciated by our customers and areas for improvement. On a yearly basis Air Canada identifies key trends from the CSM reports which need to be addressed to improve customer satisfaction. These trends are then translated into a yearly plan with targets which is then distributed to the appropriate internal stakeholders for action.

In addition Air Canada also welcomes customer feedback through various social network channels such as Facebook and Twitter. Pertinent commendations and complaints are sent to the
respective branches for handling to promote improved customer
service.
Marketing communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Partial GRI Table Air Canada complies with the Canadian Air Transportation Regulations on Air Service Price Advertising. Furthermore, Air Canada adheres to Canadian advertising standards as mandated by the Advertising Standards Council in Canada. We also follow all rules related to the Department of Transportation in the USA as it relates to all fare advertising. The same applies to all international markets.

We also comply with all privacy standards as they relate to email marketing or any personal information gathering for all communication programs targeting individuals.
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Full GRI Table No such incident in 2012.
Customer privacy
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Partial GRI Table Air Canada received no complaints from the regulator regarding passenger privacy in 2012. Air Canada received 51 complaints alleging breach of privacy by consumers. All were investigated. Of these, 22 were substantiated. However, they all involved human errors.
Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Full GRI Table Air Canada paid a fine of $29M in 2012 to the EU for a competition violation ruling which pre-dates 2011; Air Canada had appealed the decision imposing this fine in 2011 and the process is still ongoing.