Six CSR core priorities
Six CSR core priorities capture our commitment to operating responsibly, in alignment with our vision, strategic imperatives, core values and Code of Business Conduct. They reflect the interests of both our business and stakeholders. In fiscal 2016, we leveraged these core priorities to develop our materiality matrix and 2020 CSR Roadmap to redefine our supporting priorities and guide our efforts in the years to come.
- Ensuring compliance and solid ethical standards
- Continuing to strengthen our governance, risk management and internal controls
- Establishing a responsible procurement policy
Why it matters
Our commitment to adhering to the highest ethical standards is anchored in our core values of integrity, trust and respect. We believe that proper ethical practices create and preserve shareholder value. They also build goodwill and foster the trust of employees, customers, suppliers, investors and the public. That’s why we set high ethical standards and expect our employees and business partners to comply with them.
Compliance and ethical conduct
Our employees and business partners are guided by our Code of Business Conduct, robust compliance systems, training and support. Our compliance framework focuses on export control, security and anti-corruption. The Chief Compliance Officer provides monthly compliance reports to the Executive Management Committee and quarterly reports to the Board.
In fiscal 2016, we began a five-year process of enhancing our Code of Business Conduct. We integrated our CSR core priorities into the Code and trained our managers on the Code. We continued to leverage our compliance review to reinforce our governance, risk management and internal controls.
In fiscal 2016, 30% of our suppliers attested to meeting our Responsible Procurement policy, a percentage we intend to increase substantially over the next few years. We also started to screen new suppliers for labour practices and respect of human rights.
UN Global Compact
In fiscal 2016, we became a signatory of the United Nations Global Compact and began integrating its 10 principles into our CSR approach. One of our first actions was to update our master agreement and request for proposals (RFP) templates in accordance with the UN Global Compact and the United Kingdom Modern Slavery Act. These documents now include compliance with laws prohibiting human trafficking and the use of child or forced labour.
Vendors are now also required to confirm that their code of ethics/business conduct aligns with our Code of Business Conduct commitments. They must demonstrate their social and environmental commitment and provide any related certifications. One of our next steps in aligning with the UN Global Compact is to develop a companywide Human Rights policy.
At CAE, we have zero tolerance for bribery and corruption.
As a global business, we operate in countries with a potential risk of corruption. We have developed strict controls to limit our exposure to this risk, particularly with respect to foreign representatives working on our behalf. We monitor their activities closely as well as any exchange of gifts and entertainment with customers to ensure no attempt is made to secure an unfair competitive advantage.
In fiscal 2016, as part of the Code of Business Conduct training, all of our managers were trained on anti-corruption rules and our foreign agent representatives attested to complying with these rules. We also rolled out a new anti-corruption manual for our employees, suppliers and partners.
In an effort to strengthen and improve our practices, we conducted an internal audit of our anti-corruption program. The review resulted in several recommendations for improvement that will be implemented by the Compliance Office over the course of fiscal 2017.
Export control training
As part of our Export Control Reform project, 97% of our employees worldwide were trained online on International Traffic in Arms Regulations (ITAR) and Controlled Goods. We reviewed our export control guidelines to make them more user friendly and reflect regulatory changes related to the US Export Control Reform. We updated our export control business processes across all departments.
We delivered a three-day training session on export control regulation, export control reform and self-assessments to our export control officers in Germany, Australia and the U.K. as well as our locations in Tampa, Halifax, Ottawa and Mirabel. We also offered specialized training on CAE export control processes and regulations to 650 employees from various departments in our Montreal headquarters.
We provide formal mechanisms through our Code of Business Conduct for employees to raise concerns or report violations or breaches of the code. A third-party anonymous ethics hotline also allows employees to report violations (1-866-294-9551). Our Whistleblowing policy protects good-faith whistleblowers from retaliation.
Health and safety
- Operating with excellence in health and safety
- Continuing to build a health and safety prevention culture
- Reducing our frequency rate by 10% by 2018
- Strengthening our health and safety global governance
- Integrating leading indicators into our yearly objectives to improve our leadership actions
Why it matters
“Safety First” is our central focus and a core value that guides everything we do, everywhere we operate. For us, ensuring the health and safety of our employees, clients, suppliers and surrounding communities is more important than anything else. We are committed to continuing to demonstrate leadership, accountability and excellence in our health and safety practices across all of our business activities.
Achieving world-class performance
To achieve our vision of world-class health and safety (H&S) performance, including zero injuries, we rolled out a new Global Health and Safety policy in fiscal 2015. Local training and awareness on the policy was deployed in all regions.
We also developed four strategic pillars to support our vision:
- Legal compliance
- Global H&S structure
- Education and development
- Leadership and behaviours
The first two pillars ensure we strive for H&S excellence while the last two help us embed a preventative H&S culture across our organization. Our executive-led Global H&S team meets monthly to:
- Discuss high-risk issues
- Develop mitigation and prevention measures
- Monitor incident investigations, corrective and preventive actions, and overall H&S performance
In fiscal 2015, we began implementing a five-year H&S strategic plan to build a solid foundation for achieving world-class H&S performance at all of our sites.
Best-in-class H&S standards
Our vision of excellence is supported by 20 world-class H&S standards. We rolled out the first 10 critical standards in fiscal 2016, with the next 10 to follow in fiscal 2017. These global standards will build the solid foundation needed to create a world-class culture, standardize our operations and improve leadership accountability for H&S performance.
We rolled out the following H&S standards in fiscal 2016:
- Management and leadership
- Risks and hazards identification
- Energy isolation
- Work at heights and fall protection
- Electrical safety
- Rigging and mobile lifting equipment
- Confined spaces and isolated work
- Explosion and fire protection
- Contractor management
- Emergency preparedness
Through our corporate audit program, we are closely tracking integration of the standards into local and regional programs. This audit program monitors an average of 10 sites annually. Three of our sites are certified to OHSAS 18001: two NATO Flying Training in Canada program sites and a Defence & Security site in Australia.
Other key H&S actions
In fiscal 2016, we developed leading safety indicators and significantly improved our H&S data collection capabilities. Several teams integrated H&S governance and reporting. In response to H&S audit results, our 24 largest sites – where the risk exposure was the highest – developed action plans consisting of more than 330 initiatives.
In fiscal 2016, we also updated our governance, reporting and metrics processes to create the Umbrella Safety Management System (SMS). The Umbrella SMS reflects the new global reality of our businesses and aligns expectations with our standards.
To continue evolving as the global training partner of choice, we launched a companywide H&S leadership training program for all executive and line managers. The program has a 95%-plus completion rate. Building strong H&S leaders and keeping our people safe preserve our ability to shape the future of training. Our global ‘Learning from Incident’ and ‘Learning from Others’ initiatives further reinforce our Safety First culture.
H&S results in fiscal 2016
In fiscal 2016, we improved virtually all of our H&S outcomes compared to fiscal 2015. The numbers speak for themselves.
H&S recognition program
The Global Health & Safety group set up a program to recognize and celebrate significant H&S contributions in four categories: business division, site, project and individual. The fiscal 2016 winners were:
- Business division: Business Aviation Training and Helicopter Aviation Training for its overall H&S results.
- Site: Manufacturing site in Sarasota, Florida, U.S., for having built a viable and constantly improving H&S culture and for going two years without a recordable event.
- Project: H&S management installation, updates and project management groups in Civil Aviation Training Solutions and Defence & Security in Montreal, Quebec, Canada, for developing the Risk Assessment Method Statement (RAMS) program, which now serves as a basis for all installations/upgrades using the highest H&S standards.
- Individual: Douglas Stratton from Defence & Security in Trenton, Ontario, Canada, for his sustained involvement and efforts in developing H&S programs for his site, including preparation of a risk analysis document.
Our Emergency Response Team (ERT) in Montreal receives 75 hours of training in first aid, trauma, CPR and defibrillator use. Additional training is also provided throughout the year. On September 22, 2015, the Montreal ERT team members’ rapid response and thorough training enabled them to save the life of an unconscious employee who had suffered a heart attack.
They arrived on the scene of the emergency within a minute and immediately administered CPR and used a defibrillator to revive the employee. The ERT team was honoured at a ceremony in January 2016. We thank all our ERT teams and first-aid responders worldwide for volunteering their time to keep our employees safe.
Celebrating Global H&S Day at Work
For the first time, we joined companies around the world to celebrate Global Health and Safety Day at Work, as declared by the United Nations, on April 28, 2016. From more visible propellers to evacuation drills and new processes to better manage contractors, employees implemented health and safety initiatives at some 20 sites worldwide.
- Attracting the best talent
- Developing and retaining a skilled and engaged workforce
- Evolving a corporate culture aligned with our new vision
- Providing interesting career opportunities to our employees
- Improving employee engagement
- Strengthening employee recognition with our new web-based recognition platform
Why they matter
Having a strong talent pipeline and an engaged, skilled workforce builds value for our company, customers and communities. As our company shifts from a product to a training service focus, employee engagement is more crucial than ever. At CAE, we are committed to being an employer of choice where people feel valued, supported and empowered. Attracting, developing and retaining the best talent will always be critical to our success. Equally crucial to our success is creating and maintaining an engaged workforce representative of the communities where we operate.
Creating a great workplace
Creating a great workplace requires committed action and ongoing adjustments to deliver on a clear vision of the culture we want to foster at CAE. We survey employees every two years, with an engagement pulse survey conducted in between, to track progress and focus our improvement efforts in the right areas. In June 2015, our engagement pulse survey did not show the improvement we had hoped for.
These results intensified our commitment to evolve our culture so that we become and remain an employer of choice. We know that changing a culture is a lengthy, non-linear process. We are now working with employees to define what “a great workplace” means for us.
At the same time, we continue to work on the 19 companywide priority actions and over 200 business- and function-specific actions identified through our most recent surveys and focus groups. Surveying our Directors and Vice Presidents also gave us a deeper understanding of the challenges and potential solutions.
Through our Code of Business Conduct training, we continued embedding the core values that govern how we do business. We also have a robust policy in place to prevent and counter workplace harassment and maintain a healthy work environment and relations.
We know that our employees are the driving force behind our innovative products and services. Their engagement and ongoing development are crucial to ensuring a robust innovation pipeline. We will continue to improve our employee development programs and succession planning for employees and leaders.
Improving our recruitment practices
In fiscal 2016, we improved recruitment at CAE by developing a standardized, integrated approach across all territories and business units. Managers now have a flexible, fast and easy way to network, share job postings and source from a broader range of candidates.
The enhanced system puts information at managers’ fingertips along with real-time visibility on recruiting progress. It allows them to better match the right talent with the right position. The new system, which includes tools to connect with talent on social media, features more than 14,500 external candidates from around the world.
Our Leadership Attributes describe the behaviours we expect of all our employees. These attributes challenge all employees, at every level of the company, to think and act as leaders. In fiscal 2016, we reduced these attributes from nine to five, making it easier for employees to focus on what is most important. We launched a campaign to explain the simplified attributes, with a video featuring employees who explain how they live each attribute at CAE.
Our Leadership for the Future training program promotes skills development among first- and second-level leaders. In fiscal 2016, 123 first-level leaders participated in the four-day program and 27 second-level leaders in the three-day program for a total of just over 4,000 hours of training.
Over 1,600 engineering employees are enrolled in our technical career track initiative. This initiative helps them develop and broaden their technical expertise through evaluations on eight technical competencies. It also provides guidance on technical career path criteria from entry to senior levels. This program enables us to better map our employees’ capabilities and competencies as well as identify development opportunities.
CAEacademia goes online
In fiscal 2016, we improved our CAEacademia learning management system to enhance our employees’ online experience. Employees can now access the enhanced system and view available training programs from their mobile devices. They can also register for programs in a simpler, more intuitive way.
More than 6,600 employees completed training on International Traffic in Arms Regulations (ITAR) in fiscal 2016 for a total of 3,303 hours. CrossKnowledge training was delivered to more than 800 employees for a total of 1,700 hours.
Flight instructors: Key to achieving our vision
Our 2,000 flight instructors are our second largest employee group after engineers as well as our biggest customer-facing group. They are also key to ensuring we become the industry’s gold standard in training.
In fiscal 2016, we sharpened our focus on the 2,000 flight instructors who are at the heart of our business. We launched an initiative to support our strategic shift to a training services company. We also created the new position of Global Leader in Training Strategy to enhance our value proposition in aviation training and engage instructors in achieving our vision.
Sixty CAE leaders gathered to develop a strategy to recruit, develop and retain the best instructors. This strategy includes identifying the attributes of best-in-class instructors and setting the industry standard for instructor performance management to enhance our competitive edge. It will serve to elevate the profile of our instructors both internally and externally.
This initiative will also help us build the right HR infrastructure around instructors and give them the tools they need to excel. An employee value proposition survey with our instructors helped us to determine whether we were providing them with the right leadership and working conditions.
Transforming program/project management at CAE
To drive excellence in program/project management and execution (PM&E), we launched a number of initiatives in 2015. We rolled out a training program to increase the competencies of our program/project managers and support staff as well standardize PM&E across CAE.
Using the Project Management Institute (PMI) model and universal project management standard gives us a consistent way of managing projects and interacting with customers. It provides project managers with best-practice tools to meet customer requirements and ensure on-time delivery, ultimately improving customer satisfaction.
To help standardize our PM&E processes, we adopted CMMI (Capability Maturity Model Integration) to implement global best practices in project planning, project monitoring and control, requirements management, risk management and integrated projects management. In fiscal 2016, we also launched an initiative to develop a competency model for our PM&E professionals.
- Progress to date
To date, 70% of our Defence & Security program and project managers have completed and passed the PMI training exam. In other areas of the company, 51 employees passed the PMI exam, leading to Certified Project Management Professional (PMP) designations. We also extended the stream to PMO employees with 52% of these employees taking the exam in the Certified Associate in Project Management (CAPM) program.
Women at CAE
In fiscal 2016, the Board of Directors approved the Policy Regarding Board and Executive Officer Diversity effective May 2015. The policy acknowledges gender diversity as a significant aspect of diversity. We did not adopt targets for the number of women or other diverse groups on the Board or in executive officer positions.
We believe that targets could result in a potential conflict with the principle that the requisite competencies, skills, experience, qualities and commitment should be of paramount importance when considering director nominations and executive officer appointments.
At the time of this report’s publication, two of 10 (or 20%) of our current directors, and two of nine (or 22%) of our current executive officers, are women. A total of five women occupy senior management positions (i.e. vice president or above), which represents 15% of our total senior management population.
The Colours of CAE
Sometimes just a simple idea has the power to bring us all together. That is what happened when an employee asked his colleagues to wear the same colour on the same day – just for fun. His idea quickly spread to all our locations around the world. Now a new tradition, the 'Colours of CAE' initiative puts a smile on our faces every third Friday of the month!
Customer service / Product excellence and innovation
- Ensuring customer engagement and satisfaction
- Designing and delivering quality and responsible next-generation training products and services
- Ensuring customer data protection
- Embedding a strong innovation and collaboration culture
- Continuing to design for safety and environment
- Formalizing sustainability guidelines for the design, development and delivery of our products and services
- Including sustainability principles in the criteria for the next round of Innovation Challenges
Why it matters
Our customers count on us to provide training solutions that keep pace with an ever-changing world and operating environment. Product and service innovations are key elements of our competitive advantage. Our strong innovation culture and commitment to best-in-class customer service drive these innovations and support our vision to be recognized as the global training partner of choice.
We are focused on ensuring a continuous flow of sustainable advanced solutions to help clients deliver societal benefits in a safe, efficient and environmentally responsible way. This means embedding a sustainability mindset in the design of our product and service innovations, remaining at the forefront of leading safety, operating efficiency and environmental standards, and engaging our customers.
Our technology leadership is underpinned by a strong innovation culture and longstanding commitment to R&D. Central to our innovation strategy is how we integrate sustainability into the design, development, delivery and end-of-life of our product and service innovations. We are currently formalizing sustainability guidelines for each of these lifecycle phases. We are also developing criteria for measuring the sustainability attributes of our innovations.
Our partnerships with industry organizations, regulatory bodies, suppliers and customers help us remain at the forefront of new safety, operating efficiency and environmental standards and processes.
Training partner of choice
We strive to be the training partner of choice for our customers operating in complex, mission-critical environments. This means we must consistently provide the most innovative training solutions to enhance their safety, efficiency and mission readiness. Our customer-focused approach, deep customer relationships and proven engineering systems and program management processes help us deliver on this promise.
The value we bring
We bring value to our customers by enhancing the safety of their activities, improving their mission readiness for potentially dangerous situations, and lowering their operating costs and environmental footprints.
- Civil Aviation: Safety, efficiency and environmental responsibility
Our training and simulation technology solutions enable civil aviation customers to balance safety and efficiency. Our simulated environments avoid fuel consumption and carbon emissions.
Our global civil aviation training network includes flight academies, a fleet of over 160 aircraft, and the resources and expertise to graduate 1,000 cadets annually. We have developed first-to-market simulators for over 40 aircraft models, including all large in-service commercial aircraft, most leading regional and business aircraft and a number of civil helicopters.
Our training centres are helping customers develop greener flights and reduce carbon emissions. We are also actively supporting airlines in adopting the ICAO’s Multi-crew Pilot License (MPL) program and implementing Upset Prevention and Recovery Training (UPRT). Our pilot sourcing solutions help airlines address the pilot capacity gap.
- Defence & Security: Public safety
Our innovative training systems integration (TSI) solutions are helping the military and government bodies improve training effectiveness, reduce operational demands on aircraft, lower safety risks and environmental impacts, and drive down costs.
Our biggest Defence & Security facilities are certified to Level 3 or above of Capability Maturity Model Integration (CMMI), an internationally recognized model of industry best practices for process improvement training and appraisal. CAE Australia, CAE USA and CAE D&S Montreal are certified CMMI 3 while CAE Mirabel is certified CMMI 5, the highest level of recognition.
In fiscal 2016, the first class of CH-147F Chinook helicopter aircrew members graduated from the intensive 24-week course we developed in collaboration with the Royal Canadian Air Force (RCAF). This world-class total training system includes classroom and synthetic training as well as live flying training and exercises.
- Healthcare: Saving lives
Simulation-based training is helping our healthcare customers provide a low-risk alternative for practising life-saving procedures, rapid response and inter-professional team training, major disaster response and anesthesia administration. It also helps customers become more adept at the diagnosis of potentially life-threatening illnesses.
We offer the industry’s broadest range of healthcare simulation products and services and lead the market in high-fidelity patient simulators.
Protecting customer data
We are highly sensitive to the importance of ensuring customer data and intellectual property are handled with the utmost sensitivity and confidentiality. We have strong controls to ensure compliance with all laws and regulations, including the protection of intellectual property and the exportation and importation of commodities, services and technical data. Employees are trained on handling intellectual property as part of our Code of Business Conduct annual training.
Strong customer relationships
Our customers are drawn to us for many reasons: our technology and cost leadership, the reliability and flexibility of our products and services, our credibility with regulators and our reputation for forging long-term relationships. We have long-term training service agreements and joint ventures with approximately 40 airlines and aircraft operators around the world, and relationships with more than 50 defence operators in approximately 35 countries.
Best-in-class customer support
Our customer support practices include a web-based customer portal, performance dashboards and automated report cards, a 360 Customer Command Centre and various customer support hotlines.
We have an established network of strategically located parts depots across the world. Our broad geographic coverage enables us to respond quickly and effectively to customer needs, while having a deep understanding of local regulations and customs.
Our annual customer advisory board allows customers to share best practices, learn about emerging trends and identify areas for improvement.
Rapid delivery of C Series simulator and training device
Early in April 2016, Transport Canada certified the C Series full-flight simulator and flight training device with its entry-into-service configuration. To achieve this certification, we worked hand-in-hand with Bombardier systems integrators. Together we overcame significant challenges to deliver a complete new build in only four weeks. Congratulations to the project team for its exceptional professionalism, commitment and engagement.
PRODUCT EXCELLENCE AND INNOVATION
Engaging employees in innovation
We continue to involve employees in the innovation process and embed a strong innovation culture that integrates sustainability principles into our products and services. Our annual “Innovation Challenges” initiative actively engages employees in innovation and drives technology advances in support of our business objectives and strategy.
In fiscal 2016, our fourth annual Innovation Challenges was a resounding success. It generated 79 ideas, many of them highly sophisticated, from employees around the world. Chosen by a multi-disciplinary selection committee, the four winning submissions focused on new learning technologies, multipurpose interface cards (MPIC) and multi-coaxial catheters.
Many winning ideas from past Innovation Challenges are now part of our products or in the prototype phase in our recently created Innovation Laboratory. The employees who generated these ideas are involved in prototyping their innovations. Going forward, this companywide initiative will include specific sustainability challenges.
Design for safety and environment
Our Global Engineering department ensures environmental considerations are included in the design of our simulator technologies and training materials. Their goal is to use resources efficiently, eliminate hazardous materials and increase our customers’ energy efficiency.
Without taking into account the full-flight simulators operated by our customers and operated in Defence & Security, the civil full-flight simulators we operate in our network save over five million metric tonnes of CO2 annually. (This number was calculated using the number of hours of trainings given internally on flight simulators times at normal burn rate (at cruise) of equivalent real aircraft. The amount of fuel saved is converted into metric tonnes of CO2 with the conversion factor of jet fuel (source: US Environmental Protection Agency).)
Our full-flight simulator electromechanical motion systems enable customers to reduce their average annual power consumption per simulator by up to 70% and eliminate 400 gallons of mineral oil per simulator, compared to the hydraulic systems previously used.
Product and process transformation
We continued to implement our process and transformation plan, which includes several initiatives to improve quality and efficiency.
As part of this broad plan, a highly engaged cross-functional team reviewed our new CAE 7000XR Series. The team succeeded in reducing the simulator’s lifecycle environmental footprint, improving procurement and accelerating manufacturing. Learn more
In another process improvement initiative, more than 250 employees joined forces to implement a pull-system manufacturing process to ensure more predictable results. This will enable us to increase our efficiency, reduce waste and improve our inventory management.
In Healthcare alone, we introduced five innovations to the market in fiscal 2016. Learn more
- Ensuring environmental management system excellence and compliance
- Reducing our energy and carbon footprint
- Improving material and resource efficiency
- Developing and implementing a global energy and waste reduction target
- Implementing our green policy for suppliers
- Implementing composting at Montreal headquarters
Why it matters
As a leading training solutions provider, we have a responsibility to minimize the environmental impact of our operations. Ensuring our operations’ environmental efficiency will help preserve our license to operate, protect limited natural resources and improve the quality of life of our employees and communities where we operate. It will also enable us to reduce costs, build competitiveness and create trust in our business.
A focus on environmental performance
With a global presence of 160 sites and training locations in 35 countries, managing the environmental impact of our operations is key to our CSR commitment. It means ensuring we consider environmental matters in our manufacturing activities, delivery of our training services and management of our buildings.
Our strong commitment to environmental responsibility is anchored in our Environmental policy. This policy captures our philosophy of going beyond regulatory compliance with a focus on pollution prevention, waste minimization and continuous improvement.
Monthly, quarterly and annual performance reports are presented to the Board on a quarterly basis.
In fiscal 2015, we improved and standardized our Environmental Management System (EMS) and began formalizing our environmental objectives, targets and key performance indicators. We also started rolling out this global EMS, which is aligned with the ISO 14001 standard, at all of our sites worldwide.
Today all our 21 environmental corporate standards have been rolled out at all of our sites. An action plan is drafted when the standards are not fully implemented.
Reducing our operational energy and carbon footprint
At CAE, we are determined to be part of the solution to climate change. Our simulators play a key role in reducing our customers’ carbon footprint by avoiding the fuel consumption and CO2 emissions of live flying training.
We are also taking action to reduce our own carbon and energy footprint. This means increasing our operations’ energy efficiency, reducing our buildings’ energy impact and exploring renewable energy alternatives where feasible. Together these efforts enabled us to, once again, improve our environmental performance in 2016.
Greenhouse gas emissions (GHG) for Montreal site
|GHG emissions (scope 1 and 2)||710||833||749|
|Direct GHG emissions scope 1||646||761||669|
|Energy indirect GHG emissions scope 2||64||72||80|
Initiatives are under way to leverage our local environmental officers to create momentum and foster employee engagement in environmental matters. People are increasingly sharing best practices and initiatives around recycling, energy efficiency and waste reduction. Environmental awareness is now also included in the onboarding of new employees. All these efforts are paying off.
For the first time, we celebrated Earth Day on April 22, 2016, across our global operations. As part of the celebration, more than 50 sites shared their recent environmental initiatives. This interactive map provides an overview of how our employees are taking environmental matters to heart and making a difference at work and in their communities.
In fiscal 2016, our Sale and Silverwater sites in Australia were certified to the ISO 14001 standard. Our Moose Jaw site in Canada passed its ISO 14001 certification renewal process with flying colours.
In Montreal, our head office received BOMA BEST® certification, Level 1, for its energy and environmental performance and management. To reflect its specific activities and address new BOMA criteria, we launched a new local environmental policy for our Montreal headquarters which is aligned with our global policy.
Our head office received Level 3 (Bronze) ICI ON RECYCLE! performance certification for outstanding reuse of residual materials. It also won a Canadian Industry Program for Energy Conservation (CIPEC) Leadership Award in the process and technology improvement category.
The CIPEC award recognizes the complete redesign of the HVAC (heating, ventilation and air-conditioning) systems at our 97,000-square-metre headquarters and manufacturing facility in Montreal. Completed in July 2015, the HVAC project significantly reduces energy consumption and costs.
New green strategic sourcing criteria
As part of our focus on minimizing the environmental impact of our operations, we launched a green procurement policy in fiscal 2016. From now on, our procurement teams will favour products and services with a low environmental impact and no negative effect on quality and cost.
In selecting product suppliers and service providers, our procurement experts will consider, whenever possible, the following factors:
- The low impact of the product or service on the environment (including but not limited to water, air and soil).
- The amount of recycled, recyclable and compostable materials in the product as well as disposal options.
- Whether there is an analysis of the product or service's lifecycle.
- The product's durability, reuse potential as well as repair and maintenance options.
- Product origin and delivery transportation method.
- Whether the product contains or was manufactured using hazardous materials (notably volatile organic compounds) and its impact on the environment, employees and public health.
- Type and size of product packaging.
- Resources consumed by the product or service (water, energy, etc.) and the impact on greenhouse gas emissions.
- Whether it’s a multi-purpose product, minimizing the need to purchase several products.
- Whether the product supplier or service provider has a documented environmental management system (and if so, what kind) as well as the appropriate environmental certifications.
Managing aircraft noise
At CAE, we take noise complaints seriously. We do everything possible to reduce the noise and the inconvenience of our operations in surrounding neighbourhoods. When we receive a complaint, we contact the concerned individuals to gather all the facts. We then begin our internal verification process to ensure we are in compliance with all official noise abatement guidelines and regulations.
In recent months, we worked closely with airport authorities in the U.S. to better manage aircraft noise. At our flight academy in Phoenix, Arizona, we operate aircraft in a high-frequency, dense training environment. While the airport has voluntary noise abatement procedures, our Phoenix crews must abide by our own, more restrictive mandatory noise abatement procedures.
These procedures include touch-and-go restrictions before 8 a.m. and after 5 p.m. We also changed the arrival and departure routes of our training aircraft to minimize any inconvenience to residents. We continue to assess additional solutions to reduce the impact of our operations on residents.
Following this community consultation experience, we are developing a guide of best practices and concrete actions to help managers effectively interact with communities.
Local economies and community investment
- Supporting local economies where we operate in line with our policy
- Positioning CAE as a thought leader in training
Progressively raising the percentage of donations and sponsorships aligned with our policy and vision:
- Supporting educational facilities, activities and programs developing excellence or interest among young people in science, technology and engineering
- Encouraging young people to pursue pilot careers
- Encouraging organizations aimed at improving aviation and patient safety
Why it matters
Helping communities thrive is a key component of acting responsibly. We believe that we can only be successful if the communities and economies in which we operate are prosperous. We are proud of the societal benefits of our training. It increases aviation safety, strengthens public security and improves patient outcomes. We have learned that we can also help make the world a better place by investing in communities, supporting local economies and strengthening our stakeholder engagement.
Making a difference
Through our community investment and local economies strategy, we strive to positively impact local communities and economies, reinforce our reputation among stakeholders and increase employee engagement.
We assess the performance of our community investments based on their positive social impact and ability to create value for our business. Our CSR Committee continues to engage our internal teams to further focus our community investment, local economy and stakeholder engagement efforts.
The Vice President, Public Affairs and Global Communications, reports progress on our community strategy to the Executive Management Committee on a quarterly basis. Bi-annual updates are provided to the Governance Committee of CAE’s Board of Directors.
Investing in communities
In fiscal 2016, we reviewed our Donations and Sponsorships policy to better align it with our new vision. Our main community investment focus remains:
- Innovation, research and development in areas pertinent to our business
- Engineering and software skills development
- Youth education in science, technology and engineering
Through our policy review process, we also added specific priorities to support our activities in civil aviation, defence and security, and healthcare. These new priorities are:
- Disaster and humanitarian relief in communities where we operate
- Organizations that develop pilots, improve aviation and patient safety, help military families and veterans, and assist local hospitals
In fiscal 2016, we donated close to $5 million worth of licenses for our modelling and simulation software to 14 universities—six in Canada, four in the U.S. and four in Europe—to help educate students and create a pipeline of prospective employees.
The United Way is one of our key charities. We exceeded our $650,000 objective for the 2015 CAE-United Way/Centraide campaign, collecting a total of $660,000 for a grand total of $9 million since 2000. The Enbridge Ride to Conquer Cancer is another cause supported by many of our employees in Quebec. Over the past four years, CAE teams have pedalled for two days every year, raising a total of more than $1 million.
- Advancing R&D
Innovation is in our DNA. It catalyzes our success. Our commitment to innovation is a key component of what attracts new talent to CAE. Our R&D partnerships with universities also help ensure a constant flow of the best talent while allowing us to leverage the latest technologies and expert knowledge to improve our products and services. These activities are aligned with our strategic technology thrusts and help us deliver on our CSR commitments.
Today we collaborate with more than 15 Canadian universities and colleges. We also fund several university scholarships and sponsor numerous educational initiatives. This includes sponsoring Kids Code Jeunesse since 2014. Kids Code Jeunesse promotes science and technology in the community by teaching Canadian youth how to code.
- Helping Syrian refugees
Our employees are socially engaged in a variety of humanitarian causes around the world. One example is Dominic Joron, a global engineering employee who launched a website to collect donations for Syrian refugees in Montreal. Aline Massouh from the Civil Aviation Training Solutions Marketing team co-founded “WeHost”, a platform designed to empower Canadians to temporarily host a refugee. More than 800 Canadian families responded to the initiative by offering to temporarily host a refugee in their own home.
Supporting local economies
Through our presence in more than 35 countries around the world, we are helping create economic growth by delivering goods to our customers, jobs for our employees, payments to our suppliers, investments in communities and value to our investors. Here’s a snapshot of how we supported local economies in fiscal 2016.
|Amounts in millions|
|Total operating costs||2,177.1|
|Salaries and other short-term employment||786.9|
|Corporate income taxes paid||18.5|
We proactively engage with a diverse range of stakeholders on a broad number of issues. Our stakeholders include employees, customers, investors, industry associations and governments, suppliers and local community groups. This engagement takes the form of conferences, sectorial and cross-sectorial initiatives, partnerships with government and educational institutions as well as direct dialogue with various community groups.
Our aim is to foster open dialogue with these stakeholder groups on issues of public interest as well as matters relevant to our business, including regulations and industry standards.
- Thought leadership
As a thought leader, we engage with regulatory bodies and industry around the world. This is one of the ways we continue to actively shape the future of training globally. This includes representing our stakeholders in discussions on civil aviation regulations to ensure the industry’s strategic, safe and sustainable evolution.
We have been involved in numerous Federal Aviation Administration (FAA), European Aviation Safety Agency (EASA) and International Civil Aviation Organization (ICAO) regulatory committees and working groups. We have also participated in the following trade associations and initiatives:
- International Air Transport Association (IATA)
- The American Institute of Aeronautics and Astronautics (AIAA)
- Airlines for America (A4A)
- Royal Aeronautical Society
- Aerospace Industries Association of Canada (AIAC)
- Aerospace Industries Association (AIA)
- Canada Business Higher Education Roundtable
- Canada’s Global Markets Action Plan
- Aéro Montréal
- Women In Defence and Security Association
- Canadian Association of Defence and Security Industries (CADSI)
- National Training and Simulation Association (NTSA)
- Open Geospatial Consortium (OGC)