BLJC, in partnership with Brookfield Properties, is obtaining LEED EBOM certification for Fifth Avenue Place in Calgary, Alberta. Expected Completion: 2011 BLJC is the first Canadian organization to offer fully-integrated, national Real Estate Management Services. With over 85 million sq. ft. of space under management in Canada, BLJC offers its clients innovative outsourcing and on demand solutions that address their unique requirements. BLJCs shareholders include Johnson Controls Inc. and Brookfield Properties Corporation. Combined with our related companies, we have over 40 years of experience in the delivery of real estate management services and our team of over 1,300 skilled professionals leads the industry. x 1 Copyright 2011 BLJC A Message from BLJCs President, Gord Hicks It is with great pride that we present the 2010 Report on Sustainability to you. This is our second Annual Report which highlights how BLJC performed against the objectives and targets we established for ourselves at the end of 2009. We continue to use a Triple Bottom Line framework as our approach to preparing this report, which includes a report on economic progress, environmental leadership and results, and an update on how we served our people and our communities. Some highlights of 2010 include BLJC being recognized by Macleans Magazine and Canadian Business Magazine as one of Canadas Top 30 Greenest Companies, truly a testament to the great work that our team members and the company has accomplished in this area. Other highlights were our Quebec Corporate Social Responsibility team raising a record $50,000 in support of the Presidents Choice Childrens Foundation at our 9th Annual Charity Golf Tournament. In Toronto our team hosted the first annual Charity Casino in support of the Canadian Breast Cancer Research Foundations Leaders for the Cure Program, in which $45,000 was raised. We also had a great holiday season, raising funds and providing clothing for local shelters, and donating hundreds of pounds of food to local food banks. Additionally, we took some time to celebrate as a team the spirit of the season of giving. One such event was BLJCs Annual Kids Holiday Party where we rented out the entire Famous Players Theatre in Toronto and had over 400 team members and their families come together for a movie, popcorn and a visit with Santa to receive a special gift. Triple Bottom Line People Envi ronment Economi c 2 Copyright 2011 BLJC 2010 REPORT ON SUSTAINABILITY In March of 2010, we introduced our new Vision, Mission and Values to more closely align with our corporate direction and better position us to create a caring, innovative, high performing team culture. OUR VISION Industry Leadership: We are the recognized leader in the provision of Real Estate Management Services in Canada. Sustainability: We are the role model for sustainable operating practices and portfolio strategy. Employer of Choice: We are the employer of choice within our industry and a Best Employer in Canada. OUR MISSION To deliver innovative business solutions for clients with real estate portfolios, continually creating value for their stakeholders, while ensuring a sustainable, safe and comfortable environment for all. OUR VALUES Unwavering Integrity Relentlessly Building Employee Engagement Driving change in the pursuit of Customer Satisfaction Passion for Innovation Living Sustainability The three components of our Vision line up directly with the triple bottom line elements of economics, the environment and people. Our Mission highlights the reality that customers recognize innovation and value creation when we provide them with a solution to achieve a business objective that they could not have accomplished without our insight and thought leadership. Hence, the BLJC Team is continually striving to attain a deep understanding of our clients business while striving to innovate and develop new tools and processes. By creating value for our customers, we maintain their trust and confidence and ultimately retain their business, which allows us to continue to prosper and achieve the economic, environmental and people results contained in this report. Finally, our Values explicitly align with our people and environmental objectives, and they serve as the framework which guides the behaviors of all BLJC Team Members. It is this consistent behavior by all our Team Members which results in a caring, innovative, high performing team culture that we have set out to create at BLJC. It differentiates us from our competitors and has, and will continue to, propel our economic success moving into the future! I would like to reiterate as I did last year that my long-term vision for sustainability at BLJC is to imagine a portfolio of facilities that will leverage their geographic locations and natural environments to: Generate all of their own energy through renewable resources. Capture all of their water requirements and treat all of their waste water on site. Utilize all resources efficiently and produce zero waste through restorative processes. I believe with innovation, creativity and resourcefulness that, one day, corporations will be able to create a net positive impact on the environment from their Real Estate inventory. I also believe that the BLJC team can achieve this vision with the collaborative efforts of all our stakeholders. Sincerely, Gord Hicks President, BLJC 3 Copyright 2011 BLJC Environment 2010 REPORT ON SUSTAINABILITY At BLJC we believe that we have a responsibility to provide a stewardship role on behalf of our clients, suppliers, and team members to promote and work towards a more sustainable and environmentally conscious way of doing business. We have committed to this through a variety of programs which are highlighted below. They are focused on the development of our environmental policies, our climate change strategy, and demonstrating industry leadership through volunteerism with the Canada Green Building Council and The Climate Project Canada, and our interactive website on environmental best practices for team members and clients. This year we are pleased to feature and highlight our corporate Zero Waste Challenge initiative. Environment Environmental Initiatives at a Glance Environmental Initiatives at a Glance Environmental Initiatives at a Glance FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results Theme Reporting Performance Indicator Results Environmental Policy and Regulatory Compliance To ensure all staff are trained on all environmental policies and our environmental management system in order to be in compliance and/or above compliance with environmental regulations. To maintain our record of zero non- compliances throughout 2010. All relevant team members have been trained on environmental policies and our environmental management system. Systems in place for compliance: Compliance Work Order system for ozone depleting substances. Standardized Incident Report (IR) System for spills. Annual Building Inspection (ABI) process. Internal Environmental Compliance Audits. EMS training and awareness for all staff. No fines or penalties were received for non-compliance throughout 2010. Carbon Footprint: GHG Emission Reductions To publicly report our corporate GHG emissions from a 2006 baseline. To reduce corporate office GHG emissions intensity by 4% in 2010 from our 2008 baseline. To reduce our GHG Fleet emissions by 5% from our 2009 intensity baseline. To reduce GHG emissions by 5% at our client sites by introducing an initiative to reduce the impact of the space we manage through operational measures. A continued commitment to purchase 100% renewable energy for our corporate facilities. Please refer to graphs and charts on page 7 for our publicly reported GHG emissions data from a 2006 baseline. From 2008 to 2010 the total absolute GHG emissions for our corporate operations has increased by 26% due to a significant increase in our number of service vehicles. In our offices where energy conservation and efficiency projects were implemented, our GHG emissions intensity has decreased by 6% from 2008 to 2010. Additionally, the energy intensity of the buildings where we have implemented measures has decreased by 9% from 2008. Our 2010 GHG Fleet emissions intensity decreased by 20% from the 2009 baseline. Our mileage (L/100km) has also decreased 32% from our 2009 baseline. We reduced 6% absolute GHG emissions at our client sites through energy conservation and efficiency measures (please see discussion below for assumptions associated with calculations). As of November 2010, all corporate sites are using green power that we have purchased. Demonstrating Industry Leadership To achieve LEED certification for any new building space that BLJC occupies. The commitment would be to achieve LEED CI Silver certification for any renovations and LEED EBOM Silver certification of the building by our landlord. Our continued involvement and volunteering with the Canada Green Building Council (CaGBC) and to promote industry best practice where possible. To increase functionality of the Acts of Green website by the introduction of an online forum in order to help our clients with their GHG reductions. In 2010, we needed to lease a non-LEED certified building site because of unique requirements in Alberta. Occasionally, due to the nature of our business, timing and availability, we are forced to lease space in a non-LEED certified building. Aspirationally, LEED certified buildings will still be given preference over non- LEED certified buildings and BLJC is prepared to pay a premium for this. Various voluntary initiatives with CaGBC in 2010 as listed below. BLJCs online interactive Acts of Green Website is frequently used by our team members to demonstrate successful environmental initiatives across our business. These successful case studies are shared with clients as appropriate. 4 Copyright 2011 BLJC Environment 2010 REPORT ON SUSTAINABILITY Looking Forward: 2011 Performance Targets Looking Forward: 2011 Performance Targets Theme Performance Target Environmental Policy and Regulatory Compliance To ensure all staff are trained on all environmental policies and our environmental management system in order to be in compliance and/or above compliance with environmental regulations. To achieve zero non-compliances throughout 2011. Carbon Footprint: GHG Emission Reductions To reduce corporate office GHG emissions intensity by 5% in 2011 from our 2010 baseline. To reduce our GHG Fleet emissions intensity by 5% from 2010. To reduce GHG emissions by 3% in 2011 at our client sites by introducing energy conservation and efficiency initiatives. A continued commitment to purchase 100% renewable energy for our corporate facilities. Demonstrating Industry Leadership To give preferential treatment in the procurement and leasing of new corporate office space to LEED certified buildings. To begin reporting performance metrics on our Zero Waste Challenge Initiative. To demonstrate industry leadership by promoting best practices where possible and through our involvement with CaGBC and the Greening Greater Toronto Council. To continue to promote successful environmental initiatives internally with our team members and clients through our Acts of Green website and through our BLJC daily electronic news stories. To host a Sustainable Workplaces conference to educate and inspire industry executives to reduce their corporate environmental footprint. Environmental Policy and Regulatory Compliance Environmental Policy and Management System BLJC is committed to integrating environmental aspects in its vision, planning and day to day operations. All aspects of our company, from facility management to project management, are conducted in accordance with sound environmental practices. We ensure this through the implementation of our environmental policy and management system, which is reviewed annually, has a system of accountability, and a process to ensure above standard compliance with regulations. We continually expect all BLJC employees to be diligent with regards to environmental considerations and we reinforce this through training and the implementation of sound processes and technology. BLJC Sustainable Procurement Policy BLJC has adopted a set of guiding principles for incorporating strong environmental practices into its purchasing and request for proposal (RFP) activities. The following are the major components of our Sustainable Procurement Policy: 1. Why it is important to buy environmentally preferable products. 2. Definition of environmentally preferable products. 3. Identifying desired environmental attributes. 4. Requiring life cycle cost evaluations. 5. Adopting best value purchasing principles. 6. Requirements to modify existing specifications. 7. Require contractors to buy green. 8. Review policy regularly. Regulatory Compliance: Ozone depleting substances (halocarbons) are one of BLJCs most significant environmental aspects because much of our business involves the service of HVAC equipment. To mitigate this and be in regulatory compliance we have created a Compliance Work Order system. As part of this system, specific job plans have been implemented with regard to all tasks involving ozone depleting substances; the job plan forms a trail guide to the technician performing the work by carefully laying out work protocols. This, coupled with regular team member training on storage tanks, halocarbon 5 Copyright 2011 BLJC Environment 2010 REPORT ON SUSTAINABILITY management, and EMS awareness, ultimately serves to reduce the frequency of accidental spills or releases. Compliance adherence is a metric that is measured and reported monthly at all levels, including up to the President. Our standardized Incident Reporting (IR) system is also an effective tool utilized by the organization to ensure that appropriate parties are quickly engaged in the event of a spill or release. Evaluation of spill containment, spill response preparedness, and other leak prevention/detection systems are elements of both the Annual Building Inspection (ABI) process, and the environmental compliance audits performed by BLJCs EHSS management team. The regulatory compliance system in place at BLJC has ensured that when a release or spill has occurred that they were reported, where appropriate, according to regulation. In FY 2010 we had no environmental fines and/or penalties due to environmental non-compliances which can be attributed to the policies and systems we have in place. BLJC enhanced its environmental compliance documentation storage systems in 2011 to allow for a common Compliance Station to be installed at our client sites, which houses updated compliance documentation, with electronic copies stored within our RealSuite system. Carbon Footprint: GHG Emission Reductions Climate Change Strategy At BLJC we have implemented a variety of GHG reduction initiatives for our corporate sites and for our clients which focus on energy conservation, technological improvements, and GHG reductions. Corporate Initiatives Corporate GHG Inventory: In 2009 we committed to publicly reporting our corporate GHG emissions from a 2006 baseline. In this years report we have included our 2010 BLJC Corporate Emissions Profile and our total absolute GHG emissions (t CO2e). Our total GHG emissions in 2010 were 2858 t CO2e. On an absolute basis our overall emissions have increased, but from an intensity perspective we have been able to reduce our emissions and increase energy and fuel efficiency. This year we reduced our corporate office GHG emissions intensity by 6% 1 from 2008; this can be attributed to our office energy conservation and efficiency programs which lowered our energy intensity by 9% from 2008. We continually strive to reduce our corporate GHG footprint by incorporating LEED standards into our existing buildings and giving preferred purchasing and leasing to any new buildings acquired, by implementing energy conservation and efficiency measures where possible, and by purchasing renewable energy for all our corporate offices. The charts on the following page illustrate the improvements BLJC has made over the last year related to its carbon emissions intensity. 6 Copyright 2011 BLJC ! "Cnly bulldlngs ln whlch 8L!C had operauonal conLrol were lncluded ln Lhese calculauons, newly acqulred bulldlngs were noL lncluded. Environment 2010 REPORT ON SUSTAINABILITY 89% 5% 2% 4% Fleet Travel Building Direct Fuel Building Indirect (Electricity) 2010 BLJC Corporate GHG Emissions Profile 0 0.00015 0.00030 0.00045 0.00060 E m i s s i o n s
I n t e n s i t y
[ t C O 2 e / k m ] 2006 2007 2008 2009 2010 0 350 700 1050 1400 E n e r g y
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[ M J / m 2 ] 2006 2007 2008 2009 2010 Reducing GHG Emissions from our Fleet: Our vehicle fleet continues to be our largest source of GHG emissions making up 89% of our corporate total. In 2010, we were able to reduce our Fleet GHG emissions intensity by 20% 2 from 2009. Additionally, we reduced our mileage (L/100Km) by 32% from 2009. Given that this is such a large proportion of our emissions, BLJC is committed to exploring new opportunities to reduce emission from our service fleet. In 2010, BLJC introduced a GPS supported Technician Dispatch System that provides dispatchers greater visibility to our large team of technical service professionals. This system will be a key enabler to achieving a 5% reduction in fleet emissions in 2011, by helping us to optimize our travel routes. Wherever possible, we will purchase hybrid vehicles to be utilized in the delivery of our services. BLJC has 13 hybrid vehicles in our fleet today. Client Initiatives Reducing GHG Emissions from our Client Sites: In the past year, we have implemented a number of GHG reduction projects for our clients, from small retail sites to large complex corporate data centres. In 2010, we initiated a new energy tracking and performance measure with our Facility Managers (FMs). On a quarterly basis, Facility Managers are ranked against their Building Energy Performance Index (BEPI) across their client portfolios. The intention is to create a performance incentive for FMs to help clients reduce their energy consumption and increase their cost savings. Facility Mangers are given support and training to help identify and communicate positive occupant 7 Copyright 2011 BLJC # Cnly measured kllomeLers were lncluded ln Lhe calculauons, when esumaLed kllomeLers were lncluded Lhe CPC lnLenslLy and mlleage decreased furLher, however, we wanLed Lo lnclude only Lhe mosL accuraLe daLa. Environment 2010 REPORT ON SUSTAINABILITY Total Building Energy Intensity 0 0.0015 0.0030 0.0045 0.0060 E m i s s i o n s
I n t e n s i t y
[ t C O 2 e / m 2 ] 2006 2007 2008 2009 2010 Total Building Emissions Intensity BLJC Vehicle Fleet Emissions Intensity (Only Measured KM's included) BLJC dispatch software enables GPS monitoring of all technicians which results in more effective dispatching and less travel time for technicians. E m i s s i o n s
I n t e n s i t y
[ t C O 2 e / m 2 ] E n e r g y
I n t e n s i t y
[ M J / m 2 ] E m i s s i o n s
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[ t C O 2 e / k m ] behavioural changes and to effectively demonstrate to clients the business case for moving forward with potential capital investments and/or energy efficiency projects. The focus is on having FMs provide low-cost or no-cost operational improvements and educating tenants/occupants on potential energy saving behavioural change strategies. This program is delivering highly successful results. In 2010, BJLC successfully met our target of reducing GHG emissions by 5% at our client sites. In total, we have achieved a 6% 3 reduction in GHG emissions accounting for 27, 166 t CO2e. This represents the amount of carbon sequestered for approximately 700,000 tree seedlings grown for 10 years 4 . In 2011, we intend to target an additional reduction of 3% at our client sites by continuing to provide energy efficiency improvement solutions to our clients. Demonstrating Industry Leadership Our Support and Involvement with CaGBC The Canada Green Building Council (CaGBC) is an organization whose goal is to lead and accelerate the transformation to high-performing, healthy green buildings, homes and communities throughout Canada. As a leader in the real estate industry, BLJC actively volunteers within the CaGBC to help lead the industry to greener and healthier buildings by educating clients, employees, stakeholders, and the public during our educational events across the country. The BLJC team has also volunteered in various positions within the CaGBC; for example, Mr. Hicks the President of BLJC sat on the Board of Directors and is now Chair of the Market Development Committee. This year Mr. Hicks will be serving as the Vice-Chair of Greenbuild Toronto 2011, Host Committee. The Greenbuild conference is the worlds largest international conference and expo dedicated to green buildings. We currently have 60 team members that are LEED AP certified and 49 LEED Associates, of which some are involved with CaGBCs Green Up program and the teaching and training for new LEED Accredited Professionals. Through these efforts BLJC is trying to push the envelope and help make our industry greener. Sharing Best Practice through Interactive Web Applications BLJC team members currently have access to an online interactive intranet Website for the sharing of best practices hosted by our team of Energy & Sustainability professionals. The Acts of Green website is used as an online portal to grow the body of Green Building knowledge and drive both operational and occupant awareness initiatives through the client portfolios that we have under management. Where appropriate, this best practice is shared with our clients. Additionally, we highlight and recognize sustainability initiatives implemented across the corporation or with our clients in BLJCs electronic news stories, BLJC Insights, which are posted daily on our company portal site. New in 2010 BLJCs Zero Waste Challenge: In the 2010 calendar year, BLJC implemented a Zero Waste Challenge initiative at our corporate headquarters. At the moment, this is an aspirational target which aims to send zero waste to landfill by diverting 100% through waste diversion initiatives (Reduce, Reuse, Recycle, Reclaim). In order to measure our performance against this objective we have created a waste measurement and monitoring program. In 2011, the program will be refined and introduced to clients in order to reinforce, educate, and support sustainable behaviours and innovation in the area of waste management and diversion. 8 Copyright 2011 BLJC $ 1he followlng assumpuons were used Lo calculaLe Lhls daLa: a. Companles LhaL have slgnlcanLly lncreased Lhelr fooLprlnL or where Lhelr core buslness operauons growLh has maLerlally lmpacLed Lhelr energy consumpuon, have been excluded from Lhe calculauons. b. LsumaLes were used for some leased spaces where dlrecL energy consumpuon daLa was noL avallable, Lhese esumaLes were based on generally accepLed proxy daLa. % LnvlronmenLal roLecuon Agency. 8eLrleved !anuary 2011: hup://www.epa.gov/cleanenergy/energy-resources/calculaLor.hLml#resulLs Environment 2010 REPORT ON SUSTAINABILITY 9 Copyright 2011 BLJC 2010 REPORT ON SUSTAINABILITY People In 2010, BLJC undertook a major initiative to develop new corporate values: Unwavering Integrity, Relentlessly Building Employee Engagement, Driving change in the pursuit of Customer Satisfaction, Passion for Innovation, and Living Sustainability. We believe that in order to succeed, our core values must be reflected in the way we operate our business; therefore, we expect all of our team members to uphold and extend our standards of ethical behavior through our Values, Ethics Policy and Code of Business Conduct. At BLJC we also understand that our team members are one of our most important resources and therefore this is reflected in our new values and we continually strive to embed these values into our corporate culture. In order for BLJC Team Members to realize their full potential we need to create a positive work environment so that our team members can thrive. We do this by promoting excellence within the company, engaging our team members regularly as to how they feel about working at BLJC, providing health and safety training in order to work towards zero workplace injuries, and by giving back to our communities. People People Initiatives at a Glance People Initiatives at a Glance People Initiatives at a Glance FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results Theme Reporting Performance Indicator Results Team Member Development To value our team members by investing in their career development and training. To increase our promotions from within the company as an indicator of team member development. To increase quarterly Beyond the Promise (a peer to peer recognition program) nominations by 50% through the creation of a culture of spontaneous recognition. To implement our Total Rewards Statements program in January 2010. To ensure that 75% of Facility Managers are registered and working towards completion of either a CFM or RPA designation by June 2010. To increase the number of LEED AP certified team members. From October 2009 to September 2010 we invested $152,477 into team member development representing a staggering 65% increase year over year. From Oct. 2009 to Sep. 2010 we had 72 internal promotions. We experienced an almost 50% increase in the number of quarterly Beyond the Promise Award nominees year over year by leveraging our daily news program as a means for nomination, facilitating the process for team members. Completed and launched our Total Rewards Statements Program with great success and Team Member feedback. While we continue to experience significant uptake amongst our Facility Managers in CFM, RPA, and FMA courses, we have been challenged with meeting our targets in large part to the growth amongst our team of Facility Managers. Consequently, 65% of our Facility Managers are registered and working towards a CFM, RPA, or FMA designation. We currently have approximately 60 team members that are LEED AP certified and 49 LEED Associates. Team Member Engagement To increase our Hewitt Best Employer survey participation score to 85%. To introduce the measurement of a Team Member evaluation of our Corporate Social Responsibility (CSR) activities. To increase our overall Hewitt Best Employer survey engagement score to 70%. To continue to value our employees by enhancing our employee rewards and recognition program. We experienced a dramatic increase in survey participation from 61%in 2009 to 91% in 2010. Our Corporate Social Responsibility metric exceeded our expectations at 85% and is on par with Best Employers in Canada. Our exceptional performance, in this area over the last few years has resulted in being recognized by Canadian Business and Macleans magazines as a member of The Green 30 representing the 30 Greenest Employers in Canada. Our employee engagement score declined slightly from last year to 57%. Several initiatives are underway this year which will serve to address our key focus areas and they include the following: Accounts Payable Automation Project Vendor Qualification Project Work Order Life Cycle Project Enhance the communication across the organization as well as between Team Leaders and Team Members Optimizer process enhancement with a commitment for all Team Leaders to meet with Team Members at a minimum twice annually to provide an interim progress review. HR spearheaded the introduction of the "Thanks a Million" program which was met with excellent feedback. In addition, enhanced and more frequent rewards-based communications has led to a significant up take in the Beyond the Promise on the Spot rewards program. Health and Safety To ensure the health and safety of our team members we require that all staff have WHMIS training annually. To improve our medical aid, lost time, and days lot rates from our three year baseline. As of September 30th, 2010 all team members had completed their WHMIS and comprehensive role-based Health & Safety Training. While not at zero, both our medical aid and lost time rates declined with the greatest decline related to medical aid rates. Refer to chart below regarding health and safety rate improvements. 10 Copyright 2011 BLJC 2010 REPORT ON SUSTAINABILITY People Looking Forward: 2011 Performance Targets Looking Forward: 2011 Performance Targets Theme Performance Target Employee Development To implement a Leadership Development Training Program by April 1, 2011. To train all BLJC Team Leaders by deploying our Leadership Development Program. Ensure that all team members have development plans (What are your career aspirations?) by January 15, 2011. To maintain turnover rates 25% below industry averages. To redesign and deploy our Performance Management system to incorporate behaviours and values. Employee Engagement To increase our overall Hewitt Best Employer survey engagement score to 70%. To continue to value our employees by enhancing our employee rewards and recognition programs. To implement Employment Equity project by May 31, 2011. To focus on coaching skills and motivational skills, enhancing BLJCs workplace environment and in supporting our culture of a caring, innovative, high-performing team. To continue to engage Team Members in recruiting activities for new Team Members. Health and Safety To ensure that 100% of our staff have renewed or completed their WHMIS Health and Safety Training in 2011. To improve our medical aid, lost time, and days lost rates from our 2011 levels with a target of zero. Creating a Safe and Healthy Workspace: Health and Safety Record Cver Lhe lasL few years we have been lnvesung Lo lmprove our healLh and safeLy record and we have made significant achievements. Our three year health and safety rate improvement is as follows: 5 Metric Definition Measurement Rate Improvement (2008-2010) Medical Aid Rate Any workplace injury beyond first aid treatment. # Medical Aid Cases X 200,000 / Total Hours Worked (2008) 0.67 (2009) 0.67 (2010) 0.56 Lost Time Rate A medical aid injury where a worker has missed time away from work on his next scheduled shift the day immediately after the injury. # Lost Time Cases X 200,000 / Total Hours Worked (2008) 0.25 (2009) 0.25 (2010) 0.28 Days Lost Rate The number of lost days due to a medical aid. # Lost Days X 200,000 / Total Hours Worked (2008) 1.91 (2009) 1.01 (2010) 0.98 5 Safety Training As of September 30th, 2010 100% of the BLJC staff has had their WHMIS and role-based safety training. All new and current team members are required to re-certify annually. 11 Copyright 2011 BLJC 3 1hls number excludes Lwo cases where lndlvlduals had ln[urles LhaL should have been allowed for modled work duues durlng recuperauon whlch reduced Lhe days losL raLe. 2010 REPORT ON SUSTAINABILITY People Team Member Development Investing in our Team Members At BLJC, our team members are ambassadors of our organization and comprise our greatest resource; therefore, we place a major emphasis on skills development and related training which is captured in their individualized team member development plans. BLJC invests approximately $300,000 each year for online skills development, as well as, Health and Safety and specific on-the-job training and development. From October 2009 to September 2010 we invested almost $100,000 into team member development through our Tuition Assistance Program. We have re-launched our enhanced 2011 Total Rewards Statements close on the heels of last year's successful inaugural publication. The Total Rewards Statement provide all team members with an easy-to-read and comprehensive overview of the cash and non-cash elements that comprise their total compensation package including any rewards and recognition. Some of the learning opportunities that BLJC team members have access to include: Continuous e-Learning: This provides all team members with 24/7 access to approximately 50 courses, including personal development, leadership development and various Microsoft applications. In addition, we have also now added both the Management and Project Management Knowledge Centres which serve to significantly broaden the course offering targeted for our Project Management team and all of our people leaders. Tuition Assistance Program for Team Members: A tuition reimbursement program in which team members can apply to receive funding for academic courses towards their career development goals. CFM/RPA or PMP: Facility Manager and Project Manager professional designation training and development. Promoting Excellence We believe that excellent work should be recognized and we do this through our performance management and team member development program. As a result, 72 team members were promoted over the last year. 12 Copyright 2011 BLJC 2010 REPORT ON SUSTAINABILITY People
Team Member Engagement Employee Engagement Survey At BLJC we like to take the pulse of our team member priorities through an annual Team Member Engagement Survey. This survey helps measure the extent to which an employer has captured the hearts and minds of its team members. Team member engagement is an important factor in measuring the health of an organization. Engaged team members are productive, innovative and take ownership of results. We feel that engaged team members say positive things about their employer, express their intent to stay with their organization, and strive to ensure their organization is successful through making additional efforts beyond the basic requirements of their job. While our overall Engagement score remained essentially unchanged year-over-year, our most current survey coupled with team leader presentations has provided additional information as to where we need to place our focus going forward to drive improvements. At BLJC we are committed to fostering and developing a caring, innovative high performing team culture that has levels of engagement similar to those of the best companies in Canada. Each year, we participate in the Hewitt Best Employers in Canada survey which serves as a meaningful way in which we can measure our progress to achieving this objective. The survey and corresponding follow-up with Team Leaders across the organization resulted in three key areas to focus on for fiscal 2011. Those areas are the following: 1. Work Processes 2. Communication 3. Work-Life Balance Work Processes Work processes remains at the top of the list for the organization with both Communication and Work-Life Balance identified as new areas for improvement. Rather than focusing on a broad range of actions similar to our approach last year, best practices would suggest focusing on a handful of actions which would have the biggest impact across the organization and for our Team Members. As such, our actions for fiscal 2011 are as follows." 1. Accounts Payable Automation Project - Process Improvement 2. Vendor Qualification Project- Process Improvement 3. Work Order Life Cycle Project- Process Improvements 6 4. Enhance the communication across the organization as well as between Team Leaders and Team Members 5. We have enhanced the BLJC Optimizer Performance Management process and have made a commitment for all Team Leaders to meet formally with Team Members at a minimum twice annually to provide an interim progress review and discuss the team members career goals and establish plans to assist in their achievement. We strongly believe that improving our Work Processes will directly result in enhanced Work-Life Balance by reducing the amount of non-value added work for our Team Members. We will use Town Hall meetings and conference calls to communicate our progress against these actions on a regular basis. We will also be utilizing BLJC Insights daily news stories and quarterly newsletters as vehicles to keep our Team Members up-to-date and well-informed on how these process improvements are having a positive impact on team members day-to-day activities and improving their work life balance! 13 Copyright 2011 BLJC 6 noLe: 1eam leaders wlll also work wlLh Lhelr respecuve Leams Lo dlscuss Lhelr key processes, process challenges and process lmprovemenLs wlLhln Lhelr deparLmenLs and lmplemenL locally. lease conLacL Mlchael Schlrmer (mlchael.schlrmer[bl[c.com) ulrecLor, Conunuous lmprovemenL Lo log Lhe process lmprovemenL and provlde faclllLauon supporL lf requlred. 2010 REPORT ON SUSTAINABILITY People Corporate Social Responsibility (CSR) Score As a result of our best in class ranking in the area of corporate social responsibility, we have been nominated to the Green 30 representing the 30 Greenest Employers in Canada. This is a further indication that the CSR mandate message is being heard by our team members and they place a high value in this area. Valuing Our Employees Since the inception of our company, we have constantly strived to value our team members. Over the years we have developed the following incentives and benefits to ensure that our team members feel valued and appreciated: Flexible Benefits A benefits program which allows all Team Members to choose the benefits that support their personal situation. The BLJC benefits plan ranks in the top 75th percentile when compared against other plans within our industry. LifeWorks This is an employee assistance program, which is a holistic offering of counseling consults, research, and materials matters ranging from financial and estate planning to parenting and elderly care. Team Member Referral Program Team members are encouraged to refer candidates for all open positions at BLJC with a $1,500 bonus for all successful referrals. In 2010 we paid out $103,500 to team members for referring excellent candidates that were ultimately hired by BLJC. Paid Floater Days / Personal Responsibility Days These are an allotted amount of days in which team members can take off in order to take care of personal life issues. Professional Dues Reimbursement All professional dues for our team members are paid for by BLJC. Beyond the Promise Recognition Program A Peer to Peer and Team Leader to Team Member recognition program. Home & Auto Insurance Group Discount Through The Personal Company, our team members can choose to receive a discounted home and auto insurance rate. Canada Savings Bonds BLJC team members can make contributions to Canadian Savings Bonds through a payroll deduction program which provides a convenient method for making contributions. Negotiated discounted fitness program at GoodLife Fitness. Nutrition and Managing Stress seminars. Years of Service Awards program. It is our intention to maintain and strengthen these programs based on team member feedback. As of September 30th, 2010 100% of BLJC team members have completed Ethics training. 14 Copyright 2011 BLJC 2010 REPORT ON SUSTAINABILITY People 15 Copyright 2011 BLJC Economic 2010 REPORT ON SUSTAINABILITY At BLJC we not only want to sustain the environment and society, but we also want to ensure the long term economic viability of our company and the communities in which we operate. We do this by contributing a certain percentage of our earnings each year back to the community (including taxes paid to the various levels of government), we make sustainability investments that reduce our clients operational costs and we maintain a profitable company by being efficient with our resources and making wise investments. Economic Economic Initiatives at a Glance Economic Initiatives at a Glance Economic Initiatives at a Glance FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results FY 2010 Metrics, Objectives, and Results Theme Reporting Performance Indicator Results Contributing to Communities To contribute 1% of BLJC earnings per year into our focus groups areas of children and families. This will be in the form of direct, indirect contributions (raising of funds through employee charity work), and in-kind voluntary actions from Team Members. To pay our taxes according to federal, provincial and municipal regulations. In FY 2010 BLJC has contributed $296, 000 into the communities in which we operate, focusing these donations into children and family programs. This supersedes our target of 1% of BLJC earnings per year. In FY 2010, BLJC has paid almost $6 Million in federal, provincial, and municipal taxes. Sustainability Investments To make investments towards reducing the impact of the space we manage at our client sites through operational measures that target a 5% reduction in GHG emissions. To purchase 100% renewable energy for our corporate sites; including the purchase of Green Power for our Alberta office space. To achieve LEED certification for BLJCs Head Office renovation. The commitment would be to achieve LEED CI Silver certification for any renovations and LEED EBOM Silver certification of the building by our landlord. In FY 2010 the total investment value of energy and GHG projects implemented for our clients is estimated at $5.52 million dollars, which contributed to exceeding our 5% reduction target (see footnotes in Environment section). 100% Renewable energy was purchased for our corporate sites in New Brunswick, Ontario, Alberta and British Columbia. A total of approximately $30,000 was invested into purchasing renewable energy. A total capital expense of $30,500 was invested into LEED certifications and remodeling in FY 2010. BLJC has realized that there will be circumstances where, although our first choice would be to occupy LEED certified buildings, this will not be possible in all cases. Although not included in last years reporting targets a total of $28,000 was invested into our Zero Waste Challenge project at our 7400 Birchmount headquarters office in Markham, Ontario. Company Profitability Growth of Business Volume on a Year over Year basis measuring market penetration and business success. In FY 2009 BLJC grew its business volume by over 50% and in FY 2010 by 26%. Looking Forward: 2011 Performance Targets Looking Forward: 2011 Performance Targets Theme Performance Target Contributing to Communities To contribute 1% of BLJC earnings per year into our focus group areas of children and families within our local communities. This will be in the form of direct contributions, raising of funds through charity, and in-kind voluntary actions from Team Members. To pay our taxes according to federal, provincial, and municipal regulations. Sustainability Investments In 2011, BLJC will contribute to and/or donate more than $50,000 to support organizations that are having a positive impact on the environment. Company Profitability To grow our business volume by 10% in FY 2011. 16 Copyright 2011 BLJC Economic 2010 REPORT ON SUSTAINABILITY Contributing to Local Communities 1.3 Million Dollars in Corporate Philanthropy We're proud of our commitment to Canadian communities. From coast-to-coast across Canada, BLJC supports a wide variety of charities and community organizations. Our focus is on children and families, as we believe that a strong family unit provides healthy roots from which a community can successfully grow. Over the last 10 years, BLJC and our team members have contributed to organizations such as The Princess Margaret Hospital Foundation and SickKids Foundation, in Toronto; Great Canadian Shoreline Cleanup, in Vancouver; Salvation Army, in Ottawa; Charles Bruneau Cancer Foundation, in Quebec; The Humane Society, in Edmonton; Haiti Disaster Relief Support, in Nova Scotia; Team Cook Book benefitting the Sharp Foundation, in Alberta; The Big Bike Campaign supporting the Heart and Stroke Foundation, in Williams Lake; Easter Seals, in Vancouver Island; The TD Food Drive, in Southwestern Ontario; The PC Foundation for Disabled Children, in Montreal; and, various Earth Day events across Canada. Regional Ambassador Program By appointing Regional Ambassadors and creating Corporate Social Responsibility (CSR) Committees across the country, we have encouraged BLJC team members to get involved in supporting their communities beyond the provision of our business services. BLJCs CSR Committees engage our broader team in conducting fundraising events and sponsorships in support of local charities and community programs. Several hundred BLJC Team Members participated and/or volunteered their support for charitable activities in 2010. Environmental Scholarship Funding From 2005 to 2010, BLJC has donated $250,000 to Acadia University to support the Environmental Sciences Program. In 2010, the last $50,000 of this contribution was made. In 2010, BLJC introduced a summer internship program within our Energy & Sustainability Team for students interested in the Green Building field. BLJC also provides a $3,500 annual scholarship for a selected child of a BLJC team member that wishes to pursue an Environmental Sciences degree at Acadia University. Investments in Sustainability: Creating Savings for our Clients In the past year, we have identified and implemented $5.52 million dollars of our clients funds into energy conservation and efficiency projects in their buildings across Canada. These sites consist of small retail to large complex corporate data centres coast-to-coast. Additionally, BLJC invested in an Operational Awareness and Measurement and Monitoring Program that resulted in a 6% reduction of GHG emissions across our client portfolio. This initiative saved millions of dollars for our clients and reduced their carbon footprint by over 27,000 tonnes of CO2e. This is equivalent to removing 5,000 cars off the road on an annual basis. Being Profitable and Viable At BLJC we believe that a triple bottom line approach to conducting business is beneficial for all stakeholders including team members, suppliers, clients, the public, and our shareholders. In 2010, BLJCs business volume grew by over 26%. We strongly believe in and are committed to supporting our communities through our goal of contributing an equivalent of 1% of BLJCs annual earnings, at a minimum. We enhanced our environmental stewardship programs through continued investment in sustainable development initiatives and supported industry leadership with innovative education forums and sponsorships. We continue to be very excited about the future of our Industry and our Company, our innovative team, and we are very confident that BLJC is well positioned to continue to grow our business and lead the industry to think creatively on methods to reduce social and environmental impacts while bringing prosperity and high quality service to our stakeholders. 17 Copyright 2011 BLJC Economic 2010 REPORT ON SUSTAINABILITY 18 Copyright 2011 BLJC BLJC co-hosted a Toronto area Charity Casino that raised $45,000 for the Canadian Breast Cancer Foundation. BLJCs participation in CN Tower Climbs have raised funds towards WWF and The United Way. BLJC team members in Quebec raised $51,500 for the Presidents Choice Childrens Charity during the groups 9th annual golf tournament. BLJCs inaugural Victoria Charity Casino Night collected more than $20,000 for KidSport Greater Victoria, which helps local underprivileged children participate in sports. $60,000 was generated for the SickKids Foundation and The Princess Margaret Hospital Foundation to support cancer research during BLJCs Charity Golf Tournament. BLJCs northern Alberta regional group supported the Edmonton Humane Society by raising over $3,300 through various initiatives. BLJC WSI team members in Victoria organized a golf tournament that supported the Our Place Society, a non-profit organization dedicated to providing nourishment and shelter to people in need. BLJCs GTA team worked hard to help the less fortunate by collecting more than 500 pounds of non-perishable food and 125 toys for Markham Food Bank and TD Canada Trust Toy Mountain initiative. BLJC elves around Vancouver and the Lower Mainland brought holiday joy to underprivileged children and seniors through the Fill-A-Stocking campaign. BLJC WSI team members in Williams Lake, B.C., put their hearts into charity work by pedaling the Big Bike around the city streets in aid of the Heart and Stroke Foundation. In 2009, BLJC committed to donate $100,000 to Sick Kids Hospital over the next 4 years. BLJC team members from Vancouver and B.C.s lower mainland helped topple hunger with their de-Canstruction project and packed canned goods in large crates for delivery to the Greater Vancouver Food Bank. S U P P O R T I N G
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