Governance

Calian has a well-defined corporate governance strategy, overseen by our board of directors. The governance and risk committee mandate was updated to include oversight of the environmental, social and governance strategy and enterprise risk management framework. An ESG governance framework was established by the board to prioritize key ESG factors of importance to Calian. As we embed ESG throughout the business, all committees have an important role to play in ESG governance. As a direct report to the CFO, the VP of ESG and Industrial Development oversees the ESG strategic framework, which was approved by the board in November of 2021.

The board governance and risk committee  oversees the ESG strategy and enterprise risk management framework. Updates are provided on a quarterly basis on specific ESG topics as required and a comprehensive ESG strategy review is conducted annually.   

In 2024, we established ESG executive committees for each of the operating segments to focus on the most material priorities and establish mechanisms to support achievement of our 16% emissions reduction target by 2030 and net-zero by 2050.

We recognize the need to prepare for future disclosure regulations. Preparing for formal sustainability disclosure requires planning: an understanding of the standards and data required, access to the data, and infrastructure to support consolidated reporting. In November of 2021, the Calian Board of Directors agreed to adopt the International Financial Reporting Standards/International Sustainability Standards Board (IFRS/ISSB) as our guide for future disclosures. IFRS was selected with the knowledge that the leading standards organization have collaborated to develop a single set of disclosure requirements that are expected to be finalized by the end of 2022. Organizations engaged in this exercise include Climate Disclosure Standards Board (CDSB), Task Force on Climate-related Financial Disclosures (TCFD) and Value Reporting Foundation (VRF), which house the Sustainability Accounting Standards Board (SASB).

Calian is committed to ethical business practices and transparent reporting. We continue to develop processes to align to the International Sustainability Standards Board (ISSB) disclosure requirements formally released in June 2023.

Calian’s legal and finance teams continue to monitor progress on the proposed Canadian Sustainability Disclosure Standards to ensure Calian is prepared to meet mandatory disclosure requirements expected in Canada in 2026.

The climate scenario analysis conducted in 2024 and selection of the Net-Zero Challenge bronze tier target were used as key inputs to enhance the following TCFD reporting elements: Enterprise Risk Management, Metrics and Targets.

We successfully delivered the Net-Zero Challenge Milestone 2 submission and Calian is now a bronze tier participant, demonstrating our commitment to interim targets to achieve net-zero by 2050.

We successfully delivered the Climate Disclosure Project submission, showcasing our dedication to transparency.

In our annual planning process, each operating segment and corporate team completes an objective-centric risk analysis, in accordance with the ISO 31000:2018 Standard on Risk Management framework. ESG risks are considered: climate change impacts, mitigation and adaptation, environmental management practices and duty of care, working and safety conditions, respect for human rights, antibribery and corruption practices, and compliance with relevant laws and regulations. Risk trends and the effectiveness of mitigation controls are reviewed regularly by management and the governance and risk committee of the board. Each operating segment provides a detailed update on risk at quarterly reviews attended by senior management. With expertise in emergency planning and business continuity, we applied this knowledge to develop a robust incident management process.

As necessary, incident response teams are formed at the management level to manage key incidents, including climate-related risks. Situation reports (SITREPS) are used to highlight material risks to the company by operating segment and geography. Mitigation plans are discussed and revised as necessary. The SITREP tracks designated individuals from the corporate and/or individual operating segment to take ownership and be a point of contact for key impacts and tasks. Since 2022, the Calian SLT/board has been trained in tabletop exercises to bolster corporate resilience in the face of potential disruptions.  

In 2024, we conducted climate scenario analysis to identify physical and transition risks and opportunities to identify the most material climate related financial impacts on our business. Our TCFD report provides a comprehensive list of the climate related risks and opportunities which we will incorporate in the enterprise risk management framework in 2025. 

We have experienced a notable increase in the number of socioeconomic and environmental requirements being requested by our clients. Our clients, particularly government, are weighting and rating ESG factors when awarding work, including specifics on our policies, procedures and certifications. Working with our proposals and client managers, we are developing a database of these requirements, identifying gaps in policies, certifications and processes, and developing plans to prioritize and address them accordingly.

  

Client ESG requirements continue to be a key driving force behind our ESG priorities and planning with particular focus on Industrial and Technological Benefits and ethical supply chain development and management. To address these requirements, we continue to assess our policies, certifications and processes to ensure we continue to meet our client needs and support our growth strategy. In 2024, Calian GNSS and Calian SatService received the ISO 14001:2015 Environmental Management Systems certification.

  

As we continue to update our business practices with an ESG lens, we will continue to revise policies and processes and seek relevant certifications.

In response to government requirements and stakeholder requests in 2024, Calian rolled out its Supplier Code of Conduct to ensure that all suppliers adhere to Calian’s ethical practices, standards of safe working conditions and fair treatment of all employees

On January 1, 2024, Bill S-211 mandated publicly traded entities to report to the Public Safety Ministry the steps taken to prevent and reduce risk of modern slavery. In May 2024, Calian published its Modern Slavery and Anti-Trafficking Statement and submitted its first annual statement to the Public Safety Ministry

In 2024, Calian rolled out its Supplier Questionnaire to support the development of a global supplier database and seek adherence to Calian’s Supplier Code of Conduct, Modern Slavery and Anti-Trafficking Policy and ethical manufacturing processes and policies.