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.   

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.

With the Task Force on Climate-related Financial Disclosures (TCFD) being a key element of the ISSB disclosures, Calian engaged an independent third party to conduct a TCFD gap analysis and peer benchmarking analysis to align with investor and stakeholder expectations. Using this analysis, we published our first TCFD report (available here) and submitted to the Net-Zero Challenge to meet the first milestone requirement.

The climate scenario analysis is scheduled for 2024. The results will support the development of a comprehensive emissions reduction road map which will help Calian address metrics requirements in TCFD and future ISSB disclosures, as well as meet the second milestone requirement of the Net-Zero Challenge.

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.

In March of 2020, a formal incident management team formed, under corporate leadership and with representation from across the business, to manage our COVID-19 response. To date, over 900 situational reports have been distributed to senior management on key risks, opportunities, impacts and mitigation plans. Beyond pandemic response, topics have expanded to include relevant subjects such as the war in Ukraine, Monkey Pox, weather events (i.e., Ontario derecho, Pakistan floods, hurricanes Fiona and Ian) and the German emergency gas plan. This robust management system allows for timely decisions related to the risks we face regularly: business continuity, employee travel, office safety, and other geopolitical and environmental risks.

To support our enterprise risk management registry, we completed a review of the World Economic Forum Global Risk report and assessed impact of the environmental and social risks applicable to Calian over the next three years. Our TCFD report provides a comprehensive list of the climate-related risks and opportunities.

In 2024, we will continue to work with the internal governance, risk and compliance (GRC) committee and leadership team to highlight ESG risks and opportunities and develop mitigation plans.

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.

For the first time, client ESG requirements were assessed and prioritized as an integral element of our new three-year strategic plan. We continue to see an increase in client ESG requirements with focus on more comprehensive environmental tracking and reporting, DEI policies and practices and ethical supply chain. 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.