Through this policy, CAE’s management recognizes that it must include environment, health and safety factors in its decision-making, planning and management of business processes to promote the improvement of the quality of life of its employees, clients and the community.	Meeting or exceeding legal requirements for environment, health and safety.
	Identifying, evaluating, managing and preventing potential environment, health and safety risks.
	Minimizing the environmental impacts of its operations by limiting the use of natural resources, energy and dangerous goods, reducing the emission of contaminants, and basing its waste management program on reduction at source and recycling.
	Implementing and maintaining a management system to address environment, health and safety activities; setting objectives for each facility.
	Verifying compliance with management practices and objectives, and ensuring that results are measured and communicated to interested parties.
	Continually improving its performance in all aspects of environment, health and safety within a framework of sustainable development and responsible management.
	Increasing employees’ awareness and providing effective training to ensure that environment, health and safety factors are properly addressed in their daily activities.

Go Green Plus certification

In 2007, CAE was granted BOMA Go Green plan certification – a leading national recognition program that measures the environmental performance of commercial buildings and allows them to improve their energy consumption, operation costs and waste management. This prestigious certification is awarded to firms that are leaders in ecological building management. CAE is one of 10 firms in Quebec to receive this certification in 2007.

RoHS compliance
The European RoHS (Reduction of Hazardous Substances) and WEEE (Waste of Electrical and Electronic Equipment) directives are designed to control the increase in electronic waste. The RoHS directive prohibits the use of six substances in new electrical and electronic devices, while the WEEE directive obliges manufacturers to recover, reuse and recycle electronic waste. All CAE products within the scope of the law respect the European directives.

Environment programs currently running in CAE’s Montreal operations:

• Recycling: Programs for recycling of dead batteries, glass and plastic bottles, metal cans, paper and cardboard, valorization of old oils and wood, and recovery of metals are now in place. The introduction of these various recycling programs has had a tremendous effect on the volume of garbage sent to landfill. Over 70 per cent of the total residual materials produced by the main site are recycled.
  
  
• Management of residual materials: In Quebec, the main goal of the Quebec Residual Materials Management Policy 1998-2008 is to recover over 65 per cent of residual materials that can be reclaimed. CAE exceeds this standard with a current reclaim rate of 70 per cent of potentially reclaimable materials. This performance has been achieved thanks to constant efforts to reduce the environmental impact of our activities, to employee information and awareness programs, and to measures set up for the collection of recyclable residues.
  
  

  For the 2008 fiscal year, our waste segregation process has enabled the company to reduce the quantity of waste sent to landfill sites by 43% compared with the quantity of waste buried in 2003. CAE's goal is to reduce the amount of waste by 20% for the next two years. This goal can be achieved by implementing good packing material segregation, recycling and reuse practices. As part of its corporate waste reduction policy, in March 2008 CAE decided to stop using polystyrene at its head office in Montreal.

• Residue exchange: A residue exchange system has been implemented that promotes internal reuse of production material that would have otherwise been scrapped.
  
  
• Energy and gas
  In February 2008, an energy efficiency study was performed by an external firm. As a result, the company approved the following measures to improve energy efficiency:

• Installing a control system to vary the air flow evacuated by paint booths
• Recovering the heat rejected by cooling towers and electrical rooms
• Repairing the roof
• Installing a closing system for the lighting fixtures in the factory walkways.

• CAE developed a chemical analysis and maintenance program for plating baths, which has prolonged the useable life of the chemicals by 500%. Plating baths are used to plate parts to protect them from corrosion.
  
  
• Introduction of water based cleaning to replace the petroleum solvent cleaning process that was used to clean parts prior to paint application.
  
  
• The application of inspection programs for our pollution abatement equipment (waste water treatment facility, fume scrubbers, etc) surpasses the legislative requirements significantly and has been described as exemplary by government inspectors.
  
  
• The company has been recycling used fluorescent tubes for many years. From 2001 to 2008, an estimated 50,000 tubes were recycled. Furthermore, we only use fluorescent tubes low in mercury.
  
  
• More than 60% of all hazardous residual material (hazardous waste) is recycled. Recycling these waste products into new material is a company priority, regardless of cost.
  
  

Communications
The environment committee is responsible for an employee awareness program on conservation of the environment and pollution prevention. The committee's mission is to advise and recommend mechanisms, programs and policies to reduce the production of non-recyclable and unusable waste by all CAE employees.