Environment

Meeting or exceeding legal requirements for environment, health and safety. 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. 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. CAE is developing and implementing an environmental management system based on the ISO 14001 international model for its 1 million square-foot manufacturing plant in Montreal. This management system has guided the company in its efforts to improve performance in several areas, notably waste management, water and energy consumption and pollution prevention. Waste management In January 2001, CAE launched a new recycling program for paper and cardboard, glass, plastic, wood, metal as well as used batteries. Used eyeglasses are also collected to aid organizations in developing countries. The introduction of these various recycling programs has had a tremendous effect on the volume of garbage sent to landfill. In recent years, CAE's Montreal facility has achieved the following recycling rates: 64% for non-hazardous solid waste 67% for hazardous waste 50% reduction in the amount of garbage being landfilled CAE has several other programs in place to reduce garbage production at its source: A virtual print room where engineers can view drawings directly on their computer screens instead of printing these large documents on paper. Reduction in the use of styrofoam cups with the "Take a break from Styrofoam" campaign where CAE announces that it is cheaper to buy coffee in a reusable cup. A used paper recovery system that produces paper note pads from old drawings. A recycling program for batteries where employees can deposit their used batteries in 40 bins located throughout the company. The program is open to all battery types, whether they are CAE batteries or batteries brought from home, or even car batteries. The cost of this program is fully absorbed by CAE. Water Despite having almost doubled in size, CAE reduced its water consumption by 58% in twelve years. Through the introduction of several programs and projects, water consumption went from 239 906 cubic metres a year (52.8 million gallons) for 2 200 employees, to 100 467 cubic metres (22.1 million gallons) for more than 3 500 employees. In 1998 CAE received Environment Canada's Biosphere Award for excellence in water-saving efforts. Energy CAE has undertaken several programs to reduce its energy consumption by at least 10%. It was successful in reducing its consumption by about 15.7% or 7.8 million kWh annually-the equivalent of 650 households. The company will use the results of an energy audit performed by a firm recognized by the Quebec government to guide it in its efforts to reduce consumption by another 10% next year. CAE was a finalist for the 2003 "Energy Efficiency Recognition Award" given by the provincial Energy Efficiency Agency and the St-Laurent Chamber of Commerce and was nominated for the AQME (Association québécoise pour la maîtrise de l'énergie) Energia Award. Pollution prevention In the last 10 years, CAE has undertaken several projects and process modifications to reduce and prevent pollution: 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. The total elimination of four trichloroethylene vapour degreasers that consumed very large volumes of water and emitted several tons of this greenhouse gas chlorinated solvent. The introduction of water based cleaning to replace the petroleum solvent cleaning process that was used to clean parts prior to paint application. The exclusive use of HVLP (High Volume, Low Pressure) paint spray guns for painting operations. These HVLP spray guns are twice as efficient as conventional guns which results in lowered emissions and reduced material consumption. The substitution of our most commonly used paint for a less harmful and flammable substitute that was specifically developed for our use by the PPG paint company. The switch from halogenated solvent based circuit board cleaning to a closed loop water cleaning system that recovers and recycles 100% of the water. This was done years before it was a legal requirement. 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. 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. The company has been recycling used fluorescent tubes for over ten years-that's more than 100,000 tubes in ten years. Furthermore, we only use fluorescent tubes low in mercury.

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