Reporting

FOOTNOTES/METHODOLOGY

1. Environmental data is reported for greenhouse gas (GHG) emissions, energy, water and waste for the period from January 1^st to December 31^st of each reporting year. The data covers the business operations of Power Corporation of Canada and those of its wholly owned subsidiary Square Victoria Real Estate (together referred to as “Power Corporation” for this environmental data disclosure and the footnotes referenced below). It also includes Power Corporation of Canada’s major publicly traded operating companies, Great-West Lifeco (Lifeco) and IGM Financial (IGM), which represent approximately 98% of Power Corporation of Canada’s consolidated assets. Together, Power Corporation, Lifeco, and IGM are referred to as the “Power Group” for this environmental data disclosure and the footnotes referenced below.
2. The changes presented below impacted the reporting of 2022 GHG and environmental data.
     - In 2021, Power Corporation divested a warehouse asset which it now leases, resulting in the emissions associated with the warehouse being transferred from Scope 1 and 2 to Scope 3 – Category 8 (Upstream leased assets) in 2022.
     - In 2021, IGM divested its owned corporate jet, resulting in the emissions associated with the jet fuel being transferred from Scope 1 to Scope 3 – Category 6 (Business travel) from baseline year 2013 to 2021. This transfer of emissions allows for consistency and comparability of emissions.
     - In 2022, 17 properties were divested from IGM’s Real Property Fund, an investment fund, resulting in the removal of the emissions associated with these properties from Scope 3 – Category 15 (Investments).
3. Third-party verification was conducted on GHG emissions data for the 2022 reporting year by PricewaterhouseCoopers (PwC) to a limited level of assurance in accordance with the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements (ISAE 3410). Where less than 100% of the data was verified, the percentage of verified data is calculated and reported based on the assured data from the Power Group inventory.
4. The 2013 reporting year was selected as the baseline for measuring environmental performance as it was the first year when consolidated data was available within the Power Group.
5. GHG emissions were measured in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (GHG Protocol), using the financial control consolidation approach covering the Power Group as outlined in footnote (a) above. GHG emissions were quantified using the GHG Protocol calculation approach (as opposed to the direct measurement approach), which consists in multiplying GHG activity data by the applicable emission factor(s) (EFs) and global warming potentials (GWPs). Where available, primary activity data was used from third parties’ invoices or reports. Where primary data was unavailable, secondary data was used, such as industry-average data, proxy data, and other generic data, as relevant. EFs were mainly sourced from government agencies, including the National Inventory Report 1990-2021: Greenhouse Gas Sources and Sinks in Canada, Part 2 and Part 3 (Ottawa: Environment and Climate Change Canada, 2023); the Greenhouse Gas Reporting: Conversion Factors for Company Reporting 2022 (UK Government: Climate Change and Energy); the Emissions Factors for Greenhouse Gas Inventories (U.S. Environment Protection Agency
   March 2023); and the Sustainable Energy Authority of Ireland: Energy in Ireland 2022 Report. The GWPs were based on the International Panel on Climate Change (IPCC) Fourth Assessment Report. The relevant constituent GHG identified in the United Nations Framework Convention on Climate Change (UNFCC) and the Kyoto Protocol were applied, aggregated, and converted into units of carbon dioxide equivalent (CO₂e) using the applicable GWP values.
6. Any change in GHG emissions data during the latest reporting year, including acquisitions and divestitures of corporate assets, resulted in a recalculation of baseline and past year emissions.
7. Absolute GHG emissions generated during the reporting periods are expressed in metric tonnes of CO₂e (tCO₂e) and disclosed as classified by Scope 1, 2 and 3 and aggregated accordingly.
8. The year-over-year percentage change is reported based on the aggregated Scope 1 and 2 GHG emissions.
9. Scope 1 direct GHG emissions were calculated using primary data consisting of consumption volumes from invoices provided by third-party suppliers, including natural gas, kerosene, diesel from back-up generators, vehicle fuel, and refrigerants. Where invoices were unavailable, secondary data was used to extrapolate emissions based on historical data for the years 2013 to 2018, and on sector averages for the years 2019 to 2022. The portion of Scope 1 GHG emissions calculated using secondary data is as follows: 4% in 2013, 3% in 2018, 2% in 2019, 17% in 2020, 3% in 2021 and 5% in 2022. Note that the reported Scope 1 GHG emissions for IGM are approximately 4 tCO₂e, which IGM calculated by deducting 613 tCO₂e from its gross Scope 1 emissions of approximately 617 tCO₂e in 2022 due to the purchase of 312,918 m³ of green natural gas to match its owned building natural gas consumption. See footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 1 GHG emissions.
10. Scope 2 indirect location-based GHG emissions were calculated using primary data consisting of purchased electricity and steam consumption volumes from invoices provided by third-party suppliers. Where invoices were unavailable, secondary data was used to extrapolate emissions based on historical data for the years 2013 to 2018, and on sector averages for the years 2019 to 2022. The portion of Scope 2 location-based GHG emissions calculated using secondary data is as follows: 4% in 2013, 4% in 2018, 0% in 2019, 25% in 2020, 10% in 2021 and 3% in 2022. Scope 2 indirect market-based GHG emissions were consolidated for the Power Group in 2022, amounting to approximately 12,017.35 tCO₂e, of which 82% was calculated from supplier-specific EFs. Lifeco supplier-specific EFs relate to purchases of renewable and low-carbon electricity from local utilities in Canada, the United States, the United Kingdom, and Ireland. IGM supplier-specific EFs relate to purchases of low-carbon electricity from local utilities in Canada, specifically Manitoba Hydro. Power Corporation used location-based Scope 2 EFs for the calculation. Note that the Scope 2 market-based GHG emissions data is not third-party verified. Scope 2 location- and market-based GHG emissions were quantified in accordance with the Greenhouse Gas Protocol: Scope 2 Guidance (2015). See footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 2 GHG emissions.
11. Scope 3 indirect GHG emissions are disclosed within the respective categories described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011). Note that Scope 3 emissions data is reported based on data availability and/or relevance of the respective categories to the Power Group, consistent with Lifeco’s and IGM’s reporting, and described below in footnotes (l), (m), (n), (o) and (p). Additional Scope 3 data for 2022 is disclosed in Power Corporation of Canada’s response to the 2023 CDP Climate Change questionnaire.
12. GHG emissions reported under Scope 3 – Category 4 (Upstream transportation and distribution) relate to the distribution of water to and from Lifeco’s and IGM’s owner-occupied properties. This data excludes water-related emissions from Power Corporation (data not available), from leased properties (reported under Scope 3 – Category 8), and from investment properties (consistent with the Partnership for Carbon Accounting Global GHG Accounting and Reporting Standard Part A: Financed Emissions covering Scope 1 and 2 emissions (PCAF Standard)). GHG emissions were calculated using primary data consisting of water consumption volumes from invoices provided by third-party suppliers. Where invoices were unavailable, secondary data was used to extrapolate emissions based on historical data for the years 2013 to 2018, and on sector averages for the years 2019 to 2022. Note that in 2023, electricity EFs were revised to only report emissions from the transportation and distribution of water. See footnote (e) for further information on secondary data sources, EFs and GWPs, as well as footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 3 GHG emissions.
13. GHG emissions reported under Scope 3 – Category 5 (Waste generated in operations) relate to the waste generated at Power Corporation’s, Lifeco’s and IGM’s owner-occupied properties, which includes waste sent to landfill, to waste-to-energy plants, and to recycling facilities, where relevant. This data excludes waste-related emissions from leased properties (reported under Scope 3 – Category 8), and from investment properties (consistent with the PCAF Standard). GHG emissions were calculated using primary data consisting of waste volumes from invoices and waste disposal method diversion reports provided by third-party contractors. Where invoices or reports were unavailable, secondary data was used to extrapolate emissions based on historical data for the years 2013 to 2018, and on sector averages for the years 2019 to 2022. Note that the following specific waste-to-energy EFs were applied, as relevant: Province of Ontario: The York Durham Energy Centre Correspondence, April 2021 (non-biomass emissions and tonnage only); and Province of British Columbia: Metro Vancouver Recycling and Solid Waste Management Program, 2021 Report and the Industrial Facility GHG Reporting Hub at https://www2.gov.bc.ca/gov/content/environment/climate-change/data/industrial-facility-ghg (filter by facility). See footnote (e) for further information on secondary data sources, EFs and GWPs, as well as footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 3 GHG emissions.
14. GHG emissions reported under Scope 3 – Category 6 (Business travel) relate to air and ground business travel within the Power Group. GHG emissions were calculated using primary data from reports provided by third-party suppliers and applying the fuel-based, distance-based and spend-based quantification methods. Where primary data was unavailable, secondary data was used to extrapolate historical emissions. See footnote (e) for further information on secondary data sources, EFs and GWPs, as well as footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 3 GHG emissions.
15. GHG emissions reported under Scope 3 – Category 8 (Upstream leased assets) relate to Power Corporation’s leased real estate assets; Lifeco’s external (third-party managed) leased field offices; Great-West Life’s, London Life’s and Canada Life’s leased office spaces for employees in Canada; IGM’s leased corporate properties and IG Wealth Management leased region offices. GHG emissions were calculated using primary data consisting of energy, water and waste volumes provided by property managers. Where data was unavailable, secondary data was used to extrapolate emissions based on real estate sector averages. See footnote (e) for further information on secondary data sources, EFs and GWPs, as well as footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 3 GHG emissions.
16. GHG emissions reported under Scope 3 – Category 15 (Investments) relate to investments properties in the Lifeco General Account, the Lifeco segregated real estate funds (GWL Canadian Real Estate Fund No.1 and London Life Real Estate Fund), and IGM’s IG Real Property Fund. The GHG emissions from investments were informed by the PCAF Standard and calculated using primary data consisting of energy consumption volumes provided by property managers. Where primary data was unavailable, secondary data was used to extrapolate emissions based on real estate sector averages. See footnote (e) for further information on secondary data sources, EFs and GWPs, as well as footnote (b) for further information on changes during 2022 that impacted the reporting of Scope 3 GHG emissions. Also note that other 2022 GHG emissions from investments are reported in Power Corporation of Canada’s response to the 2023 CDP Climate Change questionnaire; these figures are not third-party verified.
17. Emission intensity data is reported based on total Scope 1 and 2 location-based GHG emissions.
18. Energy data is reported in accordance with the GRI Standards: 302 Energy (2016).
19. “Energy consumed within the group” relates to energy consumed from the activities owned and controlled by the Power Group outlined in footnote (a), using a financial control approach. “Energy consumed outside the group” refers to energy consumed from activities not owned or controlled by the Power Group, covering leased and investment properties defined in footnotes (o) and (p) respectively.
20. Direct energy consumed relates to non-renewable and renewable energy from fuels covering natural gas, kerosene, gasoline. and diesel. Indirect energy includes purchased electricity, chilled water, and steam.
21. Renewable direct energy relates to the green natural gas certificates procured from Bullfrog Power by IGM, relative to the total direct energy used by all corporate properties. Renewable indirect energy relates to electricity procured from low-carbon sources (including hydropower electricity in the Canadian Provinces of Ontario, Québec, British Columbia and Manitoba, as well as steam in the Canadian Provinces of Ontario and British Columbia), relative to the total indirect energy used by all corporate properties.
22. The energy intensity ratios include both direct and indirect energy consumed within the Power Group. See footnote (t) for additional information on direct and indirect energy.
23. Waste data is reported in accordance with the GRI Standards: 306 Waste (2020).
24. “Waste generated within the group” relates to waste generated from the activities owned and controlled by the Power Group outlined in footnote (a), using a financial control approach. “Waste generated outside the group” relates to waste generated from activities not owned or controlled by the Power Group, covering leased and investment properties defined in footnotes (o) and (p) respectively.
25. Waste volumes and waste disposal methods were calculated and determined using primary data consisting of waste volumes from invoices and waste disposal method diversion reports provided by third-party contractors. Where invoices or reports were unavailable, secondary data was used to extrapolate waste volumes based on the previous months’ waste category volumes.
26. Water data is reported in accordance with the GRI Standards: 303 Water and Effluents (2018).
27. “Water withdrawn within the group” relates to water withdrawn by third-party municipal suppliers and consumed for the activities owned and controlled by the Power Group outlined in footnote (a), using a financial control approach. “Water withdrawn outside the group” relates to water withdrawn by third-party municipal suppliers and consumed for activities not owned or controlled by the Power Group, covering leased and investment properties defined in footnotes (o) and (p) respectively.
28. Water withdrawn volumes were calculated using primary data consisting of water volumes from invoices provided by third-party suppliers. Where invoices were unavailable, secondary data was used to extrapolate water volumes based on historical data for the years 2013 to 2018, and on sector averages for the years 2019 to 2022.
29. Water intensity ratios are based on the square footage of the buildings covered “within the Power Group” as outlined in footnote (a) above, and “outside the Power Group” relating to leased and investment properties defined in footnotes (o) and (p) respectively.