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Toronto Hydro 2014 CR Report_FINAL

$56.1 M $6.0 M $178.7 M TORONTO HYDRO 2014 CORPORATE RESPONSIBILITY REPORT 37 INTRODUCTION MATERIALITY AND STAKEHOLDER ENGAGEMENT OUR WORKFORCE SUSTAINABLE BUSINESS AND OPERATIONS OUR ENVIRONMENTAL FOOTPRINT SUPPORTING OUR COMMUNITY GOVERNANCE AND ETHICS G4-LA14 Screening our suppliers As of September 2014, most new suppliers are subject to a competitive bidding process that includes labour practices selection criteria. To help ensure that our suppliers are following responsible labour practices, we request the following information during the competitive bidding process: • Supplier’s corporate policies and procedures • Location of the supplier’s workforce — we follow up with more specific questions if we discover that employees performing the services are located offshore or the supplier has failed to provide appropriate documentation. Supplier environmental assessment Corresponds with Toronto Hydro’s Material Aspect: Material Selection and Usage To promote environmental sustainability along the supply chain, as of September 2014, all new suppliers selected through our RFP process must complete Toronto Hydro’s environmental assessment. This requires: • Information about recycling programs, sustainability programs, and environmentally-friendly products and packaging • Commitment of continuous improvement of supplier’s sustainability initiatives • Information about the organization’s ethics and governance Pole tops, submersibles and padmount transformers The manufacturers of our pole top, submersible and padmount transformers accept the return of decommissioned units. Toronto Hydro receives a scrap value of the units and the manufacturer refurbishes and reuses key components to manufacture new products. Network protectors The manufacturer of our network protectors refurbishes components from decommissioned units that are still operational. It provides Toronto Hydro with the opportunity to buy back the restored units with full warranty at a lower price. Using local suppliers The majority of our contracts are awarded to vendors within Ontario and the GTA, as outlined below. • 97% of total dollars spent were on Canadian goods and services • 96.2% of our budget was spent on goods and services within the province of Ontario • 88% of total dollars spent were on goods and services from Toronto and the GTA G4-EN32 2014 Regional Spend — Canada Only Suppliers ONTARIO REST OF CANADA GTA $433.4 M TORONTO Working with manufacturers to reduce waste


Toronto Hydro 2014 CR Report_FINAL
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