ESG and
Managing Responsibly
at BOMBARDIER and TELUS
Submitted in partial fulfillment of the requirement for MB 8013, Managing Responsibly
Winter 2022
March 20, 2022
1
1.0 Foundational ESG-Related Information About Bombardier and TELUS
1.1 Background company information about Bombardier and TELUS
Bombardier
Products / services offered
Business jet manufacturing and
aftermarket services related to
these jets1
Annual revenue
Number of employees
HQ location (city, province)
# of operational units
$6.085 billion3
13,8005
Dorval, Quebec, Canada7
19
TELUS
Mobile solutions, healthcare tech,
agricultural solutions, home and IT
security, home phone, business and
IT, TV, internet,2
$17,258 billion4
78,1006
Vancouver, BC, Canada8
5 (4 Cda/1 non-Cda)10
1
Bombardier Inc., 2021 Financial Report (2022), accessible from: https://bombardier.com/system/files/financialreports/2022-02/Bombardier-2021-Financial-Report-en.pdf (accessed March 16, 2022), at p. 120.
2
TELUS Inc., Let's make the future friendly, together | TELUS (2022), accessible from
https://www.TELUS.com/en/about (accessed March 16, 2022).
3
Bombardier Inc., 2021 Financial Report (2022), accessible from: https://bombardier.com/system/files/financialreports/2022-02/Bombardier-2021-Financial-Report-en.pdf (accessed March 16, 2022), at p. 122.
4
TELUS Inc., TELUS Corporation Consolidated Financial Statements December 31, 2021 (2022), accessible from:
https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00011998&issuerType=03&projectNo=03336
979&docId=5132099 (accessed March 16, 2022), p. 5.
5
Bombardier Inc., 2021 Financial Report (2022), accessible from: https://bombardier.com/system/files/financialreports/2022-02/Bombardier-2021-Financial-Report-en.pdf (accessed March 16, 2022), at p. 1.
6
TELUS Inc., Annual Report 2020 (2021), accessible from:
https://assets.ctfassets.net/rz9m1rynx8pv/RhDeVJUMvjqrFwVycTU5L/9465279e0154bccef0d00c926b3794bf/TEL
US_2020_annual_report-acc.pdf (accessed March 16, 2022), p. 34.
7
Bombardier Inc., Annual Information Form 2021 (2022), accessible from:
https://bombardier.com/system/files/financial-reports/2022-02/Bombardier-inc-Annual-Information-Form-2021en.pdf (accessed March 16, 2022), at p. 9.
8
SEDAR, TELUS Corporation Profile (2022), accessible from
https://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00011998 (accessed March 16,
2022).
9
Bombardier Inc., 2021 Financial Report (2022), accessible from: https://bombardier.com/system/files/financialreports/2022-02/Bombardier-2021-Financial-Report-en.pdf (accessed March 16, 2022), at p. 1.
10
Bombardier Inc., 2021 Financial Report (2022), accessible from: https://bombardier.com/system/files/financialreports/2022-02/Bombardier-2021-Financial-Report-en.pdf (accessed March 16, 2022), at p. 1.
2
1.2 Bombardier and TELUS definitions of social responsibility
Bombardier defines social responsibility through the lenses of people environment, communities, and
responsible business.1 It emphasizes the importance of developing what it describes as a people-centric
culture, emphasizing health and safety, talent management, and diversity and inclusion as key elements
of this.2 It identifies the importance of mitigating the company’s negative impact on the environment.3
Regarding its community objectives, it highlights education, environmental sustainability, and
stakeholder engagement as key priorities.4 The responsible business component of this definition
emphasizes compliance and high ethical standards throughout the organization. 5 Appendix 1 has the
full language of Bombardier’s definitions.
TELUS segments social responsibility into its social purpose (high impact) and foundational (low-medium
impact) priorities. It consults with stakeholders to identify strategy and priorities. Its relevant social
purpose priorities emphasize caring for the planet by finding sustainable business solutions, improving
access to healthcare through innovation, and increasing access to technology for Canadians. Its
foundational priorities focus on growing sustainable communities and Canada’s digital economy,
fostering inclusion and diversity, improving supply chain sustainability, and keeping customer data
secure.6 Appendix 2 has the full language of TELUS’ definitions.
Whereas the ISO26000
definition of CSR specifies
that socially responsible
behaviour by an
organization:
According to Bombardier…
According to TELUS…
1
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022).
2
Bombardier Inc., People | Bombardier (2022), accessible from https://bombardier.com/en/sustainability/people
(accessed March 17, 2022).
3
Bombardier Inc., Environment | Bombardier (2022), accessible from
https://bombardier.com/en/sustainability/environment (accessed March 17, 2022).
4
Bombardier Inc., Communities | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/communities (accessed March 17, 2022).
5
Bombardier Inc., Responsible Business | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/responsible-business (accessed March 17, 2022).
6
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 14.
3
Being transparent and
ethical in its decisionmaking;
Contributes to sustainable
development, health and
the welfare of society;
Takes into account the
expectations of
stakeholders;
“High standards of ethical conduct and a
strong values-based corporate culture
define how we conduct ourselves.”1
“Earning and maintaining customers’
trust by employing rigorous privacy
and security practices.”
“By applying innovative technologies
to improve access to healthcare, we’re
“Our vision is to be the leader
helping Canadians live healthier lives.
of sustainable aviation with the
By actively working to focus on
most advanced and
sustainable solutions across our
environmentally responsible products.
business, we’re helping create a
Identifying, assessing and preventing
friendlier future for our children.
occupational risks is a top priority for
We’re helping ensure that all
Bombardier. We support education
Canadians have equal access to the
perseverance.2
technology they need to thrive in a
digital world.
“We support opportunities to maintain and “We reply on our stakeholders to
develop responsible business relationships provide a diversity of input to inform
with key industry stakeholders and shine as our sustainability strategy, validate
an active member of the business
the priorities and identify emerging
community.”3
issues.”
Is in compliance with
applicable law and
consistent with
international norms of
behaviour
“Strict compliance… defines how we
conduct ourselves… We see respecting and
protecting human rights as an ethical and
business imperative.”4
“Earning and maintaining customers’
trust by employing rigorous privacy
and security practices.”5
Is integrated throughout
the organization and
practiced in its
relationships.”
“We see respecting and protecting human
rights as an ethical and business imperative
and we expect all our stakeholders to abide
to the same principles. We continue to
foster an open dialogue between
TELUS’ lists Innovating in healthcare,
and Empowering Canadians with
connectivity among its Social Purpose
priorities. These are directly linked
with services offered by TELUS,
11
Bombardier Inc., Responsible Business | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/responsible-business (accessed March 17, 2022).
2
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022).
3
Bombardier Inc., Environment | Bombardier (2022), accessible from
https://bombardier.com/en/sustainability/environment (accessed March 17, 2022).
4
Bombardier Inc., Responsible Business | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/responsible-business (accessed March 17, 2022).
5
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 14.
4
governments, the public and the business
community”1
suggesting integration, though it is not
explicitly mentioned.
Bombardier’s definition of sustainability is robust and comprehensive but with areas in which it is
lacking. It strongly emphasizes the importance of ethical conduct across the company noting that strict
compliance and a values-based culture are critical. It also makes specific mention of preventing
occupational risks and making investment in education as being important. The definition lacks,
however, mention of transparency and adequate articulation of how stakeholders are considered.
While Bombardier’s definition does well to note the expectations of stakeholders and indicates that the
company engages with them, it is not explicit in stating that the company takes stakeholder
expectations into consideration. Finally, while the company is clear that ethical behaviour and human
rights are of high importance, it does not clearly express that all aspects of its sustainability definition be
integrated throughout the organization and its value chain.
TELUS describes its CSR policies through the lens of Social Impact. In its foundational priorities, TELUS
lists the importance of strong privacy and security practices under the umbrella of Privacy,
Transparency, and Regulatory Compliance but does not specifically identify the importance of ethics and
transparency in its decision-making. Its definition includes mention of helping foster greater health,
connectivity, and community development as means of improving social welfare, though the health
aspect of this is seems to emphasize its investment in TELUS health services. It clearly defines how
stakeholders provide input that drives the development of priorities and strategies which is a strength.
TELUS makes little mention of compliance with law and international norms in its definition, which
represents a clear gap. While there is also no specific statement of how this is integrated throughout
the company and into relationships at TELUS, connectivity and healthcare are business objectives of the
company. Nevertheless, this is a gap in the TELUS definition of Social Impact.
The approach in defining social responsibility at Bombardier more clearly emphasizes the importance of
managing its environmental impact that that of TELUS. While TELUS discusses sustainability in its supply
chain, this is part of what the company considers to in be medium/low impact portion of its priorities.
The less explicit description of environmental impact is likely a function of the very different sectors in
which these companies find themselves and the need for Bombardier to curb what is likely a greater
adverse environmental impact across its supply chain. The two companies differ greatly in how they
describe the importance of health; Bombardier seeks to improve health and safety in the workplace,
while TELUS focuses on the impact it can have through expanding the reach of its TELUS Health service.
Bombardier also makes education an explicit area for investment under its community heading, which
given the company’s need for a highly skilled workforce. Community is important to TELUS, but seeks to
drive this through what it describes as economic impact. Broadly, the definition at TELUS is less specific
and more integrated with its business objectives, as indicated by the listing of healthcare and
11
Bombardier Inc., Responsible Business | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/responsible-business (accessed March 17, 2022).
5
connectivity as being among its key social purpose priorities. Nevertheless, TELUS does make more
concrete reference to the value of integrating stakeholder input into its definition thank Bombardier.
These latter points suggest that TELUS sees sustainability objectives as being more synonymous with
business objectives than Bombardier.
2.0 Key Corporate Governance aspects relevant to ESG activities at Bombardier and TELUS
A review of the board at Bombardier shows that there are no visible minorities and that four of the
twelve members are female.1 Appendix 3 lists this in greater detail. Bombardier previously had a board
of fourteen members, which was then comprised of one individual who self-identified as a visible
minority.2 At TELUS, the fourteen-person board is comprised of five women and two people of colour.3
Appendix 4 lists board members and their demographic categorization.
The Bombardier Board of Directors includes a Human Resources and Compensation committee. Among
other duties, this group is responsible for reviewing health and safety issues quarterly and conducts an
annual review of Ethics and Compliance reporting which includes employment equity, harassment, and
discrimination. Responsibility for sustainability oversight is not assigned to any committee on
Bombardier’s board.4 The Corporate Governance and Nominating Committee has the mandate to
oversee the continued development of Bombardier’s Code of Ethics and the company’s good
governance. It is also responsible for monitoring Bombardier’s ESG plan.5 TELUS’ Board of Directors’
Corporate Governance Committee is responsible for proving assistance to the Board in “fulfilling its
oversight responsibilities regarding the effectiveness of the Company’s corporate governance policies
1
Bombardier Inc., Board of Directors (2022) accessible from https://bombardier.com/en/who-we-are/ourgovernance/board-committees-and-charters (accessed March 18, 2022).
2
Bombardier Inc., Diversity Policy (2022) accessible from https://bombardier.com/en/who-we-are/ourgovernance/diversity-policy (accessed March 19, 2022).
3
Telus Inc., Board of Directors (2022) accessible from https://www.telus.com/en/about/investorrelations/corporate-governance/board-members-committees?linktype=ge-meganav (accessed March 18, 2022).
4
Bombardier Inc., Board Committees and Charters (2022) accessible from https://bombardier.com/en/who-weare/our-governance/board-committees-and-charters (accessed March 19, 2022).
5
Bombardier Inc., Bombardier Corporate Governance and Nominating Committee (2022) accessible from
https://bombardier.com/en/media/2806/download?attachment (accessed March 19, 2022) p. 3.
6
and procedures.”1 This committee is also tasked with ESG and sustainability oversight.2 The TELUS
Board of Directors also has a Human Resources and Compensation committee which covers health and
safety programs, labour relations, and business ethics and corporate conduct.3
At both Bombardier and TELUS, no specific committee has responsibility for sustainability or ESG alone.
Thus the top board executive at TELUS responsible for ESG is Mary Jo Haddad, Chair of the Human
Resources and Compensation Committee.4 At Bombardier, this falls under the purview of Douglas R.
Oberhelman, Chair of the Corporate Governance and Nomination Committee.5
Bombardier’s most senior person in charge of sustainability is Daniel Brennan, Senior Vice President,
People and Sustainability who is part of the firm’s executive team.6 The structure of Bombardier’s
sustainability team below Brennan is not apparent from sources available. At TELUS, Geoff Pegg is the
Head of Sustainability and Environment.7 The Sustainability and Environment Team reports to TELUS’
CFO.8 Appendix 5 shows how TELUS integrates this team into its organization.
In reviewing the boards of both Bombardier and TELUS, the lack of diversity in both is disconcerting.
Despite these similar challenges, TELUS shows slightly better diversity on its board than Bombardier,
1
Telus Inc., TELUS Board Policy Manual (2021) accessible from
https://assets.ctfassets.net/rz9m1rynx8pv/4J4Z6qDDgNFHCkjqLBf28Z/5bbb0e419338476ebda3749841626ca9/TEL
US_Board_Policy_Manual_-__English_Final_Nov_2021_.pdf (accessed March 19, 2022) Appendix F, p. 1.
2
Telus Inc., TELUS Board Policy Manual (2021) accessible from
https://assets.ctfassets.net/rz9m1rynx8pv/4J4Z6qDDgNFHCkjqLBf28Z/5bbb0e419338476ebda3749841626ca9/TEL
US_Board_Policy_Manual_-__English_Final_Nov_2021_.pdf (accessed March 19, 2022) Appendix F, p. 3.
3
Telus Inc., Telus Board Policy Manual (2021) accessible from
https://assets.ctfassets.net/rz9m1rynx8pv/4J4Z6qDDgNFHCkjqLBf28Z/5bbb0e419338476ebda3749841626ca9/TEL
US_Board_Policy_Manual_-__English_Final_Nov_2021_.pdf (accessed March 19, 2022) Appendix G, p. 5.
4
Telus Inc., Board members and committees (2022) accessible from https://www.telus.com/en/about/investorrelations/corporate-governance/board-members-committees (accessed March 19, 2022)
5
Bombardier Inc., Board Committees and Charters (2022) accessible from https://bombardier.com/en/who-weare/our-governance/board-committees-and-charters (accessed March 19, 2022).
6
Bombardier Inc., Daniel Brennan (2022) accessible from https://bombardier.com/en/who-we-are/ourleadership/daniel-brennan (accessed March 19, 2022).
7
Telus Inc., What it really takes to be a sustainability leader (2021) accessible from
https://www.telus.com/en/social-impact/blog/sustainability-leader (accessed March 19, 2022).
8
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 16.
7
both in terms of the representation of women and visible minorities. Appendices three and four show
categorize the Boards of both companies based on demographic values and show the extent to which
neither have fully executed on integrating diversity into their respective Boards of Directors. Similarly,
neither company has taken steps to give ESG oversight to a distinct committee within the board. TELUS,
however, better assigns responsibility in this area by having a specific part of the company take on the
ESG mantle. The presence of a clear structure at TELUS further highlights the extent to which the
company has better integrated the importance of ESG throughout the company. Bombardier,
conversely, has had recent challenges with corrupt practices in its business.1 Though the company has
restructured and may have mitigated its exposure to these issues, a full turnaround of a corporate
culture that has seen multiple corruptions accusations is difficult. In selling its Transportation division to
Alstom, Bombardier has simplified and streamlined its business, doubtless helping improve oversight
and transparency.2 In doing so, it follows the strong example of Siemens in the wake of its own
challenges with endemic corruption.
“In 2007, following the revelations of widespread problems with bribery, Siemens began the most
“extensive restructuring” of the company since 1989. By January 2008, the 15 Siemens’ divisions
were transformed into three sector groups: industry, energy and healthcare. The heads of the
three sectors now report directly to the CEO of Siemens. Other changes included reducing the size
of the managing board from eleven to eight members and eliminating two managing board
committees in order to direct business operations from [the] Managing Board” itself.”3
Though there were further business reasons for the decision to break up the company, Bombardier’s
move to sell its transportation division and reduce its board from 14 to 12 members, it helps serve the
ancillary objective of shoring up challenges with corruption at the company. Nevertheless, this quote
highlights the importance of making meaningful structural changes and mitigating complexity within a
firm when facing serious issues pertaining to governance. In order to handle the significant challenges,
it faced, Siemens took drastic steps to improve oversight and eliminate layers between management
and the problems at hand. Similarly, Bombardier, by divesting itself of a problematic Transportation
division, trimmed risk of further corruption and helped create a path to meaningful change in corporate
culture.
While TELUS does not suffer from similar issues pertaining to bribery and corruption, having reported no
cases of disciplinary action in this category, it can be argued that this is plausibly a function of corporate
1
Transparency International, CPI 2020: Five Cases of Trouble at the Top (2021) accessible from
https://www.transparency.org/en/news/cpi-2020-trouble-at-the-top-cases (accessed March 20, 2022)
2
Hemmerdinger, Jon, Bombardier plans restructuring as it transitions to aviation-only company (2020) accessible
from https://www.flightglobal.com/business-aviation/bombardier-plans-restructuring-as-it-transitions-to-aviationonly-company/140984.article (accessed March 20, 2022)
3
Webb, K. & Khan, Z. “The Siemens bribery convictions: what can we learn?” (2011) Anti-Corruption
Developments Review Vol 1 Issue 1 Winter 2011, p. 5 – 1.
8
culture but also of structure.1 The company’s robust tracking and reporting on discipline for breaches of
ethics in general far surpasses that of Bombardier and clearly demonstrates the company’s commitment
to strong governance and ethics.
3.0 Key Environmental Issue at Bombardier and TELUS
3.1 Most significant environmental issue facing the firm
At Bombardier, the most significant environmental issue that the firm faces is that of its total
Greenhouse Gas (GHG) emissions. The company has targeted a 25% reduction in GHG emissions by
2025 using output in 2019 as a baseline, adjusted for the significant restructuring on the company. This
target is the most aggressive reduction of factors contributing to the company’s environmental
footprint.2
TELUS has been identified as one of the most sustainable companies on the planet.3 Given that, it has
made significant strides in its industry and relative to other companies around the world with regard to
its environmental sustainability. Nevertheless, the company has identified achieving a target of 100%
energy coming from renewable sources by the year 2025. Set in place in 2019, the company reported a
2.9% year-over-year improvement in this target in 2020, a change.4 It fails, however, to report the total
amount of electricity being purchased from all sources and where this 2.9% change would place it along
that achieving its objective.
3.2 Why is identified 3.1 issue is “the most significant” environmental issue facing the company
Bombardier’s GHG emissions are identified as the most significant environmental issue facing the
company because of the difficulty it is evidently facing in curbing those emissions. Given the recent
restructuring, Bombardier and divestment of plants in Belfast, Morocco, Tucson, 0and West Virginia,
Bombardier identified emissions of 102.5 thousand tons of CO2 as the baseline on which it needs to
improve. While the company saw a significant reduction between 2019 and 2020 of 141.3 to 108.6 tons,
it identifies only the COVID-19 pandemic and the disruption it caused to operations as being the cause
1
TELUS Inc. 2020 ESG Data Sheet (2020) accessible from
https://assets.ctfassets.net/rz9m1rynx8pv/20Tc4sfEXJTZNQNYmkriR4/4a9f87e88a697b08728248565b150b26/TEL
US_ESG_Data_2021_MAR31_FINAL.pdf (accessed March 20, 2022) p. 1.
2
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 20.
3
Sokic, N., Corporate Knights top 100 includes 13 Canadian companies (2022) accessed from
https://sustainablebiz.ca/corporate-knights-top-100-includes-13-canadian-companies/ (accessed March 20, 2022)
4
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 30.
9
of this.1 The company’s inability to bring emissions down below its benchmark, let alone progress
towards the target of 76.9 thousand tons of C02 emissions is indicative of the challenges it faces. Given
the particular importance of reducing GHG emissions in order to combat climate change, this issue is
critical to the company’s status as a future sustainability leader.
As TELUS is a global leader in sustainability, the company’s decision to set this target suggests that it is
both bold and achievable, yet the absence of apparent tracking and reporting as to its progress towards
this goal and the paltry change represented by a 2.9% increase indicates that this is proving difficult for
the firm. Moreover, a review of historical renewable energy production in the form of Renewable
Energy Certificates indicates that this is an area in which the company has typically struggled to generate
meaningful progress. Though total renewable energy production increased from 20,308 eMWh in 2019
to 22,021 eMWh in 2020, this only roughly puts the company at the same levels as 2018 production.2
TELUS’ decision or inability to report total energy consumed from renewable sources, despite its
willingness or capacity to very specifically report both total energy consumption and renewable energy
production lead to the conclusion that this is an area in which it is struggling relative to target.
3.3 How is the firm addressing this issue
Addressing the issue of GHG emissions at Bombardier is being achieved through three primary measures
at the company. First, it states that some of its “main sites are now voluntarily participating in the
Wester Climate Initiative’s cap and trade system for Greenhouse Gas Emissions (GHG) allowances.”3
Second, it has increased its investment in R&D for greener aircraft, allocating over 50% of spend in this
area to this objective. Finally, it seeks to use sustainability aviation fuels wherever possible in its flight
operations.4
One of the key steps that TELUS is taking to address this issue of sourcing renewable energy as a total
percentage of consumption is through further investments in production. In 2020 the company signed
two new Power Purchase Agreements, doubling the current number it has in place. This will represent
capacity of 82 MW from solar power and 71 MW from wind power for the firm, all four of which are
1
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 21.
2
TELUS Inc. 2020 ESG Data Sheet (2020) accessible from
https://assets.ctfassets.net/rz9m1rynx8pv/20Tc4sfEXJTZNQNYmkriR4/4a9f87e88a697b08728248565b150b26/TEL
US_ESG_Data_2021_MAR31_FINAL.pdf (accessed March 20, 2022) p. 2.
3
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 20.
4
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 21.
10
based in Alberta. The renewable energy credits will both help in achieving carbon neutrality and
renewable energy objectives.1
3.4 In addition to the way the company is currently addressing it, what are two possible alternatives to
providing a solution to that issue?
In order to better meet its GHG targets for the year 2025, Bombardier would benefit from adopting a
more robust approach to disclosure. Unlike TELUS, Bombardier does not report emissions based on
their sources. Rather, GHG emissions appear as a single line item on the Bombardier ESG report. The
link between environmental reporting and performance would suggest that by implementing better
analysis and reporting of the company’s emission, Bombardier would be in a better position to first
understand then address these challenges.2 Second, it could adopt a more comprehensive and specific
plan to address GHG emission levels throughout the organization and across its supply chain. While the
company makes clear its efforts to develop more sustainable products, an important step given the
inherent carbon-intensity associated with aviation, it has expressed no concrete steps it might take to
get back on track in achieving its emissions goals, instead stating that the re-calibration of its production
lines due to COVID-19 was challenging.3
Beyond the current impact that TELUS is having the Albertan energy market through investment in
renewable energy generation, the company could adapt this approach to its operations in other
provinces. While the company’s head office is situated in Vancouver, operations outside of Western
Canada could nevertheless benefit greatly from this approach to renewable energy sourcing. TELUS has
identified these investments as helping the company be competitive not only in its sustainability
strategy but also in its financial performance relative to its competitors.4 Broadening this approach to
other jurisdictions, would, expanding on the company’s belief about the value of these agreements,
provide benefit to the company in attaining its sustainable and financial targets. Beyond this, one key
step that TELUS could take would be to clearly articulate its performance relative to target on sourcing
renewable energy as a percentage of its total consumption. While this may seem a softer approach with
1
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 33.
2
Bednárová M, Klimko R, Rievajová E. From Environmental Reporting to Environmental Performance
(2019). Sustainability.; 11(9):2549. accessible from https://doi.org/10.3390/su11092549 (accessed March 20,
2022)
3
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 20.
4
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 33.
11
less concrete steps towards improvement for the company, there is a clear link between reporting of
environmental performance and the actual achievement of said performance.1 This strongly suggests
that were TELUS to take on the responsibility of reporting its status relative to target of 100% of energy
coming from renewable sources, it would be helpful in achieve those.
3.5. What do you recommend is the best solution and why (comparing the firm’s approach with your two
suggested alternatives)?
In reviewing the situations of both TELUS and Bombardier, one broad recommendation can be applied
to both, albeit with specific tailoring to their respective situations. One the key factors associated with
improved environmental performance is in fact environmental performance. Bednárová et al. reach this
conclusion in their 2019 paper.
“Our study shows that the higher environmental reporting index is correlated with higher actual
environmental score. According to our findings, environmental reporting is not used as a
greenwashing tool to hide poor environmental performance as suggested in some studies.
Finally, the tested model shows that the main factors influencing actual environmental
performance are the region and environmental disclosure. The region might represent a certain
institutional context where companies try to legitimize their activities, aware of the fact they may
be benchmarked with their peers. However, it might also be a sign of a general improvement in
minimizing the adverse environmental impact in countries where a well-developed environmental
legislation is put in place. The positive effect of environmental disclosure on actual performance
adds to evidence that disclosure and transparency also matter.”2
While correlation should not be confused with causation, this relationship is intuitive and can be
exploited. In the case of Bombardier, a lack of reporting about the sources of GHG emissions makes it
difficult to grasp the source and thus effect meaningful change in the results. While the company’s
recent turmoil may make implementing further measures challenging, Bombardier’s former position in
2018 as a true leader of sustainability both in its industry and around the world suggest that the
company is capable of a higher standard.3
1
Bednárová M, Klimko R, Rievajová E. From Environmental Reporting to Environmental Performance
(2019). Sustainability.; 11(9):2549. accessible from https://doi.org/10.3390/su11092549 (accessed March 20,
2022)
2
Bednárová M, Klimko R, Rievajová E. From Environmental Reporting to Environmental Performance
(2019). Sustainability.; 11(9):2549. accessible from https://doi.org/10.3390/su11092549 (accessed March 20,
2022)
3
Bombardier Inc., Bombardier recognized as a leader in sustainability, named to Corporate Knights Global 100
Most Sustainable Corporations in the World Index (2019) accessible from
12
For TELUS, as current leader in sustainability, the lack of reporting on this important issue indicates,
both externally and internally, a possible lack of commitment in achieving this target. Attaining each
target is not feasible for all companies yet setting bold targets and demonstrating one’s progress
towards them is essential.
In comparing the two firms from the perspective of environmental governance, the abovementioned
quote does well to suggest core differences in performance. Despite the lack of data available on
renewable energy use, TELUS is substantially more detailed in providing information about both current
state and strategy when compared to Bombardier. Bombardier’s environmental plan is vaguer and lacks
in both strong reporting and ambitious goals. When coupled with the internal structures tasked with
managing environmental performance, a gap in the rigorousness of approach taken by the companies
begins to become apparent.
4.0 Key Social Issue at Bombardier and TELUS
4.1 What is the most significant social issue facing the company?
Bombardier’s primary social issue is one of lack of diversity. It is compounded by poor visibility created
by the inadequate measurement and reporting at the company, and this suggests a problem. While the
company has a low voluntary turnover rate of 4.5%, it has no data on underrepresented groups and will
not conduct an employee engagement survey until later in 2022 year. Furthermore, its workforce is
comprised of only 20.4% women.1
TELUS is a leader in Diversity and Inclusion and in 2020 was named one of Canada’s best Diversity
Employers.2 Nevertheless, the company has poor female representation relative to what one would
expect from a company of this stature.
4.2 Why is the identified 4.1 issue is “the most significant” social issue facing the company (evidence)
Bombardier has identified significant challenges in talent management as a social issue it is facing. In its
Annual Information Form, it lists skills shortages, demographic changes, increased competition for the
best people, maintaining effective recruiting strategies in key markets, and developing and retaining the
https://bombardier.com/en/media/news/bombardier-recognized-leader-sustainability-named-corporate-knightsglobal-100-most (accessed March 20, 2022)
1
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 50.
2
TELUS Inc., Diversity and Inclusion (2022) accessible from https://www.telus.com/en/about/diversity-andinclusion (accessed March 20, 2022)
13
best talent as key HR issues the company is facing.1 In essence, the company’s need for talented
individuals with the right education and training is difficult to meet. Given its poor reporting in the
aforementioned areas, and the absence of any racial diversity on its Board of Directors and leadership
team, diversity is an area in which the company must improve.2
For TELUS, there are few key indicators that highlight this problem. Women represent 36% of the
workforce at TELUS, but only 34% and 26% of management and executive positions, respectively.3
Furthermore, average training hours for women at TELUS are substantially lower than they are for men.
The average male employee at TELUS received 9.33 hours of training in 2020 whereas the average
female employee received only 5.73 hours.4 While there may be factors that influence this beyond
simply gender, the limited training received by female workers is a missed chance to provide better
opportunities for women in the workforce. Moreover, the substantially lower number of women in
executive positions relative to the total workforce is an issue.
4.3 How is the firm addressing the issue?
To address this issue, Bombardier has set a target of having over 30% women in management by 2025
and states that it intends to hire more from under-represented groups. It also indicates that it will begin
to measure the percentage of under-represented groups employed, though it does not provide a
timeline for executing upon this.5 It has signed on to the BlackNorth Pledge that commits the company
to targets aimed at ending systematic anti-Black racism among other objectives. The company has also
established a Diversity and Inclusion Ambassador network.6
1
Bombardier Inc., Annual Information Form (2022) accessible from
https://bombardier.com/system/files/financial-reports/2022-02/Bombardier-inc-Annual-Information-Form-2021en.pdf (accessed March 20, 2022)
2
Bombardier Inc., Our Leadership (2022) accessible from https://bombardier.com/en/who-we-are/our-leadership
(accessed March 20, 2022)
3
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 54.
4
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 53.
5
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 13.
6
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022) p. 33.
14
To manage gender gaps, TELUS tracks pay equity for women and has a Diversity and Inclusion Advisory
Board, though the position of chair for this board is unfilled.1 It has robust reporting on the number
ratio of employees by gender, and programs in place to help adjust to the incoming Pay Equity Act.2
4.4 What are two possible alternatives solutions to the 4.1 issue (In addition to the way the firm is
currently addressing it)?
Though the company has expressed an intent to begin measurement of under-represented groups in the
company, this is a modest and non-specific approach. One key step it can take is to ensure better
diversity on its Board of Directors. This would signal both inside and outside the company that
Bombardier’s commitment to diversity is meaningful and deeply seeded in the culture of the company.
Second, the company’s investments in community training and development could be better directed
directly supported the groups under-represented at Bombardier. By developing grassroots support in
scholarships and educational programs that promote diversity, Bombardier can effectively increase the
pool of talent form which in can draw and meaningfully improve its reputation within said group
To better address this issue, TELUS could implement broader voluntary job development training
programs targeted at increasing the number of women in more senior roles. Doing so would provide a
source of talent development in future positions and generate better opportunity for women at the
company. It could also take a more aggressive approach to ensuring gender diversity in senior positions
by explicitly making this an objective at the company. TELUS has shown an ability to make bold goals
and achieve meaningful progress towards them. By explicitly incorporating a goal of strengthening the
number of women in executive positions, the company could make real change.
4.5 What do you recommend is the best solution and why (comparing the firm’s approach with your two
suggested alternatives)?
At Bombardier, both recommendations are important and necessary for the company going forward.
Currently, the stated goal of measuring diversity in the workplace at some point in the future is deeply
inadequate to address what is possibly a serious issue. A complete lack of racial diversity on its board is
a very serious gap that needs to be filled. Beyond that, the talent management challenges that the
company faces cannot be solved with simple, short-term fixes. By making targeted investments in
education for under-represented groups at the company, Bombardier can help stimulate employee
engagement, which it has yet to measure, while also improving its hiring pool.
1
TELUS Inc., Diversity and Inclusion (2022) accessible from https://www.telus.com/en/about/diversity-andinclusion (accessed March 20, 2022)
2
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 53.
15
Though TELUS has been lauded as a strong supporter of diversity, the gap in executive representation by
women and the substantially lower amount of training undertaken is disconcerting. Promoting training
for all TELUS employees that would help them advance in their careers could stimulate improvement in
both areas, as it would help bridge the relative gap in hours of training received whilst simultaneously
helping prepare women for more senior roles at the company.
In comparing Bombardier and TELUS with regard to their social governance, it is apparent that TELUS
takes more progressive and holistic approach. A thorough review of the company’s Sustainability
Report shows the deep commitment to strong social governance at the company, both in ways that are
functionally beneficial to TELUS and ways that are generally supportive of its employees and their
welfare. Using the framework and concept of isomorphism and its impact on the behaviour of
company’s one could argue that TELUS is the creator of conformist pressures with regard to social
governance and Bombardier is the recipient of this pressure.
“The combination of business conduct-oriented information disclosure activities of intergovernmental bodies, governments, non-state standards bodies, stock exchanges, investors,
industry associations, individual businesses, providers of ESG research and ratings services, and
non-governmental organizations described earlier in this report can assist in creating an
isomorphic institutional environment that can stimulate good business behaviour.”1
The exposure of companies to the metaphorical shapes of others influences how they view and in turn
mould themselves. In the case of TELUS, the decade long history of Sustainability reporting along with
strong policies and reporting on diversity suggest that the company is itself exerting more pressure than
it might feel. Given the turmoil in the company, Bombardier’s lack of leadership on these issues is
understandable but might contain a more reactive approach to social governance. The company’s
stronger emphasis on talent management and health and safety also point to a self-serving attitude
towards social governance, with other measures around diversity possibly in place to appear more
conformist when measured against the morphs of other firms.
5.0 Comparing the overall ESG Governance Approaches of Bombardier and TELUS
5.1 Identify and discuss the three key distinctions between the overall ESG approaches of the two firms
you have been assigned
In reviewing the companies assigned, three fundamental differences are apparent between the two in
how they approach ESG: corporate structure, reporting, and purpose.
While the differences in corporate structure may be modest, when considered at the outset of this
assignment, in considering the other distinctions between TELUS and Bombardier, they are more
1
Webb, K., The Potential and Limitations of Structured Approaches to ESG Information Disclosure as part of an
Overall Approach to Promotion of Corporate Social Responsibility: Understanding the Canadian Context (2021)
(accessed March 20, 2022)
16
significant. Simply put, TELUS has a Head of Sustainability and Environment who reports directly to the
executive leadership team. Though Bombardier has a member of its team with the dual responsibility
for HR and Sustainability, the clear reporting at TELUS is likely a fundamental driver for the greater
differences at the companies.
Second, the reporting at TELUS is substantially more robust, both in its scope and depth. Repeated
throughout the course has been the importance and value of measuring elements of ESG, whether
through government edict or company election. The outcome of this is arguably manifest when
reviewing Bombardier and TELUS. Broadly, TELUS has set and is making meaningful progress towards
achieving ambitious objectives. Though the impact may be difficult to measure, this doubtless has a
meaningful impact on its competitors and other companies around the globe. Bombardier’s struggle
with profitability, corruption challenges in the last decade, and significant restructuring have caused
upheaval, but it cannot meet its goals in any of the key areas it has identified without better reporting,
which it appears to be slow in building.
Finally, the companies seems to have fundamentally different purpose for sustainability. The approach
at TELUS sees it integrate sustainability through social purpose into core business activities. While it
intends to generate profit from its Health and Agriculture divisions, the express intent of these business
lines is to cause positive social impact. This is reinforced by the presence of strong reporting and
governance structures. Bombardier, for its part, does express the desire to be a leader in sustainable
aviation but struggles to articulate this as a core value of the business.
5.2 Provide the single most important insight that you have gained relative to any of the E, S, or G
elements of “Managing Responsibly”, based upon undertaking and completing this assignment
Though difficult to isolate a single insight, the paramount piece of knowledge that this assignment has
imparted is the complexity and nuance of sustainability at an organization. The mere task of grasping
how an organization defines sustainability is in and of itself a challenge yet is critical to understanding
what a company seeks to get from being more sustainable. Moreover, the context of a company’s
situation can have a meaningful impact on its ability to understand its current state with regard to
sustainability, let alone improve upon it. From a consumer’s perspective, those for whom sustainability
is important would likely prefer a single metric upon which a company could be scored and yet the
spreadable nature and salience of bad news limits the individual’s ability to grasp the true emphasis that
a company places on ESG. Because of this complexity and the ease with which a competitor could
greenwash, clearly articulating sustainability in relation to competitors is difficult and thus does not
provide the competitive advantage it might. Consumers, for their part, do want sustainable products.1
1
Business Wire, Recent Study Reveals More Than a Third of Global Consumers Are Willing to Pay More for
Sustainability as Demand Grows for Environmentally-Friendly Alternatives (2021) accessible from
https://www.businesswire.com/news/home/20211014005090/en/Recent-Study-Reveals-More-Than-a-Third-ofGlobal-Consumers-Are-Willing-to-Pay-More-for-Sustainability-as-Demand-Grows-for-Environmentally-FriendlyAlternatives (accessed March 20, 2022)
17
Their appetite for them or the degree to which they will sacrifice is debatable but the presence of said
appetite is clearly demonstrated. And yet, somewhat frustratingly, because of this complexity in
assessing a firm and its commitment to true sustainability, both consumers and corporations alike do
not receive the full benefits that might be otherwise realized.
Length of Footnotes
Foot notes for this assignment are estimated to be five pages in length.
18
Appendix One – Bombardier’s One Page Definition of Sustainability
“Our vision is to be the leader of sustainable aviation with the most advanced and
environmentally responsible products, and with our creative, diverse, and engaged employees. People:
Identifying, assessing, and preventing occupational risks is a top priority for Bombardier. Reinforcing our
people-centric culture helps us deliver on our commitments. Seeking out people with diverse ideas,
experiences and backgrounds makes us stronger.1 Environment: Reinforcing our leadership on the
environmental front is key to our long-term success as a business. Identifying, assessing and preventing
environmental risks ensures performance and resilience of our operations. Tracking our performance to
continuously improve and set objectives on emissions, energy, water and waste.2 Communities: We
support education perseverance in Science, Technology, Engineering, and Mathematics (STEM),
entrepreneurship, as well as university collaboration. We support projects that enhance the quality of
life, encourage environmental responsibility and practices, and drive collaborative industry action for
sustainability. We support opportunities to maintain and develop responsible business relationships
with key industry stakeholders and shine as an active member of the business community.3 Responsible
Business: Strict compliance, high standards of ethical conduct and a strong values-based corporate
culture define how we conduct ourselves in our work environment, business practices and relationships
with external stakeholders. We see respecting and protecting human rights as an ethical and business
imperative and we expect all our stakeholders to abide to the same principles. We support
opportunities to maintain and develop responsible business relationships with key industry stakeholders
and shine as an active member of the business community. We continue to foster an open dialogue
between governments, the public and the business community, as we believe this contributes to
informed government decisions and benefits the communities we are part of.”4
Appendix 2 – TELUS’ Definition of Sustainability
“We reply on our stakeholders to provide a diversity of input to inform our sustainability strategy,
validate the priorities and identify emerging issues. Social purpose priorities: areas where TELUS is
working to provide positive business outcomes necessary to support and drive meaningful outcomes in
the communities where we live, work, and serve. Foundational priorities: areas that underpin our
sustainable business strategy and structure and demonstrate and overarching responsibility to our
1
Bombardier Inc., Our ESG Plan (2022), accessible from https://bombardier.com/en/sustainability/our-esg-plan
(accessed March 17, 2022).
2
Bombardier Inc., People | Bombardier (2022), accessible from https://bombardier.com/en/sustainability/people
(accessed March 17, 2022).
3
Bombardier Inc., Environment | Bombardier (2022), accessible from
https://bombardier.com/en/sustainability/environment (accessed March 17, 2022).
4
Bombardier Inc., Responsible Business | Bombardier (2022) accessible from
https://bombardier.com/en/sustainability/responsible-business (accessed March 17, 2022).
19
stakeholders. Caring for our planet: By actively working to focus on sustainable solutions across our
business, we’re helping create a friendlier future for our children. Innovating in healthcare: by applying
innovative technologies to improve access to healthcare, we’re helping Canadians live healthier lives.
Empowering Canadians with connectivity: We’re helping ensure that all Canadians have equal access to
the technology they need to thrive in a digital world. Economic impacts: Contributing to the
development of sustainable communities and Canada’s digital economy. Our people and culture:
Fostering inclusion by recognizing and celebrating every team member’s unique talents, voice and
abilities. Supply chain sustainability: aligning our supply chain practices with our values and putting our
customers and communities first. Privacy, transparency, and regulatory compliance: earning and
maintaining customers’ trust by employing rigorous privacy and security practices.”1
Appendix 3 – Bombardier board of directors2
Name
Pierre Beaudoin
Eric Martel
Joanne Bissonnette
Charles Bombardier
Diane Fontaine
Diane Giard
Anthony R. Graham
August W. Henningsen
Melinda Rogers-Hixon
Douglas R. Oberhelman
Eric Sprunk
Antony N. Tyler
Title
Chairman of the Board
President and CEO
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Corporate Director
Person of Colour
No
No
No
No
No
No
No
No
No
No
No
No
Apparent Gender
Male
Male
Female
Male
Female
Female
Male
Male
Female
Male
Male
Male
Appendix 4 – TELUS3
1
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 14.
2
Bombardier Inc., Board of Directors (2022) accessible from https://bombardier.com/en/who-we-are/ourgovernance/board-committees-and-charters (accessed March 18, 2022).
3
Telus Inc., Board of Directors (2022) accessible from https://www.telus.com/en/about/investorrelations/corporate-governance/board-members-committees?linktype=ge-meganav (accessed March 18, 2022).
20
Name
R.H. Auchinleck
Raymond Chan
Hazel Claxton
Darren Entwistle
Tom Flynn
Mary Jo Haddad
Kathy Kinloch
Christine Magee
John Manley
David Mowat
Marc Parent
Denise Pickett
W. Sean Willy
Title
Chair of the Board
Chair of Pension Committee, HR and
Compensation Committee
Audit Committee
President and CEO
Audit Committee
Chair of HR and Compensation Committee,
Corporate Governance Committees
Corporate Governance, HR and Compensation
Committees
HR and Compensation, Pension Committees
Corporate Governance, HR and Compensation
Committees
Chair of Audit Committee
Pension Committee, HR and Compensation
Committees
Audit, Corporate Governance Committees
Audit Committee
Person of Colour
No
Yes
Apparent Gender
Male
Male
Yes
No
No
No
Female
Male
Male
Female
No
Female
No
No
Female
Male
No
No
Male
Male
No
No
Female
Male
Appendix 5 – TELUS Sustainability Governance Structure1
1
TELUS Inc., Sustainability Report 2020 (2021) accessible from
https://downloads.ctfassets.net/rz9m1rynx8pv/7tWCScT9rlQnDddyU1CFq2/4c8e6235bd505e3cbb41608d5c77ce4
0/TELUS_Sustainability__Report_2021.pdf (accessed March 17, 2022) p. 16.
21