CAE: Transformation on Track, but Show Me the Money

Research evidence excerpt

CAE: Transformation on Track, but Show Me the Money

CAE Inc.

Key sustainability questions

This section is intended to highlight key sustainability discussion points relevant to this company, as well as our views on the outlook. Both the

questions we highlight and our responses will evolve over time as the dialogue between management, analysts and investors continues to

advance. We welcome any feedback on the topics.

Our view

What are the most material Our view is that CAE’s exposure to defense, energy and climate change, and diversity

sustainability issues facing this are the most important sustainability issues facing CAE. CAE’s materiality matrix

company? outlines sustainability topics important to its internal and external stakeholders,

including diversity, equity, and inclusion as well as climate and energy.

Does the company integrate CAE integrates sustainability considerations into its strategy through various

sustainability considerations into its initiatives such as launching a CAE Women in Flight scholarship program. The

strategy? company also invests in renewable energy certificates and greenhouse gas reduction

projects. We therefore view CAE as taking sustainability into consideration when

setting its strategic priorities. We note that CAE’s CSR committee has a variety of

members from diverse business segments, as well as the executive management

committee, and is chaired by the Chief Sustainability Officer. The CSR committee

meets quarterly to develop sustainability-related strategy and report performance

and findings to management. CAE also reports sustainability data in line with SASB

and GRI standards. We view this standardized reporting as an important measure

of progress and believe that it gives investors the appropriate data to assess CAE’s