North West : 2024 Sustainability Report (nwc sustainability report 2024)

Published: 2025-04-09 16:35:05 ET NWC.TO

Rooted2024 SUSTAINABILITY REPORT

in Community

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

North West 2024 Sustainability Report

Table of Contents

About This Report

About This Report Message from Our CEO About The North West Company Our Value Chain

Our Enterprise ESG Strategy Highlights 2024

Our Approach to Materiality

Our Approach to ESG Governance Our Promise to Indigenous Peoples Engagement with Our Partners

PEOPLE

Community Impact and Engagement

Customer Health and Nutrition

Belonging and Culture

Health & Safety

PLANET

Climate Action

Food Waste

Waste Management

PARTNERSHIPS

Responsible Business and Supply Chains

Cybersecurity

PERFORMANCE DATA

Contributing to the United Nations Sustainable

Development Goals (UN SDGs)

LOOKING FORWARD

About Forward-Looking Statements

CONTACT

We are pleased to share the latest progress on The North West Company Inc. ("North West" or "Company") Sustainability Report 2024 with our partners.1 Through this report, we provide accountability and transparency related to our strategies, initiatives and actions to address environmental, social and governance (ESG) topics deemed material to North West. This report covers our fiscal year 2024, from February 1, 2024, to January 31, 2025. The information in this report relates to our corporate operations, which include our retail stores, distribution centres, subsidiaries and offices. Unless otherwise noted, all financial amounts in this report are presented in Canadian dollars.

1 At North West, we refer to our employees, customers, suppliers, shareholders and rights-holders as "partners," out

of respect to their individual identities. Throughout this report, we refrain from using the term "stakeholders" as advised by the Indigenous Peoples we work with and do business with.

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

Message from Our CEO

North West 2024 Sustainability Report

As an essential provider of goods and services in some of the most remote and underserved areas across Canada, Alaska, the Caribbean and the South Pacific, we take immense pride in the role we play as a trusted partner in these communities. Our mission to be a trusted community partner guides us in the work we do every day to deliver vital products and services to those who need them most, and we recognize the great responsibility that comes with thiswork.

At North West, we understand that environmental, social and governance (ESG) principles are not only critical for the long-term success of our business but also for the well-being of the communities we serve. As we look back at 2024, we celebrate a significant year of growth, transformation and development with a sharp focus on ESG, ensuring that our positive impact endures for generations to come.

Through the pillars of our ESG Strategy - "People," "Planet" and "Partnerships" - we have continued to strengthen our relationships with local communities. We take great pride in our approach to corporate giving and have donated $2.8 million towards events and programs, including traditional and cultural celebrations. In addition, through the Healthy Horizons Foundation (HHF) Community Grants program, we provided over $470,000 to 26 local community organizations. We also made strides in enhancing the accessibility and affordability of food products in our stores, offering our customers greater value while promoting healthier lifestyles.

Additionally, we've introduced "Compass," a new learning platform designed to empower our employees by enhancing their development and deepening their connection to the customer experience. In 2024, we also made significant progress in our Indigenous Procurement Strategy, expanding collaborations with local and Indigenous vendors and service providers, further cementing our commitment to delivering on Our Promise to Indigenous Peoples.

At North West, we are dedicated to delivering on our ambitions while simultaneously creating business value, and as we continue to evolve, we remain committed to aligning our ESG Strategy with our operations and staying ahead of the changing regulatory landscape.

I want to take a moment to express my heartfelt gratitude to our employees, customers and the communities we serve. Your continued support and partnership are integral to our journey towards sustainability, enabling us to stay rooted in community while we move forward together.

Dan McConnell

Chief Executive Officer

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

About

ALASKA

The North West Company

YUKON

TERRITORY

North West 2024 Sustainability Report

NORTHWEST

NEWFOUNDLAND

& LABRADOR

TERRITORIES

NUNAVUT

OUR PURPOSE

To help make

The North West Company is a leading retailer for rural and developing small population communities in the following regions: northern Canada, rural Alaska, the South Pacific, and the Caribbean. Our stores offer a broad range of essential products and services with an emphasis on food and a compelling value offer as the best local shopping choice for everyday household and lifestyle needs. Further, North West owns an airline, North Star Air Ltd. ("North Star Air" or "NSA"), which supports our logistics network and service to our stores in northern Canada. North West has a rich enterprising legacy as one of the longest-continuing retail enterprises in the world. The Company traces its roots back to 1668, and many of our stores in northern Canada and Alaska have been in operation for over 200 years.

BRITISH COLUMBIA

ALBERTA

SASKATCHEWAN

QUEBEC

MANITOBA

ONTARIO

CARIBBEAN

P.E.I.

NOVA

SCOTIA

NEW BRUNSWICK

230

190

7,003

FIJI

Stores

Communities served

Colleagues

100

Pharmacists

Pharmacy locations

Airplanes1

1 North Star Air operates 18 airplanes which are either owned, leased or subcontracted.

HAWAII

BRITISH VIRGIN

ISLANDS

GUAM

AMERICAN

SAMOA

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

North West 2024 Sustainability Report

Our Value Chain

We Buy

We Move

We Sell

SOURCING

We procure products and finished goods from manufacturers and distributors in our global supply chain (including Indigenous and local products).

DISTRIBUTION

We move and bring products and services to our customers, by using multiple modes of transport such as trucks, trains, aircraft, ships and barges.

RETAIL

We sell a broad range of products and services across geographically remote and diverse markets, based on the needs and preferences of our customers.

Value chain highlights

Our transportation network is one of the most complex of any retailer and requires a combination of transportation modes including planes, ships, trucks and trains.

118 stores

are inaccessible by all-weather road, requiring transportation via ice road, aircraft or sealift.

Our logistics capability and scale in serving remote communities are core strengths that enable us to deliver on our value offer.

NORTH STAR AIR

We leverage our airline, NSA, to ship products to northern communities.

We move more than 54K tons of freight by air and more than 114Ktons by ocean/barge annually.

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

Our Enterprise

ESG Strategy

Our ESG Strategy is embedded across our business operations and influences our unique business model, supporting underserved communities in remote geographical locations. We aim to achieve positive change through a shared-value framework that benefits people and our planet and supports creating strong partnerships for the future. Our ESG Strategy framework highlights ESGrisks and opportunities that are important to our business and partners.

Our vision is at the heart of our ESG Strategy, which is centred on the community and employee experience. Wherever we can, we look to find opportunities to build trust with our community partners and provide them with the products and services they need. Through our ESG Strategy, we seek to enable positive change in the communities we serve by supporting their journey for improved health, nutrition and overall quality of life. We also strive to improve the experience of our employees by creating a more diverse, equitable and inclusive work environment, where employees can further develop their skills and grow their careers within our organization.

We recognize our responsibility to promote health and nutrition in the communities we serve, supporting social equality and inclusion, and protecting the environment. Below are our aspirations for People, Planet and Partnerships:

People

Planet

Partnerships

To help employees and local

To promote the protection of

To maintain trust with our

communities to advance

the environment and address

partners

towards a healthier, inclusive

climate change

and equitable future

TOPICS

· Community Impact

· Climate Action

· Responsible Business &

· Customer Health & Nutrition

· Food Waste

Supply Chains

· Belonging & Culture

· Waste Management

· Cybersecurity

· Health & Safety

North West 2024 Sustainability Report

e x

Our vision is to bring to

communities products and

services that help people

live better.

ty E

ountab

Planet

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

Highlights 2024

Addressing ESG in our operations, policies and strategy is essential to driving business success and long-term value creation. The table below shows the highlights of our ESG efforts during fiscal year 2024, clustered by our ESGStrategy pillars: "People," "Planet" and "Partnerships."

North West 2024 Sustainability Report

People

PlanetPartnerships

Over

$2.8M

spent in community events and causes ranging from traditional and cultural celebrations to sports teams

Over

$470,000

disbursed by our Healthy Horizons Foundation to support children and youth programs in northern Canadian communities

Implemented a food waste reduction initiative across our Cost.U.Less stores, which included training, communication and implementation of new processes in store operations

Released our first Modern Slavery Report and developed our first Modern Slavery Roadmap to prevent and reduce the risk of child labour and forced labour in our supply chains

$54.7M

spent on goods and services in support of Indigenous-owned businesses

Over

200 employees

completed cultural awareness training in Canada

Over

4,500

employees in our stores have access to "Compass," an interactive tool that provides critical training and reinforces learning

Updated refrigeration systems in

14 stores,

improving refrigeration efficiency and optimizing food storage, all resulting in reduced food spoilage and improved energy efficiency

Enhanced our GHG emissions and inventory management plan with improved data collection

Optimizing our Cybersecurity Program to improve the policies and processes that protect our systems and information

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

North West 2024 Sustainability Report

Our Approach to Materiality

Central to our approach to ESG is to listen and engage with the people who are most impacted by our business operations. In 2023, we conducted a prioritization exercise to map material ESG topics1 for the business by launching an ESG survey with internal and external partners, including customers, local community members, employees and non-governmental organizations (NGOs), to identify which ESG factors matter the most for them. The survey included material topics from the SASB Standard "Food Retailers & Distributors," topics from the Sustainable Development Goals (SDGs) and topics relevant to our retail peers. After collecting our partners' feedback and priorities, we analyzed results and determined which factors were the most relevant for our business and the development of our enterprise-wide ESG Strategy. Our approach to materiality is summarized in the following steps:

Listening and engaging

Determine ESG

Business impact

Develop ESG

Share and

with partners

priorities

analysis

Strategy

report progress

1 Material topics are environmental, social or governance topics on which North West can have an impact, or may be impacted by.

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

Our Approach to ESG Governance

ESG matters have the potential to impact business operations, regulatory compliance, reputation, and financial outcomes, and are therefore an important area of focus for North West's Board of Directors and its committees. At North West, we manage ESG topics in the context of our business strategy while also taking into consideration the feedback and interests of our partners. Starting in 2023, North West began including ESG as part of the criteria for the Company's short-term incentive program, linking sustainability-related activities to compensation, beginning with the executive and senior leadership.

The Board: Responsible for North West's health and safety, environmental and social initiatives, and has delegated responsibility for oversight to the Human Resources, Compensation and Pension Committee (HRCP), the Governance and Nominating Committee (GNC) and the Audit Committee. The HRCP oversees the ESG incentive plan goals in the organization. The GNC oversees the adequacy of ESG controls, ESG disclosure, alignment on policies and regulations, and progress against ESG goals. The Audit Committee is responsible for risk and compliance.

ESG Steering Committee: Composed of company executives, the ESG Steering Committee is responsible for supporting the adoption of ESG practices and programs. It provides guidance to North West on ESG programs and strategic direction on ESG activities, priorities and internal tracking. The committee supports the implementation of ESG action plans and monitors progress on defined ESG activities.

Objective Lead Committee: This committee is composed of ESG objective leaders who are responsible for developing, implementing and achieving specific ESG key performance indicators (KPIs) and targets that align with their objectives. Each objective lead is responsible for coordinating and executing action plans, tracking and reporting KPIs, determining resources, and organizing with internal North West groups as needed.

North West 2024 Sustainability Report

Board of Directors

BOD Governance and

BOD Human Resources,

BOD Audit Committee

Compensation and

Nominating Committee

Pension Committee

ESG Steering Committee

Objectives

Partner

& Culture

Action

& Security

Safety

Community

Customer

Food Waste

Responsible

Impact &

Health &

Belonging

& Waste

Climate

Data Privacy

Health &

Business &

ESG

Engagement

Nutrition

Management

Supply Chains

PEOPLE PLANET PARTNERSHIPS PERFORMANCE

North West 2024 Sustainability Report

Our Promise to IndigenousPeoples

Our Promise to Indigenous Peoples is a cornerstone of our ESG Strategy. At North West, we acknowledge the Company's longstanding relationship with Indigenous Peoples, our shared history and our responsibility in advancing Reconciliation. Our Promise to Indigenous Peoples is a reaffirmed commitment to building more collaborative relationships to enhance the inclusion and social well-being of Indigenous Peoples of Canada. We fully commit to the spirit of reconciliation reflected in the Truth and Reconciliation Commission's Calls to Action and final report. The pillars of "The Promise" are thefollowing:

Well-being& Security: North West commits to working collaboratively with Indigenous Peoples to advance health and well-being in the communities we serve.

Stronger Community Bonds: North West commits to developing stronger community bonds by recognizing the past and committing to a better future.

Inclusion & Economic Success: North West commits to improving Indigenous inclusion in store and head office management while encouraging Indigenous economic development.

Disclaimer

The North West Company Inc. published this content on April 09, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 09, 2025 at 20:34 UTC.