1

Report Contents
2

Introduction from our CEO

6

About Kinaxis

7

Acting with integrity
Key resources
ESG governance and risks
ESG commitments
Security, privacy and intellectual property

19

Our people
Key resourcesCore values
Diversity, equity, and inclusion (DEI)
Workforce composition
2023 DEI targets and goals
DEI pillars and key initiatives
Compensation and benefits
Engagement
Executive compensation

34

Our communities
Key resources
Corporate giving
Kinaxis Academic Program38

Our environment
Key resources
GHG emissions
Key trends
Our office programs
Planning for a more sustainable future48

Appendix 1 – SASB Metrics

52

Appendix 2 – Alignment with Task Force on Climate-Related Financial Disclosures

1

Introduction
from our CEO

At Kinaxis, we care about supply chain, people andseriously and, as one of five pillars of our corporate

the planet. We deliver unparalleled supply chain

strategy, remains committed to doing its part

agility and resilience to some of the world’s largest

to create a sustainable and socially responsible

and most complex supply chains. We combine

future. We hope this sustainability report helps ourhuman intelligence with artificial intelligencestakeholders understand our ongoing progress andand concurrency to help companies prepare forthe work ahead of us.

any future, monitor risks and opportunities andrespond to the rapid pace of change. Our industry-

Acting with integrity

proven applications and extensible, cloud-based

In anticipation of evolving regulatory requirements

RapidResponse platform empowers supply chain

in Canada, we have realigned our reporting cycle on

professionals and business leaders to know sooner,

environmental, social, and governance (ESG) mattersact faster and remove waste so they can make theto coincide with our annual financial reporting andbest decisions for their business, their customers

disclosures. As such, we are updating our September

and our planet. Kinaxis takes this obligation

2023 report to include a complete representation of
year-end data.

2

Previous work has seen us create a governancestructure that ensures our opportunities and impacts
around environmental, social and govenrnancerelated considerations are both accountable at thehighest level of our organization, the Kinaxis Boardof Directors, and influenced at every level throughfeedback from every business unit across Kinaxis.
We remain committed to the United Nations Global
Compact and its ten principles, which address
areas of human rights, labor, environment and anticorruption, to advance broader societal goals andaddress the world’s critical challenges.
As we handle and process data for many
Fortune 500 global leaders and other major
companies, building trust through the highest
levels of innovation, data security, and privacy arefoundational elements of our business.
We are aligned to key global data privacy andsecurity standards. To protect our valuable
intellectual property, as of December 31, 2023,
we have been issued 42 patents globally andhave over 150 patents pending in various
jurisdictions. We also went live with Microsoft
Azure and Google Cloud as part of our shift to a
public cloud infrastructure.

Our people
Creating an environment where our diverse teamfeels welcomed, safe and free to bring its talent andcreativity is paramount to us as a software company.
We continue to prioritize diversity, equity andinclusion (DEI) in our business. We introduced DEI

3

Our environment

targets and objectives for the first time in 2021
which laid the foundation for our journey. In 2023

RapidResponse helps our customers reduce wasted

our targets focused on driving gender equality,

supply components, avoid expired products,

improving measurement and transparency, andreduce excessive (and often discarded) end-

driving DEI globally while implementing locally.

product inventory, and ensure critical goods like

Our annual engagement survey continues topharmaceuticals are available when and where

maintain a strong participation rate (89%), with aneeded. Sustainability is a key part of our businessbetter-than-benchmark overall engagement index

model and remains integral to what we do.

score of 84% in 2023. Of key importance to our

At our annual customer community conference

DEI plans, 92% of our participants feel that their

Kinexions in June 2023, we unveiled our new

manager respects and is committed to diversity

Sustainable Supply Chain solution, which allows

and inclusion.

companies to embed emissions factors (including
Scope 3 emissions) directly into RapidResponse to

Our communities

design scenarios that will estimate, and simulate

One of our core values recognizes that we aresupply chain-related CO₂e in real time.

global citizens, so taking care of our own people
alone isn’t enough. In 2023, we refocused our

We continue to anticipate and stay ahead of ever-corporate giving program on key areas that better

increasing emission disclosure requirements. On analign with our core values and where we canongoing basis, we update our disclosures under the

maximize our positive impact on communities for

Task Force on Climate-Related Financial Disclosuresgenerations to come. As such, we have engaged

recommendations and enhance our GHG emissions

with Women Who Code, a global non-profit

inventory with greater detail and accuracy whereorganization empowering diverse women to excel

possible. We are once again offsetting the fullin technology careers. We have also signed abalance of our Scope 1, 2, and 3 emissions throughmulti-year agreement with the Ellen MacArthur

EcoLogo-certified Renewable Energy CertificatesFoundation, an organization committed to creating

and third-party verified carbon offsets.

a circular economy designed to eliminate waste
and pollution, circulate products and materials andregenerate nature.
John Sicard, President and Chief Executive Officer,
Kinaxis Inc

4

Kinaxis' ESG performance is being recognizedby key rating agencies and the investment community.
Kinaxis has received top marks from several key ESG rating
agencies, including our recent Triple A designation from MSCI, andour inclusion in Sustainalytics' 2023 Industry and Regional TopRated ESG Companies list, in the software category. Kinaxis also
received the award for Best ESG Program in the Technology, Mediaand Telecommunications sector from Institutional Investor.

A leader in supply chain planning
Everyday volatility and uncertainty demand quick action. Kinaxis® (TSX:KXS)
is the global leader in modern supply chain management. We serve supply
chains and the people who manage them in service of humanity. Our
software is trusted by renowned global brands to provide the agility andpredictability needed to navigate today’s volatility and disruption. We
combine our patented concurrency technique with a human-centeredapproach to AI to empower businesses of all sizes to orchestrate their endto-end supply chain network, from multi-year strategic planning throughdown-to-the-second execution and last-mile delivery.

5

About Kinaxis
We power the world’s supply chains to help
preserve the planet’s resources and enrich thehuman experience.
Kinaxis® (TSX:KXS) is a global leader in modern supply chain management. We serve supply chains and the people who
manage them for the greater good of humanity and the planet. Our software is trusted by renowned global brands to provide
the agility and predictability needed to navigate today’s volatility and disruption. We combine our patented concurrency
technique with a human-centered approach to AI to empower businesses of all sizes to orchestrate their end-to-end supply
chain network, from multi-year strategic planning through down-to-the-second execution and last-mile delivery. For morenews and information, please visit kinaxis.com or follow us on LinkedIn.

01 Community

02 Technique

03 Platform

Full of passionate, like-minded

Ensuring data, processes, andExtensible and scalable, our platform

customers, partners, influencers,

people are always in sync, ourand industry-proven applications are

academia, and dedicated Kinaxis experts,

concurrency technique keeps

purpose-built to deliver the functional

our community is creating the future ofeveryone across the supply chain

capabilities you need to navigate today’s

supply chain management – together.

fully connected and informed.

complex supply chain challenges.

6Acting with integrity

Helping world-classcustomers help you

Kinaxis has tightly integrated sustainability into our governancestructures and our corporate strategy. Corporate governanceultimately rests with the Kinaxis Board of Directors. The Board
works to ensure that Kinaxis conducts business in an ethical,
sustainable, and safe manner. In performing its functions, theboard considers the legitimate interests that stakeholders, suchas employees, customers, communities, and the environment,
may have in our business. Management is responsible for the
day-to-day conduct of the business. One of Kinaxis’ five core
strategic pillars relates to committing to a sustainable, socially
responsible future.

Key resources
Aspects of our corporate governance and key policies are
discussed comprehensively in several documents, which include:
Management Information Circular
The primary document to inform shareholders about ourgovernance practices so they can vote in an informed way
at our annual shareholder meeting. Among other topics, it
discusses our directors and their backgrounds, our board
committee structure, Kinaxis’ approach to governance, andexecutive compensation.
Code of Conduct
Sets out the high standards of ethical behavior we expect ofeveryone at Kinaxis. The code applies to directors, officers,
and employees and is a core document to help the teamapply our values to every business transaction and every
business relationship to help Kinaxis grow rapidly in an
ethical, sustainable, and safe manner.

7

Anti-Bribery and Anti-Corruption Policy
Sets out Kinaxis’ commitment to full compliance by its

Our ESGgovernancestructure

officers, directors, employees, consultants, contractors,
agents, and third-party service providers with Canada’s
Corruption of Foreign Public Officials Act and any local
anti-bribery or anti-corruption laws that may be applicable.
The policy complements our Code of Conduct andWhistleblower Policy.

Nominating and governance

Whistleblower Policy

committee of the board

Outlines the procedures in the event of any complaints orconcerns of employees regarding accounting and auditing

matters, violations of Kinaxis’ Code of Conduct, or any

Executive leadership teamapplicable law, rule, or regulation. Complaints or concerns
can be made anonymously, if desired, and retaliation by theboard, management, or any other person or group, directly

Chief Legal Officer

or indirectly, is strictly prohibited.
Vendor Code of Conduct
Summarizes Kinaxis’ expectations of third parties providing
products or services to Kinaxis (including vendors, partners,
consultants, and contractors) and reflects Kinaxis’ concern
for all individuals, including its vendors’ workers. Local
customs and laws vary by country, but the importance ofhuman rights is universal, and this code is intended to reflectthat importance.
Insider Trading Policy
Outlines the requirement for all directors, senior officers,
employees, consultants, and others to follow all applicablelaws, rules, and regulations pertaining to the purchaseand sale of shares of Kinaxis, including those of Canadiansecurities legislation and the policies of the Toronto Stock
Exchange. The policy discusses the significance of material
information, trading blackout periods, insider filings,
prohibition of tipping, and other critical information.

8

Kinaxis Health and Safety Policy
Establishes our interest in and responsibilities related to the

Sustainability
and social
responsibility
embeddedin corporate
strategy

health and safety of our employees.
In these key documents and policies, and others, we address
important corporate governance matters and how to speak
up when we think there may have been a violation of policy:
Respecting each other•

Diversity, equity, and inclusion•

Harassment and discrimination•

Health and safety

Doing what’s right•Anti-bribery and anti-corruption

Our corporate strategy,•

Relationships with suppliers•

Fair competition

which guides the objectives,•

Gifts, entertainment, and hospitality

decisions, and efforts ofevery Kinaxis team member,Protecting our company•

Privacy and confidential information

includes five core elements.

•

Safeguarding physical and electronic assets

One of those is committing•

Accurate recordkeeping

to a sustainable and socially•

Conflicts of interest

responsible future.

•

Inside information and trading•

Responsible communications

Being good neighbors•

Human rights•

Community involvement and sustainability•

Political activities

At Kinaxis, we don’t allow any form of retaliation (such as
firing, salary reduction, or other negative job actions) byanyone against those who speak up in good faith.

9Kinaxis is part of the
UN Global Compact
With a network of more than 20,000 companies and 3,800 nonbusiness signatories in over 160 countries, the United Nations Global
Compact is the largest corporate sustainability initiative in the world. Its
Ten Principles address areas of human rights, labor, environment, andanti-corruption and represent the fundamental values that businesses
can and should embed in their daily strategies and operations to advancebroader societal goals such as the UN Sustainable Development Goals
and the 2030 Agenda to address the world’s critical challenges.

10ESG governance and risks
Governance structure
Our accountability structure for ESG starts with the Kinaxis
Board and filters through every aspect of our organization.
ESG is led by our risk management leader who reports to
our Chief Legal Officer. The Chief Legal Officer in turn brings
ESG matters to the full executive team and regularly reports
findings and recommendations back to the nominating andgovernance committee of the board.
Six of our seven independent directors self-assessed as having
experience in, or understanding of, internal risk controls,
risk assessment, risk management, and/or risk reporting,including risks related to environmental and social issues.
The same number self-assessed as having experience in, or
understanding of, sustainability and ESG matters.

ESG risks
ESG is fully integrated with and has its own distinct category
within our comprehensive enterprise risk management(ERM) program, which harmonizes risk management
procedures and practices across the organization. To
date, we’ve focused on various aspects of enterpriserisk, including risk identification, risk prioritization, risk
assessment and treatment, risk monitoring, and reviewing
our risk governance structure annually. Our ERM program
establishes clear risk oversight, drives accountability, andintegrates risk management into our day-to-day operations
and decision-making. Working with the executive leadershipteam, our Chief Legal Officer is responsible for facilitating
and overseeing the ERM program and reports reports on key
enterprise risks regularly to the audit committee of the board
as well as the full board. ESG risks are reported on regularly
to the nominating and governance committee of the board.

11

As part of our ERM work, we have identified 12 specific ESG topics in our enterprise risk universe, which have beenassessed against a materiality matrix and categorized as tier one through three based on our interpretation of their impact
to our business and importance to our stakeholders. While all 12 are important and require some degree of monitoring andmanagement, we deem only two of them as rising to the level of a key enterprise risk: (1) privacy and data security and (2)talent management. Under the ERM program, these two key enterprise risks are closely monitored and reported on quarterly
by the risk management team. The remaining ten ESG risks are addressed through our ESG program.
In 2024 we will initiate the first phase of climate-related scenario analysis, in alignment with TCFD, to model and evaluate
climate-related risks and opportunities that may impact Kinaxis under different climate scenarios, including a 2-degree
Celsius or lower scenario. We will leverage the collective expertise of stakeholders across the business to map physical andtransitional risks, evaluate their potential implications, and explore opportunities for innovation and market leadership.

ESG reporting standards
Disclosures in this report are informed by the Sustainability Accounting Standards Board (SASB) framework for software and IT
services companies (see Appendix 1 for related metrics). Although we currently don’t assess any climate-related issues as a key
corporate risk, we have also initiated disclosures under the Task Force on Climate-Related Financials Disclosures framework,
which can be found in Appendix 2.
In anticipation of evolving regulatory requirements in Canada, we have realigned our reporting cycle on environmental, social,and governance (ESG) matters to coincide with our annual financial reporting and disclosures. As such, we are updating our
September 2023 report to include a complete representation of year-end data.
Our GHG inventory calculations (see Our environment section) were made with the assistance of our environmental
consultant, Carbonzero, and in accordance with the Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard,
which is the leading corporate guide for emissions measurement and reporting. Carbonzero also advises on our purchases ofthird-party verified carbon offsets and Renewable Energy Credits.
12

ESG commitments
We have made four core commitments that drive our ESG strategy:
1. Protecting our planet by doing what we do best. Creating a sustainable future is not only a key aspect of how we run ourown business, but by combining human intelligence with AI and concurrent planning, we also empower our customers tomake the best possible decisions for their businesses and sustainability of their supply chains.
2. Taking care of employees. "People matter here" is the foundation of our culture. Our teams are spread across the world,and each one is just as important to us as the next. We take great care in cultivating a socially conscious culture where weare all empowered.
3. Giving back. We know we are all global citizens. We support our communities and the causes where we can make themost impact.
4. Building trust through integrity. We believe in our responsibility to build trust with all our internal and external stakeholders –through openness, transparency, and accountability, including the protection of all our stakeholders’ data.
Consistent with these statements, Kinaxis has committed to focus on contributions towards six key United Nations
Sustainable Development Goals.

13

Security, privacy and intellectual property
Our platform processes the supply chain data of innovative companies of all sizes, including globally recognized, Fortune 500
leaders and other major companies, and we have established several key processes to earn and keep the trust of these market
leaders, including intellectual property protection and data security and privacy features. While protection of all data is critical,
the most material impact to our business relates to how we manage data security and privacy for customers.
RapidResponse is a cloud-based SaaS offering delivered from both private and public cloud infrastructures. Under the private cloudmodel, we co-locate our infrastructure in enterprise-grade third-party data centre facilities, primarily with Equinix and Vantage Data
Centers, and currently have partnerships with Google Cloud Platform and Microsoft Azure for public cloud deliveries.
We pride ourselves on using some of the most highly advanced technologies available to keep supply chain data safe, secure,and accessible to only those who legitimately need it. We adhere to global standards and best practices and acquire third-party
verification of our processes to ensure compliance.

14

Key resources
An overview of our data security and privacy practices canCybersecurity
and data privacy
leadership.

be found in our Data Security brochure and Privacy Policy.
Our GDPR with RapidResponse brochure describes how
RapidResponse can be used to comply with GDPR requests
and individual rights. Our 2023 Annual Information Form
describes our approach to intellectual property protection indetail and includes details of our issued patents.

Our leadership team

Network access and security

includes key roles related to

We strive to meet or exceed industry best practices anddata security and privacy.

standards for data security. Administrative, technical andphysical security controls are in place and enforced to

Our Chief Legal Officer isdeliver RapidResponse and are externally audited annuallyalso our Data Protection

under the System and Organization Controls (SOC 1
and SOC 2) frameworks. We are also the first Canadian

Officer, ensuring that wecompany to receive the BSI-C5:2020 Type II Attestation.

always process the personal

Information we process on behalf of our customers is

information of our staff,

protected at rest and in transit over the internet usingsophisticated encryption and transport protocols to help

customers, providers or any

prevent unauthorized access and tampering.

other individuals in compliance

We regularly test our infrastructure technical security

with the applicable data

controls by using automated vulnerability scanning tools

protection rules. Our Viceand manual processes and test RapidResponse throughapplication security vulnerability assessments. Other security

President, Security Strategy

services include 24/7/365 Security Operation Centerand Compliance sets relatedmonitoring performed using Security Incident and Event

strategies, policies andManagement (SIEM) technologies paired with automatedintrusion prevention, hardened firewalls, and centrally

approaches for Kinaxis tocontrolled antivirus/malware enforcement to help detect

follow. Our Chief Technology

malicious activities and counter attacks.

Officer operationalizes thosestrategies to safeguard thedata we process for all internaland external stakeholders.

15Key security features at Kinaxis•

SOC 1 Type II audited•

SOC 2 Type II audited•

BSI C5:2020 Type II audited•

Dedicated RapidResponse instances•

100% AES256-bit “in-transit” and•Disaster recovery time objective and recovery
point objective of no more than 24 hours•

Advanced security operations center (SOC)
monitoring 24x7x365•

Standard industry practices for physical security“at-rest” encryption

Physical servers hosting Kinaxis customer data are secured through 24/7/365 monitoring using CCTV systems integrated withphysical access controls and alarm systems. Multi-level safeguards, including biometric access controls, are in place to restrict
physical infrastructure components to authorized personnel.
We are also increasingly taking advantage of delivering RapidResponse via public cloud providers that offer best-in-classsecurity measures. In March 2022, we went live with Microsoft Azure as part of our shift to the public cloud. In addition to
Microsoft, we have established a strategic partnership with Google Cloud Platform to help us extend our hosted offerings. We
went live on the Google Cloud Platform in 2023.

Data privacy
At Kinaxis, we recognize the importance of protecting individuals’ personal information and their right to privacy and arecommitted to it.

Privacy policy
We have implemented a corporate-wide privacy policy, to ensure that the personal information of our employees, customers,
service providers and business partners, website visitors or users and of any other individuals we interact with is properly
protected and handled in accordance with all applicable data privacy laws globally.

16

Individuals’ rights. Where applicable, we obtain individuals’
consent prior to collecting and further processing their

Global privacy
standards
compliance

personal information. We also provide a clear and easily
accessible way for individuals to exercise their data privacy
related rights, such as obtaining access to information about
how their data is being processed or revoking or further
tailoring their consent.

Customer data

Kinaxis ensures compliance

Limited data processing. Kinaxis processes customer datawith applicable data privacy

solely for the purpose of providing our SaaS solution and only

laws, including:in accordance with the terms and conditions of the agreements
between us and our customers (including individual customer•

instructions) and the applicable data privacy laws.

General Data Protection Regulation(GDPR) 2016/679

Customer control. Our customers keep full control over•Canadian Personal Information

the type of data – e.g., contact data, enterprise resource

Protection and Electronic Documents

planning data, personally identifiable information (PII),

Act 2000 (PIPEDA)

etc. – that is processed in our SaaS solution, as well as•

the purposes for which Kinaxis may process such data.

U.S. Federal Trade Commission Privacy
Act 1974

Customers can access and extract their data at all times, as•well as modify or delete it as it may be required for them toJapan Act on the Protection of Personal
Information Law. No.57/2003

meet their obligations under applicable data privacy laws,
such as to respond to individuals’ requests.
No data sold. Customer data is shared with third parties only•

Australian Federal Privacy Act 1988•

All other regional, federal, or state data
privacy laws that apply to our operations

with customers’ consent, and to the extent we are required
to do so for the provision of our services, and only after
agreements with third parties are in place to ensure they will
abide by all applicable data security and privacy obligations.
Technical alignment. Kinaxis’ policies and practices include
organizational, technical, and operational measures to ensure
the confidentiality, integrity, and availability of customer data,
following recognized industry standards and in alignment
with applicable data privacy laws. We also perform regularreviews and updates of our measures, to ensure they reflect
the latest technology developments, industry standards andlegal requirements.
17

Data breaches. Should Kinaxis ever experience a data
breach, we would notify affected customers without undue
delay, investigate the data breach and its root cause,
promptly take the necessary steps to mitigate its impact
and avoid a re-occurrence, and support our customers
in complying with any legal or regulatory notification
requirement and any subsequent investigations.
Data disclosures. Should Kinaxis ever be required to provide
customer data in connection with a legally binding request
for disclosure by a law enforcement or supervisory authority,
Kinaxis would promptly notify the customer, as permitted.
Unless legally required to do so, Kinaxis does not respondto such requests directly or without the customer’s consent
and involvement.
Cooperation and assistance. We acknowledge that
our customers must follow strict legal and regulatory
requirements related to how their data is handled.
Accordingly, we always cooperate with our customers andprovide them with the assistance they need to be able tomeet their own obligations, e.g. assistance with privacyrelated impact assessments, supervisory audits, individuals’
requests, etc.

Intellectual property
In accordance with industry practice, we protect our
proprietary products and technology through a combinationof patents, copyrights, trademarks, trade secrets andcontractual provisions, with customers, partners, employees
and others. To date, we have been issued 42 patents
globally pertaining to key, differentiating aspects of the
RapidResponse platform, and currently have over 150
patents pending worldwide.

18

Our people
Taking care of our team
One thing that remains a constant at Kinaxis is that "people matter here". These are the three words we use every day todescribe our culture – and that will never change. It’s in our DNA.

Key resources
We have codified our people-matter-here culture in a number of key, publicly available documents, including our Code of
Conduct, as described earlier. This important document clarifies our stand against human rights abuses, including forced labor,human trafficking, child labor, and many others, and also to recognize employees’ right to freedom of association. Other criticalpolicies also play an important role in determining how we show up.
Our Positive Workplace Policy lays out our commitment to treat every employee with dignity and respect and to have zerotolerance for discrimination, harassment, sexual harassment, and violence. It establishes our commitment to fair treatmentof employees, upholding human rights, and paying fair wages. The policy lays out clear steps to follow should anyone beconcerned about workplace behavior.
Our Vendor Code of Conduct summarizes Kinaxis’ expectations of its vendors and reflects Kinaxis’ concern for all individuals,
including its vendors’ workers. Local customs and laws vary by country, but consistent with our membership in the United Nations
Global Compact, we support the importance of human rights as universal, and this code is intended to reflect that importance.
Our Management Diversity Policy sets out the importance of diversity by gender, age, disability, sexual orientation, geographic
representation, Indigenous status and ethnicity, and executive leadership of Kinaxis takes these characteristics into
consideration when hiring and promoting individuals to management.
Our Human Rights Policy outlines Kinaxis' commitment to respecting and promoting human rights, both internally and in
business relationships with third parties. We are proactive in our objective to prevent or mitigate adverse human rights
impacts from our own operations and where we are directly linked to human rights impacts through our business relationships,
we will seek ways to positively influence the human rights actions of our business partners, including our vendors.

19

Solidarity through adversity
Kinaxis employees and contractors in Chennai, India were heavily impacted by cyclone Michaung, in early
December 2023. Recognizing the significant danger, we immediately mobilized an emergency response team to
implement measures that could alleviate distress and ensure the safety and wellbeing of those impacted. Frompersonal assistance to the provision of emergency accommodation, dozens of employees worked tirelessly toprovide aid to those in need.

Demonstrating courage and leadership, Archna Usha, Regional HR Advisor (left) and Sriram Rengarajan,
Facilities Manager (right), worked on the front line of the Kinaxis emergency response team in Chennai alongwith many other colleagues. While directly being affected by the cyclone themselves, Archna and Sriram
worked to make sure that Kinaxis employees and their families had access to food, water, showers and basic
medical assistance.

20

Core values
As Kinaxis continues to experience rapid growth and global expansion, we work to ensure that our values are relevant today
and will remain so into the future. At Kinaxis, we look for and celebrate six core values in our team: be real, be empowered,stronger together, laugh often, be customer centric, and be a global citizen.
To continue to attract and retain the very best people, we leverage our core values to make three fundamental promises to ourteam – our employee value proposition:•

Challenging work. Team members are encouraged to embrace and empower their own unique ingenuity and innovation
and apply them to the very complex problems that Kinaxis solves. We offer opportunities for personal growth and learning,as well as for contributions to the growth and scale of Kinaxis.

•

Great people. We are authentic and human, caring for and supporting one another, inside and outside work. This createshigh trust within the team, approachable leaders, and the collaboration across functional boundaries that is a big part ofdelivering value to our customers.

•

Global impact. We are a global team, spanning boundaries, locations, and languages, and are active in our myriad local
communities. We are also a part of the larger global community that celebrates individual differences and diverse cultures.

Our core values

We are real
Everything we do is rooted inauthenticity and aligns with ourcommitment to integrity.

We are empowered
We are a unique group ofproblem-solvers, thinkers and doers.

We are stronger together
We champion collaboration, insist on
inclusivity, and harness the collective
strength of diverse individuals.

We laugh often
The work we do is hard, and to do
it well, we have to have fun andcelebrate our progress.

We are customer centric
Our relationships with our customers
are a source of great pride andcontinuous inspiration, driving us towork hard on their behalf.

We are global citizens
Our perspective extends beyond
borders. We always consider thebroader implications of our actions
on our communities, society, and theenvironment.

21

E M P LOY E E R E S O U RC E GRO U P H I G HL I GHT

Women in India
Employee Resource Groups (ERGs) are invaluable assets within Kinaxis, serving as vibrant networks thatenhance the workplace experience. The mission of Women in India is to empower the women of Kinaxis in
India and to promote a women-friendly culture and better work-life balance.

Our cross-functional, global Culture Ambassador Group plays an important role in bringing our culture to life within our teams.
Our 20 culture ambassadors meet monthly to identify and plan ways to promote, drive, and shape culture throughout theorganization. The group’s goals include:•

Ensuring Kinaxis culture is strong across borders and functions•

Supporting business strategy and goals•

Increasing employee engagement and satisfaction•

Ensuring our culture is inclusive and reflects diversity

Diversity, equity, and inclusion (DEI)
Because all people matter here, diversity, equity, and inclusion (DEI) are more than just words to us. They are the guiding
principles for building a company culture that celebrates each other’s differences, strives for equality, and recognizes that
inclusion makes us stronger as individuals, as a company, and as global citizens. We are committed to removing barriers at allstages of both candidate and employee lifecycles.
22

Our annual company-wide engagement survey includes key questions related to DEI. With a strong response rate of 89%, thesurvey demonstrated positive sentiment with respect to the team’s impressions about diversity, equity, and inclusion at Kinaxis.
Overall, we received an impressive 85% favourable DEI sentiment score, with some very encouraging results on key measures:•

93% feel we treat each other with respect, regardless of background or identity•

93% feel they are an accepted member of their team•

92% feel that their manager respects and is committed to inclusion and diversity

Workforce composition
In Appendix 1, we report on Sustainability Accounting Standards Board (SASB) metrics for software and IT services companies,
including those relating to workforce composition. At a summary level, across the globe, 29% of our workforce identify as
women and 3% as people with disabilities. In Canada, 42% of our employees identify as visible minorities and <1% as amember of an Indigenous group. Of our team in North America and Europe, 5% identify as LGBTQIA+.
Over the last year, representation of women increased by 1%, representation of visible minorities increased by 2%,
representation of LGBTQIA+ increased by 1%. Representation of women at senior leadership levels has been improving overtime. The proportion of women at the director level globally increased to 27% in 2023, up from 26% in 2022 and 21% in
2021. The proportion of women at the executive level globally increased to 36% in 2023, up from 25% in 2022.

GlobalWomen

CanadaEmployees withdisabilities

Visibleminorities

North America
and EU
Indigenous
groupsLGBTQIA+

2023

2022

2021

2023

2022

2021

2023

2022

2021

2023

2022

2021

2023

2022

2021

All employees

29%

28%

27%

3%

3%

2%

42%

40%

38%

<1%

<1%

<1%

5%

4%

3%

Management (teamlead or above)

36%

36%

37%

4%

2%

3%

40%

36%

29%

1%

1%

2%

<1%

<1%

0%

Senior management(directors and above)

27%

26%

21%

4%

1%

1%

17%

16%

17%

0%

0%

0%

4%

5%

5%

Executive team

36%

25%

18%

7%

0%

0%

0%

0%

13%

0%

0%

0%

0%

0%

0%

Yearly data gathered in November 2023, November 2022 and September 2021

23

2023 DEI targets and goals
DEI targets and objectives apply to all members of the executive leadership team. We introduced diversity, equity and inclusion(DEI) targets and objectives for the first time in 2021 which laid a key foundation for our DEI journey. We continued to build on
this work and set the following targets and objectives for 2023: drive gender equality, improve measurement and transparency,
and drive DEI globally and implement it locally. Some of our accomplishments against these goals have been highlighted below.

Objective #1
Drive gender equality:•

To reduce bias in the performance management and promotion process we provided a consistent framework for theorganization and embedded DEI best practices. The perception of access to promotion opportunities being fair andequitable improved by 5% for all Kinaxis since 2020 and by 9% for women since 2020.

•

38% of our Board of Directors are Women and 36% of executives are women.

•

Our DEI Sentiment Score1 on our Annual Employee Engagement Survey remained high at 85% - 3 points higher than 75th
percentile global norm.

•

We partnered with PowerToFly to enhance awareness of the company among a diverse pool of candidates and generateapplications. The collaborative efforts of the team have yielded multiple successful hires of individuals from various
historically marginalized groups. Notably, these hires include leadership roles and roles within teams at Kinaxis that havebeen most homogenous.

•

To detect and address any potential bias in our hiring process, we aimed to maintain a candidate pass rate2 difference bygender of under 5%. Across all hiring stages and locations, we managed to meet this target in 83% of cases.

Objective #2
Improve measurement and transparency:
We strengthened the demographic data on employees to identify structural barriers, understand diverse needs, and bettermeasure progress against objectives. Given the inherent diversity of our global team, the process aimed to both align with Kinaxis’
high-level mission and values, and leave room to thoughtfully tailor data collecting approaches to the local contexts where our
employees reside. In 2023, we reviewed self self-identification questions and improved completeness of our DEI data from 81%
to 88%. We also added new DEI metrics to our strategic KPIs: attrition by gender and promotion rates by gender.

1

DEI Sentiment Score represents an average score based on response across eleven DEI specific questions in the Annual Engagement Survey

2

Pass rate represents the rate at which candidates from different groups advance from one step of the hiring process to the next24

Objective #3
Drive DEI globally and implement it locally:
We collaborated with a local DEI solutions provider in India to assess the current state of DEI in this region through employee
survey, focus groups and interviews with leaders. The engagement aimed to identify areas for improvement and establish a
strategic roadmap for the future.
The initiative has been highly successful, garnering significant interest and engagement from employees. As part of theongoing commitment to DEI, we conducted a DEI immersion workshop specifically tailored for all people leaders in India.
Additionally, the establishment of an Employee Resource Group (ERG) named "Women in India" showcases a dedicated effort
to drive various initiatives aimed at fostering gender diversity and inclusion within the organization.

25

DEI pillars and key initiatives
We have several DEI initiatives in place, structured across four key pillars that guide the execution of our work:

Promote employee training and awareness
Building DEI competence with a multifaceted approach involving training, events and communications year-round continues
to be a core pillar of our work.
DEI training. All new employees are enrolled in training courses for diversity and inclusion fundamentals and unconscious
bias. We also offer a variety of learning opportunities throughout the year such as workshops and webinars. In 2023 wehonored Black History Month by engaging an external partner to deliver Anti-Racism training and we hosted a DEI immersion
workshop for all people leaders in India.
Events. In partnership with ERGs and teams across the business, we organized events to promote and build DEI and culturalawareness. To name a few - we hosted Indigenous artists and storytellers at HQ in celebration of National Indigenous Peoples
Day, we delivered an educational event to honor Islamic History Month and organized the 3rd annual TransTech event topromote awareness on International Trans Day of Visibility.
Communication. DEI and Culture communications continue to have among the highest readership on Kinect – our internal
communications platform. In 2023 we delivered dozens of communications across internal channels and published quarterly
Culture Newsletters in partnership with the Culture Ambassador Group to bring awareness to global cultural events
throughout the year.

Give employees a voice
Employee resource groups (ERGs).
ERGs are invaluable assets within an organization, serving as vibrant communities that enhance the workplace experience.
These groups provide a space for employees with shared characteristics or experiences to connect, fostering a sense of
belonging and inclusion. ERGs play a pivotal role in promoting diversity, offering opportunities for professional development,
mentorship, and networking. Beyond individual growth, ERGs contribute to a more inclusive organizational culture, facilitating
cross-cultural understanding and collaboration. They serve as advocates for diversity and equity, providing insights that shapepolicies and initiatives, ultimately enhancing employee engagement, retention, and overall satisfaction.
Our key employee resource groups include:•

Women in Kinaxis (WIK). The mission of WIK is to support women, promote our organization to prospective female
candidates, promote STEM careers to girls and women and help provide an environment that enables women to be successful.

•

RainbowResponse. The mission of RainbowResponse is to make LGBTQIA+ feel increasingly safe to be themselves at work.

•

Indigenous Allies. Our Indigenous Allies group creates a safe space for Indigenous employees and their allies to discuss
their issues of concern and bring positive change.

26

•

Women in India. The mission of Women in India is toempower the women of Kinaxis in India and to promotea women-friendly culture and better work-life balance.

•

Parents. The main purpose of the Parents ERG is toprovide an informal group for community and support
to parents at Kinaxis.

•

Divergent Minds. A new Employee Resource Group
named "Divergent Minds" was established at the endof 2023. Key goals of this ERG include creating acommunity of support, educating and raising awarenesswithin Kinaxis of neurodiversity to remove stigma andmisconceptions, working with the DEI team and Facilities
to create work-spaces that are more accommodating forneurodiverse employees, as well as implementing training
for managers.

Provide inclusive and equitable programs
Systemic change. Our processes and policies are deisgned
to remove systemic barriers. First, we have an organizationwide standardized performance management process which
is based on DEI good practices and employee feedback.
A consistent performance management process minimizes
biases and ensures equal feedback, career conversations
and goal setting for all employees. Second, we have aligned
roles to a consistent leveling framework as teams evolve andnew roles are added. Job profiles are created or reviewed aspart of this ongoing process. Additionally, we closely monitor
promotion rates, analyze advancements into leadershiproles, and assess the average time spent in a role before
promotion, with a particular focus on gender data (ourmost complete data set). Actively engaging and monitoring
participation in mentorship programs further contributes toequity by providing guidance and support to all employees.
This data-driven approach has allowed us to identify andaddress disparities systematically, fostering a more inclusive
promotion environment.

Carole Woodstock, Kinaxis Fitness and Nutrition Specialist

27

Gender pay equity. We perform an annual gender pay equity analysis, which considers the compa-ratio (annual salary/range
mid-point) between team members identifying as men and those identifying as women in the same job category and reportresults to the board. Globally in 2023, the compa-ratio was 2.6% higher for men compared to women, which was addressedon an individual basis, as appropriate.
Diversity, Equity, and Inclusion (DEI) Committee. The DEI Committee includes 32 members from different parts of the world,
departments and marginalized groups that lend their perspectives to interview questions, talent assessment, and leadershipand team training materials, as well as other key initiatives. Their mandate is to provide feedback and ensure our programs arealigned with the Kinaxis strategy and meet the needs of our diverse workforce.
Autism@Work. Kinaxis has implemented the "Autism at Work" program, partnering with Specialisterne, a recognized
non-profit, to tap into the talents of individuals on the autism spectrum. Successful in meeting our goal of having 1% of
the workforce represented by individuals on the spectrum, we are now broadening our focus to include a wider rangeof neurodivergent individuals. A new Employee Resource Group (ERG) named "Divergent Minds" was created and weincorporated a new dimension of diversity, neurodivergence, into our data collection process, ensuring a holistic approach to
future Diversity, Equity, and Inclusion (DEI) programming. This strategic expansion showcases our dedication to fostering an
inclusive workplace that embraces diverse talents and perspectives.
Inclusive facilities. We offer inclusive facilities with multi-faith/multi-purpose rooms, gender neutral washrooms, a low
sensory room and a lactation room.
28

A great place to work!
We are proud to be recognized as a top employer and a great company.
These accolades are a testament to the exceptional workplace we strive
to create.
In 2023, Kinaxis India was named Great Place to Work-Certified™ for a third consecutive year! The Great Place
to Work® Assessment is considered a ‘Gold Standard’ in workplace culture assessment and no jury or individual
can influence the results of the assessment. Since 1992, they have surveyed more than 100 million employees
worldwide and used those deep insights to define what makes a great workplace: trust.
We were recognized as one of the National Capital Region's Top Employers, a Best Place to Work in IT for 2024 byComputerworld and also received the Muse Vibe Awards in the following categories:•

Best Companies for Vacation and Time Off Benefits•

Best Companies for Professional Development Benefits•

Best Companies for Parental Benefits

29Create meaningful partnerships
Indigenous Allies. Our understanding of Canada’s troubling history with Indigenous peoples and the residential school system
continues to deepen. The Truth and Reconciliation Commission’s report lists 94 calls to action, including how Canadianbusiness can support reconciliation, through building respectful relationships, providing equitable access to jobs, training, andeducation, and providing education on the history of Indigenous peoples to corporate management and staff. Our Indigenous
Allies group creates a safe space for Indigenous employees and their allies to discuss their issues of concern and bring positivechange. Members of this group have led a land-acknowledgement ceremony at the opening of our new Headquarters in
Ottawa, Ontario; led Robotics Workshops for Indigenous youth in partnership with IndigeSTEAM; facilitated our engagementwith Indigenous consultants and experts; and organized events by Indigenous performers and educators.
Broad partnership network. We continue to partner with the Canadian Center for Diversity and Inclusion and remain a memberof Indigenous Works’ Leadership Circle. We participate in Target Gender Equality through UN Global Compact Network Canada.
We have also partnered with Power To Fly to reach a more diverse candidate pool and with Avtar, a DEI solutions provider inIndia, to implement our global DEI strategy with cultural sensitivity. Through our industry outreach initiatives, we take part inevents and podcasts encouraging women to participate in data science and the growing supply chain craft.

30

Developing our team
The challenging work we offer, the quality of people we hire, and our rapid growth drive the need for ongoing team training
and development and result in a highly engaged team that is looking to make a difference.
Programs
Our structured onboarding process includes a digital curriculum that walks new team members through the information
they need to become effective in their role as quickly as possible. We offer a number of ongoing learning and development
opportunities to assist with career growth.
Dedicated quarterly development time. Each quarter, employees in various departments are asked to dedicate time toprioritize their training and development using internal and external resources best suited to their needs. The goal is toproactively promote ongoing team development in a schedule that allows for significant flexibility.
Mentorship. All team members across the globe are invited to take part in our ever-growing mentorship program, which
now includes 175 pairs across 14 countries. Anyone who feels they have something to offer can be a mentor, and anyone
can ask for mentorship. Enrollment is open throughout the year. The program is designed to enhance networking, encourageknowledge sharing, support professional development, and foster guidance between colleagues across the business andaround the world.
Leadership training. Our constantly developing leadership program provides emerging and existing leaders guidanceon enabling performance and being a role model coach to best support a highly productive team. Our program includes
interactive instructor-led and self-led learning experiences that allow leaders to guide their professional development and net
work with their leadership peers.
LinkedIn Learning. Team members have access to LinkedIn Learning, an online training platform that allows users to refine anddevelop professional skills, learn about new tools and technologies, and explore other areas of interest in support of individual
growth through a highly personalized and engaging learning experience.
Professional development. We pay for memberships in professional associations and for fees related to relevant conferencesand events to ensure our team stays at the forefront of their professions. In all, we allocate 1.5% of salaries to a training anddevelopment budget to support professional growth, develop or enhance new skills, or continuing education towards a new degree.

31Compensation and benefits
We annually benchmark pay against four different salary surveys, globally and relevant to our industry. Using a third-party
advisor, we benchmark our global benefits plans annually to ensure we are providing highly competitive regional coverage we
can for our employees.
To help ensure fair, non-discriminatory pay, our job accountability framework requires job descriptions for all roles and that eachrole be assigned to a job category associated with a pay level. We perform annual gender pay equity analysis, as described above.
Our compensation packages can include the following components:•

Short- and long-term incentives. Annual bonuses, tied to individual and corporate performance, all tied to high-levelstrategic objectives, and long-term equity-based incentives, including performance share units, restricted share units,deferred share units, and stock options.

•

Retirement. In North America, India, and Japan, offering matching, capped contributions to retirement savings plans.
Implementing supplemental and flexible offerings above statutory requirements where possible, i.e., Romania and Mexico.

•

Share purchase plan. Employees can voluntarily direct up to 10% of their base salary to purchase shares, and Kinaxis will
match 20% of employee contributions.

•

Maternity/parental leave top-up. Pays all new biological and adoptive parents for 12 weeks to top up their base salary to
100% in lieu of, or in addition to any statutory benefits available to them.

•Comprehensive insurance. Covers disability, life, accident, and health insurance, including gender affirmation coverage andexpanded mental health coverage.

•

Flexible vacation policy. No fixed limit on annual vacation.

•

Kinaxis Days. The last Friday of every month is a day off for all employees, globally, to take a shared mental health break.
Kinaxis employees also enjoy a winter recess where our offices are closed between Christmas Day and New Year’s Day. We
encourage employees to follow these dates but allow flexibility to observe local celebrations.

•

Health and well-being. Our global Employee Assistance Program provides access to various health and financial wellness
resources. Additionally, Kinaxis provides an annual wellness allowance to employees where wellness related benefits are
not already a part of an employee’s overall benefits package. The team also enjoys access to events and programs thatfeed the mind, body, and soul. Our own internal fitness and nutrition programs offer options that support everyone’s
health and well-being. Activities include meditation exercises, nutrition advice, injury prevention, learn-to-run webinars,
fitness challenges, virtual races, and weekly yoga classes. We run annual, company-wide hackathons to allow teammembers to think outside of their own corporate box and employee showcases to let our people demonstrate their own
unique skills and interests.

All team members located near one of our primary offices continue to have the opportunity to work part of their week fromhome. This flexibility is core to our people-matter-here culture.

32

Engagement
Our annual engagement survey for 2023, which is fully anonymous and implemented by an independent third party, continues
to demonstrate a highly engaged team. With an impressive survey participation rate of 89%, significantly surpassing industry
standards, the results take on added significance. Despite our substantial growth, our focus on fostering engagement andcommitment to our company culture remains unwavering.
The survey looks at several aspects of working at Kinaxis: our culture, work environment, leadership, career growth, learningand development opportunities, teamwork, and more. The results are benchmarked against 66 technology and professional
services facilities around the world and 160,000 individual survey responses. Our overall engagement index score remained
exceptionally high at 84%, with a slight 3% decline from the previous year. It continues to be significantly higher than
the industry benchmark. Encouragingly, there were no significant differences in this overall score across gender, age, andgenerations. We also continue to score extremely well against key criteria, including:•

88% would recommend Kinaxis to a good friend•

93% feel that they are an accepted member of their team•

94% feel that their values align with Kinaxis core values

This high level of employee engagement points to our strengths predominantly stemming from our culture and collaborative
pursuit of shared goals within a respectful environment. These aspects continue to be a crucial focus for attracting,developing, and retaining talent for Kinaxis.

Executive compensation
We compare our executive compensation to that of a group of 17 similar public companies. At our 2023 annual meeting ofshareholders, Kinaxis held its latest advisory “say on pay” vote, wherein shareholders voted over 96% in favor of our approach
to executive compensation. Full details on the approach to management and board compensation can be found in ourManagement Information Circular.
33

Our communities
Giving backOne of our corporate values recognizes that we are all
global citizens. As part of that commitment, Kinaxis makes
corporate donations to several worthy causes and offers
our expertise to students and academics in the supply chain
field, to help continue to move the practice forward forgenerations ahead.
ME A L S THAT HE A L

Key resources

Neil Butts

Our community involvement guidelines direct us in our
support of charitable events and causes, including providing

Kinaxis’ very own Director of Culinary

clarity on the types of organizations to which Kinaxis will

Programs exemplifies our values of

not donate. For example, donations will not be made to any

community engagement and empathy

organizations that discriminate against any protected groupthrough his ongoing leadership in support

under the UN’s Universal Declaration of Human Rights. Also,of our local community. In addition to

we will not fund organizations for the purpose of promoting

ensuring that Kinaxis employees benefit fromparticular religious beliefs or organizations operated

balanced, health conscious and affordable

primarily for the purposes of directly or indirectly influencing

food choices, Neil has led countless initiatives

the outcome of any political process.

to provides meals to those in need. Among

Corporate giving

other initiatives, Neil led the establishmentof monthly Kinaxis dinner nights at the

In 2023, we established a more focused corporate giving

Ronald McDonald House in Ottawa, Canada.

strategy that better aligns with our core business andThrough this initiative, various employee

selected UN Sustainable Development Goals. We alsogroups across Kinaxis prepared delicious

increased our annual budget for corporate giving to ameals for families of children staying at theminimum of $250,000, beginning in 2024.

RMH. Neil also oversees the donation of any

In 2023, we supported over 50 organizations and ourunsold, fresh and pre-packaged food surplus

charitable contributions totaled over $150,000. We provide

to local shelters.

charitable contributions in support of team engagementin the community and when employees and communities
are impacted by significant world events. Some of theorganizations we supported in 2023 include the Red
Cross for their crucial help to individuals impacted by the34

earthquake in Syria and Türkiye; the Maui Strong Hawaii Community Foundation for the assistance to communities impacted
by the devastating forest fires that struck the island; the Bhoomika Trust for the front line help they provided to individuals
impacted by cyclone Michaung in the Chennai region of India; and QuickStart for their assistance to children with autism,
We also signed key partnerships with two prominent non-profit organizations to advance our social and environmental impact:
We have engaged with Women Who Code, a global non-profit organization empowering diverse women to excel in technology
careers. They offer resources, communities, and support for over 360,000 diverse technologists around the world. Women
Who Code supports engineers, developers, data scientists, architects, designers and other technologists with the resources andcommunity to stay in tech and level up. Through active engagement, mentoring, and active recruitment through Women Who
Code, Kinaxis aims to enable diverse women with the tools, resources and opportunities to succeed in their tech careers. Thispartnership is built on our desire to contribute to women's empowerment and growth in STEM fields.
In 2023, we also became a Network Member of the Ellen MacArthur Foundation, an organization committed to creating acircular economy designed to eliminate waste and pollution, circulate products and materials and regenerate nature. Recent
geopolitical shocks and economic uncertainties have highlighted the need for resilient supply chains. As we move away from atake, make, waste linear model, the circular economy offers businesses the opportunity to redesign their supply chains to meetthese needs, as well as reduce costs and cut greenhouse gas emissions. We look forward to collaborating with the Ellen MacArthur
Foundation and its extensive network of subject matter experts to advance circular practices in the industry.

Member35

Music at Kinaxis
Creating community through music and the arts
The Kinaxis culture is anchored in the simple phrase, “people matter here,” which extends to the communities
in which we live, work, and play. One core tenant of our culture is our love for music because of its uniqueability to bring people together – across teams, industries, and borders. It also helps us and those who workwith us embrace creativity, which we believe is vital for business. We believe that businesses could be better –and do better – with more creativity.

Aysanbee

Mia Kelly

The Bookends

Kinaxis InConcert
In partnership with the Ottawa Music Industry Coalition (OMIC), we host ‘Kinaxis
InConcert: Live from the Hive’, a concert series where local, touring, and emerging
artists from a wide variety of genres perform at Kinaxis’ HQ in Ottawa.

Avery Raquel performs at Billy Bishop Airport at the Music On The Fly concert series powered by the Kinaxis Catapult Collaboration

Catapult
We believe in the power of creativity to transform lives, so we’ve partnered with
ArtHaus to form The Catapult Collaboration, a music initiative designed to propel
emerging artists into the spotlight and to share their stories. From putting on airport
performances to supporting artists in the studio, Catapult takes us into the lives andjourneys of musicians from “starting out” to stardom, with interviews, advice, and life
lessons we can all absorb and apply.

36

Kinaxis Academic Program
Through the Kinaxis Academic Program, Kinaxis reachedover 5,000 students at leading universities in 2023 andmore than 12,000 since the inception of the programin 2020. Kinaxis recognizes the critical role that higher
education plays in ensuring we have the ideas, innovation,and skills necessary to propel the modern supply chain
forward. We partner with supply chain, business, analytics,
engineering, operation research, and other programs at
leading academic institutions to inspire the next generation
through initiatives such as guest lectures, case studies,case competitions, and certifications that invite students toengage on a continuous learning journey.
Additionally in 2023, we introduced the Kinaxis Supply
Chain Game, a live simulation demonstrating thecomplexities and challenges facing supply chain planners.
The Kinaxis Supply Chain Game has been played acrossvarious learning environments from 7th graders to
Executive MBA. More about the Kinaxis Academic Program
can be found here.

37

Our environment
Protecting the planet by doing what we do best
Kinaxis recognizes the urgency of the global climate change crisis and is committed to improving our management practices
around climate risks and opportunities. We have integrated our climate risk assessment within our existing enterprise risk
management program to build a more holistic approach to our processes. Climate change is a systemic and accelerating challenge
requiring a concerted global effort, and while Kinaxis does not currently deem any climate-related risks to be material to thecompany, we have identified several that could impact our business over time. We will continue to actively manage and monitor
the climate-related risks and opportunities and support the aims of the Task Force on Climate-Related Financial Disclosures(TCFD) to bring transparency around climate risks into corporate reporting.

Key resources
See Appendix 2 to this report for our current disclosures under the TCFD framework.

GHG emissions
Since 2019 and with the help of environmental consultants Carbonzero, Kinaxis measures and discloses its impact on theenvironment by identifying our direct and indirect greenhouse gas sources, covering Scope 1, 2 and 3 activities. Direct andenergy indirect emissions (Scope 1 and 2) make up 4.4% of our total emissions, while other indirect emissions (Scope 3)
comprise 95.6%.
In Scope 3, our main sources of emissions, by far, are business travel (83% of total emissions) and electricity usage from ourdata servers (7% of total emissions). With the pandemic winding down throughout 2022 and 2023, our travel patterns havenormalized. In 2023, Kinaxis’ GHG emissions are generated from the following sources, with details provided below.

Notable Scope 1 and 2 and GHG- generating activities
Operationally-controlled real estate. Our largest offices include our headquarters in Ottawa and those in Chennai, Toronto,
and Tokyo, where we are deemed to have operational control over the facilities and its utilities. Utility metering improvements
have allowed for Kinaxis' office in Tokyo to be moved into the Scope 1 & 2 boundary by way of having Kinaxis-metered datafrom January 1, 2021 onwards (Note that these offices utilities are reported in Scope 3 - Leased Assets for 2019 - 2021, andonly brought into the Scope 1 & 2 control boundary when their metered data specific to Kinaxis became available.).
Kinaxis purchases EcoLogo certified Renewable Energy Certificates (RECs) to match 100% of grid electricity consumption
at Ottawa HQ. In the absence of this program, Scope 2 electricity emissions at Ottawa HQ would have amounted to 48.52
tCO2e, while total Scope 2 GHG emissions for the entire controlled portfolio in 2023 would have amounted to 419.60 tCO2e,
under the location-based accounting method.

38

Emissions-generating activities

Tonnes CO2-equivalent (tCO2e)
2023

2022

2021

% of 2023
tCO2e2023 v 2022

Scope 1 GHG Emissions – Direct
GHG Emissions

252.23252.56

37.00

1.8%

-0.1%

Stationary combustion – Fuels1

252.23252.562

37.00

1.8%

-0.1%

Scope 2 GHG Emissions – Energy Indirect
GHG Emissions

371.08289.37

68.32

2.6%

28.2%

Purchased electricity (Market-based)3 4

371.08289.372

68.32

2.6%

28.2%

13,413.59

5,206.80

3,595.95

95.6%

157.6%

Leased assets

42.96

41.60

39.86

0.3%

3.3%

Data servers

990.85728.975

3,226.22

7.1%

35.9%

Business travel – Air

9,453.21

3,997.89

191.6367.3%

136.5%

Business travel – Hotel stays

1,836.57

211.99

45.54

13.1%

766.3%

Vehicle mileage and car rentals

344.46124.94

43.11

2.5%

175.7%

Business travel – Rail & bus

16.20

10.63

3.05

0.1%

52.3%

Commuting6

625.78

n/a

n/a

4.5%

n/a

Remote work7

88.34

90.77

46.53

0.6%

-2.7%

Waste generated in operations6

15.23

n/a

n/a

0.1%

n/a

14,036.90

5,748.74

3,701.26

100%

144.2%

Scope 3 GHG Emissions – Other
Indirect GHG Emissions

GHG Inventory Total
1

As a result of a limited amount of diesel use being discovered at Kinaxis' India-based office, approximately 5 tCO2e has been added to 2022
Scope 1 GHGs, which has also been also included in 2023.

2

Significant increases to our Scope 1 and 2 emissions in 2022 are directly related to:a.

The opening of Ottawa HQ, our new, significantly larger head office in Ottawa, Ontario, and its related natural gas use.

b.

Transitioning Kinaxis' India-based offices into the Scope 1 and 2 control boundary (previously Scope 3).

3

As a result of metered electricity data becoming available, Kinaxis' Japan office for which emissions were previously reported in Scope 3 havebeen recalculated and included in Scope 2 for 2021-2023.

4

Location Based Scope 2 GHGs are calculated as 419.60 tCO2e in 2023. The difference between market-based Scope 2 totals and locationbased Scope 2 totals are inclusive of Kinaxis' purchase of Renewable Energy Credits covering 100% of Ottawa HQ grid electricity use.

5

In 2022, one of Kinaxis’ prominent cloud server service providers changed its methodology regarding how server electricity use is calculated andreported to customers, which produced a significant reduction in the related GHG emissions.

6

Estimates related to landfill, recycling and organics GHG emissions, as well as employee commuting GHG emissions, have been reported on in
2023 for the first time. Both emissions categories reflect emissions generated from relevant activities from within the company's Scope 1 & 2
control boundary (i.e. at Ottawa, Toronto, Tokyo, and India offices), representing more than 95% of total office space.

7

Remote work emissions estimates have been re-stated for 2021 and 2022 due to a methodology change in which only employee working hours,
as opposed to 24-hour working days, are included.
39

Notable Scope 3 GHG-generating
activities
Data centers. We deliver RapidResponse as a software as aservice (SaaS) offering from our servers, which are primarily
hosted at global colocation facilities operated by Equinix,
a company broadly recognized for its ESG initiatives. As afirst step in its climate change reduction strategy, Equinix
established a 100% renewable energy target in 2015. It has
since achieved 95%. In 2021, it expanded the scope of its
commitments to include both a science-based target andclimate neutrality, furthering its alignment with the aims ofthe 2015 Paris Climate Agreement.
Equinix purchased renewable energy certificates (RECs) for
100% of the estimated 1,856 MWh of electricity used tosupport Kinaxis’ business across all its colocation facilities
in 2023 – in the United States, Japan, and the Netherlands.
We report related GHG emissions in the purchased goods
and services Scope 3 category using location-based emission
factors, prior to the application of Equinix’s purchased RECs.
Note that Kinaxis does not offset emissions from Equinix’s
data centres as those emissions are already mitigatedthrough purchased RECs and other renewable energy
sourcing measures.
In 2022, a data center vendor changed its methodology
regarding how server electricity use and related GHG
emissions was calculated which produced a significant
GHG reduction in 2022 onward for purchased serverrelated services. The change in methodology results inmore accurate energy and related GHG emissions data
being provided by producing actual metered electricity
consumption results, as opposed to estimated consumption
amounts based on a maximum potential demand. GHG
emissions totals using the new methodology are only
available starting in 2022, and historical periods have notbeen re-stated due to the data not being available at thetime of report publication.
40

For other data center needs, we also use Vantage Data Centers in the province of Quebec, which uses nearly 100% renewablehydroelectricity, and a separate data center operator for our internal IT requirements, located in Ontario, which primarily useshydroelectricity and nuclear energy for its electricity demand.
Across 2022 and 2023, we have gone live on both Microsoft Azure and Google Cloud to deliver RapidResponse in a public
cloud environment. The transition to a public cloud environment has added an additional 338 tCO2e to our data centeremissions in 2023, partially offset by a 76 tCO2e reduction due to reduced usage of our private data centers. Across 2023,
34% of our data center emissions were driven by public cloud use.
Business travel. Business travel represents more than 83% of Kinaxis’s total greenhouse gas emissions. In 2023, we have seen
significant increases in air travel and hotel stays. These increases were driven by the resumption of regular post-pandemic air
travel and the continued growth of our business.
We are continually working on strategies to limit the increase in business travel-related emissions. With this in mind, welaunched a new travel policy in 2023 along with sustainable travel tips for employees and will continue exploring opportunities
to reduce our environmental footprint.

Offsetting our GHG emissions
While Kinaxis’ focus ahead is to identify GHG reduction opportunities across the organization and decarbonize where
possible, we have also committed to fully offsetting our remaining GHG emissions. To accomplish that, we invest in highquality third-party verified carbon offsets sourced through reputable providers from Canadian and International projects.
To offset our remaining 2023 GHG emissions of 13,390 tCO₂e (14,037 tCO₂e total, less 647 tCO₂e already mitigated bythird-party data center vendor REC purchases), we invested in the following third-party verified projects:
Niagara East Landfill Gas Capture and Utilization Project, Canada•

Location: Niagara, Ontario, Canada•

Standard: ISO-14064-2•

Type: Landfill Gas Capture & Utilization

This project collects, captures and recovers landfill gas originating at Niagara, Ontario’s East Quarry Landfill, and processes
it into a useable fuel source for distribution via pipeline to a nearby recycled paper mill. Previously, a significant amountof landfill gas (methane and carbon dioxide) was released into the atmosphere where greenhouse gases contribute to thenegative effects of climate change.

41

Dairy Biogas Program, India•

Location: Uttar Pradesh, Maharashtra, Rajasthan, Assam, and Karnataka, India•

Standard: Gold Standard•

Type: Biogas-Heat

The India Diary Biogas Project provides innovative biodigester technology to farmers, tackling key issues like poverty andclimate change by transforming waste into renewable energy and organic fertilizer, thus promoting sustainable agriculture. The
project specifically assists smallholder dairy farmers in India, aiding their shift from traditional energy sources to biodigesters,
which leads to reduced carbon emissions and enhanced farm productivity.
A-Gas Refrigerant Reclamation Project, USA.
•

Location: Ohio and Texas•

Standard: American Carbon Registry (ACR)•

Type: Certified Reclaimed Hydrofluorocarbon (HFC) Refrigerants

The A-Gas Refrigerant Reclamation Project involves the recovery, reclamation, resale and use of certified HFC refrigerants thatrecharge existing and newly manufactured refrigeration and air conditioning equipment in the United States. Project activities avoid thefuture production of virgin HFCs, which are associated with high Global Warming Potentials (GWPs) that contribute to climate change.
Additionally, Kinaxis further partnered with Carbonzero to measure the carbon footprint of Kinexions 2023, our user
conference in Nashville, Tennessee, and purchased third-party verified carbon offsets to help mitigate the footprint of theevent. Carbonzero worked closely with event organizers to determine the greenhouse gas emissions from all attendee travel,venue utilities, hotel stays, and event-related landfill waste.

42

Approach to carbon offsets
A carbon offset is a verified reduction of greenhouse gas emissions, developed to compensate or “offset”
an equivalent greenhouse gas emission from another source that cannot be easily eliminated. As a result,climate change is mitigated by providing financial incentives for pollution reduction and investment in newtechnologies and ecological processes.
For our carbon offset investments to have the most environmental and social impact, we consider projects thatmeet the following criteria:

Quantifiable

Additional

Permanent

The tonnes of CO2 equivalent

Projects must go beyond

The beneficial action of an offset

emissions reduced, removed, or“business as usual” to generate

to the atmosphere must be

avoided by the project must be

offsets.

durable and lasting.

Verifiable

SocialLocal

Projects must be audited by

Our goal is to maximize

We seek to align our investments

accredited third parties.

value associated with sociallywithin the geography of our

responsible projects thatemissions-producing activities.

measured precisely.

can directly benefit local
communities.

UN SDGs
Our investments in carbon offsets to date support several United Nation Sustainable
Development Goals, including two of the six we have chosen to focus on: SDG 8,
Decent work and economic growth, and SDG 13, Climate action.

43

Our office programs
Our largest offices, in order of size, are in Ottawa, Chennai, Toronto, Rotterdam and Tokyo. In Chennai, we moved into a new
LEED-certified building in late 2022. All offices are included in our GHG inventory and our carbon offsetting program andfeature other environmentally friendly programs.
Renewable Energy Certificates. Kinaxis purchases EcoLogo certified Renewable Energy Certificates (RECs) to match 100% of
grid electricity consumption at Ottawa HQ.
Lighting and HVAC. LED lighting is used in our Ottawa, Toronto and Chennai offices. In our new HQ, blinds and shades areon sensors, to harvest daylight and optimize lighting; the building HVAC system is turned off at night, when the building istypically unoccupied; and we run a high-efficiency HVAC.
Furniture. When available, older furniture is auctioned to employees, with funds going to various charities, and any remaining
pieces are sent for recycling. New furniture, such as workstations, laminate tops, and chairs, is built from low volatile organic
compounds, which have little or no off-gassing and meet LEED certification. We reused 100% of workstations from our old HQ.
Recycling and composting. We have four-stream recycling programs throughout our offices in Ottawa, Chennai and in Tokyo.
Recycling consists of organics, plastics, metals and glass, and paper/cardboard, and we provide battery recycling containers
throughout the building. We also ensure that all food waste is composted at Head Office. We no longer print and mailmaterials for our Annual General Meeting, relying on digital distribution, as permitted by the relevant securities administrators.
In 2023, our property manager engaged RecycleSmart Solutions to perform a waste and recycling audit to measure the waste
and recycling material produced during a typical day of operations, based on a sample generated during a 24-hour period.
Based on the sample data reviewed, our Head Office generated approximately 32 tonnes of waste and recycling annually, andit was observed that a waste diversion rate of 58% and capture rate of 73% were achieved during the audit day.
Several specialized opportunities for improvement and recommendations to expand our waste diversion program were noted
as a result of the audit, and will be taken into account for implementation, where appropriate.
IT asset recycling. To maximize our IT asset life, we replace laptops and workstations on a break-fix model, where hardware is
replaced only as truly warranted, rather than using a fixed replacement cycle. Older hardware that has been found to no longer
be usable in our corporate environment is donated and re-purposed. Any remaining or unusable computers are dismantled forparts or are picked up by an electronics company and recycled responsibly.

44Planning for a more sustainable future
While we are always looking for ways to improve the sustainability of our operations, our software solution, RapidResponse,
also makes significant contributions to helping our customers reduce waste in its many forms every day.

Sustainable Supply Chain application
At our annual customer community conference Kinexions, we unveiled new product innovations spanning the end-to-end
supply chain that empower businesses with the transparency, control, and agility they need to navigate today’s volatilebusiness landscape.
One of the new innovations, Sustainable Supply Chain, is a solution that allows companies to embed emissions data (including
Scope 3 emissions) directly into RapidResponse to design scenarios that will estimate, project and simulate supply chain
related CO₂e in real time. Not only does Sustainable Supply Chain create visibility into emissions data, but it also empowers
planners to understand its impact in seconds.
Scope 3 emissions often account for the majority of a company’s carbon footprint, so failure to understand the environmental
impact of supply chain decisions is a major barrier to a more sustainable future.
Planners can now seamlessly blend timely and accurate emissions data to weigh environmental factors alongside economic
and service indicators to optimally balance the triple bottom line.

Sustainable Supply Chain application45

tree-nation.com/profile/kinaxis

27141
Trees planted

22.01

Hectares reforested

7608.53

Tonnes CO2 captured

Other RapidResponse sustainability benefits
Beyond the capabilities of the Sustainable Supply Chain, RapidResponse helps customers mitigate their environmental
footprint and reduce waste in its many forms every day.
Reducing wasted productBy enhancing end-to-end supply chain planning, RapidResponse typically helps our customers lower their physical inventory levels.
Excess inventory may never find a home and, instead, can find its way into landfills. Some inventory has firm expiry dates beyond
which product is entirely wasted, never finding its way to customers in need and creating a disposal problem.
Delivering critical goods
Many of our customers offer products that are critical to society and must always be available – stockouts simply can’t happen.
Life sciences and pharmaceutical companies represent one of our largest markets. One major customer in this market, which
offers life-saving oncology drugs, has a corporate mission to never stockout. That same customer has credited Kinaxis as asignificant contributor to achieving that goal while simultaneously significantly reducing days-in-inventory.
Consumer products is a large and rapidly growing market for Kinaxis, and we help companies ensure that their critical products
are available during emergencies. A Forbes article discusses how our customer, Procter & Gamble, managed their supply chain
to move critical goods out of the path of Hurricane Irma to ensure that they could supply consumers with what they needed
most during the emergency.

46

Reducing carbon output
Poor planning frequently leads to expensive, wasteful last-minute expediting of goods within global supply chain networks.
Frequently, the goods are expedited via high-carbon-footprint air courier. Kinaxis customers have experienced decreases
in expediting activity – all through better planning. Kinaxis has also helped a car manufacturer plan its portfolio of vehicle
packages so that they met tougher emissions requirements in the European Union and avoided costly penalties.
Our Supply Chain Execution product capabilities offer customers advanced transportation management and load optimization
capabilities. These solutions help optimize shipping plans and freight spend and increase capacity utilization by creating fuller,
more efficient loads, resulting in reduced CO₂ emissions.
Enabling recycling
With our partner, Ocyo Consulting, Kinaxis offers solutions that directly help companies plan and monitor recyclingflows of incoming and outgoing products, internally and across a partner network, to improve supply chain efficiency,
sustainability, and compliance.

Supply Chain Execution

47

Appendix 1 – SASB Metrics
FY2023

FY2022

CodeEnvironmental Footprint of Hardware Infrastructure
Total Energy Consumed (gigajoules)

14,773.09

15,599.2

TC-SI-130a.1

Percentage grid electricity

67.24%

69.36%

TC-SI-130a.1

Percentage renewable

41.54%

33.90%

TC-SI-130a.1

Total water withdrawn

Deemed immaterial to operations

TC-SI-130a.2

Total water consumed, percentage
of each in regions with high orextremely high baseline water stress

Deemed immaterial to operations

TC-SI-130a.2

Discussion of the integration ofenvironmental considerations into
strategic planning for data center needs

See Strategy commentary in Appendix 2 –Alignment with Task
Force on Climate-Related Financial Disclosures

TC-SI-130a.2

Data Privacy & Freedom of Expression
Description of policies and practices
relating to behavioural advertisingand user privacy

Do not engage in behavioural advertising

TC-SI-220a.1

Number of users whose information
is used for secondary purposes

00

TC-SI-220a.2

Total amount of monetary losses as aresult of legal proceedings associatedwith user privacy$0$0TC-SI-220a.3

Number of law enforcement requests
for user information

00

TC-SI-220a.4

Number of users whose information
was requested

00

TC-SI-220a.4

Percentage resulting in disclosure

00

TC-SI-220a.4

List of countries where coreproducts or services are subject togovernment-required monitoring,
blocking, content filtering, or
censoring

None

None

TC-SI-220a.5

48

Data Security
Number of data breaches

No breaches requiring customer/user notification haveoccurred

TC-SI-230a.1

Percentage involving personallyidentifiable information (PII)

N/A

TC-SI-230a.1

Number of users affected

N/A

TC-SI-230a.1

Description of approach toidentifying and addressing data
security risks, including use of thirdparty cyber security standards

See pages 14-16 herein

TC-SI-230a.2

Recruiting & Managing a Global, Diverse & Skilled Workforce
Foreign nationals (in Canada)

16%

13%

TC-SI-330a.1

Located in Canada

48%

50%

TC-SI-330a.1

Located in North America

63%

66%

TC-SI-330a.1

Located offshore

52%

50%

TC-SI-330a.1

Employee engagement as apercentage

84%

87%

TC-SI-330a.2

Man

61%

64%

TC-SI-330a.3

Woman

29%

28%

TC-SI-330a.3

Non-binary, other, and prefer not
to say10%

7%

TC-SI-330a.3

Gender identity, total employees

Gender identity, technical employees (Canada)
Man

60%

66%

TC-SI-330a.3

Woman

24%

24%

TC-SI-330a.3

Non-binary, other, and prefer not
to say16%

10%

TC-SI-330a.3

49

Gender identity, exec. Team/director+/people manager/individual contributor
Man

57%/62%/54%/62%

67%/60%/57%/65%

TC-SI-330a.3

Woman

36%/27%/36%/28%

25%/26%/36%/28%

TC-SI-330a.3

Non-binary, other, and prefer not
to say7%/11%/9%/10%

8%/14%/8%/7%

TC-SI-330a.3

Racial/ethnic identity, total employees (Canada)
Indigenous

1%

1%

TC-SI-330a.3

Arab

5%

2%

TC-SI-330a.3

Asian

28%

28%

TC-SI-330a.3

Black

2%

2%

TC-SI-330a.3

Latin American

2%2%

TC-SI-330a.3

White

42%

45%

TC-SI-330a.3

Two or more races, other, and prefer
not to say

21%

20%

TC-SI-330a.3

Racial/ethnic identity, technical employees (Canada)
Indigenous

<1%

<1%

Arab

7%

4%

TC-SI-330a.3

Asian

32%

31%

TC-SI-330a.3

Black

1%

1%

TC-SI-330a.3

Latin American

2%2%

TC-SI-330a.3

White

34%

36%

TC-SI-330a.3

Two or more races, other, and prefer
not to say

23%

26%

TC-SI-330a.3

50

Racial/ethnic identity, exec. Team/director+/people manager/contributor (Canada)
Indigenous

0%/0%/1%/1%

0%/0%/1%/1%

TC-SI-330a.3

Arab0%/2%/4%/5%

0%/0%/2%/2%

TC-SI-330a.3

Asian0%/10%/23%/31%

0%/12%/26%/31%

TC-SI-330a.3

Black0%/0%/2%/3%

0%/0%/1%/2%

TC-SI-330a.3

Latin American

0%/0%/1%/2%

0%/0%/1%/2%

TC-SI-330a.3

White89%/71%/46%/38%

89%/67%/52%/41%

TC-SI-330a.3

Two or more races, other, and prefer
not to say

11%/18%/22%/20%

11%/21%/17%/21%

TC-SI-330a.3$0

TC-SI-520a.1

Intellectual Property Protection & Competitive Behavior
Total amount of monetary losses as aresult of legal proceedings associatedwith anticompetitive behavior
regulations$0

Managing Systemic Risks from Technology Disruptions
Number of (1) performance issuesand (2) service disruptions; (3) totalcustomer downtime

Exceeded or achieved our target of a minimum 99.5% uptime

TC0SI-550a.1

Description of business continuity
risks related to disruptions ofoperations

See pages 30-45 of our
Annual Information Form,
most notably pages 38-42 foroperational risks

TC0SI-550a.2

51

See pages 30-45 of our
Annual Information Form,
most notably pages 38-42 foroperational risks

Appendix 2 – Alignment with Task Force on
Climate-Related Financial Disclosures
Kinaxis recognizes the urgency of the global climate change crisis and is committed to improving and elevating our climate
risk management practices. In 2021, we initiated a risk analysis aligned with the Task Force on Climate-Related Financial
Disclosures (TCFD) recommendations and integrated it with our existing enterprise risk management program to build a more
holistic approach to our processes. Our initial identification and assessment activities indicated that climate-related risks andopportunities are not currently financially material to our business. However, we believe climate change is a systemic andaccelerating challenge requiring a concerted global effort. Therefore, we have continued to actively manage and monitor ourmost significant climate-related risks and opportunities. Kinaxis supports the aims of the TCFD to bring transparency aroundclimate-risks into financial reporting, and we intend to continue to build out our strategy and reporting under this framework.

52

Disclosure

Response

Governance
Describe the board’s oversightof climate-related risks andopportunities

Board of Directors
Kinaxis’ Board of Directors has ultimate oversight responsibility for risk management activities andprograms and ensures that adequate systems are in place to identify, manage, monitor, and report on
principal risks affecting corporate objectives. Through their oversight role, the board members satisfy
themselves that:• risk management policies and procedures are aligned with the overall business strategy• these policies and procedures are operating as intended; and• a strong risk culture is maintained across the business.
Nominating and Governance Committee
The nominating and governance committee has been delegated primary oversight responsibility for
all ESG matters, including strategies, policies, performance and reporting of climate-related risks andopportunities. On a semi-annual basis, the Chief Legal Officer and risk and sustainability lead submit to
the nominating and governance committee a climate-risk report, which includes:• a summary risk dashboard, including a description of prioritized climate-related risks and semi-annual
trends;• the status of ongoing and completed mitigation strategies for prioritized climate-related risks andoverdue items; and• additional monitoring metrics and/or other information, as necessary.

Describe management’s rolein assessing and managing
climate-related risks andopportunities

Kinaxis recognizes that management of climate-related matters requires broad collaboration and crossfunctional involvement. Accordingly, we have established an integrated approach and accountability
structure for identifying, assessing, and managing climate-related risks and opportunities, which engages
our Chief Legal Officer, full executive team, cross-functional collaboration across business units, andother relevant stakeholders, as needed.
Our Chief Legal Officer is the executive sponsor of both risk and sustainability related matters andis accountable for delegated oversight of processes surrounding ESG matters, including climaterelated risks and opportunities. Priority ESG matters are brought to the full executive team, andfindings and recommendations are regularly reported back to the nominating and governancecommittee of the board.
Our risk and sustainability leader, who reports to the Chief Legal Officer, engages internal stakeholders
representing each functional area of the company on an annual basis to review, refresh and prioritize
key ESG topics. These priority ESG matters are then validated with both the executive leadershipteam and the nominating and governance committee of the board. A deeper risk and opportunity
assessment is then conducted on each of the priority ESG topics to further develop incremental
mitigation strategies, which are then integrated into the broader ESG and corporate strategy.

53

Strategy
Describe the climate-relatedrisks and opportunities theorganization has identified overthe short, medium, and long term.

Kinaxis identifies, prioritizes and assesses climate-related risks and opportunities across a range of time
horizons (short-term: before 2030; medium-term: 2030–2050; long-term: beyond 2050) and potential
impacts to the business, including financial, legal, operational, reputational, and safety considerations.
In our assessments, we consider both acute and chronic physical risks, such as increases in thefrequency and severity of extreme weather events, as well as risks associated with the transition to a
low-carbon economy, including current and emerging regulation, market risks, and new technology.
In addition to risks, we also considered that although our own global carbon footprint is minimal given
the nature of our industry as a SaaS provider, our greatest opportunity to combat climate change is toenable our customers on their journeys towards net reduction efforts by powering their supply chainsto help preserve the planet’s resources.
Although not currently deemed to be material, we recognize that these climate-related risks andopportunities could impact our business in future and will continue to monitor and report on themwithin our enterprise risk program as a distinct climate-risk profile:
Risk Category

Description

Time Frame

Physical and Transition Risks
Physical – Acute

Increase in frequency and/or severity of extreme
weather events, such as wildfires, floods or
tornados, which may result in the disruption of ouroperations or in the loss or damage of our assets.

Medium to Long

Transition – Legal &PolicyRapidly evolving global regulatory landscape in
relation to mandatory climate disclosures which
may result in increased administrative costs or
penalties in the event of non-compliance, as wellas adverse reputational impact.

Short to Medium

Transition –Technology, Market

Uncertainty around changes to customer
preferences in their shift towards low-carbon
operations and the technological innovations to
support the transition to a circular economy.

MediumTransition –Reputation

Uncertain and changing expectations andperceptions of Kinaxis’ contribution and commitment
to the transition to a low-carbon economy.

Short to Medium

The shift of customer preferences towards robust
supply chain planning and management, given
the prevalence and impact of scope 3 emissions,and in enhancing overall supply chain resiliency.

Short to Medium

Opportunities
Products & Services

54

Describe the impact of climaterelated risks and opportunities
on the organization’s business,strategy and financial planning

A key outcome of performing climate risk assessments includes defining incremental mitigation
activities to manage the physical and transition risks of climate change. Although our assessments todate indicate that these risks of climate change are not currently material to our business, we havechosen to actively evaluate, monitor and report on these mitigation efforts.
At Kinaxis, we treat risk management as an iterative process and will continue to build on and actively
identify further opportunities to integrate the management of the impacts of climate change. Below isa summary of the key mitigation efforts we have identified to date to manage the impact of climaterelated risks and opportunities on our business, strategy and financial planning:
Area

Impacts and Mitigations

Products & Services

Opportunities to develop new and invest in existing products / services tohelp customers to reduce their own carbon footprint and plan for climate
resilience and business continuity are influencing our strategy through 2030.
One of the most substantial strategic decisions we have made influenced bythese opportunities is the first release of Kinaxis Sustainable Supply Chain:• In June 2023, we released a new solution that allows companies toembed emissions factors (including Scope 3 emissions) directly into
RapidResponse to design scenarios that will estimate, project andsimulate supply chain related CO₂e in real time.
• This first release tracks Scope 3 emissions from five categories, including
emissions from purchased goods and services, and upstream anddownstream distribution and transportation.
• This not only creates visibility into emissions data, but also empowers
planners to understand its impact in seconds.

Investment in R&D• We invest in R&D for new solutions that help us contribute to climate
resilience through technology innovation while helping increase ouroperating efficiency, meet growing demand for lower-emission products
and services, and establish a stronger competitive position.
• While Kinaxis' own carbon footprint remains minimal, we recognize
the most substantial impact our business can have in the fight against
climate change is to enable our customers to manage their own Scope 3
emissions in their supply chains.
• We are committed to further developing and enhancing ESG capabilities
within our products to address a spectrum of priority ESG issues.

Supply Chain• The impact of climate-related risks and opportunities on our supply
chain is primarily the prioritization of suppliers that provide moreenergy efficient, lower-emission products and services. As a SaaS
provider, emissions in our supply chain are minimal however we haveopportunities to reduce energy consumption from our operations(e.g., moving towards more efficient building design / operations) andprocurement, and to deliver low emission goods and services.
• In 2023, we have taken steps to begin designing a risk-based approach
to identifying, prioritizing and working with our suppliers, vendors andother 3rd parties to transform how we select and collaborate with them byincorporating climate performance into the business awards outcomes andproviding incentives and training to build supplier capabilities.

55

Operations• Energy usage in our data centres and business travel are our primarysources of carbon emissions. As a result of climate change, emerging
regulations related to greenhouse gas emissions in the form of taxes orfees could increase Kinaxis' operational costs.
• As part of our strategy to mitigate the impact of energy costs, we areshifting towards a public cloud infrastructure and are now live on both
Microsoft Azure and Google Cloud. The public cloud impact on our carbon
emissions will be reported beginning in our next Sustainability Report.

Further details on the impacts of climate change to our financial planning will be provided in our nextreport.
Describe the resilience of theorganization’s strategy, taking
into consideration different
climate-related scenarios,
including a 2-degree Celsius orlower scenario.

With the help of an independent firm, in 2024 we will initiate the first phase of climate-related
scenario analysis work to model and evaluate risks and opportunities.
The objective of our work will be to identify climate-related risks and opportunities that may impact
Kinaxis under different climate scenarios, including a 2-degree Celsius or lower scenario. We will leverage
the collective expertise of stakeholders across the business to map physical and transitional risks,
evaluate their potential implications, and explore opportunities for innovation and market leadership.

Risk Management
Describe the organization’s
processes for identifying andassessing climate-related risks

While business units are accountable for the identification and management of risks across theorganization, the risk management function is accountable to set, oversee, and facilitate thecoordination of ERM processes – including providing guidance on the management of risks across thebusiness, working with the executive team, and risk owners to provide effective challenge and ensurethat key decisions are made with consideration of the risks involved.
To continuously identify new, emerging, and changing risks that may impact achievement of corporate
objectives, the risk management team employs an iterative process, including interviews and/or
workshops to engage stakeholders at all levels across the business to identify and document Kinaxis’comprehensive risk universe. ESG is fully integrated with and has its own distinct category within ourrisk universe.
The risk management team prioritizes climate-related risks and opportunities with input from key
stakeholders, and presents and validates the outputs with the executive team and the nominating
and governance committee of the board. Each of the most significant climate-related risks andopportunities is assigned an executive risk owner, who is designated with primary responsibility ofthe management of that risk to ensure effective strategies for mitigation are in place and to makerecommendations to further manage risks.

Describe the organization’s
processes for managing
climate-related risks.

Following the identification and prioritization of climate-related risks and opportunities, the riskowner is responsible for performing a detailed risk assessment, with input and guidance from the risk
management team. The risk owner is also responsible to ensure that appropriate mitigation/treatment
strategies are in place and that mitigation actions are identified to bring risks to an acceptable level.

56Describe how processes for
identifying, assessing, andmanaging climate-relatedrisks are integrated into theorganization’s overall risk
management.

ESG is fully integrated with and has its own distinct category within our comprehensive risk
management program, which harmonizes risk management practices and procedures across thebusiness. Both the ESG and ERM process follow a five-step cycle, from identification to monitoring
and reporting of material risks or ESG matters, including climate-related risks and opportunities.
Strategic, ESG, financial, regulatory, and operational risks are assessed at the enterprise level throughthe ERM process. The ERM process includes an annual refresh cycle of risk identification throughworkshops and/or interviews, in-depth risk assessments of top risks including the evaluation of risk
mitigation capabilities, and then periodic monitoring and reporting back to the Board of Directors.
Finally, as part of the annual ERM refresh, management and the board review the appropriateness ofthe overall risk governance structure, defined roles and responsibilities, and oversight responsibilities.

Metrics and targets
Disclose the metrics used by
the organization to assessclimate-related risks andopportunities in line with its
strategy and risk management
process.

We have not yet defined metrics to assess climate-related risks and opportunities. In 2023, we haveinitiated the first phase of defining metrics in line with our strategy and risk management processes.

Disclose Scope 1, Scope 2,
and, if appropriate, Scope
3 greenhouse gas (GHG)
emissions and the related risks

GHG emissions are disclosed in the Protecting the planet section of this report.

Describe the targets used by
the organization to manage
climate-related risks andopportunities and performanceagainst targets

We have not yet defined targets to manage climate-related risks and opportunities. In 2023, we haveinitiated the first phase of defining targets and our performance against those targets.

57