Drive
to Zero2022 Sustainability ReportTable ofContents
03

Highlights

04

At a Glance

05

ESS Committee
Chairperson’s Message

06

President & CEO Message

07

09
12

Sustainability Strategy
and Journey

Our Targets

People17

Environment

26

Responsible Growth22

Partners

29

Sustainability FAQ

23

Parkland’s Commitment to
Indigenous Relations

31

2022 Sustainability
Performance Data

Highlights
Driving forward to deliver on our promises.
We are proud to share our progress on oursustainability journey. Sustainability is deeply
embedded across our business and a broad
set of environmental, social and governance(ESG) considerations go into all our businessdecisions. Parkland achieved several
milestones in 2022 as part of our commitment
to our customers, shareholders, employees,
and partners as we make a positive
contribution to global sustainability.

People:Environment:

Partners:

8%

113,000

UN

Reduction in Total
Recordable Injury
Frequency (TRIF)

30%

Board gender diversity
target achieved

82%

Of Parkland employees
surveyed believe that
Parkland values
diversity and inclusion

United Nations (UN)Global Compact signatory

Passenger vehicles
equivalent emissions
reduced throughlow-carbon fuels

CCAB Progressive
Aboriginal Relations(PAR) certification begun

Emerging Clean
Technologies
Award at the2022 Global
Energy Show

COP27

Government of Canada
industry representative

26 EV

25

$

Fast-charging
sites built

MILLION

92%

Spent with
Indigenous suppliers

Parkland’s contribution to
Canada’s total renewable
fuel production

Responsible Growth:146

New ON the RUN
sites completed

M&M

Acquisition
boosts food offering

4.1 MILLION+
Journie members

At a Glance

CANADA

Parkland provides our customers in 25 countries
with the fuels, essential convenience items andquality food they need today, while helping them toachieve their goals of lowering their environmental
impact. The foundation of our sustainability strategy
is our people, as well as our values of safety,
integrity, community, and respect, which are deeply
embedded across our organization.

UNITED
STATESTHE CARIBBEAN

We serve over one million customers a day throughour nationally recognized and locally relevant
consumer brands.
Our Brands and Partnerships

SOUTH
AMERICA$12.6 billion~ 4,000

6,000+

27 billion

MSCI ‘AA’

113,000

1

enterprise value

litres of fuelsold annually

locationssustainability rating

1. Specified financial measure. See slide titled “Forward Looking Statement & Note on Specified Financial Measures”

employees

cars off the road in 2022
carbon dioxide equivalent
Numbers as at Dec. 31, 2022

Introduction

PeopleEnvironment

ESS
Committee
Chairperson’s
MessagePartners

Responsible Growth

Sustainability Performance Data

Focusing on Sustainable Shareholder Returns
On behalf of the Board of Directors, I would like to congratulate the Parkland team on
releasing the company’s fourth sustainability report, which outlines our strategy and theactions we are taking to drive sustainable growth and shareholder returns.
Parkland’s Board of Directors plays an active role in overseeing
the company’s sustainability strategy. We believe that strong,transparent governance is a fundamental tenet of a safe,
successful operation and instrumental to generating long-term
returns for shareholders. From reducing our carbon emissions
and providing choices that help our customers reduce theirs
to supporting our diverse workforce, sustainability is deeply
embedded in our business.
The Board has integrated sustainability into its broader oversightof the company. This is accomplished through regular ESG
performance reporting, engaging with stakeholders on ESG
issues and integrating those issues into Parkland’s enterprise risk
management process. The diverse skills and experience of themembers of the Board’s Environment, Safety and Sustainability(ESS) Committee help guide and support the organization’s
progress towards its sustainability goals.
The company’s focus on Drive to Zero is core to its sustainability
journey with the aim of achieving zero safety incidents, zero spills,
and maintaining zero tolerance for racism and discrimination.
The company is committed to collaborating with governments
in its operating regions to help them achieve net-zero emissions
by 2050. The team continues to operate safely and efficiently,
protecting our shared environment, supporting our employees
and communities, and delivering shareholder value.

Parkland’s progress on the goals established under our four
sustainability pillars – people, environment, partners, andresponsible growth – are outlined in this report. These meaningful
outcomes illustrate the company’s collective commitment tofundamental corporate responsibilities.
We see tremendous opportunity in the energy transition journey.
As we balance the growing demand for energy today, with a keen
eye on tomorrow, we are very proud of Parkland’s low-carbon
fuel innovation.
As you will read in this report, there are many successful
initiatives underway. Among them are industry-leading efforts
on co-processing low-carbon and, renewable fuels, safer, morediverse, and inclusive work environments, and the incorporationof sustainability metrics in executive compensation.
Parkland is a Canadian success story. The Board is proud of
the many accomplishments achieved as the company embraces
the opportunities presented by energy transition, all while
continuing to meet evolving consumer needs, creating long-termvalue, and doing its part in tackling some of the world’s greatest
energy challenges.

Richard Hookway
Chairperson of the ESS Committee

5Introduction

PeopleEnvironment

Partners

Responsible Growth

Sustainability Performance Data

Making progress towards our sustainability goals

President &CEO Message

A little over a year ago, I drove across British Columbia (B.C.) with a couple of Parklandcolleagues. It’s a trip I’ve made many times, but this time was a little different. Unlike pastroad trips, this time we were driving an electric vehicle (EV).
It was an eye-opening experience. Over 1,000 kilometres, we
stopped five times to buy energy, waiting about 30 minutes eachtime for the car’s battery to charge. Compared to a vehicle withan internal combustion engine, recharging added two and a half
hours to our journey. That’s a big opportunity for Parkland in our
mission to power what moves people.
The energy we need, the way we travel, the products and services
we purchase, and the expectations we place on companies
are dramatically shifting as we navigate the global energy
transition. While some see only the challenges ahead, we see theopportunities. Navigating change is what Parkland does best, andwe are well-positioned to continue our leadership in creating asustainable and low-carbon future. At the same time, we need tobalance these efforts with the growing demand for energy overthe coming decades. We are proud to provide safe, reliable fuel tomillions of our customers and will continue to invest in our fuelsbusiness, alongside our commitment to decarbonizing.
As you will read in this year’s Drive to Zero sustainability report,
we made considerable progress towards our sustainability journeyand commitments in 2022. It was a transformative year withseveral noteworthy achievements including securing support
from Natural Resources Canada and the Government of British
Columbia to build one of Western Canada’s largest ultra-fastelectric vehicle (EV) charging networks between Vancouver
Island and Calgary. This investment in Parkland’s ON the RUN EV
charging network will nearly triple Metro Vancouver’s ultra-fast
EV charging locations.
We also reduced our recordable injury frequency, met our board
diversity target of 30 per cent, and co-processed 111 million
litres of bio-feedstocks (a year-over-year increase of 29 per cent).

We continue to work with our suppliers to ensure they alignwith our values and mission, with an emphasis on supporting
Indigenous-owned businesses as part of our Progressive
Aboriginal Relations PAR™ commitment. Insights were gleaned
from our employee survey on diversity and inclusion, and wemade significant advancements with our early talent strategy to
expand and diversify our employee pipeline.
Ensuring our operations are in lock step with our sustainability
practices and efforts is a priority for Parkland, and has become
something our customers, stakeholders, investors, and teammembers expect. In the years ahead, you will see more innovationand leadership from us as we continue to serve the essential
needs of our customers and communities while we diversify ourbusiness and workforce. You will see improved product offeringsand services. You will see exciting developments like the Electric
Charging Destination of the Future, our growing fast-charging
network, and elevated consumer experiences while ensuring ourvalues of safety, integrity, community, and respect remain at theheart of our business.
The global energy transition offers tremendous opportunity
for those with a vision, a plan to execute, and a resilient andentrepreneurial spirit. I am very proud of our commitment tocontinuously innovate, learn, adapt, and grow as an organization.
I know this will drive Parkland’s success in the years and decades
to come as we safely and sustainably power what moves people.

Bob EspeyPresident & CEO

6

Introduction

PeopleEnvironment

Partners

Responsible Growth7

Sustainability Performance Data

Sustainability
Strategy and
Journey
Parkland’s enterprise-wide Sustainability Strategy is grounded in the company’s
four pillars: People, Environment, Partners, and Responsible Growth. Parkland
recognizes the importance of taking action on climate change and supporting
the global energy transition, while committing to providing our customers withaffordable choices that help them lower their environmental impacts and ensurethat no one is left behind through the energy transition. To that end, we havedeveloped a balanced approach that leverages our existing business to develop
our traditional business and low-carbon opportunities, diversify by creating
convenience destinations and decarbonize by supporting customers throughthe energy transition.
This strategy reinforces our commitment to support our customers, teammembers, local and Indigenous communities, and our shared environmentby championing safe operations, environmental stewardship, and systemic
inclusion, now and into the future.

The United Nations Sustainable Development Goals(UN SDGs) are a global guide for a more equitable,
sustainable future. Parkland’s Sustainability
Strategy is aligned with several UN SDGs that help
inform our approach to sustainability and the role
we play in accelerating universal progress towards amore sustainable future.

Introduction

PeopleEnvironment

Partners

Responsible Growth

Include ESG
performancein executive
compensation
Reduceemissions8

Sustainability Performance Data

Work with
suppliers toalign values,
reduceemissions

Drive toZero
injuries/
fatalities

Sustainability
Roadmap
Drive to Zero

Establish
gender,
LGBTQ+
Board andleadershipdiversity

Parkland’s Sustainability Strategy is ourcommitment to support our customers, teammembers, local and Indigenous communities,
and our shared environment by championing
safe operations, environmental stewardship,and systemic inclusion, now and into the future.

ReducespillsGrow
Parkland’s
low-carbon
businessApplysustainability
criteria toacquisitions

Help
customers
reduceemissions

Reducesingle-use
plastics in
C-Stores

Increase
Parkland
Pledgeparticipation

EnhanceIndigenous
engagement
andprocurement

Introduction

PeopleEnvironment

Partners

Responsible Growth9

Sustainability Performance Data

Our Targets
PeopleTargetEnvironment
Partners

Partially achieved
Achieved

Progress

UN SDG Page

Drive to Zero Ambition; ongoing ambition for zero injuries/fatalities

33

Incorporate Environmental, Social and Governance (ESG) performance into executive compensation by 2022

12

30% Board gender diversity target by 2023

34

30% executive officer gender diversity target by 2025

33

Maintain minimum 10% representation of Black, Indigenous and People of Colour (BIPOC) and Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ+) on Board and executive officer positions

Responsible
GrowthIn progress

33+34

Reduce Scopes 1 and 2 greenhouse gas (GHG) emissions intensity by 15% per barrel in refining operations by 2030

31

Reduce Scopes 1 and 2 GHG emissions intensity by 40% per site in marketing operations by 2030

31

Drive to Zero Ambition: Reduce spill volume per litre sold by 50% by 2025

32

Identify opportunities to reduce single-use plastic items in convenience stores (C-Stores) in 2022 and implement reductions by 2023

17

Reduce our customers’ GHG emissions by up to 1 megatonne (MT) per year by 2026 through low-carbon fuels

31

Offer low-carbon fuels in every market in which Parkland operates by 2026

17

Enhance Indigenous and community engagement by implementing best practices: commit to PAR certification through the Canadian Council for Aboriginal Business (CCAB)

24

Enhance Indigenous and community engagement by implementing best practices: target support for rural and remote communities

23

Enhance eligible employee participation in Parkland Pledge to 60%

22Develop sustainable supply chain standards for suppliers by 2022 and integrate these standards into all new and significant spend suppliers by 2023

22

Increase local and Indigenous procurement and job opportunities in each operating jurisdiction

24

Conduct sustainability assessments for all acquisitions from 2022

26

Apply Parkland’s sustainability policies, goals and metrics to all newly acquired companies within an average of 12 months of acquisition date starting in 2023

26

Grow Parkland’s low-carbon business (retail diversification plus commercial decarbonization)

26

Numbers as at Dec. 31, 2022

PeopleEnvironment

Partners

Responsible GrowthParkland’s Materiality Matrix

Parkland’s
Key Strategic
ESG Issues

Parkland’s Materiality Assessment is an external and internal assessment of our relative
strategic ESG issues. All the issues in this matrix are important to Parkland. This work ensuresthat our top issues resonate across the business and align with our future priorities as wemove forward in our energy transition journey. We continue to review and assess these issues
as conditions and our business evolve.

ClimateChangeIndigenous Relations

Safety &emergency
preparedness

Producttransportation& storage

Diversity& inclusion

Diversity &Inclusion

Safety &Emergency
Preparedness

Consumer Health & Wellness

Parkland’s Sustainability Task Force regularly reviews our Key
Strategic ESG Issues to ensure that our top issues still resonate
across the business and align with our future priorities.

Climatechange10

Sustainability Performance Data

Governance& ethics

Product
Transportation& Storage
Governance &EthicsWaste Management
Technology & Innovation

Importance to Stakeholders

Introduction

Community Investment
Responsible Supply Chain
Socio-Economic Impact &Resilience

Employee Health &Wellness

Human Rights

Water Quality

Workforce
Development

Air Quality

Water Use

Compliance

Access to Skilled
LabourPublic Policy Engagement

Strategic Relevance to Parkland
Environment

SocialGovernanceIntroduction

PeopleEnvironment

Partners

Responsible Growth

Sustainability
Governanceand Reporting
Frameworks
This sustainability report reflects Parkland’s efforts to continuously
improve transparency associated with our key material issues
and highlights data from our 2022 operations. We align oursustainability disclosures with globally recognized ESG reporting
frameworks. These include:

GlobalReporting
Initiative

Sustainability
AccountingStandards Board

Task Force on
Climate-related
Financial Disclosures

United Nations
Sustainable
Development Goals

Please see the 2022 Sustainability Performance Data and Framework Mapping for complete disclosure metrics.

11

Sustainability Performance Data

Sustainability GovernanceTransparent corporate governance is critical to resilience, long-term shareholder value and progress
to our Sustainability Strategy. Parkland’s governance structure as it relates to sustainability includes
our Board and the Environment, Safety and Sustainability (ESS) Committee as well as the Senior
Leadership Team. The diverse skills and experience of Parkland’s directors supports progress
towards the Sustainability Strategy.
As part of Parkland’s commitment to transparent corporate governance as it relates tosustainability, the Board has established a clear sustainability policy initiative that is integrated
into Board oversight, regular reporting on ESG performance, while engaging with stakeholders on
ESG issues and integrating those issues into Parkland’s overall risk management process. For moredetails, please see our sustainability policy.
Parkland’s sustainability governance structure is outlined below:

Parkland Board of Directors
Responsible for the oversight of strategy and risk.

Environment, Safety and Sustainability Committee
Oversees ESG matters including health and safety, environment and sustainability.

Senior Leadership Team
Responsible for developing strategy, leading implementation, and identifying risks.

Chief Sustainability Officer

VP Health, Safety & Environment

Develops and advises Senior
Leadership Team and Board on
sustainability strategy.

Provides approaches
to health, safety andenvironmental strategy.

Sustainability Task ForceThe Sustainability Task Force is responsible for helping develop Parkland’s overarchingsustainability strategy and policy as well as developing tactics for implementing our strategy. Task
Force members are business leaders from all jurisdictions that represent Parkland’s functional units.

Introduction

PeopleEnvironment

Partners

Responsible Growth12

Sustainability Performance Data

PeoplePeople make Parkland. We support Parkland employees by creating an environment
in which each individual feels empowered to bring their full and best self to work. The
well-being of our workforce is paramount, and as such we are deeply committed to
upholding our strong safety culture, protecting our people and living our values.

Targets:

10%$

Board, Executive
BIPOC and LGBTQ+
representation.

ESG in executive
compensation.

30%
Drive to Zero injuries
and fatalities.

Board, Executive
gender diversity.

Highlights:

8%Decreasein TRIFsince 2021.

10%
30% Boardgender diversity
achieved.

Board and Executive
BIPOC and
LGBTQ+
representationachieved.

Introduction

PeopleEnvironment

Partners

Responsible Growth

Workforce
Parklanders work in 25 countries from Canada to the Caribbean.
The physical and mental well-being of our workforce is crucial
to our success, as is a diverse, inclusive workforce. We continue
to make strides to ensure Parkland is a welcoming, inclusive andsafe employer of choice in all regions where we operate.

6,284

Total Number of
Employees

693

International

2,726
Canada2,865
USAPercentage of management positions filled by women by region:

International

39%

Numbers as at Dec. 31, 2022

Canada

33%

USA

44%

Sustainability Performance Data

13

Introduction

PeopleEnvironment

Partners

Responsible Growth14

Sustainability Performance Data

Healthand Safety
Safety is at the heart of our culture. We empower our teammembers to make the right decisions whether in the office
or in the field by following a risk assessment tool called “Stop.
Think. Act”. All employees are required to create their own
personal commitment to Health, Safety and Environment (HSE)by establishing annual objectives and identifying three safetyrelated commitments to uphold each year.
Parkland’s Operational Excellence Management System (POEMS) is the cornerstone of ourapproach to health and safety. It is a principles-based management system that aligns ourapproach across the company. POEMS provides the roadmap for how we protect our people, drivestrong performance and ensure the long-term integrity of our assets.

Parkland Health, Safety and Environment Policy
Parkland has an enterprise-wide Health, Safety and Environment Policy that applies in every
operating jurisdiction. Signed and endorsed annually by our President and CEO, this policy states
our commitment to ensuring a safe working environment that protects our team, customers, theenvironment, and the communities we serve.

Injury Frequency Rates(injuries per 200,000 hours worked)
1.52
1.05

0.17
2019

0.16
2020

Total Recordable Injury Frequency (TRIF)
Lost Time Injury Frequency (LTIF)

2021

2022
Numbers as at Dec. 31, 2022

Parkland continues to reduce injury frequency rates, helped by training,monitoring and implementing existing processes in newly acquired sites.

Introduction

PeopleEnvironment

Diversity andInclusion (D&I)
At Parkland, we believe that ourdifferences make us stronger.
Diversity gives us an edge andinclusion propels us forward.
Our ability to work as “OneParkland” across 25 diverse
countries is foundational to
our success.
Parkland’s enterprise-wide, executive-led
Diversity & Inclusion Council is composedof diverse thinkers from across Canada, theUnited States, the Caribbean, as well as Central
and South America. Together, the Council
is tasked with advancing Parkland’s vision
for building and sustaining a diverse andinclusive workforce to support our customers,
communities and other stakeholders.
For more details, please see ourdiversity and inclusion policy.

Partners

Responsible Growth15

Sustainability Performance Data

2019:

2022:

• Instituted Parkland’s firstenterprise-wide D&I Council
with three guiding principles,
including:• 2022-2025 Diversity &Inclusion Strategy sets theplan to drive a proactive
culture of equity, inclusion,and belonging– Two-way communication– Providing guidanceon D&I challenges andopportunities and– Strategy building
and execution

2020:• Established a Black Action
Committee to proactively
support the inclusion of ourBlack team members• Conducted first annual
enterprise-wide diversity
and inclusion survey andembedded D&I strategicpillars throughout
the organization• Enhanced D&I
training for leaders• Women’s Network
established2021:• D&I training for 110 leadersacross the organization• Delivered eight educational
D&I events• 300 hours of
employee training• Established DIALdN Diversity Inclusion Allyship
Leadership Network• Achieved 30 per cent target
for women on Board and10 per cent BIPOC, LGBTQ+
representation on Board
and Executive Team• Continuous improvement inenterprise-wide D&I survey:– 82 per cent ofParkland survey
participants believethat Parkland values D&I– The employee survey also
showed that Parkland’s
strengths include
helping employees feel
comfortable reporting
discrimination andharassment• Over 1,300 hours of
employee training• Established Latino Network

Introduction

PeopleEnvironment

Women
Building Futures:
Employer of ChoiceMembership Program
Parkland is a proud recipient of Women
Building Futures’ (WBF) Employer of Choice(EOC) designation, which demonstrates ourorganization’s strong commitment to creating
and cultivating safe, equitable and inclusive
workplaces for employees in all their diversity.
We will work closely with WBF to enhance ourdiversity, equity and inclusion policies andpractices to ensure all of our employees feel they
are valued, respected and encouraged to thrivein our workplace.

Partners

Responsible Growth16

Sustainability Performance Data

Early Talent
Strategy

SafetyImprovements

Anti-Slavery
Measures

Parkland launched an Early Talent Strategy withthe two-fold purpose of supporting the career
growth of students and new graduates, while
also filling Parkland’s future talent pipeline.
We welcomed 21 students during the summer
2022 cohort, who were placed within finance,
information technology, Indigenous Relations,distribution and legal services teams. Of the
21 students, 43 per cent identified as BIPOC
and 62 per cent were women.

Parkland’s efforts to improve safety resulted in
fewer injuries in 2022. This was attributable to anumber of factors, including:Governments around the world including in
the U.K., Australia and Germany are making
efforts to tackle modern slavery. The Canadian
Parliament recently passed Bill S-211, theFighting Against Forced Labour and Child
Labour in Supply Chains Act, otherwise known
as the Modern Slavery Act. This and otherinternational efforts aim to prevent consumers
from unintentionally supporting slavery byrequiring companies to assess their supply
chains. Parkland is committed to supporting
the elimination of human rights violations, suchas forced labour and child labour, across theregions in which we operate.

• In-vehicle monitoring systems in commercial
vehicles that help to reinforce safe driving• Improvements in our health, safety andenvironmental (HSE) management
system (POEMS)• Upgrading safety leadership training
and skills• Changes to inspections, safe workobservations, and proactive hazard reporting• Analysis of data using Cority, an HSE database
tool that enables measurement of what is
managed, provides HSE trends and uses
data to predict areas of risk andpotential failure

For more details, please see ourhuman rights policy.

Introduction

PeopleEnvironment

Partners

Responsible Growth17

Sustainability Performance Data

Environment
We set several environment and climate-related targets as part of ourcommitment to sustainable growth and the reduction of our collective (Parkland
and our customers) environmental impacts. Climate change presents significant
risks and challenges to our business, and to societies and economies acrossthe world. Parkland’s strategy to decarbonize our business supports global
sustainability efforts.

Targets:

15%

40%

50%

1 Million

Reducesingle-use
items

Offer andencourage
low-carbon fuels

Reduction in GHG
emissions per barrel
processed by 2030.

Reduction in spill volume
per litre sold by 2025.

In C-Stores.

Reduction in GHG
emissions per siteby 2030.

tonnes CO2
Reduction in customer
emissions by 2026.

In every Parkland
market by 2026.

Highlights:

113,000
equivalent passenger
vehicles taken off roadthrough low-carbon fuels.

26 EV

fast-charging sites installed.

PeopleEnvironment

ClimateApproach
Parkland recognizes the importanceof taking action on climate change by
reducing GHG emissions, as outlined
in Intergovernmental Panel on Climate
Change (IPCC) assessments andthe United Nations Paris Agreement.
Climate change requires action from theindustry, government and consumers
in order to lower our collective
environmental impact. We must work
together to balance the world’s growing
need for energy with the need to lower
our shared environmental impacts.

Partners

Responsible Growth18

Sustainability Performance Data

Parkland’s
GHG Emissions Profile
As a producer and supplier of transportation
fuel, Parkland’s GHG emissions are theresult of manufacturing fuels at the Burnaby
Refinery, delivering fuel across the Parkland
network and supplying customers withenergy at retail and commercial sites in
25 countries. The Burnaby Refinery
accounted for 80 per cent of Parkland’s
total emissions in 2022.
For more details, see
Our approach to Climate Change.

2022 GHG Performance
In 2022, Parkland’s total GHG emissions increased by 11 per cent. This is
primarily due to a shutdown in 2021 and an increase in feed rates in 2022 at
the Burnaby Refinery.
Biogenic emissions, or emissions from natural sources like biogas, resulting
from our co-processed renewable feedstocks saw an increase in 2022 due
to expanded production of renewable fuels and an improved data collection
methodology. As we continue to expand co-processing at the refinery todeliver on providing our customers with lower-carbon fuel options, biogenic
emissions will play a larger role in our emissions profile.
We continue to pursue and implement initiatives to reduce our GHG
emissions and operationalize our sustainability goals and targets. Initiatives
we are currently working on include energy efficiency upgrades, site
electrification projects and solar installations among others.
Parkland has also identified two emission intensity targets. To learn more
about our 2022 performance, please see the Sustainability Performance
Data section of this report.

Breakdown of Emissions

Enterprise-Wide Scope 1 and 2 GHG Emissions
610,895

587,960

650,030

501,149
GHG Emissions(tonnes CO2e)

Introduction

2019

2020

2021

Refining 80%

Scope 1 GHG Emissions

Marketing 9%

Scope 2 GHG Emissions

Other (Fleet, Corporate Offices, Terminals) 11%

Scope 1 Biogenic GHG Emissions

2022

Numbers as at Dec. 31, 2022

Introduction

PeopleEnvironment

Partners

Responsible Growth

Sustainability Performance Data

Sol Ecolution
Sol Ecolution is the low-carbon and renewable energy divisionof Parkland’s International segment. The Sol team is poweringcommunities by developing renewable energy solutions acrossour footprint in the Caribbean and Central and South America.
For Sol, being a good neighbour means supporting local school,
sporting and community events. That commitment to community
is now being expanded with Sol Ecolution, an initiative to roll out
solar photovoltaic technology across the Caribbean in an effort
to produce low-carbon, local energy. During 2022, Sol Ecolution
completed solar photovoltaic (PV) systems on approximately
20 retail sites across the region as part of a longer-term plan tosolarize Sol’s network of 220 retail stations, terminals and offices.

The Sol Ecolution project will lead to a
reduction in GHG emissions and increase
renewable energy in the Caribbean.

19

Introduction

PeopleEnvironment

Partners

Responsible Growth20

Sustainability Performance Data

Co-Processing and Blending Low-Carbon Fuels
There’s no single solution to a massive challenge
like climate change, nor any one strategy capableof decarbonizing a sector like transportation. But
renewable diesel and other low-carbon liquid
fuels have an essential role to play.
Parkland is committed to helping customers
reduce their environmental impact throughlow-carbon fuels and has set a target to reduce
our customers’ GHG emissions by up to one
million tonnes of CO2 per year by 2026. We are
already well on our way to exceeding this goal
through co-processing innovative bio-feedstocks
and blending ethanol and renewable diesel toproduce low-carbon-intensity fuels. Applying
these and other innovative approaches towards
meeting British Columbia’s Low Carbon FuelStandard (“LCFS”) means that through 2026,
we will reduce emissions equivalent to taking
780,000 cars off the road.

Blended and co-processed fuels can be safely
used in existing vehicles without modification.
To date, we have co-processed canola oil,tallow, and tall oil – a forestry industry residual,
wastewater biomass as feedstocks. We are proud
to be the first refinery in Canada to successfully
co-process using existing refinery infrastructureand expertise. Parkland’s co-processed fuels haveapproximately one eighth of the carbon intensityof conventional fuels.

Co-processed fuels
and renewablediesel production

Canola oil

In 2022, the Burnaby Refinery manufactured
111 million litres of co-processed fuel, a 29 percent increase from the previous year, which isequivalent to taking 113,000 cars off the road.
Our low-carbon fuel plans include expanding
co-processing to 5,500 barrels per day to help
reach the 2026 target. We blend fuels acrossNorth America, taking innovative approaches
in alignment with low-carbon fuel regulations
across the regions where we operate.

Fuels with 1/8th of the
carbon intensity, usedwithout modification in
vehicles, airplanes and boats

Animal fats

Paper &
pulp waste

Crude oil

Parkland Leads World in Turning Forestry Waste into Renewable Fuel
Tall oil is a dark, viscous, liquid containing fatty
and resin acids that is a by-product of wood pulp
manufacturing. It can be used as a feedstock inadhesives, emulsifiers and lubricants. Parkland
has found another use for it that’s helping to
reduce transportation emissions andestablishing the company as a leader inrenewable fuel production.
Working with various B.C. pulp mills and withfunding from the British Columbia Low Carbon
Fuel Regulation Part 3 Agreement program
and the Centre for Innovation & Clean Energy,
Parkland’s team is using tall oil to manufacture
renewable fuels, displacing traditional crude oiland helping to create a new, high-value market

for the forestry industry by-product. Parkland
is currently the only refinery in the world using
tall oil in this way without pre-processing to
manufacture renewable fuel.
Tall oil is just one of several bio feedstocks used
by Parkland’s Burnaby Refinery that include
tallow, or animal fats, and non-food canola oil.
As part of Parkland’s co-processing program,blending these bio feedstocks with crude oil
results in a fuel that has one eighth the carbonof regular fuels. Parkland plans to increase coprocessing of tall oil in the years to come as partof its target of helping customers reduce their
GHG emissions.

LEGEND
Renewable inputs
Hydrocarbon inputs

Parkland uses mainly Canadian-sourced renewablebio feedstocks to produce innovative, low-carbon fuels.

The ‘cars off the road’ estimation is calculated using fuel carbon intensities modeled in GHGenius
under the BC Greenhouse Gas Reduction (Renewable & Low Carbon Fuel Requirements) Act.
Link: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/08016_01

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Air Quality
Last year, Parkland’s Burnaby Refinery set important air
quality performance targets for the future in consultation withregulators and other stakeholders.
As part of an updated air permit from Metro Vancouver, therefinery team completed a human health risk assessment – arigorous scientific process through which we assessed possible
negative health effects that could result from our air emissions.
The study focused on sulphur dioxide (SO2), nitrogen dioxide(NO2) and particulates, and encompassed a 100-square
kilometer study area around the refinery. We invited input fromthe Tsleil-Waututh Nation, City of Burnaby, health authorities,
our Community Advisory Panel and other interested community
members. Findings were shared during a public session.
The study predicted that the improvements, which have been
incorporated into the amended permit, will result in significant
reductions in the already limited extent and frequency ofelevated SO2 levels; and modest reductions in elevated levels of
NO2 and particulates.
Please see the Sustainability Performance Data section of this reportfor Parkland’s 2022 air emissions information.

SO2

NO2

45%

18%

reductionin permitted
SO2 amounts

reductionin permitted
NO2 amounts

Over the 10-year term of the permit

Elbow River Carbon
Credit Trading

Low Carbon Fuelfor BC Ferries

Parkland’s Elbow River Marketing trading team, with their
mid-continent fleet of more than 2,000 rail cars, serves
Parkland’s brands as well as other Parkland customers withpetroleum products including asphalt, fuel oil, crude oil,liquified petroleum gas (LPGs), and refined renewable fuels.

With the help of Parkland’s low-carbon fuel, BC Ferries
removed the equivalent of nearly 3,000 cars from the road overthe past year and did so without altering a single sailing, or
the customer experience. When the time came for BC Ferries
to renew its fuel agreement with Parkland, we offered an
innovative solution: biodiesel made from renewable sources
including plant-based oils, animal fats and forestry residue
that can be used in existing diesel engines.

Elbow River Marketing operates an active trading desk witha presence in every environmental market in North America
as well as in international voluntary carbon markets. We help
finance projects in North America and internationally throughbuying carbon credits directly from project developers andselling them to end users. Our focus is on high-quality credits
derived from North American industrial gas destruction,hydrofluorocarbon (HFC) reclamation and improved forest
management. We have transacted several million tonnes ofcarbon credits on various registries globally and expect thisnumber to continue growing. In addition to carbon credits, theteam has also begun to purchase renewable natural gas (RNG),
which we will sell into both the U.S. vehicle fuel market andthe voluntary RNG market.

By switching some of the fuel consumed in vessels including
the 41-year-old Queen of Oak Bay to 20 per cent biodiesel(B20), the ferry operator was able to reduce emissions by morethan 13,000 tonnes of CO2 over less than a year of operations.
“We are preparing to transition all of our Metro Vancouver
based vessels that currently use conventional diesel fuel to B20
while exploring opportunities to increase the biodiesel content
all the way up to 100 per cent (B100),” according to Frank
Camaraire, Director, Climate Change Policy for BC Ferries.

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Partners
We can accomplish great things through collaboration. Parkland recognizes theimportance of working across borders and value chains, with industry, associations,Indigenous Peoples and governments. The strong partnerships we have formed arefoundational to helping us fulfill our mission to power what moves people.

Targets:

Commit to PAR
certification throughthe CCAB.

Enhance participationin the Parkland
Pledge program to60%

Target support
for rural and remotecommunities.

Develop and integratesustainable supply
chain standards for
suppliers by 2022.

Increase local and Indigenous
procurement and job opportunities.

Highlights:

Signatory of theUnited Nations
Global Compact.

Achieved becoming“PAR Committed”
in 2022.

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23

Parkland’s
Commitment
to Indigenous
Relations
Parkland is a proud Canadian multi-national
company that has been in operation for over
50 years. We are determined to continue tolearn and reflect upon our country’s history
and we are eager to embrace pathways
to reconciliation with Indigenous Peoples.
We also recognize the continuing impact
and legacy of colonial policy in Indigenous
communities and remain steadfast in ourcommitment to helping build a just andequitable future.

As part of our Canadian Indigenous Relations strategy, we areproud to embark on a journey of reconciliation, determined tobuild stronger engagement and expanded opportunities with theIndigenous Peoples and Nations in the regions where we operate.
Our goal is to foster meaningful and beneficial relationships built
on mutual understanding, integrity, respect, and transparency.

Parkland is committed to:• Being responsive to feedback from Indigenous communities
affected by our business operations and projects• Taking a long-term approach to relationship-building to ensure
our engagements are meaningful and long-lasting• Being transparent and direct in our engagement with Indigenous
partners and communities, and remaining sensitive to thedifferent cultural beliefs, values, and traditions of each Nation• Supporting Indigenous Nations through investment,
engagement, and capacity development• Incorporating Indigenous Peoples and communities in our
projects by providing opportunities in employment, training, andbusiness development so that we can grow and prosper together• Considering the long- and short-term opportunities andimpacts our operations and projects can have on local
Indigenous communities• Providing Parkland employees with training and resources todevelop awareness, understanding, and sensitivity of Indigenous
Peoples, their culture, history, and rights• Continuously evaluating, adapting, and evolving ourcommitments, policies, strategies, and programs to ensure
progressive Indigenous Relations are integrated into the way
we operate.
Reconciliation is a journey, a continual process requiring
meaningful and measurable actions. As an organization, we pledge
to lead by example, strengthening our relationship with Indigenous
Peoples and building greater opportunities for shared benefit. We
understand the role we play in advancing truth and reconciliationand in driving social change, healing, and ending the systemic
inequities faced by Indigenous Peoples.
We look forward to exploring opportunities to support
reconciliation in our workplace and throughout the Parkland
organization. We will continue to work together with intention,
creating a new legacy that reflects our deep respect for Indigenous
Peoples and our dedication to the reconciliation process.
Parkland Canada’s commitment to Indigenous Relations is
supported and endorsed by our Senior Leadership Team. We
look forward to taking meaningful action to advance ourreconciliation efforts.

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Indigenous Procurement

Indigenous Engagement

Parkland is committed to establishing meaningful, lasting andmutually-beneficial relationships with Indigenous communities.
We respect the diverse cultures, traditions and perspectives ofIndigenous Peoples and seek to achieve equitable partnerships andopportunities with the communities on whose traditional territories
Parkland operates.

Several new initiatives were launched last year as part of Parkland’s
Canadian Indigenous relations strategy. These include offering
cultural competency training and establishing Indigenous
knowledge resources for employees. Our employees also participatedin several events, including “Bannock Breaks” to commemorate daysof significance to Indigenous Peoples. These included Orange Shirt
Day/National Day of Truth and Reconciliation, Indigenous Veterans’
Day and the Rally to Honour Murdered and Missing Indigenous
Women and Girls.

As part of this commitment, Parkland is expanding the number ofrelationships with Indigenous-owned and associated businesses.
This approach is already reflected in our procurement program, withmore than $25 million spent in 2022 on products and services from
Indigenous companies. We will continue to explore partnership
opportunities that increase community capacity and accelerateaccess to products that support low-carbon initiatives.

24

Sustainability Performance Data

Parkland is also partnering with Indigenous organizations to explore
new biofuels and other technologies that will help to advance lowcarbon fuels. By providing opportunities to test products in the field,
as well as offer industry insight, we can work together on pathways
to tomorrow’s technologies today. New projects also provide
opportunities for Indigenous recruitment and procurement. In turn,we learn about environmental stewardship through the exchange ofIndigenous knowledge and traditional ways of life.

1,000
More thanParkland staff participated in
Indigenous activities in 2022.

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Supplier Survey
Last year, Parkland engaged with suppliers
through a comprehensive survey to understandtheir approaches to sustainability. The survey
covered a range of topics from health and safety
to GHG accounting and disclosure. We willcontinue to advance our collaboration with
suppliers on shared sustainability values.

Partnerships and Associations
Sharing Best Practices
and Informing Global Policy
Parkland is strategically aligned with several
associations and groups to share best practices andhelp advance policy discussions. These include the
UN Global Compact, Advanced Biofuels Canada,
Electric Autonomy Canada, the Canadian Fuel
Association, the Canadian Climate Institute, Electric
Mobility Canada, Electric Vehicle Society of Canada,
Transportation Energy Institute – EV Council,
Canadian Transportation Alliance, the Caribbean
Electric Utility Services Corporation (CARILEC),
International Air Transport Association (IATA), andthe Caribbean Renewable Energy Forum (CREF).
Parkland was selected as an industry representativeon the Government of Canada’s official delegation at
the 27th session of the UN’s Conference of the Parties(COP 27) in Egypt. We were also invited to participate
as an exclusive guest at the Ministerial Roundtableof the BioFuture Campaign with the Clean Energy
Ministerial, a global forum to promote policies andprograms that advance the clean energy transition.

Metro Vancouver and Forest
Industry Feedstock Partnerships

FreeWire Partnershipon Ultrafast Chargers

Building on our success of co-processing
renewable feedstocks, Parkland is also
exploring next-generation feedstocks
to further reduce GHG emissions in thetransportation sector, including forest
residuals, emerging crudes, and biocrude
from municipal wastewater sludge forco-processing (in partnership with Metro
Vancouver). We became the only refineryin North America to co-process tall oil asa bio-feedstock in 2021 – an oil derived
mainly from pine trees that is a by-productof the pulp mill process. This was a technicalbreakthrough that not only diversified
Parkland’s suite of bio-feedstocks, but also
reduced indirect emissions given that tall oil
is a waste by-product that is typically burnt in
the pulp mill process.

FreeWire and Parkland have launched
the largest network of battery-integrated
ultrafast chargers in North America. Thispartnership will help Parkland provide
coverage in areas where securing new, larger
grid connections would make installingthe infrastructure more challenging andcostly, making it possible for drivers to geta premium charge in the same amount oftime it takes to grab a meal on the go. The
initial phase of the partnership will deploy
FreeWire’s Boost Charger™, 150 kilowatt(kW) ultra-fast EV charging stations, at
26 sites in British Columbia and Alberta,
from Victoria to Calgary.
Parkland is also partnering withorganizations internationally to support
the growth of EV charging. Last year, Solcollaborated with Jamaica Public Service
to commission an EV changing station in
Kingston, with additional chargers plannedin the future in the Caribbean country.

BenevityAward Finalist
Parkland was recognized through our
employee giving program, Parkland Pledge
by Benevity. As a Buzz Award finalist,
Benevity recognizes Parkland’s efforts thatbring corporate purpose programs to life
through communications and storytelling,working cross-functionally across theorganization to promote goodness.
As part on an ongoing commitment to ourcommunities through Parkland Pledge,
Parkland USA stepped up and more thandoubled contributions in 2022.

Sol Staff Contribute to Clean Up
Sol last year teamed up with World
Wildlife Fund (WWF), the United Nations
Development Programme, Guyana Youth
Empowerment and Seawalls and Beyond,to help clean up the Georgetown seawall in
Guyana with staff stepping up to help show
their commitment to the local environment.

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Responsible GrowthTargets:
Apply Parkland’s sustainability
program to all newly acquiredcompanies within 12 months.

Growing to provide essential products and services to customers and returns toshareholders is critical to our Sustainability Strategy. We believe it is important toaddress our impact today and into the future. Parkland’s commitment to responsible
growth involves decarbonizing with products and services like renewable fuels
and fast charging, diversifying by growing our convenience and food business, anddeveloping and enhancing our conventional marketing businesses through providing
essentials products and services safely and responsibly.

Conduct sustainability assessments
for all future acquisitions from 2022.

Grow Parkland’s
low-carbon business.

Highlights:

4.1
146 M&M MILLIONNew ON the RUN
sites completed.

Acquisition boosts
food offering.

JOURNIETM members.

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Electric Charging
Destination of the Future
Last year, Parkland unveiled plans to build the “Electric
Charging Destination of the Future” and set a new standard
for electric vehicle charging and customer experience. The
design of the initial architectural concept was the result of
an international competition operated by Electric Autonomy
Canada, a leading news platform focused on electric andautonomous vehicle technologies.
The winning design was created by James Silvester, an awardwinning Scotland-based architect with extensive global
experience designing sustainable architecture. Named “Morewith Less”, the design creates a relaxing environment, where
electric vehicle drivers can take a breath, and recharge not justtheir vehicles, but themselves.

Convenience Store Expansion
In 2022, Parkland invested in conversions of the ON the RUN
convenience stores, completing 146 new sites. This included
expanding the range of food with the ON the RUN Bistro and new
coffee offerings, which is expected to help increase non-fuel sales.
Convenience store expansions are an important part of Parkland’s
strategy of creating destinations for customers to be able to buy fuelor electrons as well as food and beverages.

Parkland purchased M&M Food Market (M&M) in 2022, asignificant step in expanding our retail business with premium,restaurant-quality convenient food choices. With M&M, Parkland
expanded its retail sites to include 317 well-located standalone
M&M franchise and corporate-owned stores, over 2,700 M&M
Express locations, and a well-established rewards program withapproximately two million active members. The addition of M&M
to Parkland’s retail network will create quality food options that
our customers can consume both on site and on the go, andprepare from frozen at home. In the coming years, M&M will be
an important part of our expansion of ON the RUN conveniencelocations, including standalone sites and at traditional gas stations,driving growth through non-fuel revenue.

317

standalone
M&M stores

2,700
M&M Express
locations27

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Sustainability Performance Data

Digital Strategy:
JOURNIE™ Rewards
Loyalty Program
The JOURNIE™ Rewards loyalty program connects ourfamily of brands to incentivize and reward loyalty. The
program provides more than 4.1 million customers withgreat choice and value as they shop across its coast-to-coast
network of over 1,200 participating fuel and convenience
stores. JOURNIE™ members buy 20 per cent more fuelthan non-members and are 20 per cent more likely to visit
our C-Stores.
With real-time fuel discounts, free merchandise andtargeted offers, members earn through their purchases offuel, convenience items, food, and other services, at its
participating Chevron, Ultramar, Pioneer, Fas Gas, andON the RUN retail locations. JOURNIE™ continues toexpand its reach with M&M’s loyalty program and a recent
partnership with Air Canada’s Aeroplan, Canada’s leading
travel loyalty program.

Growing Our Renewable
Fuel Manufacturing
Parkland’s Burnaby Refinery leads the country in
manufacturing low-carbon, renewable fuel. Parkland makes
up 2.9 per cent of Canada’s 1.865 million barrels per day of
total refining capacity, but an estimated 92 per cent of thecountry’s renewable refining throughput.

Canada’s total refinery
capacity dedicated torenewable fuel production:

Canada’s total
refining capacity:

2.9%

1.865

million barrels/day(55,000/day Parkland)

92%

3,785
barrels/day(3,500 /day Parkland)Introduction

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Sustainability
FAQ

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Sustainability Performance Data

What changes has Parkland made to its approach tosustainability over the past three years?
Parkland has embarked on a comprehensive plan to integratesustainability into our business practices, lower our emissions,and provide our customers with choices to lower their carbon
footprint and environmental impact. We have made progressin a number of areas and have more work ahead of us as we
operationalize our sustainability targets.
We have implemented several measures to reduce our carbon
footprint, including investments in solar photovoltaic technology
and have evaluated opportunities for improving energy efficiency
and emissions reductions across our organization with energy
management tools, upgrades to heating and cooling systems
and conversion to electric from gas in building systems whereappropriate. We are already preparing for upcoming disclosure
requirements including Scope 3 emissions, third-party assuranceof ESG metrics and the shift from voluntary to mandatory
sustainability reporting requirements.
Powering what moves people and providing customers withchoices are core to Parkland’s mission. We recognize that
reducing the environmental footprint of transportation is a key
element in the energy transition. With the growth of electricvehicles, we are building out a fast-charging network across
B.C. This is a testing ground for us and we’re looking at othermarkets where it makes sense to invest in fast charging. We arealso expanding production of low-carbon fuels at the Burnaby
Refinery. These fuels use plant and animal oils with hydrocarbons
as well as innovative renewable bio feedstocks like forestry
residues known as tall oil. They have one eighth the amountof carbon as regular fuel and are already being used by drivers
across B.C. as well as by commercial customers like BC Ferries. In
addition, we blend ethanol and biodiesel across North America tosupport governments’ efforts to lower transportation emissions.
Last but not least, we are focused on ensuring accountability
and transparency in our sustainability reporting. This is ourfourth annual sustainability report and each one includes more
disclosures and insights into efforts to build a more sustainablebusiness. Our goal is to foster open communication andencourage continuous improvement.

What are some of the most important changes to
ESG disclosure and sustainability that Parkland is
focused on?
Recently there have been several important changes in ESG
disclosures and sustainability practices. One of the key
developments is the ongoing standardization of ESG disclosure
frameworks and reporting guidelines. This has improved
transparency, comparability, and reliability of ESG disclosures,making it easier for investors and stakeholders to evaluate andcompare companies’ sustainability performance.
There is also an increased focus on social factors within ESG,
including issues such as human rights, labour practices, diversity,
equity, and inclusion. Companies are expected to report on theirefforts to promote diversity and inclusion and ensure fair labour
practices throughout their supply chains. The importance ofsocial factors in ESG reporting has grown significantly, reflecting
broader recognition of the impact of social issues on long-termbusiness sustainability.

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What important steps did Parkland make in 2022
towards the goals set out in the Sustainability Strategy?

What are Parkland’s sustainability priorities
for the coming year?

Our approach to sustainability has focused on achievable targets.
As a supplier of essential energy and food across the regions
we operate in, we have an important role to play in helping ourcustomers sustainably meet their needs.

First, we are working on making our ESG performance moretransparent with changes to our website and how we disclose ESG
metrics. This will make it easier for our shareholders to review ourprogress towards our goals.

One of Parkland’s most important achievements is low-carbon
fuel manufacturing. The Burnaby Refinery has made significant
progress in co-processing and is moving us closer to our targetof helping customers reduce their emissions by one million
tonnes of carbon dioxide equivalent (CO2e) annually. The Burnaby
Refinery leads Canada in renewable fuel production and we still
have room to grow. In the years to come, we will continue to lookfor innovative sources of bio feedstocks.

Across our retail and commercial sites, we are installing efficientheating and cooling systems, energy management tools andusing renewable energy. At our retail sites, we will continue toexpand our food offering as part of our diversification efforts andat our international retail sites, we have plans to expand solar PV
significantly this year.

One other important achievement last year was the constructionof our fast-charging network in B.C. We are well on the way
to completing 50 EV charging stations between Calgary andVancouver Island, making it easier for drivers to reach theirdestinations reliably and comfortably without having to worry
about finding a place to charge. This is just the beginning of ourcommitment to support the growth of EVs.

Sustainability extends beyond our direct operations andencompasses our entire supply chain; we will continue to engage
our suppliers to ensure they align with our own sustainability
goals. This includes establishing clear expectations and criteria
for suppliers and working collaboratively with them to identify
opportunities for improvement and to share best practices,
fostering a culture of continuous improvement throughout the
supply chain.
We plan to expand our efforts to ensure that Parkland is a diverse,
inclusive and welcoming workplace for our employees as we
advance our drive to zero incidents of discrimination.
Finally, we plan to be active participants in and contributeto broader discussions about sustainability and the energy
transition. Parkland’s experience in providing energy safely,
sustainably and reliably to millions of customers is an important
contribution to global sustainability efforts while also meeting theneeds of our customers.

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Sustainability Performance Data

2022 Sustainability Performance Data
Metric 1

Measurement

2022

2021

2020

2019

FRAMEWORK REFERENCE (GRI, IPIECA, SASB, TCFD)

tonnes CO2e

650,030

587,960

501,149

610,895

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

Burnaby Refinery Biogenic GHG Emissions

tonnes CO2e

32,759

8,914

0

-

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

Biodiesel GHG Emissions

tonnes CO2e

11

17

-

-

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

Scope 1 GHG Emissions Total

tonnes CO2e

610,202555,074

475,754582,819

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

tonnes CO2e521,510

497,912443,969

547,444

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

%

85

90

93

94

GRI 305-1, SASB EM-RM-110a.1, TCFD Mb)

Scope 2 GHG Emissions (Market-Based)

tonnes CO2e

39,82832,88625,39528,076

GRI 305-2, SASB EM-RM-110a.1, TCFD Mb)

Scope 2 GHG Emissions (Location-Based)

tonnes CO2e38,98851,47941,146

48,107

GRI 305-2, SASB EM-RM-110a.1, TCFD Mb)

tonnes CO2eper barrels per dayof crude &bio-feedstock
throughput

9.5

10.1

10.2

9.6

GRI 305-4

tonnes CO2e per site

46.0

39.6

48.3

51.6

GRI 305-4

count

113,000

70,000--Parkland’s Sustainability Target

Terajoules

10,525

9,738

8,899

12,528

GRI 302-1

ENVIRONMENT 2
Total GHG Emissions (Scope 1 and 2) 3,4
Scope 1 GHG Emissions

5

Scope 1 GHG Emissions-Limiting Regulations

6

Per cent Covered Under Emissions-Limiting Regulations
Scope 2 GHG Emissions 7,8

Scope 1 & 2 GHG Emissions Intensity, Refining

Scope 1 & 2 GHG Emissions Intensity, Marketing 9
Number or Cars Taken Off the Road Through Low-carbon Fuel
Energy Consumption

11,12

10

For more information on Parkland’s alignment to GRI, SASB and TCFD,
please visit www.parkland.ca/en/sustainability/sustainability-report
1. Reported data covers from January 1, 2022 to December 31, 2022 for Parkland Corporation (PKI.TO). Performance data isreported from 2019-2022 where available. The “-“ symbol indicates data was not reported for that particular year.
2. Parkland follows and operational control consolidation approach as defined by the “GHG Protocol Corporate Accounting and Reporting Standard”.
3. In 2022, Parkland completed acquisitions of Crevier Petroleum Inc., M&M Food Market, Vopak Terminals of Canada Inc.
and Vopak Terminals of Eastern Canada Inc., GB Group’s Jamaica business and 163 Husky-branded sites. See page 8 ofParkland’s Annual Information Form (AIF) for more information on acquisitions. Due to limited availability of full year GHG
emissions data, these acquisitions were excluded in 2022. Parkland commits to including these in future years.
4. Consistent with previous reporting periods, the GHG inventory was prepared according to the “GHG Protocol Corporate
Accounting and Reporting Standard”. Additionally, the consolidation approach for emissions remained operational control
and the following gases were included in the calculation: CO2, CH2, N2O, HFCs. Emission factors were sourced from theInternational Energy Agency (IEA) and the United States Environmental Protection Agency (EPA). GWP rates were sourced
from the United Nations Intergovernmental Panel on Climate Change (IPCC) reports based on a 100-year timeframe.

5. Parkland’s Scope 1 GHG emissions increased 11% in 2022 mainly due to increased feed rates at the Burnaby Refinery.
The Scope 1 total includes biogenic emissions from the Burnaby Refinery, but note that biogenic emissions are also reported as a separate line item. The increase in biogenic emissions is a result of changes to calculation methodology in 2022 toaccount for biogenic carbon content of refinery fuel gas resulting from co-processing of renewable feedstocks.

9. Changes in Marketing emissions performance in 2022 are primarily driven by our continued improvement in datacollection. While Parkland is making investments into decarbonization, these investments are not currently the main
driver of the year-over-year changes in Marketing emissions. Parkland is committed to improving data quality across ouroperations.

6. Specifically, 479,713 tonnes CO2e (98.8% of the Burnaby Refinery’s Scope 1 emissions) were covered under British
Columbia’s carbon tax. In Canada, gasoline, diesel (light fuel oil), natural gas and propane are subject to the federal fuelcharge (or, if in place, a sufficiently stringent provincial carbon tax on fuel). Scope 1 emissions from these sources in Canada were 41,797 tonnes CO2e.

10. Emission factors for the conversion of estimated GHG emission reductions to cars off the road were sourced from the
British Columbia government.

7. In the 2021 reporting period, Parkland chose to enhance our GHG inventory by reporting both location-based andmarket-based Scope 2 GHG emissions for all years because the Burnaby Refinery comprises the majority of Parkland’s
emissions, and a BC Hydro emission factor was used for the site. Please note that Parkland’s targets will be tracked against
market-based emissions values.
8. In 2022, an updated methodology was used for Scope 2 GHG Emissions (Location-Based), where emission factors
for sites in Canada were updated from federal factors to provincial factors to improve accuracy. The updated emission
factors caused a decline in the Scope 2 GHG Emissions (Location-Based) total when compared to 2021, mainly due to the
updated factor used for the Burnaby Refinery.

11. Energy consumption within the organization is reported per the GHG inventory, which was prepared according to the“GHG Protocol Corporate Accounting and Reporting Standard”. Conversion factors were sourced from the United States
Department of Energy (DOE), United States Energy Information Administration (EIA), United States Environmental Protection Agency (EPA) and the Government of Canada. Specifically, for the Burnaby Refinery GHG emissions, the sources of thehigher heating values (HHVs) were FortisBC, the Western Climate Initiative (WCI) and internal laboratory testing.
12. Of the total energy consumption for 2022, 9,294 terajoules was related to fuel consumption from non-renewablesources and 1,213 terajoules was related to electricity consumption.

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32

Measurement

2022

2021

2020

2019

FRAMEWORK REFERENCE (GRI, IPIECA, SASB, TCFD)

Nitrogen Oxides (NOx)kilograms

202,543

203,345

178,296

206,371

GRI 305-7, SASB EM-RM-120a.1

Sulphur Oxides (SOx)kilograms

358,578

427,461495,646

227,421

GRI 305-7, SASB EM-RM-120a.1

Volatile Organic Compounds (VOCs)

kilograms

196,038

167,366

163,738

148,433

GRI 305-7, SASB EM-RM-120a.1

Hazardous Air Pollutant (HAP) - H2S

kilograms

1,663

2,951

3,667

1,728

GRI 305-7, SASB EM-RM-120a.1

Hazardous Air Pollutant (HAP) – Benzene

kilograms

637

508

544

648

GRI 305-7, SASB EM-RM-120a.1

Particulate Matter (PM)kilograms

46,47444,346

34,63130,412

GRI 305-7, SASB EM-RM-120a.1

kilograms

38,783

41,404

31,666

26,217

GRI 305-7, SASB EM-RM-120a.1

kilograms

-

-

-

-

GRI 305-7, SASB EM-RM-120a.1

count

0

1

-

-

SASB EM-RM-140a.2

Spill Count

count

17

12

-

-

IPIECA Module 4 Environment ENV-6 A2

Significant Spills

count

0

0

0

0

GRI 306-3

Total Spill Volume

litres15,901

4,651

-

-

IPIECA Module 4 Environment ENV-6 A2

Spill Volume per Billion Litres Sold

litres

586

194

-

-

Parkland’s Sustainability Target

ENVIRONMENT 2
Air Pollutants 13

PM10
Ozone Depleting Substances

14

Number of Incidents of Non-compliance Associatedwith Water Quality Permits, Standards, and Regulations
Spills 15

Burnaby Refinery Throughput
Crudebarrels per day

49,29744,71637,86851,500

SASB EM-RM-000.A

Bio-feedstock

barrels per day

1,918

1,492

744

312

SASB EM-RM-000.A

Total

barrels per day

51,215

46,20838,61351,812

SASB EM-RM-000.A

Refining Operating Capacity

barrels per day

55,00055,00055,000-

SASB EM-RM-000.B

count

2

2

2

-

SASB EM-RM-120a.2

Number of Refineries In or Near Areas of Dense Population 16

13. Emission factors used were sourced from US EPA AP-42. Standards, methodologies, assumptions, and/or calculation tools
used: Continuous emissions monitoring (CEMs), source testing, engineering estimates, mass balance, published emission
factors, Canadian Fuels Code of Practice for Developing an Emissions Inventory for Refineries and Terminals, and the US EPA
Emissions Estimation Protocol for Petroleum Refineries.
14. Parkland does not report on ozone and there were no persistent organic pollutants to report on.

15. In 2022, there were four spills, which released a volume of over 1,000 litres of hydrocarbons each, compared to 2021, where
there were no spills with a volume over 1,000 litres. In response to the increased volume of spills, Parkland established a Spill
Prevention Committee in 2023. Parkland is currently training drivers and operators in spill prevention, reviewing and sharing
lessons learned from recent spills and developing other mitigation strategies to avoid further increases in spill volumes.

16. Parkland’s Burnaby Refinery is located in Burnaby, British Columbia, Canada. Additionally, we own a 29% non-operating
financial stake in the entity that owns and operates the Société Anonyme de la Raffinerie des Antilles (“SARA Refinery”) locatedin Fort-de-France, Martinique. It should be noted that unlike the Burnaby Refinery, Parkland does not report data (e.g., GHG
emissions) on the SARA Refinery due to it being outside of Parkland’s operational control.

Introduction

PeopleEnvironment

Metric 1

Partners

Responsible Growth

Measurement

2022

2021

Fatalities 17

count

0

Number of High-consequence Work-related Injuries

count

0

Recordable Work-Related Injuries

count

Sustainability Performance Data

33

2020

2019

FRAMEWORK REFERENCE (GRI, IPIECA, SASB, TCFD)

0

-

-

GRI 403-9, SASB EM-RM-320a.1

0

0

-

GRI 403-9, SASB EM-RM-320a.1

64

60

47

-

GRI 403-9, SASB EM-RM-320a.1

hours

12,229,397

10,509,428

8,411,779-

GRI 403-9, SASB EM-RM-320a.1

number of
injuries per 200,000
hours worked

1.05

1.14

1.12

1.52

GRI 403-9, SASB EM-RM-320a.1

number of
injuries per 200,000
hours worked

0.16

0.15

0.21

0.17

GRI 403-9, SASB EM-RM-320a.1

count

6,284

5,946

4,389

4,635

GRI 2-7

International

%

39

35

35

-

GRI 405-1

Canada

%

33

32

40

-

GRI 405-1

USA

%

44

40

37

-

GRI 405-1

Enterprise-wide

%

-

-

-

31

GRI 405-1

%

22

20

20

30

GRI 405-1

International

%

3

17

12

-

GRI 2-30

Canada

%

7

7

9

-

GRI 2-30

USA

%

0

0

n/a

-

GRI 2-30

International

count

0

1

-

-

GRI 406-1

Canada 21

count

2

2

-

-

GRI 406-1

USA

count

0

0

-

-

GRI 406-1

Incidents of Non-compliance Concerning the
Health and the Safety Impacts of Products and Services

count

0

0

0

-

GRI 416-2

PEOPLE
Occupational Health & Safety

Exposure Hours
Total Recordable Injury Frequency (TRIF)

18

Lost Time Injury Frequency (LTIF)

Total Number of Full- and Part-time Employees 19
Percentage of Management
Positions Filled by Women by Region 20

Executive Officer Diversity
Gender Diverse (Women)Collective Bargaining Agreements

Incidents of Discrimination and Corrective Actions Taken

17. For all Parkland employees, there were no fatalities as a result of work-related injuries and there were no high-consequencework-related injuries. All injuries in 2022 have made a full recovery. For workers who are not employees but whose work and/or workplace is controlled by the organization, there were also no fatalities as a result of work-related injuries and there were nohigh-consequence work-related injuries.

18. The main type of work-related injury was musculoskeletal. Injury rate calculations follow industry standards such as those set
by the Occupational Safety and Health Administration (OSHA) for the calculation of Total Recordable Injury Frequency (TRIF). No
workers have been excluded from this disclosure.
19. Please note that unless otherwise indicated, the head counts do not include contractors.
20. Women in management include titles Manager level and above.

21. In the Canada segment, there were two incidents of discrimination in 2022. Remediation plans have been implemented andresults have been reviewed through routine internal management review processes. Remediation plans/actions taken included:interviews of all relevant stakeholders, action plans to remediate the relationships and address the root of the issue(s), a review of
the Harassment & Discrimination Policy, decisions implemented for path forwards completed, Performance Improvement Plan
implemented where necessary and/or terminations if warranted. There were no reported incidents of discrimination in the US
or International segments in 2022.

Introduction

PeopleEnvironment

Metric 1

Partners

Responsible Growth

Sustainability Performance Data

34

Measurement

2022

2021

2020

2019

FRAMEWORK REFERENCE (GRI, IPIECA, SASB, TCFD)

Incidents of Non-compliance Concerning Productand Service Information and Labelling

count

0

0

-

-

GRI 417-2

Incidents of Non-compliance Concerning
Marketing Communications

count

0

0

0

-

GRI 417-3

Substantiated Complaints Concerning Breachesof Customer Privacy and Losses of Customer Data

count

0

0

0

-

GRI 418-1

Non-compliance with Laws and Regulations in theSocial and Economic Area

count

0

0

0

-

GRI 419-1

Direct Economic Value Generated

millions $CAD

35,492

21,497

14,040-

GRI 201-1

International

millions $CAD

8,730

4,886

3,636

-

GRI 201-1

Canadamillions $CAD

16,838

8,726

6,443

-

GRI 201-1

USAmillions $CAD

8,653

4,816

1,857

-

GRI 201-1

Refining (formerly part of “Supply”)

millions $CAD

1,271

3,069

2,104

-

GRI 201-1

Economic Value Distributed: operating costs, employee wages and benefits, payments to providers of capital, payments togovernment by country, and community investments

millions $CAD

2,348

1,761

1,607

-

GRI 201-1

Economic Value Retained

millions $CAD

33,144

19,736

12,433-

GRI 201-1

Gender Diverse (Women)

%

30

30

20

-

GRI 2-9

BIPOC

%

10

10

10

-

GRI 2-9Non-compliance with Laws and Regulations

count

0

0

-

-

GRI 2-27

Confirmed Incidents of Corruption 23

count

0

0

0

0

GRI 205-3

Legal Actions for Anti-competitive Behaviour,
Anti-trust and Monopoly Practices

count

0

0

0

-

GRI 206-1

RESPONSIBLE GROWTH

PARTNERS

Board Diversity 22

22. See “Nominees for Election to the Board of Directors and Director Information” on pages 24-47 of the Information Circular;
see also “Enhancing Parkland’s Commitment to Diversity” on page 55 of the Information Circular.

23. Zero confirmed material incidents of corruption during the reporting period. Zero confirmed incidents in which employees
were dismissed or disciplined for material corruption during the reporting period. Zero confirmed incidents when contracts
with business partners were terminated or not renewed due to violations related to corruption. Zero public legal cases regarding
corruption brought against the organization or its employees during the reporting period.

Introduction

PeopleEnvironment

Partners

Responsible Growth

Sustainability Performance Data

35

Forward looking statements & note on specified financial measures
Certain statements contained herein constitute forward-looking information and statements (collectively, “forwardlooking statements”). When used the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar
expressions are intended to identify forward-looking statements. In particular, this report contains forward-looking
statements with respect to among other things: Parkland’s sustainability strategy and its goals, targets and plans relating
thereto and the timing thereof, which are grounded in the following four pillars: (i) People, including Parkland’s Drive
to Zero ambition with respect to injuries and fatalities, ESG targets in executive compensation, setting, achieving andmaintaining diversity targets for Parkland’s board and executive officer positions; (ii) Environment, including reducing
GHG emissions per barrel processed by 15% and GHG emissions per site by 40% by 2030, reducing customer emissions
by 1 million tonnes of CO2 by 2026, Scope 1 and Scope 2 GHG emissions targets, reducing spill volumes per litres soldby 50%, reducing single-use items in C-stores, supporting government’s goal to achieve net-zero emissions by 2050,
reducing Parkland’s customers’ GHG emissions, Parkland’s projections for the number of car equivalents that will betaken off the road annually through 2026 through co-processing at the Burnaby Refinery, expanding its co-processing
capability to 5,500 bpd by 2026, the funding, completion, timing, benefits and impacts thereof, offering and encouraging
low-carbon fuel options in every Parkland market by 2026, Parkland’s current and future carbon offsets and trading
initiative and the expected growth and demand thereof, Sol Ecolution’s current and future plans for developing solar
photovoltaic (PV) systems in the Caribbean, including the number of sites and timing thereof, and the expected benefits
and impact of solar PV systems; decreasing SO2 and NO2 emissions at the Burnaby refinery in compliance with its
air permit(iii) Partners, including enhancing existing community and Indigenous engagement by implementing bestpractices, enhancing employee participation in the Parkland Pledge program, developing sustainable supply chain
standards and integrating these standards into Parkland’s significant suppliers, increasing local and Indigenous
procurement and job opportunities; and (iv) Responsible Growth, including conducting sustainability assessments
as part of Parkland’s due diligence for prospective acquisitions, applying Parkland’s sustainability policies, goals andmetrics for newly acquired companies within 12 months and growing Parkland’s low-carbon business; and Parkland’s
energy transition strategy, including with respect to Developing, Diversifying and Decarbonizing its business, and its
goals and plans with respect thereto.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results orevents to differ materially from those anticipated in such forward-looking statements. No assurance can be given thatthese expectations will prove to be correct and such forward-looking statements included in this presentation should
not be unduly relied upon. These forward-looking statements speak only as of the date of this presentation. Parkland
does not undertake any obligations to publicly update or revise any forward-looking statements except as requiredby securities law. Actual results could differ materially from those anticipated in these forward-looking statements
as a result of numerous risks and uncertainties including, but not limited to, general economic, market and businessconditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s
ability to execute its business strategies, including with respect to sustainability and energy transition; Parkland’s ability
to achieve its goals and targets relating to its sustainability and energy transition strategies; competitive action by othercompanies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental
authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes
and developments in environmental and other regulations; and other factors, many of which are beyond the controlof Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking
Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022 andin “Forward-Looking Information” and “Risk Factors” included in the Q1 2022 Management’s Discussion and Analysis
dated May 4, 2022, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.
SPECIFIED FINANCIAL MEASURESThis report refers to a supplementary financial measure, enterprise value. Enterprise value may not be comparable toa similar measure used by other issuers who may calculate this measure differently. Enterprise value is approximate
market capitalization (as at December 31, 2022 closing price and fully diluted shares outstanding as of December
31, 2022) plus Net debt as at Q1 2022. Net debt is defined as total long-term debt plus accounts payable and accrued
liabilities, dividends declared and payable and income taxes payable, less cash and cash equivalents, income taxes
receivable and accounts receivable.

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