Sustainability Net-Zero Plan | Applied Electronics

100% Canadian-Owned & Operated

Commitment

Net-Zero Strategic Plan

Applied Electronics is committed to preserving the environment and reducing our carbon footprint by complying with, or exceeding, all relevant Canadian environmental laws and regulations, while supporting and promoting sustainable, eco-friendly initiatives.

We are committed to transitioning our operations to achieve Net-Zero Emissions by 2050, deploying innovative approaches to sustainable electronics and emissions reduction.

Applied Electronics' Net-Zero Strategic Plan has an innovative approach to sustainable electronics and emissions reduction.

Our Commitment

Net-Zero by 2050

Applied Electronics aims to reach net-zero greenhouse gas emissions by 2050 or earlier, supporting Canada’s Net-Zero Challenge.

We commit to setting goals, taking action, involving stakeholders, and reporting progress, while making sustainability a key part of our governance, investments, and operations.

Commitment to Net-Zero
Applied Electronics pledges to achieve net-zero greenhouse gas emissions by 2050 or earlier, aligning with national goals.
Science-Based Targets
The company sets science-based targets and implements strong mitigation strategies to reduce emissions effectively.
Stakeholder Engagement
Engaging stakeholders ensures transparency and shared responsibility throughout the net-zero transition process.
Sustainability Integration
Sustainability is integrated into governance, investments, and operations to drive innovation and resilience.

Supporting the Environment

Why Net-Zero Matters

Committed to net-zero, Applied Electronics not only supports the environment but also boosts our business strength and reputation. This approach helps us meet stakeholder expectations and stays aligned with global sustainability efforts.

Adopting net-zero reduces risks from regulations like carbon pricing, while opening doors to innovation and energy savings.

By embracing a low-carbon model, we enhance our market position and attract eco-conscious clients, while supporting Canada’s climate goals and global initiatives.

Environmental Impact
Net-zero emissions are essential for mitigating climate change and protecting future generations.
Business Benefits
Adopting net-zero strategies enhances our reputation, meets the expectations of our stakeholders, and it improves our resilience.
Regulatory and Market Advantages
Net-zero reduces regulatory risks and opens opportunities for innovation and cost savings.
Global and National Alignment
Efforts align with Canada’s climate goals and international agreements like the Paris Agreement.

Fundamental

Transparency and Reporting

Transparency is fundamental to our net-zero commitment.

Applied Electronics will provide annual updates on emissions, mitigation efforts, and offset credit usage, ensuring clear communication to build stakeholder trust and highlight our dedication to ongoing progress.

Public Net-Zero Plan
Publishing a stand-alone net-zero plan online ensures stakeholders access clear, comprehensive climate actions.
Annual Progress Reporting
Annual updates on emissions inventories and mitigation strategies highlight ongoing commitment and progress.
Offset Credit Disclosure
Disclosing offset credit sources and standards promotes transparency and credibility in emissions accounting.
Alignment with TCFD Framework
Aligning reporting with TCFD frameworks enhances credibility and comparability for stakeholders worldwide.

Framework

Governance and Accountability

Our governance framework integrates climate priorities into all corporate decisions. Executive leadership oversees the net-zero plan with clear accountability, linking ESG metrics to performance and compensation. Progress updates are regularly shared, and sustainability guides our investment choices. This ensures our net-zero commitment is central to our business and future planning.

Integrated Climate Governance
Climate considerations are embedded in corporate decision-making through a structured governance framework.
Accountability Mechanisms
Board and executive leadership oversee net-zero plan implementation with clear accountability.
ESG Metrics Integration
ESG metrics are incorporated into performance evaluations and executive compensation.
Sustainability in Investments
Sustainability objectives guide capital investment decisions and business long-term planning.

Stakeholder Engagement

Engaging our stakeholders is key to reaching our net-zero goals.

We will empower employees through training and involvement in sustainability efforts, keep clients informed about our progress and benefits, collaborate with suppliers to reduce emissions, and support community climate programs to extend our impact.

Employee Engagement
Employees are involved through training and sustainability initiatives to build environmental responsibility culture.
Client Communication
We Inform clients about progress and benefits of partnering with a climate-conscious company.
Supplier Collaboration
We work with suppliers to reduce Scope 3 emissions and promote sustainable practices.
Community Climate Action
Support community-based climate programs and educational initiatives to expand impact.

Scope 1 Emissions: 320.41 tCO2e

Scope 1 emissions from gasoline burned in AEL Service and Installation Vans: 160.44 tCO2e

Scope 1 emissions from natural gas burned for heating at AEL's facilities: 159.97 tCO2e

Scope 2 Emissions: 73.71 tCO2e

Scope 2 emissions from electricity used at AEL Facilities: 73.71 tCO2e

Scope 3 emissions: Future Consideration

Scope 3 emissions have not been inventoried at AEL at this time and are not required under the Net-Zero.

Challenge for SMB's but we are taking steps to lower our Scope 3 emissions.

Total Scope 1 & 2 emissions 2025: 394.12 tCO2e.

Details of Our Commitment to the Net-Zero Challenge

Net-Zero Emissions Target
Applied Electronics is committed to be Net-Zero in CO2e emissions by 2050.
Interim Emission Reduction Targets
Applied Electronics is committed to a 40% reduction in emissions by 2035 and 70% reduction by 2045 and we achieve Net-Zero by 2050.
Comprehensive Net-Zero Planning
A preliminary plan is included in this document, and a comprehensive plan will be available by the end of January 2026.
Accountability and Reporting
We are committed to annual progress reporting and plan updates every five years to ensure transparency.
Baseline Emission Inventory
A comprehensive greenhouse gas inventory is included in this document for Scope 1 and 2 emissions.

Preliminary Carbon Reduction Plan

Applied Electronics will reduce CO2 emission by 40% by 2035 by the following means:

Fleet Scope 1 Emissions:
By converting our fleet of service and installation vans to Hybrid or full electric vehicle by 2035. The first 5 hybrid vans are currently on order.
We will deliver equipment and tools to jobsites using one large vehicle so our technical teams can travel to site together in one smaller vehicle or by public transit instead of comminuting individually in vans.
Building Scope 1 Emissions:
Replacing windows in head office to high efficiency windows by 2035.
Replacing roof top Natural gas heating units with heat pump units as they are due for replacement.
Building Scope 2 Emissions:
Upgrade building control system to reduce electricity use. All building are already fully converted to LED.
Scope 3 Emissions:
Install electric vehicle charging stations at head office to encourage employees to use electric vehicles.
Move to more efficient modes of business travel when available.

Secondary Carbon Reduction Plan

Applied Electronics will further target CO2 emission by the following means:

2045

Continue to move to an all-electric fleet.
Install solar panels and a battery storage system at head office to reduce Scope 2 electrical purchases.
Continue to move to heat pump technology to reduce Scope 1 natural gas usage
Use other methods and technologies for reducing carbon emission not yet developed.

2050

85% reduction in carbon emissions achieved.

Fleet will be 100% electric reducing scope 1 fleet emissions.
Continue to develop 0 emission on site electrical generation methods and electrical storage system perhaps using sodium ion technology to reduce demand on the electrical grid at peak hours.
All heating system to be heat pump based.

The remaining 15% of emissions to be offset by investments in carbon capture and reduction plans by others.

NetZero commitment achieved!

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