CORPORATE SOCIAL RESPONSIBILITY

At Finning, our commitment to our employees, the environment and the community is underpinned by our Code of Conduct and reflected in our values. This commitment to uphold the highest environmental, health and safety standards; continuously inspire employee engagement; and, support our communities is an integral part of our corporate culture and something that all Finning employees contribute towards. In addition to our employees’ dedication, Finning’s board of directors also play an active role by monitoring the activities across our operations to ensure consistency in meeting our world-class environment, health and safety (EH&S) standards.

Safety
Finning has distinguished itself as an industry leader in safety standards due to our rigorous, company-wide focus on safety. Our approach to maintaining this leadership position emphasizes management commitment and leadership, open communication, training, prevention, sharing best practices and continuous improvement of the safety of our operations.

As a result of our dedication to maintaining a safe workplace, Finning continues to reduce the frequency of lost time incidents (LTIs) —a key indicator of safety performance. In 2009, Finning achieved a 37 percent reduction in our lost time frequency rate compared to the previous year.

While we are proud of our work to reduce LTIs, we recognize that there is always room for improvement and continue to strive towards attaining our goal of zero injuries. Our efforts to create a work environment that is completely incident-free continued in 2009 with the introduction of several new initiatives across Finning’s operations, including:

• Finning (Canada) utilized a new on-line tool to report ‘near misses’ as part of its focus on identifying leading indicators of injury to help prevent accidents from occurring.
• Finning South America launched the “Living Safe” campaign to promote a culture of risk prevention by highlighting safety practices at work and at home in an engaging and educational way.
• Finning UK implemented an “Office Safety” campaign specifically designed to raise awareness of safety issues unique to an office environment.

Environment
At Finning, managing our business in a manner designed to protect the environment is an integral aspect of being a socially responsible company. This operating philosophy is reflected in the following principles which govern our attitude, actions and performance in environmental matters:

• Adopt management practices and procedures which meet and exceed the environmental standards of each community.
• Identify, assess and minimize environmental risk through a regular audit program.
• Train employees on changes to environmental laws and regulation.
• Use suppliers who have high environmental standards and practices and routinely audit their performance.
• Establish and maintain environmentally acceptable methods for managing waste, reusing and recycling materials.
• Ensure that future development of our facilities reflect our commitment to environmental issues and incorporate energy efficient solutions.

Our commitment to the environment extends to all aspects of our operations and takes various forms including:

• Rebuilding equipment components in order to reduce waste, save energy, and decrease the consumption of raw materials required to produce new components.
• Being a world leader in providing renewable energy solutions that reduce greenhouse gas emissions.
• Working with Caterpillar to provide products, support and technologies to help customers reduce the levels of exhaust emissions and improve fuel efficiency.

In 2009, Finning continued to build on our environmental practices with new initiatives in each of our operations:

• Finning UK launched the Eco-Drive training course to educate customers about energy use and offer practical tips to reduce equipment fuel consumption.
• Finning South America incorporated energy efficient technology in several branches, including solar energy to generate electricity and heat.
• Finning (Canada) made a significant stride towards tracking environmental impacts and the performance across its operations by developing a centralized information system.

Employee engagement
We know that delivering unrivalled service to customers relies on high-performing employees so we work hard to attract and retain the very best. Dedicated people who embody Finning’s core values have been the foundation of our success and are the key to achieving our future goals. Accordingly, cultivating a culture of engagement is a high priority for our organization.

For the past four years, Finning has participated in Caterpillar’s annual employee opinion survey (EOS) process. By helping to identify what is working well and where we can make improvements, the EOS plays a critical role in continually improving engagement at Finning.

In 2009, 85 percent of employees responded to our annual survey. Despite the impact of the economic challenges on our business and workforce, we continued to demonstrate improvements in areas that impact engagement. Here are a few highlights:

• Scores improved in 9 of the 11 indices.
• Our employee engagement score increased two percentage points, from 81 to 83 percent.
• Our safety score surpassed the average score of Caterpillar dealers reflecting our employees on-going commitment to safety.

Community involvement
Despite challenging economic times, Finning continued our strong tradition of investing in communities both locally and globally. Finning’s spirit of giving takes many forms, including charitable contributions through our Community Investment Program, cultural sponsorships and employee campaigns. Through these different avenues, Finning supports a wide range of education and training, health and welfare, and arts and cultural programs and organizations.

As part of our charitable giving in 2009, Finning proudly supported the construction of a new B.C. Children’s Hospital with a $1 million pledge that will help a new state-of-the-art-facility to improve the quality of care that critically ill children receive.

In the U.K., the company encourages employees to undertake activities which will benefit charitable organizations, in many cases facilitating contributions and volunteer work with matching grants and other programs. In South America, Finning partners with local schools to support training and development programs.