2025-26 Report on Taskforce on Climate-Related Financial Disclosures

CATSA’s Board of Directors, through the Audit Committee, is accountable for assessing the adherence to climate-related disclosure requirements, including the TCFD, as well as overseeing climate-related risk management activities through the Enterprise Risk Management (ERM) Profile when a climate-related risk surpasses CATSA’s risk appetite. As detailed within the Climate Disclosure Policy, the Board of Directors stays apprised of climate-related activities, including progress towards climate-related targets, through quarterly and annual reporting from management. Any substantive amendments to the Climate Disclosure Policy must be approved by the Board of Directors.

The Senior Management Committee (SMC) is the highest level of management with direct responsibility for climate-related activities. To ensure appropriate management and execution of CATSA’s climate strategy, SMC reviews the results of the CROA and evaluates how the results fit within CATSA’s business strategies, climate strategy and targets, and supports climate-related disclosures and data collection. 

An overview of climate-related accountabilities relevant to CATSA’s governance structure can be found below. 

Table 1. Overview of all climate-related accountabilities relevant to CATSA’s governance structure

CATSA’s Green Working Group (GWG), formed in 2024-25, promotes sustainability and supports CATSA’s climate strategy based on TCFD recommendations. The GWG coordinates across branches and supports alignment with legislative, regulatory, and federal Greening Government Strategy (GGS) requirements.

Table 2 presents CATSA’s priority climate-related risks and opportunities based on the results of the 2025-26 CROA refresh. In general, it depicts an increasing frequency of extreme weather events that may impact CATSA’s operations, most notably through physical risks^{Footnote 1}   related to operational disruption. While several transition risks^{Footnote 2}   showed decreased residual risk ratings, reputational risks gained greater prominence, including those related to service disruption and CATSA’s value chain GHG emissions. Climate related opportunities reviewed in the assessment were largely consistent with the prior CROA, with increased emphasis on corporate reputation and relationships.

Table 2. CATSA’s priority climate-related risks and opportunities 

The results of the 2025-26 CROA refresh were leveraged to amend the climate strategy, as presented below.

CATSA conducts scenario analysis to assess how climate related risks and opportunities identified in the CROA may affect its operations under a range of future conditions. The analysis covers three time horizons: short term (to 2030), medium term (to 2050), and long term (to 2090). It also considers two climate scenarios; a low warming scenario (SSP1 RCP 2.6) and a high warming scenario (SSP5 RCP 8.5). Physical risks are assessed across seven natural hazards at the location level for all airports (89) and CATSA operations, including headquarters and other leased offices.

Given no significant changes to CATSA’s operations or asset portfolio, the scenario analysis was not refreshed; the most recent analysis, conducted in 2023-24, remains representative. It indicated that climate related impacts are expected to persist across all time horizons and that overall risks remain manageable.

CATSA maintains its climate strategy originally developed in 2022-23. In 2025-26, targeted refinements were made to the climate strategy based on the results of the 2025-26 CROA refresh, informed by the 2023-24 scenario analysis, progress against existing targets, CATSA’s GHG emissions profile, input of key internal partners, and alignment with the federal Greening Government Strategy. These updates affected the Resilience Pillar, reinforcing that CATSA’s resilience priority is focused on safeguarding the health and safety of its people. 

CATSA’s climate strategy is built on three pillars, as summarized in Table 3, and is intended to contribute to maintaining resilience over time. As such, several of the priorities translate to metrics and targets that are presented below.

Table 3. CATSA’s Climate Strategy

CATSA’s CROA consists of two steps: 

(i)    Risk identification: identify a list of physical and transition risks, recognizing CATSA’s operations, corporate mandate, physical footprint and assumed trends.

(ii)    Risk rating and prioritization: validate the list of physical and transition risks with key internal partners and assign a likelihood and impact rating for each risk, using the criteria from CATSA’s ERM Policy. Also considered are additional criteria unique to climate-related risks such as longevity (as climate-related risks are to be assessed over a future horizon). 

Based on this assessment, CATSA identifies a short-list of priority climate-related risks that are presented in the Strategy section. As climate-related risks and opportunities are dynamic, and CATSA’s exposure may evolve over time due to both internal and external factors, the CROA is refreshed every five years unless earlier updates are warranted. Any climate-related risks with the potential to exceed CATSA’s risk appetite are continuously monitored and managed within the ERM program.

Short listed climate related risks identified through the CROA are assessed against existing mitigations and controls, with enhancements implemented as needed. Mitigation measures introduced following the initial CROA were considered in the 2025-26 CROA refresh.

Higher-rated risks, identified in the 2025-26 CROA refresh, included the potential of disruption to operations, equipment damage, and reputational damage. None of these risks surpassed CATSA’s risk tolerance and therefore, in accordance with the Climate Disclosure Policy, did not require tracking as part of CATSA’s ERM Profile.

CATSA’s GHG emissions (tonnes of carbon dioxide equivalent to CO₂e), aligned with the Greenhouse Gas Protocol’s standards for corporate accounting and reporting, as well as certain employee engagement metrics are tracked to measure the progress against the targets set within CATSA’s climate strategy pillars.

CATSA’s GHG emissions inventory includes direct emissions (Scope 1)^{Footnote 3}   and indirect emissions (Scope 2)^{Footnote 4}   from leased space with operational control. CATSA recognizes that a significant portion of GHG emissions extend beyond CATSA’s direct operations. As such, CATSA enhanced the transparency and completeness of its GHG emissions reporting by expanding disclosures and including select value chain (Scope 3)^{Footnote 5}  categories. 

In 2025-26, CATSA completed a Scope 3 materiality assessment aligned with the GHG Protocol and TCFD, prioritizing categories based on GHG emissions significance, influence, and stakeholder expectations. CATSA is advancing the measurement and disclosure of its material Scope 3 categories, beginning with those most relevant to its operations. Of note, CATSA successfully engaged with the third-party screening contractors to obtain supplier‑specific GHG emissions data, a key milestone in improving the accuracy of CATSA’s Scope 3 GHG emissions. 

The following table details CATSA’s Scope 1 and 2 GHG emissions.

Table 4. CATSA’s GHG emissions profile (tCO2e) – Scope 1 and 2 

Scope 1 and Scope 2 emissions account for a minimal proportion of CATSA’s total GHG emissions (< 1%). Nevertheless, CATSA continues evaluating and pursuing energy efficiency measures, including collaboration with landlords and vendors.

Scope 1 GHG emissions have remained stable since the prior reporting period.

A year over year variance for Scope 2 emissions cannot be presented for 2025-26, as complete metered electricity data, the highest quality data source, was not available for the entire reporting period. As a result, Scope 2 emissions for 2025-26 are disclosed as Not Available (NA) pending full data availability.

To support continued reporting, Scope 2 (recalculated) emissions were calculated using metered data where available and allocated whole building electricity consumption for CATSA headquarters as the next best available proxy, consistent with the GHG Protocol Scope 2 Guidance and TCFD expectations. While this approach enables trend analysis, the use of allocated data is less representative of CATSA’s actual operational consumption.

An upward trend is observed in Scope 2 (recalculated) emissions. This increase is primarily driven by changes in emission factors associated with the provincial electricity grid mix, with smaller contributions from electricity consumption due to operational activity. Scope 2 emissions are calculated using Ontario’s year specific grid intensity factors from the National Inventory Report (NIR), ensuring alignment with the carbon intensity of each reporting period.

CATSA has implemented energy efficiency measures in prior years, including HVAC upgrades and LED lighting installations, and continued incremental improvements in 2025-26, such as occupancy sensors with dimming capabilities. These measures support ongoing efforts to manage energy use and emissions over time.

The following table includes CATSA’s Scope 3 GHG emissions.

Table 5. CATSA’s GHG emissions profile (tCO2e) – Scope 3 

Scope 3 emissions represent the majority of CATSA’s total GHG emissions (more than 99%). 

Third-party screening services represent the majority of CATSA’s Scope 3 GHG emissions, accounting for 61.4% of total Scope 3 emissions and 74.4% of Scope 3 Category 1 (purchased goods and services) emissions. The emissions produced from third-party screening services stem generally from Scope 3 Category 7 (employee commuting), which accounts for over 90% of their emissions. As a result, annual variations will mainly depend on workforce size, and commuting patterns.

In addition to Scope 3 Category 1 (purchased goods and services), CATSA’s emissions include Category 2 (capital goods) (15.1%), Category 6 (business travel) (0.6%), and Category 7 (employee commuting) (1.8%), which together form a smaller part of CATSA’s overall Scope 3 GHG emissions. These categories are disclosed based either on a significance threshold, data quality, stakeholder expectations, and/or CATSA’s ability to influence emissions. These Scope 3 GHG emissions categories are monitored to track operational trends and guide management actions in support of CATSA’s long-term climate strategy.

Targets for two of the three climate pillars have been assigned. CATSA’s Scope 1 and 2 GHG emissions reduction target was developed in alignment with reaching net-zero by 2050. The 2025-26 CROA refresh initiated an evaluation of CATSA’s climate strategy and targets, in accordance with the Climate Disclosure Policy, as well as the completion of certain existing targets. The status of existing targets, and newly added targets, are detailed below.

Table 6. CATSA’s Climate Targets