Social and Environmental Responsibility at MEC

1. Social and Environmental Responsibility at MEC The Challenges and Rewards of our Commitment

2. About MEC Canada�s largest consumer co-operative 2,200,000 members $185 million in annual sales Multi-channel retailer with 10 stores, catalogue and web sales Board of Directors elected by members Founded 33 years ago, MEC has stores in Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa, Montreal and Halifax. Our ninth store opens in Quebec City this May. In addition, approximately 10% of our sales take place through our Vancouver-based call centre or via the web. For more information about MEC, visit our website at www.mec.ca. Founded 33 years ago, MEC has stores in Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa, Montreal and Halifax. Our ninth store opens in Quebec City this May. In addition, approximately 10% of our sales take place through our Vancouver-based call centre or via the web. For more information about MEC, visit our website at www.mec.ca.

3. Purpose of MEC To support people in achieving the benefit of wilderness-oriented recreation Our purpose is �what we resolve to do.� Our purpose is �what we resolve to do.�

4. MEC�s Vision Mountain Equipment Co-op is an innovative, thriving co-operative that inspires excellence in products and services, passion for wilderness experiences, leadership for a just world, and action for a healthy planet. Our vision is our picture of the future and outlines where we want to go. It clearly articulates our commitment to social and environmental responsibility.Our vision is our picture of the future and outlines where we want to go. It clearly articulates our commitment to social and environmental responsibility.

5. MEC�s Mission Mountain Equipment Co-op provides quality products and services for self-propelled wilderness-oriented recreation, such as hiking and mountaineering, at the lowest reasonable price in an informative, respectful manner. We are a member-owned co-operative striving for social and environmental leadership. Our mission tells us what business we are in, who we serve, and how. It represents the fundamental reason for MEC's existence. Like our vision, our mission provides a call to action for the organization to strive for social and environmental leadership. Our mission tells us what business we are in, who we serve, and how. It represents the fundamental reason for MEC's existence. Like our vision, our mission provides a call to action for the organization to strive for social and environmental leadership.

6. Member Profile 55% Male; 45% Female Average age - 39 $89,000 average family income 85% post-secondary education (college/university) 95% have access to the Internet MEC has a very unique and prized membership base. Our members skew male, are just slightly older than the average Canadian, and have higher than average income, education and access to the Internet. In short, they are savvy and demanding. Given our core purpose, we learned early on in our history that issues with social and environmental dimensions resonate with our members. As a democratic organization, our members provide valuable input into our social and environmental activities. MEC has a very unique and prized membership base. Our members skew male, are just slightly older than the average Canadian, and have higher than average income, education and access to the Internet. In short, they are savvy and demanding. Given our core purpose, we learned early on in our history that issues with social and environmental dimensions resonate with our members. As a democratic organization, our members provide valuable input into our social and environmental activities.

7. Our SER Program Social and environmental responsibility (SER) is woven into the fabric of MEC; it provides definition to who we are as an organization Over the years, MEC has put a variety of policies and programs in place to support our commitment to SER Our SER values help distinguish MEC from the competition As indicated in all of our guiding statements, SER is part of who we are. We back this commitment with a variety of policies and programs that help us deliver measurable outcomes in areas such as: reducing our ecological footprint, supporting wilderness preservation and conservation endeavours; providing employees with progressive employment policies; and, engaging with local communities. Our SER values also help to distinguish us from the competition and allow us to attract and retain members As indicated in all of our guiding statements, SER is part of who we are. We back this commitment with a variety of policies and programs that help us deliver measurable outcomes in areas such as: reducing our ecological footprint, supporting wilderness preservation and conservation endeavours; providing employees with progressive employment policies; and, engaging with local communities. Our SER values also help to distinguish us from the competition and allow us to attract and retain members

8. Integrating SER into the Business For MEC, social and environmental responsibility is analogous to one of the climbing ropes we sell. The strength of the rope comes from the inner core, just as the strength of MEC comes from being a vibrant, successful business. However, the core is protected and reinforced by a durable exterior layer, akin to our values and ethics, which ensures that it remains strong. Together, they provide a strong element to facilitate our core business: helping people to achieve the benefits of self-propelled outdoor recreation. Our SER commitment is not part of a marketing campaign or brand positioning. It is who we are.For MEC, social and environmental responsibility is analogous to one of the climbing ropes we sell. The strength of the rope comes from the inner core, just as the strength of MEC comes from being a vibrant, successful business. However, the core is protected and reinforced by a durable exterior layer, akin to our values and ethics, which ensures that it remains strong. Together, they provide a strong element to facilitate our core business: helping people to achieve the benefits of self-propelled outdoor recreation. Our SER commitment is not part of a marketing campaign or brand positioning. It is who we are.

9. SER Program Components - 1 Sustainability policy SER department and coordinators SEMS program Green building program Our Sustainability Policy aligns all of our SER initiatives. Visit www.mec.ca/sustainability for a copy of the policy and additional supporting information. Our SER Network supports and develops social and environmental initiatives; store and department representatives meet regularly to share information and set SER priorities. Our Social and Environmental Management System (SEMS) helps MEC form effective policies, strategies, communication plans, measures, and reviews for new and existing SER initiatives. Our Green Building Program helps us make design, materials and construction decisions based on environmental considerations.Our Sustainability Policy aligns all of our SER initiatives. Visit www.mec.ca/sustainability for a copy of the policy and additional supporting information. Our SER Network supports and develops social and environmental initiatives; store and department representatives meet regularly to share information and set SER priorities. Our Social and Environmental Management System (SEMS) helps MEC form effective policies, strategies, communication plans, measures, and reviews for new and existing SER initiatives. Our Green Building Program helps us make design, materials and construction decisions based on environmental considerations.

10. SER Program Components - 2 Strict paper standards for printed materials Environment and endowment funds Product sourcing/STEP Community partnerships/outreach Progressive workplace policies Advocacy policy We've made many efforts to minimize the environmental impact of printing our catalogues and other print materials. We are leaders in Canada for the amount of total recycled paper content (both pre- and post-consumer waste) we use in our catalogues. Each year, we set aside 0.4% of MEC's previous year's sales for the Environment Fund. Since 1987, we've contributed more than $5 million to Canadian-based environmental conservation and wilderness protection projects, research, and education. Our Endowment Fund, worth more than $1,000,000, supports Canadian environmental projects, mainly land acquisition. In terms of our products, we have sourcing practices that ensure they are manufactured in safe and healthy workplaces where human and civil rights are respected. We sell only organic cotton products and we expect our vendors to meet our Supplier Code of Conduct. We nurture partnerships with community-based organizations and environmental groups, both on a national and regional basis. We have incorporated a variety of progressive employment practices such as flex-time, tele-commuting, generous leave of absence policies, benefits for same-sex couples and prosperity bonuses. However, we have more work to do in such areas as energy consumption, alternative materials and production technologies.We've made many efforts to minimize the environmental impact of printing our catalogues and other print materials. We are leaders in Canada for the amount of total recycled paper content (both pre- and post-consumer waste) we use in our catalogues. Each year, we set aside 0.4% of MEC's previous year's sales for the Environment Fund. Since 1987, we've contributed more than $5 million to Canadian-based environmental conservation and wilderness protection projects, research, and education. Our Endowment Fund, worth more than $1,000,000, supports Canadian environmental projects, mainly land acquisition. In terms of our products, we have sourcing practices that ensure they are manufactured in safe and healthy workplaces where human and civil rights are respected. We sell only organic cotton products and we expect our vendors to meet our Supplier Code of Conduct. We nurture partnerships with community-based organizations and environmental groups, both on a national and regional basis. We have incorporated a variety of progressive employment practices such as flex-time, tele-commuting, generous leave of absence policies, benefits for same-sex couples and prosperity bonuses. However, we have more work to do in such areas as energy consumption, alternative materials and production technologies.

11. SER Rewards for MEC - 1 Builds marketplace differentiation Provides a connection with members Attracts new members Increases awareness of MEC (and its values) Builds trust with stakeholders Builds marketplace differentiation - The outdoor recreation retail marketplace has become much more competitive in recent years. However, we have used our values as an important point of differentiation with our members and potential members, and have found them instrumental to holding our position in the marketplace. In fact, we built our entry into the Quebec market on them. Provides a connection with members - Many of our SER programs are shaped by the input of our members. This creates a deeper sense of ownership and engagement for them and the co-op, and contributes to our strength as an organization. Attracts new members - Over our 33 history, MEC has relied on word-of-mouth to fuel our growth. Each year, we gain 150,000 new members on an advertising budget of $150,000. The majority of them (70%) are attracted by the values. Increases awareness - Historically, MEC has not proactively sought publicity or recognition for our SER values. In fact, the Communications and Marketing Department was only created two years ago. Nonetheless, we have been featured for our SER values in a variety of newspapers, magazines, business books, text books, and electronic media. Builds trust with stakeholders - Our relationships with members, community groups, environmental groups, the media and others have been enhanced and deepened by our SER values. For example, the manner in which we addressed our international product sourcing helped turn a challenging relationship with one NGO into a positive, mutually-beneficial one.Builds marketplace differentiation - The outdoor recreation retail marketplace has become much more competitive in recent years. However, we have used our values as an important point of differentiation with our members and potential members, and have found them instrumental to holding our position in the marketplace. In fact, we built our entry into the Quebec market on them. Provides a connection with members - Many of our SER programs are shaped by the input of our members. This creates a deeper sense of ownership and engagement for them and the co-op, and contributes to our strength as an organization. Attracts new members - Over our 33 history, MEC has relied on word-of-mouth to fuel our growth. Each year, we gain 150,000 new members on an advertising budget of $150,000. The majority of them (70%) are attracted by the values. Increases awareness - Historically, MEC has not proactively sought publicity or recognition for our SER values. In fact, the Communications and Marketing Department was only created two years ago. Nonetheless, we have been featured for our SER values in a variety of newspapers, magazines, business books, text books, and electronic media. Builds trust with stakeholders - Our relationships with members, community groups, environmental groups, the media and others have been enhanced and deepened by our SER values. For example, the manner in which we addressed our international product sourcing helped turn a challenging relationship with one NGO into a positive, mutually-beneficial one.

12. SER Rewards for MEC - 2 Delivers cost savings Supports staff recruitment and retention Supports our license to operate Enhances our ability to manage risks Delivers cost savings - While some of our practices result in additional costs (e.g., the recycled paper we use in our catalogues comes at a 10% premium), our SER policies have generated savings in operational costs. For example, over the past decade, our store square footage has grown by 150% while our energy usage and operating costs per square foot grew by only 50%. Supports staff recruitment and retention - MEC employees are hired on the basis of their values in addition to their skills and competencies. We attract very strong candidates for the positions we post (e.g., many of our store staff have university degrees) while the length of service of our store staff exceeds industry averages. Supports our license to operate - Our ability to get on with the business of MEC is greatly enhanced by our values-based reputation. For example, when we announced that we were opening a store in Winnipeg, the city was so eager to have us locate there that local architects offered pro bono services just for the opportunity to work on one of our green buildings, the Mayor asked how he could be of assistance and the Premier attended the store opening. Enhances our ability to manage risks - Because of the trust and credibility we have with our members and stakeholders, we often get �the benefit of the doubt� and are afforded more latitude to make mistakes. This creates a more flexible framework in which management and staff make decisions. All of these rewards benefit the work of marketers within the organization. Delivers cost savings - While some of our practices result in additional costs (e.g., the recycled paper we use in our catalogues comes at a 10% premium), our SER policies have generated savings in operational costs. For example, over the past decade, our store square footage has grown by 150% while our energy usage and operating costs per square foot grew by only 50%. Supports staff recruitment and retention - MEC employees are hired on the basis of their values in addition to their skills and competencies. We attract very strong candidates for the positions we post (e.g., many of our store staff have university degrees) while the length of service of our store staff exceeds industry averages. Supports our license to operate - Our ability to get on with the business of MEC is greatly enhanced by our values-based reputation. For example, when we announced that we were opening a store in Winnipeg, the city was so eager to have us locate there that local architects offered pro bono services just for the opportunity to work on one of our green buildings, the Mayor asked how he could be of assistance and the Premier attended the store opening. Enhances our ability to manage risks - Because of the trust and credibility we have with our members and stakeholders, we often get �the benefit of the doubt� and are afforded more latitude to make mistakes. This creates a more flexible framework in which management and staff make decisions. All of these rewards benefit the work of marketers within the organization.

13. External SER Challenges Managing the complexity of relationships with partners Communicating about complex issues Creating awareness with members and potential members Being vulnerable to criticism Managing the complexity of relationships with partners - It takes much more work to manage stakeholder relationships than it does to write cheques. For example, our objectives and those of our stakeholders may not always be completely aligned, which requires dialogue, debate and compromise. However, by being more engaged, the rewards to both parties are ultimately much greater. Communicating about complex issues - SER issues such as product sourcing or green buildings are complex ones that cannot be addressed with simple sound bites. In many cases, we are breaking relatively new ground, frequently requiring us to educate on a topic or dispel or correct misinformation. Creating awareness with members and potential members - Closely linked to the complex nature of SER communications is the amount of strategy and effort required to keep members and others informed about our goals and actions. In 2003, xx% of British Columbians said that MEC was the most socially responsible company in the province. Notwithstanding, 24% of our members have no knowledge of our SER activities. Being vulnerable to criticism - Organizations that tackle complex or difficult social and environmental issues can be vulnerable to criticism from individuals and advocacy groups who may differ with an approach or position. From time-to-time, we have found ourselves the target of advocacy groups who have fundamentally disagreed with our position on certain SER issues.Managing the complexity of relationships with partners - It takes much more work to manage stakeholder relationships than it does to write cheques. For example, our objectives and those of our stakeholders may not always be completely aligned, which requires dialogue, debate and compromise. However, by being more engaged, the rewards to both parties are ultimately much greater. Communicating about complex issues - SER issues such as product sourcing or green buildings are complex ones that cannot be addressed with simple sound bites. In many cases, we are breaking relatively new ground, frequently requiring us to educate on a topic or dispel or correct misinformation. Creating awareness with members and potential members - Closely linked to the complex nature of SER communications is the amount of strategy and effort required to keep members and others informed about our goals and actions. In 2003, xx% of British Columbians said that MEC was the most socially responsible company in the province. Notwithstanding, 24% of our members have no knowledge of our SER activities. Being vulnerable to criticism - Organizations that tackle complex or difficult social and environmental issues can be vulnerable to criticism from individuals and advocacy groups who may differ with an approach or position. From time-to-time, we have found ourselves the target of advocacy groups who have fundamentally disagreed with our position on certain SER issues.

14. More External SER Challenges Managing the paradoxes: Love of outdoors vs. environmental impact of activities High consumption vs. SER concerns SER values vs. competitive prices Brand vs. anti-brand Selection vs. ethical sourcing Consumers today are demanding and price and value-conscious. At the same time, they want to purchase and consume products they can feel good about. Our challenge is to constantly manage the SER paradoxes of the business: Members� love of outdoors vs. the environmental impact of doing the activities means that we have to educate them and embrace lower impact activities that use trails or urban settings (not just backcountry). Members� developed world rates of consumption vs their SER concerns means we have to improve and maintain our sustainability practices and educate members how to reduce their impact on the environment at the same time. Members� SER values vs. their desire for competitive prices means we have to constantly find innovative, cost-effective ways to deliver SER benefits without adversely affecting the price of goods. Members� preferences for branded goods vs. our reputation as the anti-brand means that we have to offer them more name brands and complement the brands with MEC-branded goods that offer similar quality, function and value without marketing hype. Members� need for selection vs. concerns around ethical sourcing means that we have to continually research new vendors and production facilities and work with them to ensure they meet our standards.Consumers today are demanding and price and value-conscious. At the same time, they want to purchase and consume products they can feel good about. Our challenge is to constantly manage the SER paradoxes of the business: Members� love of outdoors vs. the environmental impact of doing the activities means that we have to educate them and embrace lower impact activities that use trails or urban settings (not just backcountry). Members� developed world rates of consumption vs their SER concerns means we have to improve and maintain our sustainability practices and educate members how to reduce their impact on the environment at the same time. Members� SER values vs. their desire for competitive prices means we have to constantly find innovative, cost-effective ways to deliver SER benefits without adversely affecting the price of goods. Members� preferences for branded goods vs. our reputation as the anti-brand means that we have to offer them more name brands and complement the brands with MEC-branded goods that offer similar quality, function and value without marketing hype. Members� need for selection vs. concerns around ethical sourcing means that we have to continually research new vendors and production facilities and work with them to ensure they meet our standards.

15. Internal SER Challenges Measuring the direct impact of SER on the business Balancing costs and returns Keeping SER linked to the core business Making SER initiatives relevant across the enterprise Ensuring staff are familiar with our SER programs and understand that we a business first and foremost Measuring the direct impact of SER on the business - ,Although we know are SER values have made us a better business, it is not easy to accurately measure the specific benefits or costs of SER. Evidence of this is the fact that a variety of organizations around the world are continuing to struggle with how to consistently measure and report on social and environmental responsibility. Balancing costs and returns - Without question, our SER programs have cost MEC additional dollars in such areas our SER team�s salaries, higher paper costs and larger upfront capital costs for our green buildings. Finding the �sweet spot� between the costs and the expected returns is more art than science. Keeping SER linked to the core business - A company�s line of business must drive its SER priorities. For MEC, this means that we have aligned all of our programs to our ecological footprint, our core purpose and our core values. Making SER initiatives relevant across the enterprise - Our commitment to SER has played a key role in strengthening the fabric of MEC. However, individual initiatives may not always seem relevant to all staff so it is important to demonstrate how those initiatives roll up into higher level objectives and outcomes that everyone can feel good about. Ensuring staff understand our programs that we are a business first and foremost - We just recently completed internal research on staff understanding of the detail of our SER programs and found a lack of information and background. It is challenging to keep staff informed. In addition, our SER commitment can create the perception that we are non-profit organization rather than an enterprising co-operative. That�s why we aligned our SER programs with the core business.Measuring the direct impact of SER on the business - ,Although we know are SER values have made us a better business, it is not easy to accurately measure the specific benefits or costs of SER. Evidence of this is the fact that a variety of organizations around the world are continuing to struggle with how to consistently measure and report on social and environmental responsibility. Balancing costs and returns - Without question, our SER programs have cost MEC additional dollars in such areas our SER team�s salaries, higher paper costs and larger upfront capital costs for our green buildings. Finding the �sweet spot� between the costs and the expected returns is more art than science. Keeping SER linked to the core business - A company�s line of business must drive its SER priorities. For MEC, this means that we have aligned all of our programs to our ecological footprint, our core purpose and our core values. Making SER initiatives relevant across the enterprise - Our commitment to SER has played a key role in strengthening the fabric of MEC. However, individual initiatives may not always seem relevant to all staff so it is important to demonstrate how those initiatives roll up into higher level objectives and outcomes that everyone can feel good about. Ensuring staff understand our programs that we are a business first and foremost - We just recently completed internal research on staff understanding of the detail of our SER programs and found a lack of information and background. It is challenging to keep staff informed. In addition, our SER commitment can create the perception that we are non-profit organization rather than an enterprising co-operative. That�s why we aligned our SER programs with the core business.

16. MEC�s SER Success Factors

17. 1: SER is Who We Are We have a passion for the outdoors and our communities We hire employees with strong shared values We build SER objectives into employee�s annual goals SER is embedded in the DNA of the brand As indicated earlier, SER is part of who we are as an organization. In fact, the values we stand for would be much more difficult to achieve with out a co-operative structure. We are values-driven, not profit-driven. While we must be financially robust, our goal is to achieve a modest 3% surplus which is reinvested into the business. Our hiring practices focus on recruiting staff who are passionate about the outdoors, share our values and appreciate a work-life balance. Our performance management system - job descriptions and employee evaluations - includes social and environmental goals for all staff, from the store floor to the CEO. From a brand authenticity point-of-view, SER is part of the brand, not an add-on.As indicated earlier, SER is part of who we are as an organization. In fact, the values we stand for would be much more difficult to achieve with out a co-operative structure. We are values-driven, not profit-driven. While we must be financially robust, our goal is to achieve a modest 3% surplus which is reinvested into the business. Our hiring practices focus on recruiting staff who are passionate about the outdoors, share our values and appreciate a work-life balance. Our performance management system - job descriptions and employee evaluations - includes social and environmental goals for all staff, from the store floor to the CEO. From a brand authenticity point-of-view, SER is part of the brand, not an add-on.

18. 2: Understanding our key audiences We take time to learn about our members and stakeholders, and what they value 49% are members in �Body and Spirit� 32% are members in �Body� 19% are members in �Spirit� When communicating regarding social or environmental causes, it is important to know your audience and what they value, and then ensure that they receive information that is timely and relevant to them. That�s why we regularly conduct research with our members about our products, services and programs. We are also in regular contact with our key stakeholders. About half of our members belong in �Body and Spirit.� They are both involved in the activities that MEC supports and are aligned with MEC�s values. These members mirror our gender profile of 55% male/45% female, and spend 13% more than the average member. About 1/3 of our members belong in �Body.� They are involved in the activities but are not necessarily aligned with the values. This group skews 65% male and spends approximately the same amount as the average member. About one-in-five members belong in �Spirit.� They are not particularly involved in the activities but shop MEC because of the values. This group skews 60% female and spends 50% less than the average member.When communicating regarding social or environmental causes, it is important to know your audience and what they value, and then ensure that they receive information that is timely and relevant to them. That�s why we regularly conduct research with our members about our products, services and programs. We are also in regular contact with our key stakeholders. About half of our members belong in �Body and Spirit.� They are both involved in the activities that MEC supports and are aligned with MEC�s values. These members mirror our gender profile of 55% male/45% female, and spend 13% more than the average member. About 1/3 of our members belong in �Body.� They are involved in the activities but are not necessarily aligned with the values. This group skews 65% male and spends approximately the same amount as the average member. About one-in-five members belong in �Spirit.� They are not particularly involved in the activities but shop MEC because of the values. This group skews 60% female and spends 50% less than the average member.

19. 3: Being authentic We know that actions speak louder than words and have put significant financial and human resources into our commitment We keep the �spin factor� low; we are thoughtful and genuine in our marketing and communications, and use appropriate tactics MEC is clear about offering products of uncompromising quality and functionality at consistent everyday value. We complement this with a sincere and demonstrated commitment to conduct our business in an ethical manner - socially and environmentally. We make mistakes from time-to-time and are not afraid to admit them openly. This is part of why we are viewed as a credible and committed organization. This strong correlation of perception and reality has been instrumental to our success. We also ensure that we adopt marketing tactics that are consistent with out SER values. e.g.spawned the creation of the first FSC certified lightweight coated catalogue paper in North America.MEC is clear about offering products of uncompromising quality and functionality at consistent everyday value. We complement this with a sincere and demonstrated commitment to conduct our business in an ethical manner - socially and environmentally. We make mistakes from time-to-time and are not afraid to admit them openly. This is part of why we are viewed as a credible and committed organization. This strong correlation of perception and reality has been instrumental to our success. We also ensure that we adopt marketing tactics that are consistent with out SER values. e.g.spawned the creation of the first FSC certified lightweight coated catalogue paper in North America.

20. 4: Building strong relationships We appreciate stakeholder input and feedback about our priorities and activities We have placed accountability for these relationships with both head office and store staff The relationships provide welcome support and credibility during challenging periods We check in with them regularly for their feedback and are prepared to act on it Within MEC, we hold a real respect for debate. This helps us to make good decisions and to check whether our actions are in line with our values. Both head office and the stores have staff with strong accountability for developing and maintaining relationships. By building strong relationships with our vendors, production facilities, competitors and other external stakeholders such as outdoor clubs and groups, non-profit groups and business/industry organizations, we can foster more vigourous debate. And while we may have differences of opinion on certain issues, mutual respect goes a long way to keeping the relationships strong and intact. We have also been able to rely on these relationships for support and credibility when facing a challenging issue or set of circumstances. This was valuable, for example, when we evaluated the appropriateness of offering four models of Nike approach shoes. Within MEC, we hold a real respect for debate. This helps us to make good decisions and to check whether our actions are in line with our values. Both head office and the stores have staff with strong accountability for developing and maintaining relationships. By building strong relationships with our vendors, production facilities, competitors and other external stakeholders such as outdoor clubs and groups, non-profit groups and business/industry organizations, we can foster more vigourous debate. And while we may have differences of opinion on certain issues, mutual respect goes a long way to keeping the relationships strong and intact. We have also been able to rely on these relationships for support and credibility when facing a challenging issue or set of circumstances. This was valuable, for example, when we evaluated the appropriateness of offering four models of Nike approach shoes.

21. 5: Acknowledging uncertainties We are honest about what we know - and don�t know We value openness and transparency We take the time to develop thoughtful communications We all know that there are uncertainties with many of the decisions we make as individuals or collectively within our workplace. MEC�s organizational culture acknowledges these uncertainties and invites them to be debated and discussed. This precautionary approach has contributed to our reputation for leadership on social and environmental issues. However, it does rely heavily on communications. We all know that there are uncertainties with many of the decisions we make as individuals or collectively within our workplace. MEC�s organizational culture acknowledges these uncertainties and invites them to be debated and discussed. This precautionary approach has contributed to our reputation for leadership on social and environmental issues. However, it does rely heavily on communications.

22. 6: Valuing the importance of communications Social and environmental issues are usually complex, so they require strong communications support Our SER values give us a distinct market differentiation We have a dedicated internal resources We have received accolades for our francization program Over the past decade, our in-house communications resources have grown to include more than 20 staff in the areas of marketing and communications strategy, project management, writing, design and web management. A significant portion of their energy is spent on projects with significant social and environmental aspects. An indication of the overlap between our values and the importance we place on communications is the approach we took with our entry into Quebec. We made a $2,000,000 investment in francizing the information we provide members in the catalogue and in stores. We started by creating a 6,000 word glossary of outdoor terminology in French which we needed to prepare store signage, fact sheets, catalogues and employee training materials. We now have a dedicated team of French communicators who adapt, rather than translate, our materials for francophone members. Over the past decade, our in-house communications resources have grown to include more than 20 staff in the areas of marketing and communications strategy, project management, writing, design and web management. A significant portion of their energy is spent on projects with significant social and environmental aspects. An indication of the overlap between our values and the importance we place on communications is the approach we took with our entry into Quebec. We made a $2,000,000 investment in francizing the information we provide members in the catalogue and in stores. We started by creating a 6,000 word glossary of outdoor terminology in French which we needed to prepare store signage, fact sheets, catalogues and employee training materials. We now have a dedicated team of French communicators who adapt, rather than translate, our materials for francophone members.

23. 7: Using multiple communications channels We use all available means to get the word out We tailor messages to each medium MEC uses a variety of means to communicate on social and environmental issues. This includes: Featuring our environmental funding recipients and community partnerships in the catalogue and advertisements; Providing extensive SER information on the web site; Providing stores with relevant in-store signage and displays for community events; Distributing relevant SER fact sheets in-store; Making presentations to business groups, students and community groups. In all cases, we tailor our messages and our writing style for each medium. MEC uses a variety of means to communicate on social and environmental issues. This includes: Featuring our environmental funding recipients and community partnerships in the catalogue and advertisements; Providing extensive SER information on the web site; Providing stores with relevant in-store signage and displays for community events; Distributing relevant SER fact sheets in-store; Making presentations to business groups, students and community groups. In all cases, we tailor our messages and our writing style for each medium.

24. 8: Staying focused We keep our SER programs aligned with our core purpose We align our marketing and communications activities with our values We are comfortable with saying �No� One of the hardest aspects of our SER commitment is staying focused on where we put our efforts and resources. While there are many good social and environmental causes and opportunities in the co-op and our communities, many of them do not align with our core purpose. So, for example, while we may value a community literacy project, we would not fund it. Instead, we put our time and energy into projects that preserve wild spaces, reduce environmental impacts and improve working conditions in the factories that produce our gear. As hard as it can be, we have learned to say �no� when presented with opportunities that diverge from our core purpose.One of the hardest aspects of our SER commitment is staying focused on where we put our efforts and resources. While there are many good social and environmental causes and opportunities in the co-op and our communities, many of them do not align with our core purpose. So, for example, while we may value a community literacy project, we would not fund it. Instead, we put our time and energy into projects that preserve wild spaces, reduce environmental impacts and improve working conditions in the factories that produce our gear. As hard as it can be, we have learned to say �no� when presented with opportunities that diverge from our core purpose.

25. Thank you Peter ter Weeme Senior Manager, Communications & Marketing 604.707.3318 pterweeme@mec.ca