Mr. Eric La Fleche reports

METRO INC. COMMITS TO SET COMPANY-WIDE EMISSION REDUCTION TARGETS IN LINE WITH THE SCIENCE BASED TARGETS INITIATIVE STANDARD

Following its commitment in October, 2022, to rigorously evaluate the feasibility and costs of achieving the Science-Based Targets initiative (SBTi) net-zero standard, Metro Inc. has reviewed and adjusted the scope of its existing objective by committing to set near-term company-wide greenhouse gas (GHG) emission reduction targets in line with the SBTi standard.

Metro's new near-term science-based targets (SBT), which have yet to be approved by SBTi, are consistent with the level of decarbonization required to keep global temperature increases to 1.5 degrees compared with preindustrial temperatures. The company's targets, with a 2023 base year, will consist of:

• Reducing absolute scope 1 and scope 2 GHG emissions by 42 per cent by 2030;
• Having 45 per cent of its suppliers by spend with science-based targets by 2028;
• Reducing absolute scope 3 GHG emissions from purchases of goods and services by 25 per cent by 2030;
• Reducing absolute scope 3 GHG emissions from downstream transportation and distribution by 25 per cent by 2030;
• Reducing scope 3 FLAG (forest, land and agriculture) GHG emissions by 30 per cent by 2030.

The company's plan outlines six emission reduction priorities: use natural refrigerant; invest in renewable energies; electrify part of the company's fleet of vehicles and improve its fuel efficiency; engage with key suppliers to reduce their emissions; install EV (electric vehicle) chargers for customers; and reduce food waste in the value chain. Metro will continue reviewing its priorities and goals as technologies evolve, and will keep evaluating the feasibility of a net-zero target.

Metro becomes one of the first Canadian companies to commit to set targets to reduce GHG emissions originating from forests, land and agriculture. With the company's new commitment, it is not only tackling emissions related to energy and industry, but also the company's scope 3 FLAG emissions within its supply chain.

"Committing to set near-term and FLAG targets, while continuing to evaluate a net-zero target in our decarbonization plan, is the best path forward for our company to address climate change. We are setting science-based targets that are ambitious but realistic. We are also demonstrating our commitment to review our goals and our priorities regularly, as technologies evolve," said Eric La Fleche, president and chief executive officer.

About Metro Inc.

With annual sales of more than $19-billion, Metro is a food and pharmacy leader in Quebec and Ontario, providing employment to more than 95,000 people. Its purpose is to nourish the health and well-being of its communities. As a retailer, franchisor, distributor, manufacturer and provider of e-commerce services, the company operates or services a network of 975 food stores under several banners, including Metro, Metro Plus, Super C and Food Basics, and 645 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

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