Ms. Natalia Klumper reports

NFI RELEASES ITS ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT FOR 2022

NFI Group Inc. has released its environmental, social and governance (ESG) report for 2022, which can be found at the company's website.

"At NFI, we know that strong ESG practices, policies and initiatives are simply good business. We consider both risks and opportunities as we weave ESG into the fabric of our day-to-day operations and long-term planning," said Natalia Klumper, sustainability manager, NFI. "Our fifth ESG report provides updates on our performance and some exciting new developments: we expanded our engagement with stakeholders through the completion of our first ESG materiality assessment; implemented our diversity, equity and inclusion, or DEI, action plan and strategic framework; reported our Scope 1 and Scope 2 greenhouse gas emissions; and initiated our sustainability road map, which will guide our overall sustainability strategy."

NFI's ESG report for 2022 provides updated key performance indicators, highlights for 2022, ESG priorities for 2023, as well as some specific projects and initiatives the company undertook in the year. The report focuses on the three main components of NFI's sustainability pledge, first adopted in 2006: "Better product. Better workplace. Better world," which guides the company's daily actions and long-term planning.

Better product: In 2022, 23 per cent of NFI's production were zero-emission buses (ZEB), and that is expected to rise to 25 per cent to 30 per cent in 2023, 30 per cent to 35 per cent in 2024 and to approximately 40 per cent in 2025. Today, 13 countries have NFI buses and coaches in service, and over 130 cities have an NFI ZEB in service or on order. Since 2015, the company's zero-emission buses have travelled more than 115 million miles and prevented the emission of billions of pounds of CO2 (carbon dioxide) into the atmosphere. NFI Infrastructure Solutions has delivered over 390 electric vehicle chargers with a total of over 77 megawatts (MW) of charging capacity. NFI also continued to support its customers through the delivery of diesel-electric hybrid vehicles, and the company's aftermarket teams supported safer journeys by installing driver barriers, seatbelts, and air purification and cleaning systems.

Better workplace: NFI takes pride in being an employer of choice, with a focus on maintaining a respectful, inclusive and vibrant workplace culture. Safety remained a top priority throughout 2022, and the company also provided a number of employee well-being initiatives throughout the year, some of which are detailed in the report. Currently, 53 per cent of NFI's global work force are covered by collective bargaining agreements. As of the end of 2022, 100 per cent of NFI's employees at the company's main transit bus, coach and fabrication manufacturing facilities in Canada and the United States were at or above the living-wage standard in their region. Throughout the year, NFI's talent acquisition team, working in collaboration with the company's work force development team, established priorities based on the foundation of its community benefits framework, a holistic and national approach to work force and community well-being. Additionally, NFI has invested $8.6-million dollars for employee training, and expanded its electrical technician training program to provide high-demand electrical skills for the new EV (electric vehicle) mobility era.

As of May, 2023, NFI's board of directors is 80 per cent independent, with 63 per cent of those independent directors self-identifying as female -- above the company's target for 50-per-cent female representation on the board.

Better world: NFI is focused on being a responsible corporate citizen, and creating positive change for all its stakeholders and their communities. In 2022, NFI maintained its ISO 14001 registration for its North American transit and motor coach manufacturing facilities, reported its Scope 1 and 2 greenhouse gas emissions, submitted its second response to the CDP climate change questionnaire, and responded to the S&P global corporate sustainability assessment for the first time. The company expanded on its participation in the TRC92 indigenous youth employment lab, launched its DEI strategic framework, outlining goals and priorities through to 2024, and continued to identify opportunities to improve energy efficiency and the company's operational impact on climate change.

NFI continued to build on its partnership with United Way agencies, supporting 18 communities across North America, and raising more than $380,000 in 2022. Collectively, NFI has donated more than $3.5-million to the United Way from its workplace campaigns since 2009. For its team efforts this year, NFI was presented with the campaign committee award for going above the call of duty to rally the team during NFI's 2022 workplace campaign.

In addition, the Alexander Dennis team raised funds for Macmillan Cancer Support, a leading United Kingdom charity. Teamwork, community involvement and a collaborative spirit are important aspects of NFI's culture. Through the dedicated work of the company's employee-led social committees and initiatives, NFI continues to work on creating connections and building stronger communities to support a healthier world for all.

To develop this report, NFI consulted with a broad range of internal and external stakeholders on regional and global levels, including key internal departments, customers, suppliers, investors, creditors and community partners. This report has been reviewed and published with the approval of NFI's senior executives and the board of directors.

About NFI Group Inc.

Leveraging 450 years of combined experience, NFI is leading the electrification of mass mobility around the world. With zero-emission buses and coaches, infrastructure, and technology, NFI meets today's urban demands for scalable smart mobility solutions. Together, NFI is enabling more livable cities through connected, clean and sustainable transportation.

With 7,700 team members in 10 countries, NFI is a leading global bus manufacturer of mass mobility solutions under the brands New Flyer (heavy-duty transit buses), MCI (motor coaches), Alexander Dennis Ltd. (single- and double-deck buses), Plaxton (motor coaches), ARBOC (low-floor cutaway and medium-duty buses) and NFI Parts. NFI currently offers the widest range of sustainable drive systems available, including zero-emission electric (trolley, battery and fuel cell), natural gas, electric hybrid and clean diesel. In total, NFI supports its installed base of over 100,000 buses and coaches around the world.

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