As the global leader in rail technology, weview it as our corporate social responsibilityto be profitable, to deliver our promise tocustomers for safe and competitiveproducts, to be a good employer in everycountry in which we operate and to providehealthy and safe workplaces for all our employees.

In addition, it is our stated goal, through our commitmentto sustainable mobility, to leave to the next generations anatural environment unspoiled by our industrial activitiesand products, to the best of our ability.

We recognize that our business goals must include makinga positive difference to the communities in which we work.This extends beyond the creation of jobs and wealth, toinclude the transfer of our knowledge and expertise whereneeded, to the demonstration of best practice in everyaspect of our operating behavior at every level, to thecreation of environmentally driven products, systems andservices and to the development of an on-going dialoguewith the many stakeholders with whom we interact.

We acknowledge that these are ambitious objectives thatwe have set for ourselves. Nevertheless, we are workingwith all our stakeholders including our employees,customers and suppliers around the world to turn thesecommitments into reality.

Our environmental commitmentWorking actively to protect the environment throughproduct responsibility is not only a commitment towardssociety but will also create competitive advantage for ourcustomers, the rail operators.

Reducing energy consumption has become increasinglyrelevant to our work with our customers because of itsenvironmental impact and its effect on cost and availability.

The primary goal of our environmental managementsystem is to reduce our environmental footprint to theminimum level by means of a process of continuousimprovement from the production process to the finished product.

The key challenge in product development is to satisfycustomer demand for high speed and climate-controlledsolutions while remaining competitive and improvingenvironmental performance. We have introduced wide-ranging measures to ensure that this is achieved.For example:

Design for Environment (DfE): We go above andbeyond current laws that require companies to achievehigher energy efficiency, lower noise emission levels anduse risk-free materials. Set up over 15 years ago, our DfEprogram helps to develop vehicles that contribute tosustainable mobility. Since its launch, several hundreddesigners and supply managers have been trained on DfE guidelines.

Investment in technology: We invest in thedevelopment and improvement of advanced softwaretools that allow us to calculate the energy consumption of our vehicles with a higher degree of accuracy.

sustainable corporate responsibility

Did you know?Bombardier has a dedicated Centre ofCompetence to create products designedwith the environment in mind. As a resultsome of our trains are now around 90% recyclable.

BOMBARDIER TRANSPORTATION

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Did you know…?

Rail vehicle recycling: We strive to make ourproducts even more reusable – we recycle materials,avoid blending materials and marking polymers andbatteries. For example, in the Victoria Line Upgradeproject at London Underground, we ask all suppliers to comply with our list of ‘Prohibited and RestrictedSubstances’ and the marking of polymers.

Promoting the travel benefits of rail: We useEnvironmental Product Declarations (EPD’s) to providestakeholders with relevant, reliable and objectiveinformation that is based on international standards, for example, ISO 14025: 2006.

Reducing energy consumption: WhileBombardier’s global manufacturing network produces a relatively minor amount of greenhouse gas emissions(mainly CO2), we are continuing to work at reducingconsumption where possible. For example, we arecommitted to:

• Reducing specific energy consumption/greenhouse gasemissions by 3% annually*, with special emphasis onheating energy, opting for district heating, thus leadingto a reduction in CO2, sulphur dioxide and nitric oxide.

• Reducing specific water consumption by 3% annually*• Reducing specific hazardous waste by 5% annually*• Reducing specific general waste by 3% annually*• Reducing organic compounds emitted from agents

used in cleaning and degreasing or as solvents in paints and adhesives.

(*referenced to 200,000 work hours)

Developing climate-friendly products: We arecontinuing to maximize the advantages of rail travel bydeveloping products and services that use less energy,produce fewer emissions and relieve traffic congestion.For example: Our MITRAC Energy Saver makes moreefficient use of braking energy on light rail vehicles –saving around 30%.

Our commitment to communityBombardier can play a vital role in helping to create safe,healthy and vibrant communities where our employeesand neighbors live and raise their families. This is notmerely a matter of philanthropy but equally about fulfillingour responsibility as a good corporate citizen.

Our commitment to social responsibility takes on manyforms reflecting the diversity of both local needs and theinitiatives of employees. While we think it most effectivethat each of our divisions and sites around the world directtheir community efforts as they see most beneficial, theydo so under our overall community investment philosophythat considers projects with long-term impact that supportyouth and education, local culture and the environmentdirectly related to the work we do. For example:

• In 2006, Bombardier Transportation became a foundingpartner for PlaNet Finance Deutschland – an initiative thattargets poverty alleviation and economic development inassociation with the micro-finance sector.

• In the 2006 fiscal year, the J. Armand BombardierFoundation, a non-profit organization set up by thefounder of our company, disbursed $5 million Cdn to arange of projects in Canada from providing studentbursaries, scholarships and donations to colleges anduniversities in Quebec and Canada to supportingseveral charity and relief organizations.

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Commitment to our peopleAn important part of our social responsibility is theintegrity with which we conduct our business. Bombardierhas built an enviable reputation not only on excellentproducts and services, but also on the integrity of ourpeople. The Bombardier Code of Ethics and BusinessConduct sets the standard for the ethical businesspractices and behavior expected of every employee.

Occupation health and safety: A safe and secureenvironment, free from discrimination and harassment, isof paramount importance. We are steadily moving towardsour ultimate goal of an ‘accident-free’ workplace and haveintroduced detailed measures to reduce accidentfrequency and severity for all plants. For example:

• Our manufacturing sites have considerably reducedtheir safety risks and the number of accidents and lostwork days decreased by a factor of 10 over the last fiveyears, reaching world-class status at the end of 2005.

• Independent legal compliance checks regarding health,safety and the environment are performed at least everythree years.

• We have been acknowledged by the United NationsConference on Trade and Development (UNCTAD) forthe health and safety standards we achieved in thetransfer of our locomotive propulsion control to India.

Working environment and opportunity:To maximize the potential of our diverse global workforce,we are committed to providing rewarding conditions ofemployment from education and training to equal opportunities.

Did you know?Bombardier introduced above standardhealth systems for employees and theirfamilies in China and India and transferredthe Bombardier way of health and safetymanagement to many local suppliers.

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Our commitment to partnershipIn our view sustainable development and future-orientatedmobility can only be achieved if all participants involvedwork together and learn from each other.

We nurture partnership and co-operation with ourstakeholders including our employees, customers, suppliers,neighbors and communities where we have operations.

We strive to share our experiences and consolidate andexpand our knowledge. Examples include:

• Membership of the Institute for ManagementDevelopment’s (one of the world’s most eminentbusiness schools in Lausanne, Switzerland) forum forCorporate Sustainable Management (CSM). Focusingon key issues of sustainability management: managingstakeholder dialogue, driving sustainability throughleadership, product responsibility and human rights andlinking it to business, corporations who participate builda sustainable business advantage through social andenvironmental strategic action.

• Contribution to several standardization initiatives suchas the current development of ISO/TC 207.

• Association with industry bodies and environmentalinitiatives such as the Union of the European RailwayIndustries (UNIFE) and the Union of Public Transport(UITP), International Network for EnvironmentalManagement (INEM) and the German equivalent whereour headquarters in based, Der BundesdeutscheArbeitskreis für Umweltbewußtes Management (BAUM).

For more information:www.bombardier.com > About Us > Sustainable MobilityTransportation Sustainability Report

We maximize the advantage of rail travel bydeveloping products and services that useless energy, produce fewer emissions andhelp relieve congestion.

Case study

community spiritFor over three decades, BombardierTransportation India has been working closelywith Indian Railways contributing to all threepillars of sustainability including environmentprotection, economic benefits and socialdevelopment including:

• Achievement of ISO 14001 and OHSAS 18001certification and being accident-free for six years,winning several awards for outstanding HSE performance.

• Introduction of a refurbishment process thatproduces near-new equipment at approximately60% of the cost; about 80% of the parts andcomponents can be re-used only requiring re-machining or re-coating: the cleaning andreworking of the parts is carried out by smallsuppliers, helping their business grow while havinga positive knock-on effect for those working attransport companies.

• Indian Railways has recognized the huge successof this initiative, and the company is using theexperience in its long-term strategy planning for maintenance.

4 © 2007, Bombardier Inc. or its subsidiaries. All rights reserved. Printed in the UK / 0129 / Group Communications / 05-2007 / EN