2012 Tim Hortons Sustainability & Responsibility Report

GRI Index

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Index Description

1. Strategy and Analysis

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
1.1	Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.	F	Executive Message
1.2	Description of key impacts, risks, and opportunities. The reporting organization should provide two concise narrative sections on key impacts, risks, and opportunities. Section One should focus on the organization's key impacts on sustainability and effects on stakeholders, including rights as defined by national laws and relevant internationally agreed standards. Section Two should include discussion about the most important risks and opportunities for the organization arising from sustainability trends.	F	Management of Risks and Opportunities; 2012 Annual Report on Form 10-K (page 22)

2. Organizational Profile

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
2.1	Name of the organization	F	Tim Hortons Inc.
2.2	Primary brands, products, and/or services. The reporting organization should indicate the nature of its role in providing these products and services, and the degree to which it utilizes outsourcing.	F	About Our Company; 2012 Annual Report on Form 10-K (page 5)
2.3	Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.	F	About Our Company; 2012 Annual Report on Form 10-K (page 5)
2.4	Location of organization’s headquarters.	F	874 Sinclair Road, Oakville, ON, Canada, L6K 2Y1
2.5	Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.	F	About Our Company; 2012 Annual Report on Form 10-K (page 8)
2.6	Nature of ownership and legal form.	F	2012 Annual Report on Form 10-K (page 5)
2.7	Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).	F	About Our Company; 2012 Annual Report on Form 10-K (page 8)
2.8	Scale of the reporting organization, including: Number of employees; Number of operations; Net sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organizations); and Quantity of products or services provided. In addition to the above, reporting organizations are encouraged to provide additional information, as appropriate, such as: Total assets; Beneficial ownership (including identity and percentage of ownership of largest shareholders); and Breakdowns by country/region of the following: Sales/revenues by countries/regions that make up 5% or more of total revenues; Costs by countries/regions that make up 5% or more of total revenues; and Employees.	F	2012 Annual Report on Form 10-K (pages 4, 8, 21, 38-39, 47-48, 104)
2.9	Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings, closings, and expansions; and Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).	F	2012 Annual Report on Form 10-K (page 5)
2.10	Awards received in the reporting period	F	Awards and Associations

3. Report Parameters

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
3.1	Reporting period (e.g., fiscal/calendar year) for information provided.	F	Our reporting year matches our fiscal year which was January 2, 2012-December 30, 2012.
3.2	Date of most recent previous report (if any).	F	2011 Sustainability and Responsibility Report
3.3	Reporting cycle (annual, biennial, etc.)	F	Annual
3.4	Contact point for questions regarding the report or its contents.	F	Tim Faveri Director, Sustainability and Responsibility 905-845-6511 Feedback
3.5	Process for defining report content, including: Determining materiality; Prioritizing topics within the report; and Identifying stakeholders the organization expects to use the report. Include an explanation of how the organization has applied the ‘Guidance on Defining Report Content’, the associated Principles and the Technical Protocol: ‘Applying the Report Content Principles’.	F	Materiality and Defining Report Content
3.6	Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.	F	Report Scope
3.7	State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). If boundary and scope do not address the full range of material economic, environmental, and social impacts of the organization, state the strategy and projected timeline for providing complete coverage.	F	Report Scope
3.8	Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.	F	Report Scope
3.9	Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.	F	This Report, including all data measurement techniques and related estimation methodologies, was developed using the Global Reporting Intitiative (GRI) G3.1 Guidelines and the World Resources Institute’s Greenhouse Gas Protocol. Significant assumptions and limitations are stated where applicable.
3.10	Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).	F	We have made no material restatements of information provided in earlier reports.
3.11	Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.	F	In 2012, we extended our reporting boundaries for the reporting of energy, water, and greenhouse gas emissions for standard restaurants. Reporting on energy, water, and greenhouse gas emissions now includes U.S. standard restaurants.
3.12	Table identifying the location of the Standard Disclosures in the report. Identify the page numbers or web links where the following can be found: Strategy and Analysis 1.1–1.2; Organizational Profile 2.1–2.10; Report Parameters 3.1–3.13; Governance, Commitments, and Engagement 4.1–4.17; Disclosure of Management Approach, per category; Core Performance Indicators; Any GRI Additional Indicators that were included; and Any GRI Sector Supplement Indicators included in the report.	F	GRI Index We did not utilize any GRI Sector Supplements for this report.
3.13	Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).	F	Information Integrity

4. Governance, Commitments and Engagement

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
4.1	Governance structure of the organization, including committees under the highest governance body responsible for specifi c tasks, such as setting strategy or organizational oversight. Describe the mandate and composition (including number of independent members and/or non executive members) of the highest governance body and its committees, and indicate each individual’s position and any direct responsibility for economic, social, and environmental performance. Report the percentage of individuals by gender within the organization’s highest governance body and its committees, broken down by age group and minority group membership and other indicators of diversity. Refer to defi nitions of age and minority group in the Indicator Protocol for LA13 and note that the information reported under 4.1 can be cross referenced against that reported for LA13.	F	Corporate Governance; Board and Committee Composition; Directors and Executive Officers; Nominating and Corporate Governance Committee; Sustainability and Responsibility Governance; 2013 Proxy Circular (page 14) For diversity statistics, please see LA13.
4.2	Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization's management and the reasons for this arrangement).	F	Our current Executive Chairman, Paul House, is also President and Chief Executive Officer.
4.3	For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. State how the organization defines ‘independent’ and ‘non-executive.’ This element applies only for organizations that have unitary board structures. See the glossary for a definition of ‘independent.’	F	2013 Proxy Circular; Directors & Executive Officers; Definitions can be found in our Governance Guidelines (page 14)
4.4	Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Include reference to processes regarding: The use of shareholder resolutions or other mechanisms for enabling minority shareholders to express opinions to the highest governance body; and Informing and consulting employees about the working relationships with formal representation bodies such as organization level ‘work councils,’ and representation of employees in the highest governance body. Identify topics related to economic, environmental, and social performance raised through these mechanisms during the reporting period.	F	Employee ethics concerns are reported to our Ethics and Compliance Office, as outlined in our Standards of Business Practices. All ongoing ethics complaints are reported to the Board of Directors, or a committee thereof. Our Executive Chairman, Paul House is also our President and Chief Executive Officer. Mechanisms for shareholders to provide recommendations to our Board of Directors are outlined in our 2013 Proxy Circular (page 102).
4.5	Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).	F	Governance Guidelines; 2013 Proxy Circular (Compensation Discussion and Analysis (page 41) No Executives or Directors are compensated directly based on the environmental or social performance of the Company.
4.6	Processes in place for the highest governance body to ensure conflicts of interest are avoided.	F	Board of Directors Code of Business Conduct and Ethics
4.7	Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.	F	2013 Proxy Circular; Governance Guidelines (page 14)
4.8	Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Explain the degree to which these: Are applied across the organization in different regions and department/units; and Relate to internationally agreed standards.	F	Our Making A True Difference sustainability framework is applicable across our entire Company. Objectives and Guiding Principles; Sustainability and Responsibility Process Our Business Partner and Supplier Code of Conduct makes reference to internationally accepted labour standards including the International Labour Organization's (ILO) core conventions and the Universal Declaration of Human Rights.
4.9	Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Include frequency with which the highest governance body assesses sustainability performance.	F	Governance; 2012 Annual Report on Form 10-K (page 18) Currently, our governance procedures do not make reference to internationally agreed standards, codes of conduct, and principles.
4.10	Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.	F	Processes for evaluating the highest governance body’s own performance are outlined in our Governance Guidelines. Currently, sustainability is not included in these processes.
4.11	Explanation of whether and how the precautionary approach or principle is addressed by the organization. Article 15 of the Rio Principles introduced the precautionary approach. A response to 4.11 could address the organization’s approach to risk management in operational planning or the development and introduction of new products.	F	Tim Hortons supports the precautionary principle and uses a risk management approach to running our business. For details on the assessment of risk and opportunities with regards to sustainability, please visit the Sustainability and Responsibility Process section of our Report.
4.12	Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Include date of adoption, countries/operations where applied, and the range of stakeholders involved in the development and governance of these initiatives (e.g., multi-stakeholder, etc.). Differentiate between non-binding, voluntary initiatives and those with which the organization has an obligation to comply.	F	Our Business Partner and Supplier Code of Conduct was created based on internationally accepted labour standards including the International Labour Organization's (ILO) core conventions and the United Nations Universal Declaration of Human Rights.
4.13	Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic. This refers primarily to memberships maintained at the organizational level.	F	Awards and Associations
4.14	List of stakeholder groups engaged by the organization. Examples of stakeholder groups are: Civil society; Customers; Local Communities; Shareholders and providers of capital; Suppliers; and Employees, other workers, and their trade unions.	F	Stakeholder Engagement
4.15	Basis for identification and selection of stakeholders with whom to engage. This includes the organization’s process for defining its stakeholder groups, and for determining the groups with which to engage and not to engage.	F	We currently do not have a formal policy regarding stakeholder engagement. However, we consult with our key stakeholder groups on an onging basis as listed in the following link Stakeholder Engagement
4.16	Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. This could include surveys, focus groups, community panels, corporate advisory panels, written communication, management/union structures, and other vehicles. The organization should indicate whether any of the engagement was undertaken specifically as part of the report preparation process.	F	Stakeholder Engagement; Materiality and Defining Report Content
4.17	Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.	F	Materiality and Defining Report Content;

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Index Description

1. Economic

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. We seek to grow our business by executing strategic and operational plans and initiatives designed to help us achieve both annual and longer-term goals. We are one of North America’s largest developers and franchisors of quick service restaurants, with just over 4,200 system-wide restaurants. Our business model includes significant levels of real estate control and vertical integration, supporting our highly franchised business. Currently, we are one of North America’s largest publicly-traded restaurant companies by market capitalization, and in Canada, we have approximately a 42% share of the quick service restaurant traffic. Our 2012 Annual Report on Form 10-K outlines our key business strategies as well as our financial performance across the various dimensions of our business that impact our key sustainability issues. For more details, please click here. RESTAURANT OWNERS (FRANCHISEES) As of December 30, 2012, Restaurant Owners owned or operated 99.5% of our Canadian restaurants and 98.9% of our U.S. restaurants. We believe the quality, commitment and engagement of our Restaurant Owners set us apart from other corporate and franchised systems. We work collaboratively with our Restaurant Owners to collectively grow our system, and we work hard to foster positive relationships and mutual success. We provide support to our Restaurant Owners in various ways including providing training, operational standards, new product development, marketing and communications, and more. Our 2012 Annual Report on Form 10-K outlines the nature of our relationship with Restaurant Owners including how we provide support with respect to our key sustainability issues. For more details, please click here. TIM HORTON CHILDREN’S FOUNDATION The Tim Horton Children’s Foundation (“THCF”) was established in 1974 by Ron Joyce, Co-Founder of the Tim Hortons chain, to honour Tim Horton’s love for children and his desire to help those less fortunate. The THCF is a separate legal entity from Tim Hortons Inc. (the “Company”) and is a non-profit, charitable organization committed to providing a fun-filled camp environment for children from economically disadvantaged homes. The Company has always remained committed to supporting the THCF. In addition to providing a $1 million donation each year, three current senior executives from the Company sit on the THCF’s Canadian and U.S. Board of Directors. Further, we support the THCF by engaging our Guests in the cause, coordinating campaigns such as Camp Day, holding fundraising activities, providing volunteer support and in general, acting as an advocate on the charity’s behalf. While we are tremendous supporters of the THCF, all strategic and operating decisions are made independently of the Company by the THCF’s Board of Directors and staff. For more information on the THCF, please click here.
EC1	Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.	P	2012 Annual Report on Form 10-K (page 91); Community Giving Summary
EC2	Financial implications and other risks and opportunities for the organization’s activities due to climate change.	F	2012 Annual Report on Form 10-K (page 18)
EC3	Coverage of the organization’s defined benefit plan obligations.	F	We do not offer defined benefit pension plans to our employees. We offer defined contribution pension plans to our employees. For more details, please visit the Corporate Employees section of this Report.
EC4	Significant financial assistance received from government.	F	We did not receive any significant government funding in 2012.
EC5	Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.	P	Employees paid an hourly wage are employed at our distribution centres and manufacturing facilities located across Canada. Standard entry level wages do not differ between gender and meet or exceed provincial minimum wage requirements.
EC6	Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.	F	We currently do not have a formal policy regarding spending on locally-based suppliers. However, the majority of our suppliers are located in Canada and the U.S.
EC7	Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.	F	We do not have a formal policy granting preference to local residents when hiring in significant locations of operation. Our employees reside in the cities and regions where we operate.
EC8	Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.	NA	Not applicable as our business does not require significant infrastructure investments.
EC9	Understanding and describing significant indirect economic impacts, including the extent of impacts.	NA	Not reported in 2012 due to data limitations.

2. Environmental

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. Our environmental priorities are aligned and integrated within our sustainability and responsibility strategy and the Planet pillar of our Making a True Difference framework. While we make a consistent effort to minimize the environmental impacts of our operations, we are strategically focused on the following priority areas: Reducing litter Responsible packaging Minimizing our environmental footprint (greenhouse gas emissions, water, energy and waste) Sustainable and ethical supply chain practices Key environmental principles have also guided us over the years, being: We will work with all of our key stakeholders including Guests, Restaurant Owners, corporate employees, suppliers and governments, to adopt proven environmental best practices in all elements of our business; We will apply these practices in our daily operations to reduce our environmental footprint and embrace the 4R concept: Rethink, Reduce, Reuse and Recycle – wherever possible; We will work to make a positive contribution to the environment, such that our behaviours and actions, together, make a true difference. For more details, please visit the Environmental Stewardship and Supply Chain sections of our 2012 Sustainability and Responsibility Report. RESTAURANT OWNERS (FRANCHISEES) and TIM HORTON CHILDREN’S FOUNDATION Please see our disclosure in the Economic section of this GRI Report for details about our management approach with respect to Restaurant Owners and the Tim Horton Children’s Foundation.
EN1	Materials used by weight or volume	NR	Not reported in 2012 due to data limitations.
EN2	Percentage of materials used that are recycled input materials.	NR	Not reported in 2012 due to data limitations.
EN3	Direct energy consumption by primary energy source.	P	Environmental Performance Summary
EN4	Indirect energy consumption by primary source.	P	Environmental Performance Summary
EN5	Energy saved due to conservation and efficiency improvements.	P	We have implemented numerous energy savings initiatives during the year. For details, please see the Environmental Stewardship section of this Report.
EN6	Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.	NA	Not applicable as the nature of our business does not lend us to develop and offer energy-efficient or renewable energy based products and services.
EN7	Initiatives to reduce indirect energy consumption and reductions achieved.	P	We have implemented numerous energy savings initiatives during the year. For details, please see the Environmental Stewardship section of this Report.
EN8	Total water withdrawal by source.	P	All of our water is drawn from municipal sources. For details on the total volume of water consumed in our operations, please see our Environmental Performance Summary.
EN9	Water sources significantly affected by withdrawal of water.	F	All of our water is drawn from municipal sources. None of our water sources are significantly affected by our withdrawal of water.
EN10	Percentage and total volume of water recycled and reused.	F	We do not recycle or reuse significant amounts of water in our operations.
EN11	Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.	NA	Not applicable as all our corporate and restaurant operations are located in developed areas.
EN12	Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.	NA	Not applicable as all our corporate and restaurant operations are located in developed areas.
EN13	Habitats protected or restored.	NA	Not applicable as all our corporate and restaurant operations are located in developed areas.
EN14	Strategies, current actions, and future plans for managing impacts on biodiversity.	NA	Not applicable as all our corporate and restaurant operations are located in developed areas.
EN15	Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.	NA	Not applicable as all our corporate and restaurant operations are located in developed areas.
EN16	Total direct and indirect greenhouse gas emissions by weight.	F	Please see Scope 1 and Scope 2 greenhouse gas emissions as outlined in our Environmental Performance Summary
EN17	Other relevant indirect greenhouse gas emissions by weight.	F	Please see Scope 3 greenhouse gas emissions as outlined in our Environmental Performance Summary
EN18	Initiatives to reduce greenhouse gas emissions and reductions achieved.	P	We have implemented numerous energy savings initiatives during the year which have resulted in decreased greenhouse gas emissions. For details, please see the Environmental Stewardship section of this Report.
EN19	Emissions of ozone-depleting substances by weight.	NR	Not reported in 2012 due to data limitations.
EN20	NOx, SOx, and other significant air emissions by type and weight.	NR	Not reported in 2012 due to data limitations.
EN21	Total water discharge by quality and destination.	NR	Not reported in 2012 due to data limitations.
EN22	Total weight of waste by type and disposal method.	P	We have calculated a waste baseline for 2012 for our corporate offices, manufacturing facilities, and distribution centres. For additional details, please see the Environmental Stewardship section of this Report.
EN23	Total number and volume of significant spills.	F	We did not have any significant spills in 2012.
EN24	Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.	NA	Not applicable as we do not transport, import, export or treat any significant amounts of hazardous waste.
EN25	Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.	F	To the best of our knowledge, no water bodies and related habitats have been significantly affected by our Company’s discharges of water and runoff.
EN26	Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.	P	We have undertaken several initiatives to mitigate the environmental impacts of our products and services. For additional details, please see the Environmental Stewardship section of this Report.
EN27	Percentage of products sold and their packaging materials that are reclaimed by category.	NR	Not reported in 2012 due to data limitations.
EN28	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.	F	We have incurred no significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations in 2012.
EN29	Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.	P	Please see our Environmental Performance Summary for an overview of certain environmental impacts of our distribution fleet (fuel used) and employee transportation (fuel used by our corporate aircraft and corporate automobile fleet). For additional details on how we mitigate the environmental impact of our transportation activities, please see the Environmental Stewardship section of this Report.
EN30	Total environmental protection expenditures and investments by type.	NR	Not reported in 2012 due to data limitations.

3. Labour Practices and Decent Work

GRI G3.1 Indicator Description		indicator completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. As at December 30, 2012, we had approximately 2,121 employees in our principal offices, regional offices, distribution centres, and manufacturing facilities. We believe in creating and fostering a positive employee-relations environment. We do this through active training and development, employee communication, a competitive total reward philosophy, a promotion-from-within philosophy, and other initiatives and programs focused on employee engagement. Our Company Values demonstrate our commitment to our strong “people” focus and the other critical elements of our culture. Our Standards of Business Practices outlines our business ethics and compliance programs including aspects of employee relations and occupational health and safety. For additional details on our approach to occupational health and safety, training and education, diversity and equal opportunity, please visit the Employees section of our 2012 Sustainability and Responsibility Report. RESTAURANT OWNERS (FRANCHISEES) and TIM HORTON CHILDREN’S FOUNDATION Please see our disclosure in the Economic section of this GRI Report for details about our management approach with respect to Restaurant Owners and the Tim Horton Children’s Foundation.
LA1	Total workforce by employment type, employment contract, and region, broken down by gender.	F	See LA1 Summary Table 2012
LA2	Total number and rate of employee turnover by age group, gender, and region.	F	See LA2 Summary Table 2012
LA3	Benefits provided to full-time employees that are not provided to temporary or parttime employees, by significant locations of operation.	F	Permanent corporate employees who work 20 or more hours/week are eligible for our Permanent Benefit Plan. Contract corporate employees on a contract of at least 6 months and who work at least 20 hours/week are eligible for our Contract Benefits Plan. All other corporate employees are not eligible for benefits. For details on our two benefit plans, please see the Corporate Employees section of this Report.
LA4	Percentage of employees covered by collective bargaining agreements.	NA	Not applicable as none our our corporate employees are covered by collective bargaining agreements.
LA5	Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.	F	We do not have a formal corporate policy regarding minimum notice periods for significant operational changes. We comply with local legislation as required.
LA6	Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.	F	100% of our employees at Canadian corporate locations are represented in formal joint management-worker health and safety committees. The committees typically operate at a facility level. Formal joint management-worker health and safety committees are not legally required in the U.S.
LA7	Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.	P	See LA7 Summary Table 2012
LA8	Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.	F	Programs regarding wellness and serious diseases for family members of corporate employees are provided through our Employee Assistance Program (EAP), which is a confidential support service for a variety of health and wellness issues. Programs for employees are outlined in the Corporate Employees section of this Report. We do not have any workers involved in occupational activities who have a high incidence or who are at a high risk of specific diseases.
LA9	Health and safety topics covered in formal agreements with trade unions.	NA	Not applicable as none of our employees are members of trade unions.
LA10	Average hours of training per year per employee, by gender, and by employee category.	NR	Not reported in 2012 due to data limitations.
LA11	Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.	F	Programs for skills management and lifelong learning that support the continued employability of employees can be found in the Corporate Employees section of this Report. Our outplacement support transition assistance program supports employees in managing career endings and other transitions. Affected employees also have access to our third-party provided Employee Assistance Program (EAP) which provides additional counselling services.
LA12	Percentage of employees receiving regular performance and career development reviews, by gender.	NR	Not reported in 2012 due to data limitations.
LA13	Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.	F	See LA13 Summary Table 2012
LA14	Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.	F	See LA14 Summary Table 2012
LA15	Return to work and retention rates after parental leave, by gender.	P	See LA15 Summary Table 2012

4. Human Rights

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. Human Rights considerations are managed by our Ethics and Compliance Office, which is headed by our Chief Risk Officer. Our Standards of Business Practices, along with our five Company Values as well as our other policies and guidelines, provide the Company with the guidelines that we use to evaluate and direct our business activities worldwide. The primary objective of our Standards of Business Practices is to prevent the occurrence of unethical or unlawful behaviour. Every corporate employee is required to be trained in our Standards of Business Practices and it includes guidelines on behaviour on various topics including, but not limited to, human rights issues such as our relationship with employees – including harassment, discrimination, workplace safety and violence. In support of our Standards of Business Practices, we have developed and implemented a Business Partner and Supplier Code of Conduct (BPSCC). This document was developed based on internationally accepted labour standards including the International Labour Organization’s (ILO) core conventions and the Universal Declaration of Human Rights. Failure of our business partners and suppliers to substantially comply with the BPSCC is sufficient cause for us to revoke a business partner’s or supplier’s approved status. For additional details on our approach to ethics and compliance, please visit the Standards of Business Practices and Business Partner and Supplier Code of Conduct sections of our 2012 Sustainability and Responsibility Report. RESTAURANT OWNERS (FRANCHISEES) and TIM HORTON CHILDREN’S FOUNDATION Please see our disclosure in the Economic section of this GRI Report for details about our management approach with respect to Restaurant Owners and the Tim Horton Children’s Foundation.
HR1	Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.	NR	Not reported in 2012 due to data limitations.
HR2	Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken	F	We currently do not perform formal human rights screenings. However, human rights are included as part of our Business Partner and Supplier Code of Conduct. As at the end of 2012, we have implemented our BPSCC with suppliers which we have determined to be highest risk as they provide us products that ultimately end up in our restaurants (i.e. food, packaging, equipment, etc.). For details, please see our Business Partner and Supplier Code of Conduct section.
HR3	Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.	F	We have a number of training courses devoted to policies and procedures concerning aspects of human rights that are relevant to operations such as Workplace Violence and Harassment training, Ethics training and Accessibility training. In 2012, we provided 1,575 hours of such training to approximately 70% of our permanent corporate employees.
HR4	Total number of incidents of discrimination and corrective actions taken.	F	Not reported in 2012.
HR5	Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.	F	We do not have significant operations located in areas where violation of this right is considered a significant risk. However, our Business Partner and Supplier Code of Conduct covers this right. For more details, please see the Business Partner and Supplier Code of Conduct section of this Report.
HR6	Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.	F	We do not have significant operations located in areas where violation of this right is considered a significant risk. However, our Business Partner and Supplier Code of Conduct covers this right. For more details, please see the Business Partner and Supplier Code of Conduct section of this Report.
HR7	Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.	F	We do not have significant operations located in areas where violation of this right is considered a significant risk. However, our Business Partner and Supplier Code of Conduct covers this right. For more details, please see the Business Partner and Supplier Code of Conduct section of this Report.
HR8	Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.	NA	Not applicable as we do not directly employ security personnel.
HR9	Total number of incidents of violations involving rights of indigenous people and actions taken.	F	Not reported in 2012.
HR10	Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.	F	None of our operations have been subject to human rights reviews and/or impact assessments. We undertake human rights reviews only on an as-needed basis.
HR11	Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.	NR	Not reported in 2012.

5. Society

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. Societal considerations such as corruption, public policy, anti-competitive behaviour and compliance are managed by our Ethics and Compliance Office, which is headed by our Chief Risk Officer. These topics are included within our Standards of Business Practices which provide the Company with some of the guidelines that we use to evaluate and direct our business activities worldwide. The primary objective of our Standards of Business Practices is to prevent the occurrence of unethical or unlawful behaviour. Every corporate employee is required to be trained in our Standards of Business Practices. For additional details on our approach to ethics and compliance, please visit the Standards of Business Practices section of our 2012 Sustainability and Responsibility Report. Additionally, a copy of our Corporate Political Participation Policy can be downloaded here. With respect to local communities, we support our Restaurant Owners and help facilitate a number of initiatives at the community level such as our Smile Cookie program, Timbits Minor Sports and the Tim Horton Children’s Foundation. Also, we support small holder coffee partners in the regions where we source our coffee through our Tim Hortons Coffee Partnership. More details about these programs can be found in the Children, Community Giving and Tim Hortons Coffee Partnership sections of our 2012 Sustainability and Responsibility Report. RESTAURANT OWNERS (FRANCHISEES) and TIM HORTON CHILDREN’S FOUNDATION Please see our disclosure in the Economic section of this GRI Report for details about our management approach with respect to Restaurant Owners and the Tim Horton Children’s Foundation.
SO1	Percentage of operations with implemented local community engagement, impact assessments, and development programs.	NA	Not applicable to our business.
SO2	Percentage and total number of business units analyzed for risks related to corruption.	F	As part of the Corporation’s risk assessment process, all business units are assessed for a variety of risks, including corruption.
SO3	Percentage of employees trained in organization's anti-corruption policies and procedures.	P	In 2012, a specialized compliance program for anti-corruption was delivered to the Board of Directors, our Executive leadership team, and our international licensee and staff. It is expected that a compliance program for anti-corruption will be rolled out to all employees in 2013.
SO4	Actions taken in response to incidents of corruption.	F	There were a de minimis number of employees that were disciplined in 2012 for actions that violated the Corporation’s Standards of Business Practices.
SO5	Public policy positions and participation in public policy development and lobbying.	P	2012 Annual Report on Form 10-K (page 20)
S06	Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.	P	We made cash political donations of $77,000 in 2012 in Canada. In-kind donations are not reported.
SO7	Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.	F	2012 Annual Report on Form 10-K (page 28)
SO8	Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.	F	We have incurred no significant fines or non-monetary sanctions relating to the non-compliance of laws and regulations in 2012.
SO9	Operations with significant potential or actual negative impacts on local communities.	NA	Not applicable to our business.
SO10	Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.	NA	Not applicable to our business.

6. Product Responsibility

GRI G3.1 Indicator Description		Indicator Completeness¹	2012 Tim Hortons Inc. Response
Disclosure on Management Approach: TIM HORTONS INC. Our goal is to exceed our guests’ expectations every day, in every restaurant. We are committed to providing our guests with balanced choices, as well as a hospitable and welcoming overall experience. We have numerous departments within our Company focused on monitoring our products and services and we work hard to improve them. We are particularly focused on food safety, research and development to offer balanced menu options, communicating about nutrition in a transparent and accessible manner, and providing a welcoming environment for our guests. Our Standards of Business Practices outline our business ethics and compliance programs including an overview of our programs for product quality and food safety, as well as compliance. For additional details on our approach to managing product responsibility, please visit the Guests section of our 2012 Sustainability and Responsibility Report. RESTAURANT OWNERS (FRANCHISEES) and TIM HORTON CHILDREN’S FOUNDATION Please see our disclosure in the Economic section of this GRI Report for details about our management approach with respect to Restaurant Owners and the Tim Horton Children’s Foundation.
PR1	Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.	F	We assess the health and safety impacts of our products during all stages of the product’s life cycle as defined by the GRI. 100% of our significant product categories are subject to such procedures.
PR2	Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.	F	We had no significant incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services in 2012.
PR3	Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.	F	For each of our significant products, we provide information about content (i.e., nutrition information) safe use, and disposal. 100% of our significant products are subject to such information requirements.
PR4	Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.	F	We had no significant incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling in 2012.
PR5	Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.	P	We conduct research and surveys on trends in guest satisfaction as required.
PR6	Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.	P	Substantial agreements are reviewed by our Legal Department for adherence to laws, standards, and voluntary codes related to marketing communications. We do not sell products in markets in which such products are banned.
PR7	Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.	F	We had no significant incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship in 2012.
PR8	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.	F	Not reported in 2012.
PR9	Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.	F	We have incurred no significant fines or non-monetary sanctions related to the non-compliance with laws and regulations concerning the provision and use of products and services in 2012.

¹Indicator completeness refers to the extent to which we responded to the Indicator. F = Full; P = Partial; NA = Not Applicable; and NR = Not Reported.