Making a True Difference^TM is the overarching framework that brings together all of our sustainability and responsibility programs and initiatives. At the foundation of Making a True Difference are the principles we use to help guide us on our sustainability journey.

• Do things that make a true difference.
• Acknowledge and respect our social, environmental and economic impact.
• Honour, respect and support individuals and stakeholders.
• Participate with, and build, our communities.
• Be honest and transparent in our communications.

These guiding principles help support our overall vision for sustainability – to be a leader in the North American quick service restaurant sector and across all sectors in Canada.

Sustainability and responsibility are embedded in our strategies and corporate priorities, and in 2012 we have made considerable progress. Some highlights include, but are not limited to:

• We were named to the Carbon Disclosure Project (CDP) Leadership Index as one of the top disclosure scorers in Canada;
• We were added to the Dow Jones Sustainability (North American) Index (DJSI) for the second consecutive year;
• As part of our sodium reduction initiative, for the second consecutive year; we have reduced sodium in our soups (31%), deli meats (49%), muffins (22%), hot beverages (15%), and chili (10%);
• Through our “Smile Cookie” Program, we raised over $4.5 million for local charities across Canada and in markets where we do business in the U.S.;
• We became the first Canadian quick service restaurant to “close the loop” and recycle used hot beverage cups into another product our restaurants use in 2011. There are now over 260 restaurants participating in the program across Canada.
• Our hot beverage cup and paper packaging diversion programs are now offered in more than 850 Tim Hortons restaurants;
• From 2008 to 2012, we achieved a 9.2% overall improvement in distribution fleet fuel efficiency; and
• We continued to work with industry partners and our suppliers to begin a transition to more humane and sustainable sow and hen housing systems.

We recognize that although we can take pride in what we have accomplished to date, there is much more to be done.

With respect to our sustainability and responsibility commitments and goals, we have reported our 2012 performance and are continually looking at opportunities to enhance our performance. Within this Report, we also share our future goals and the initiatives that are already underway.

Lastly, we are committed to comprehensive and transparent reporting in the years to come. I hope you enjoy our 2012 Sustainability and Responsibility Report. On behalf of Tim Hortons and our family of Restaurant Owners, I would like to thank you for your interest in our sustainability and responsibility journey, and we look forward to continuing to share our progress with you.



Paul House
Executive Chairman, President
and Chief Executive Officer