OUR VISION, MISSION AND MANDATE

Transcription

1 Annual Report 2016

2 OUR VISION, MISSION AND MANDATE Vision To be recognized in Canada as the leading operator of environmentally responsible, regulated, cost-effective programs for end-of-life electronic products. Mission As an industry-led not-for-profit organization, we enable: Businesses and consumers to manage their electronics responsibly and Obligated stewards to achieve regulatory compliance. Mandate Provide a national electronics end-of-life program for Canada which recognizes the uniqueness of each Provincial Regulation and appropriate stakeholders. **Launching Spring 2017 *OES powered by EPRA *EPRA assumed management of the Ontario Electronic Stewardship (OES) Program in November A separate Annual Report is produced by OES and can be found at: ontarioelectronicstewardship.ca. **The EPRA New Brunswick program plan has been approved by Recycle NB. The new e-recycling program launches throughout the province in spring 2017.

3 About the Electronic Products Recycling Association Electronic Products Recycling Association (EPRA) is a North American leader in end-of-life electronics (EOLE) recycling, operating a safe and secure e-recycling program across Canada. EPRA manages a costeffective, streamlined administration for stewards (manufacturers, distributors and retailers of electronics) in the provinces in which it operates, enabling them to achieve regulatory compliance. Working on behalf of more than 7,000 stewards, EPRA helps prevent electronics from ending up in landfills by providing Canadian businesses and consumers access to secure and convenient e-recycling options through over 2,300 drop-off locations. EPRA is an industry-led, national, not-for-profit organization operating regulated e-recycling programs in eight, and soon to be nine, provinces with the newest program launching in New Brunswick in the spring of EPRA ensures that EOLE are recycled in a safe, secure and environmentally sound manner, conserving natural resources by recovering materials that can be used to make new products. EPRA only works with recyclers who have been verified by the Recycler Qualification Office (RQO) under the national Electronics Recycling Standard (ERS), which was designed in 2004 by the electronics industry to ensure proper handling of EOLE. This means that all verified recyclers must responsibly process materials entrusted to them by EPRA. Further, the RQO audits recyclers against the ERS requirements, which incorporate the internationally-recognized R2 Standard as the first step in verification. This process ensures that recyclers are maintaining appropriate environmental, health and safety controls, and properly handling all materials. In the decade following the development of the original ERS, various industry-led electronics stewardship programs formed across the country to meet provincial regulations for extended producer responsibility (EPR). From the EPRA family, Saskatchewan and British Columbia commenced operation in 2007, and both programs will be celebrating a ten-year anniversary of responsible e-recycling in EPRA s Nova Scotia program launched in 2008, Ontario s program started in 2009 and PEI s kicked off in Manitoba and Quebec began in 2012, and Newfoundland and Labrador in TODAY EPRA KEEPS 110,000 METRIC TONNES OF OLD ELECTRONICS OUT OF LANDFILLS EACH YEAR. SAFELY DIVERTS MORE THAN 17 MILLION DEVICES EVERY YEAR FROM CANADA S LANDFILLS AND ILLEGAL EXPORT. HAS RECYCLED OVER 780,000 METRIC TONNES SINCE THE FIRST PROGRAM BEGAN. PROVIDES ENVIRONMENTAL COMPLIANCE TO MORE THAN PROGRAM MANAGES 7,000 2,300 STEWARDS. OVER CONVENIENT COLLECTION LOCATIONS. FEB 2007 AUG 2007 FEB 2008 APR 2009 JUL 2010 JUL 2012 AUG 2012 AUG 2013 MAR 2017 Saskatchewan Program Launch British Columbia Program Launch Nova Scotia Program Launch Ontario Program Launch Prince Edward Island Program Launch Quebec Program Launch Manitoba Program Launch Newfoundland & Labrador Program Launch New Brunswick Program Launch EPRA ANNUAL REPORT

4 Message from the Chair, EPRA Board of Directors Lloyd Bryant Canadians can be proud of the great strides we ve made over the past decade in diverting electronics from landfills. With the help of Canadians across the country, EPRA programs have responsibly recycled over 780,000 metric tonnes of end-of-life electronics (EOLE) since In 2016 alone, EPRA s eight provincial programs recycled over 110,000 metric tonnes of EOLE, diverting more than 17 million devices from landfills. In 2016 alone, EPRA s eight provincial programs recycled over 110,000 metric tonnes of EOLE, diverting more than 17 million devices from landfills. Recovered materials go back into the manufacturing of new products, reducing the need for virgin resource extraction and decreasing associated greenhouse gas (GHG) emissions. We are pleased to welcome New Brunswick into the EPRA family in this upcoming year, New Brunswick announced regulations for electronics recycling in 2015 and has awarded the management of the recycling program to EPRA, making it 9 provinces under the guidance of the efficient, effective oversight of our EPRA management team, led by our CEO, Cliff Hacking. The electronics industry has shifted to producing lighter, smaller, multi-functional devices, which have a positive effect on our environmental footprint. This move towards light-weighting and miniaturization in manufacturing will mean an absolute reduction in the overall tonnage of unwanted devices collected annually. This positive trend means that we will need to move from reliance on strictly weight-based performance metrics to other indicators of program success, such as public awareness, access and convenience. We are seeing this trend in programs right across the globe. In 2016 we had a number of Board changes which were smoothly planned and transitioned. I would like to thank Mary Ann Yule, Deborah Sanders and Serge Leger for serving on our Board and providing valuable insight and perspective to the team. It is also my pleasure to welcome our new members in 2016, Scott O Connell and Brian Feeley, to the Board of EPRA. We are fortunate to have them join us in this important endeavour. We are proud of what we have been able to build here at EPRA and we are just as excited for the future. We now have e-recycling programs in place to cover our vast geography, positioning us to offer our fellow Canadians a convenient, safe and secure way to recycle their electronics keeping them from landfills and protecting our environment for the next 150 years and beyond. Lloyd Bryant Chair, Board of Directors 2 EPRA ANNUAL REPORT 2016

5 Message from the Chief Executive Officer I am pleased to share EPRA s highlights and accomplishments over the past year. The world of technology and recycling continues to evolve quickly along with the importance of environmental awareness and protection. It is our distinct pleasure to Cliff Hacking operate a program across the country that encourages and embraces both the benefits and the responsibilities of good stewardship. Specific EPRA accomplishments for 2016 include: Expanded the drop-off network to over 2,300 locations across the country, offering Canadians greater access to responsibly recycle their end-of-life electronics (EOLE). Worked closely to build the foundation for the launch of EPRA New Brunswick in Safely and securely recycled over 110,000 metric tonnes of EOLE, diverting them from landfill, illegal export, and ensuring that recovered materials were put back into the manufacturing supply chain. Supported an increase in e-recycling through program awareness. Celebrated major milestones such as: a 3-year anniversary of responsible recycling EOLE in Newfoundland and Labrador, reaching over 25,000 metric tonnes of e-recycling in Saskatchewan, securing 966 drop-off locations in Quebec, and successfully rolling out the Electronics Recycling Standard 2015 (ERS 2015) to EPRA-approved recyclers. Looking ahead, as we enter into Canada s 150th year, four EPRA programs will also celebrate anniversary milestones. In 2017, both Saskatchewan and British Columbia s e-recycling programs will have been responsibly recycling EOLE for 10 years, with the program in Saskatchewan being the oldest industry-led, regulated electronics recycling program in North America. EPRA Manitoba and EPRA-Québec are both poised for continued success, and will celebrate their 5 - year program anniversaries in Additionally, we will be launching EPRA New Brunswick our ninth e-recycling program in the spring of It is our distinct pleasure to operate a program across the country that encourages and embraces both the benefits and the responsibilities of good stewardship. I would like to thank the team at EPRA for the positive results from 2016 and for furthering with me our goals for an ever-improving efficient, effective program. Thank you, as well, to the program stewards and other stakeholders for their support in 2016 and to our fellow Canadians for doing the right thing and responsibly recycling EOLE through EPRA, for nature s sake. Cliff Hacking Chief Executive Officer EPRA ANNUAL REPORT

6 Governance EPRA Board Executive CEO and Staff 2016 BOARD OF DIRECTORS COMPOSITION The EPRA Board of Directors is comprised of nine members: Lloyd Bryant, Chair Independent Director Brian Feeley Apple Canada Inc. Pete Gibel Staples Canada Lindsey LeClair Best Buy Canada Ltd. Peter Maddock Panasonic Canada Inc. Clint Mahlman London Drugs Limited Scott O Connell Dell EPRA STAFF INCLUDES: Cliff Hacking, Chief Executive Officer Lynda Kitamura, Chief Financial Officer Jay Illingworth, Director, Harmonization Sean De Vries, Director, Recycler Qualification Office Christy Teasdale, Director, Marketing and Communications Each provincial EPRA program has an Executive or Program Director responsible for the day to day management of the programs: Craig Wisehart, Executive Director, Western Canada Gayleen Creelman, Program Director, Saskatchewan Dennis Neufeld, Program Director, Manitoba Dominique Levesque, Executive Director, Quebec Gerard MacLellan, Executive Director, Atlantic Canada Terry Greene, Program Director, Newfoundland & Labrador Jeff Van Damme Samsung Electronics Canada Inc. Harry Zarek Compugen Inc. 4 EPRA ANNUAL REPORT 2016

7 EPRA Recycling Process and Standards EPRA is committed to recycling end-of-life electronics (EOLE) collected through our approved network of drop-off locations in a responsible manner that protects the environment and worker health and safety. END-OF-LIFE PRODUCTS COLLECTION LOCATIONS EPRA MANAGES OVER 2,300 DROP-OFF LOCATIONS OVER 110,000 METRIC TONNES OF EOLE COLLECTED ANNUALLY MANUFACTURERS (WORLDWIDE) Glass- SiO 2 EOLE TRANSPORTED TO VERIFIED RECYCLERS - (C 2 h 4 ) N Steel Shred/Granulate/Smelting 165 RECYCLERS RQO APPROVALS AS OF DEC. 31, 2016 Safely Process Substances of Concern Base Metals Aluminum Copper Yttrium Lanthanide Praseodymium Precious Metals Silver Platinum Gold Rare Earth Metals Neodymium Europium Carbon Hydrogen Oxygen Silicon Oxygen Disassemble EPRA only works with recyclers who have been verified under the national Electronics Recycling Standard (ERS), which was designed by the electronics industry to ensure that EOLE are managed in a safe and environmentally-sound manner. Further, our Recycler Qualification Office (RQO) audits the recyclers against the ERS requirements with third-party certification by the internationally recognized R2 Standard as the first step in verification. EPRA requires that all recyclers actively process material and maintain appropriate environmental, health, safety and security controls for properly handling all materials. The ERS and audit processes promote: 4 sound environmental management practices 4 enhanced worker health and safety controls 4 robust data security measures; and 4 downstream processing accountability. EPRA ANNUAL REPORT

8 EPRA British Columbia EPRA BC is proud of its ongoing role in protecting the British Columbia environment by providing convenient, efficient and environmentally sound options to BC residents for recycling their end-of-life electronics (EOLE). In 2016 there was a further strengthening of the trend that we first observed a few years ago where lighter, smaller electronics are replacing the older, heavier electronics that we collected in the past. This is good news for the environment. Since Reduce is the first element of the 3R s, this trend in modern electronic devices toward being lighter and smaller results in less tonnage being put into the market each year. This creates a smaller environmental footprint on the front end, meaning that there is less tonnage to be collected and recycled at end-of-life. Although tonnage is decreasing due to light-weighting, the vast number of electronics continuing to need recycling only serves to heighten EPRA BC s focus on collection. In fact, recycling electronics in this province has never been more convenient. Two key factors in promoting EOLE recycling are providing good accessibility to residents and ensuring that they are aware of the proper e-recycling options. EPRA BC continued to expand its network of drop-off locations in 2016 with a focus on increasing accessibility EPRA remains focused on providing British Columbians with a world-class electronics recycling program that is convenient, efficient and comprehensive. in rural regional districts through a variety of collection site initiatives and our return-to-retail program continues to supplement the drop-off location network giving a wider variety of options to residents in urban areas. On the awareness front, the survey we conducted in October 2016 to measure the awareness of a recycling program in British Columbia showed an 8 point jump from the prior year in awareness with 75% of the respondents indicating awareness of an electronics recycling program in BC. EPRA remains focused on providing British Columbians with a world-class electronics recycling program that is convenient, efficient and comprehensive. Craig Wisehart Executive Director, Western Canada Schedule of Operations British Columbia Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 19,600,568 $ 20,690,273 Interest 220, ,823 Expenses: 19,820,855 20,927,096 Direct operations: Processing 8,746,199 10,527,718 Collection 4,339,782 4,968,242 Transportation, warehousing and storage 4,393,691 4,224,665 Quality assurance sampling and recycler audits 74,600 95,934 17,554,272 19,816,559 Other: Consumer awareness and communications 774, ,406 Administration 1,619,394 1,747,909 2,393,396 2,526,315 19,947,668 22,342,874 Excess of expenses over revenue $ (126,813) $ (1,415,778) 6 EPRA ANNUAL REPORT 2016

9 EPRA British Columbia Collection Operational Indicators 19, tonnes kg/capita weight of regulated electronics collected by the program for recycling. End-of-Life Electronics Collected Tonnes collected. Kilograms collected per capita. Access Collection Accessibility and Convenience Indicators 98% 261 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of the BC population within 45 minutes (rural) or 30 minutes (urban) of an EPRA BC Drop-off Centre. Total collection sites. Awareness Public Awareness and Industry Participation Indicators 75% 1,692 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of the population aware of how to recycle EOLE in an environmentally friendly way. Total manufacturers, retailers and other industry stewards registered with EPRA BC. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. Program Costs $ 1,019 per tonne Total program cost per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. EPRA ANNUAL REPORT

10 EPRA Saskatchewan EPRA Saskatchewan is proud to play an important role in protecting the environment of our province and is committed to recycling end-of-life electronics (EOLE) in a responsible and sustainable manner. In fact, in 2016 we recycled over 2,500 metric tonnes of EOLE, diverting over 380,000 devices from Saskatchewan landfills with recovered materials going back into new products. In 2016, awareness continued to be strong with 84% of households polled aware of an e-recycling program in the province. However, 89% indicated that they have at least one EOLE in the home, so we continue to look for ways to encourage Saskatchewan residents to drop these items off for recycling with EPRA. With the positive trend towards consolidation and light-weighting in electronics we continue to see the impact this is having on the volume dropped off for recycling year over year. With this in mind, the past year brought a new focus on expanding our collection network to increase access for residents. Since the program s inception in 2007, it has enjoyed a strong partnership with SARCAN which forms the backbone of our network. Over the years, EPRA Saskatchewan has continued to focus on the needs of its residents. As a result, four new drop-off locations were added with more planned for An exciting initiative during Waste Reduction Week in October was the Recycle My Electronics exhibit held at the Saskatchewan Science Centre. The immersive, The past year brought a new focus on expanding our collection network to increase access for residents. interactive exhibit focused on the importance of e-recycling; EPRA hosted Regina students from Grades was our third year partnering with the Saskatchewan Roughriders. The Takeback to Touchdown Season 2 promotion was a friendly competition among the SARCAN locations as a way to promote e-recycling within the drop-off locations own communities. This helped drive increased collections in many communities across the province. Looking forward, we are committed to increasing the convenience of e-recycling to help residents rid their households of EOLE, along with continuing to re-enforce awareness of the program and educating all on its benefits will be our 10-year anniversary of electronics recycling in Saskatchewan; a milestone to celebrate! Gayleen Creelman Program Director, Saskatchewan Schedule of Operations Saskatchewan Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 2,700,000 $ 3,605,714 Interest 148, ,130 Expenses: 2,848,014 3,763,844 Direct operations: Processing 1,154,685 1,281,458 Collection 890, ,427 Transportation, warehousing and storage 185, ,313 Quality assurance sampling and recycler audits 53,800 85,081 2,284,467 2,589,279 Other: Consumer awareness and communications 559, ,002 Administration 568, ,906 1,127,325 1,222,908 3,411,792 3,812,187 Excess of expenses over revenue $ (563,778) $ (48,343) 8 EPRA ANNUAL REPORT 2016

11 EPRA Saskatchewan Collection Operational Indicators 2, tonnes kg/capita weight of regulated electronics collected by the program for recycling. End-of-Life Electronics Collected Tonnes collected. Kilograms collected per capita. Access Collection Accessibility and Convenience Indicators 93% 87 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of the Saskatchewan population within 50 kms (rural) or 30 minutes (urban) of an EPRA Sask Drop-off Centre. Total collection sites. Awareness Public Awareness and Industry Participation Indicators 84% 734 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of the population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA Saskatchewan. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. Program Costs $ 1,349 per tonne Total program cost per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. EPRA ANNUAL REPORT

12 EPRA Manitoba EPRA Manitoba continues to make huge strides as the program opens new dropoff locations around the province while maintaining its record breaking collection numbers from the previous year. The results are strong, and we are proud to have collected 3,430 metric tonnes in In addition, our awareness numbers reached new heights as they rose to 69%, showcasing that our message is getting out to Manitoba residents and is resonating with them. This past year, we focused on growing our drop-off locations across the province, adding 9 new locations including a new conveniently located City of Winnipeg eco-depot. While over 90% of Manitoba residents are within 30 minutes of one of EPRA Manitoba s drop-off locations, we want to continue to grow this convenience. As well, our return-to-retail program continues to be a strong partner in our larger centers. In 2016, our partnership with the Manitoba Moose was completed for a second year. This partnership provides EPRA Manitoba with a chance to share its message in a way that is both visually stunning and impactful by sponsoring the Power Play on the MTS scoreboard. The Manitoba Moose games are well attended by fans, enabling EPRA to share the importance of e-recycling to a new audience at every game. Over 90% of Manitoba residents are now within 30 minutes of one of EPRA Manitoba s drop-off locations. We also began a small, targeted awareness push toward millennials participating in post-secondary education. We ran print ads in all three of the Winnipeg postsecondary newspapers, educating students that there is a safe and secure place to recycle their end-of-life electronics (EOLE). It is our belief that the youth of our province are natural advocates for e-recycling, and working with them to get the message out will help to spread the word. Looking forward into 2017, we will be celebrating our 5-year anniversary of the Manitoba program, something we are excited to share with the province. As well, we are committed to expanding our collection network and working with our partners to collect and responsibly recycle EOLE, keeping them out of landfills, creating a sustainable and green Manitoba for the future. Dennis Neufeld Program Director, Manitoba Schedule of Operations Manitoba Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 3,446,534 $ 4,358,007 Interest 72,798 62,248 Expenses: 3,519,332 4,420,255 Direct operations: Processing 1,850,563 1,770,891 Collection 600, ,810 Transportation, warehousing and storage 246, ,114 Quality assurance sampling and recycler audits 37,400 81,746 2,735,776 2,703,561 Other: Consumer awareness and communications 409, ,797 Administration 570, ,264 Government fees 45,261 45,261 1,024,546 1,112,322 3,760,322 3,815,883 Excess (deficiency) of revenue over expenses $ (240,990) $ 604, EPRA ANNUAL REPORT 2016

13 EPRA Manitoba Collection Operational Indicators 3, tonnes kg/capita weight of regulated electronics collected by the program for recycling. End-of-Life Electronics Collected Tonnes collected. Kilograms collected per capita. Access Collection Accessibility and Convenience Indicators 91% 76 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of the Manitoba population within 50 kms (rural) or 15 minutes (urban) of an EPRA Manitoba Drop-off Location. Total collection sites. Awareness Public Awareness and Industry Participation Indicators 69% 515 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of the population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA Manitoba. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. Program Costs $ 1,096 per tonne Total program cost per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. EPRA ANNUAL REPORT

14 EPRA-Québec EPRA-Québec has much to be proud of in terms of what was accomplished in Volumes collected continue to grow year over year despite the trend towards electronic product miniaturization and consolidation. Since program inception in July 2012, EPRA-Québec has collected over 70,000 metric tonnes of end-of-life electronics (EOLE), diverting an estimate of over 10,000,000 devices from landfills! In our ongoing efforts to facilitate access to our program, we now provide Quebecers with a vast network of 966 authorized drop-off points across the province. In addition to providing greater accessibility, over 125 events were organized during 2016 representing over 280 collection days in cooperation with municipalities and our partners in various regions of Quebec. To stimulate Quebecers participation, we also helped promote several of these activities which resulted in a significant increase in the number of people attending and the volume collected. All these initiatives represented new opportunities to raise public awareness about EOLE recovery and responsible recycling. Combined with an impactful ad campaign in both English and French, these actions enabled EPRA- Québec s program to maintain its high level of awareness. Quebecers continue to enjoy our ads, understanding that their Serpuariens (loosely translated as no-longer-usefuls ) won t get to an authorized dropoff point on their own and that they need to do their part to make it happen. In fact, the originality and quality of More than simply raising awareness, we implement concrete measures that encourage responsible recycling behavior. our 2016 TV campaign were recognized internationally at the AVA Digital Awards with a Platinum Award in the Public Service Announcement category. With regard to finances, EPRA-Québec reported a deficit, mainly due to the reduction of EHFs in We therefore drew from the reserve to cover 2016 operating expenses. The success of EPRA-Québec s program would not be possible without the collective efforts of all stakeholders: provincial and municipal government authorities, industries and retailers, as well as businesses and the public. More than simply raising awareness, we implement concrete measures that encourage responsible recycling behaviour. Looking ahead to 2017, we go forward with great enthusiasm as we rally Quebecers to protect the environment and reduce their ecological footprint. Dominique Levesque Executive Director, Quebec Schedule of Operations Quebec Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 14,940,006 $ 22,281,381 Interest 466, ,939 Expenses (recovery): 15,406,981 22,829,320 Direct operations: Processing 10,434,468 9,548,893 Collection 1,721,721 2,427,224 Transportation, warehousing and storage 4,230,137 4,116,093 Quality assurance sampling and recycler audits 194, ,887 16,581,226 16,332,097 Other: Consumer awareness and communications 3,453,897 3,776,777 Administration 2,599,675 2,723,662 Government fees (24,262) 22,425 6,029,310 6,522,864 22,610,536 22,854,961 Excess of expenses over revenue $ (7,203,555) $ (25,641) 12 EPRA ANNUAL REPORT 2016

15 EPRA-Québec Collection Operational Indicators 19,698 tonnes 1,827 tonnes 21, tonnes kg/capita weight of regulated electronics collected by the program for reuse and recycling. End-of-Life Electronics Collected Tonnes collected for recycling. Tonnes collected for reuse. Total tonnes collected (recycling & reuse). Kilograms per capita collected (recycling & reuse). Access Collection Accessibility and Convenience Indicators 99% 966 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of the Quebec population within 45 minutes (rural) or 30 minutes (urban) of an EPRA-Québec Drop-off Point. 1 Total collection sites. Awareness Public Awareness and Industry Participation Indicators 79% 1,662 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of the population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA-Québec. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. $ 1,148 per tonne Program Costs Total program cost per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. 1 Note: Does not take into account particular access restrictions relating to municipal boundaries. EPRA ANNUAL REPORT

16 EPRA Nova Scotia and EPRA Prince Edward Island In 2016, Nova Scotia continued to have one of the highest overall per capita rates of e-recycling in the country and our consumer awareness levels increased to 87%. Meanwhile on Prince Edward Island (PEI), we collected 670 metric tonnes of end-of-life electronics (EOLE), equating to an impressive per capita e-recycling rate of 4.7kg of EOLE per person. That s an increase of 48 metric tonnes over last year even with the trend towards miniaturization and light-weighting of electronics. Clearly, when it comes to extending nature s warranty, Nova Scotia and PEI are naturals! We re also heartened to see that our efforts to clean up older, and often larger, devices have paid off with fewer and fewer of these items being turned in for recycling. Clearly, when it comes to extending nature s warranty, Nova Scotia and PEI are naturals! The recycling culture is alive and well in Nova Scotia and PEI, and we look forward to helping it to continue, responsibly, in the years ahead. Gerard MacLellan Executive Director, Atlantic Canada Schedule of Operations EPRA Nova Scotia and EPRA Prince Edward Island Year ended December 31, 2016 (unaudited) Nova Scotia PEI Total Revenue: Environmental handling fees $ 3,409,951 $ 524,930 $ 3,934,881 Interest 28,152 3,839 31,991 Expenses: 3,438, ,769 3,966,872 Direct operations: Processing 2,152, ,593 2,441,510 Collection 739,062 99, ,099 Transportation, warehousing and storage 707, , ,057 Quality assurance sampling and recycler audits 29,040 3,960 33,000 3,628, ,287 4,145,666 Other: Consumer awareness and communications 212,037 70, ,548 Administration 560,261 74, ,538 Government fees 20,000 20, , , ,086 4,400, ,075 5,082,752 Deficiency of revenue over expenses $ (962,574) $ (153,306) $ (1,115,880) 14 EPRA ANNUAL REPORT 2016

17 EPRA Nova Scotia and EPRA Prince Edward Island Collection Operational Indicators Nova Scotia 4, tonnes kg/capita Prince Edward Island tonnes kg/capita weight of regulated electronics collected by the program for recycling. End-of-Life Electronics Collected Tonnes collected. Kilograms collected per capita. Tonnes collected. Kilograms collected per capita. Access Collection Accessibility and Convenience Indicators Nova Scotia Prince Edward Island 99% % 8 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of population within 30 kms (rural) or 30 minutes (urban) of an EPRA NS Drop-off Centre. Total collection sites. % of population within 30 kms (rural) or 30 minutes (urban) of an EPRA PEI Drop-off Centre. Total collection sites. Awareness Public Awareness and Industry Participation Indicators Nova Scotia Prince Edward Island 87% % 318 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA NS. Percentage of population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA PEI. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. Program Costs Nova Scotia per tonne Prince Edward Island $ 1,054 $ 1,018 Total program costs per tonne. per tonne Total program costs per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. EPRA ANNUAL REPORT

18 EPRA Newfoundland & Labrador Since our launch in 2013, Newfoundlanders and Labradorians have consistently demonstrated their enthusiasm for recycling end-of-life electronics (EOLE). In fact, in the three years since our inception, more than 3,000 metric tonnes of EOLE have been recycled safely and responsibly and, in 2016, that enthusiasm reached a new high. This year, as we increased our drop-off locations by 10% (with 52 locations throughout Newfoundland and Labrador), we also saw consumer awareness rise to 74%. This is, in large part, due to our work to actively engage the public through promotional events, such as our Three Year Anniversary celebration, the Down Home Expo, and robust marketing campaigns that saw our message spread across the province through a wide range of media channels. Since our launch in 2013, Newfoundlanders and Labradorians have consistently demonstrated their enthusiasm for recycling end-of-life electronics. As we look toward the future, we will continue to emphasize the important role consumer awareness plays in keeping EOLE out of landfills. After all, the work to extend nature s warranty starts right at home. Terry Greene Program Director, Newfoundland & Labrador Schedule of Operations Newfoundland & Labrador Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 2,071,863 $ 2,353,262 Interest 19,145 19,258 Expenses: 2,091,008 2,372,520 Direct operations: Processing 444, ,625 Collection 198, ,711 Transportation, warehousing and storage 626, ,013 Quality assurance sampling and recycler audits 20,800 22,441 1,289,798 1,448,790 Other: Consumer awareness and communications 386, ,344 Administration 347, , , ,587 2,023,869 2,157,377 Excess of revenue over expenses $ 67,139 $ 215, EPRA ANNUAL REPORT 2016

19 EPRA Newfoundland & Labrador Collection Operational Indicators tonnes kg/capita weight of regulated electronics collected by the program for recycling. End-of-Life Electronics Collected Tonnes collected. Kilograms collected per capita. Access Collection Accessibility and Convenience Indicators 96% 52 convenience of accessing the program to have regulated electronics recycled. Collection Site Coverage and Convenience % of the NL population within 45 minutes (rural) or 30 minutes (urban) of an EPRA NL Drop-off Centre. Total collection sites. Awareness Public Awareness and Industry Participation Indicators 74% 334 public s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance. Public Awareness and Industry Participation Percentage of the population aware of the e-recycling program. Total manufacturers, retailers and other industry stewards registered with EPRA NL. Cost Financial Indicators costs of delivering the program, including collection, consolidation, transportation, audits, processing, administration, communications, management and professional fees. Program Costs $ 2,089 per tonne Total program cost per tonne. This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA s regulated, industry-led electronics stewardship programs operating in 2016 in Canada have committed to report on, as per Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting. EPRA ANNUAL REPORT

20 EPRA New Brunswick This is a watershed time for electronics recycling in New Brunswick. As we end 2016 and 2017 takes shape, EPRA looks forward to helping New Brunswick protect the environment with the launch of our ninth electronics recycling program. From recent research conducted in the province, approximately 90% of households polled in New Brunswick have end-of-life electronics (EOLE) taking up space and in danger of ending up in landfills. By the program launch, we plan to provide these households with 40 convenient drop-off locations across the province to help them easily and responsibly recycle these devices. A major piece of any program launch is education and we ve already started. In the fall of this year, we attended the Union of Municipalities of New Brunswick Annual Meeting in Fredericton, communicating our As we end 2016 and 2017 takes shape, EPRA looks forward to helping New Brunswick protect the environment with the launch of our ninth electronics recycling program. e-recycling program message to the attendees. We look forward to launching our program in the spring of 2017 and to working with the residents of New Brunswick as we communicate the benefits of e-recycling, encouraging them to responsibly recycle their EOLE through EPRA in the years to come. Gerard MacLellan Executive Director, Atlantic Canada Schedule of Operations New Brunswick Year ended December 31, Expenses: Other: Administration $ 228,506 Government fees 413,000 Excess of expenses over revenue $ (641,506) During the year, costs were incurred by EPRA to bring the New Brunswick program online. The costs above are included in the unrestricted fund at year end and will be recovered in future years through environmental handling fees. 18 EPRA ANNUAL REPORT 2016

21 2016 AUDITED FINANCIAL STATEMENTS EPRA ANNUAL REPORT

22 Independent Auditors Report KPMG LLP Vaughan Metropolitan Centre 100 New Park Place, Suite 1400 Vaughan ON L4K 0J3 Canada Telephone: Fax: Internet: To the Members of Electronic Products Recycling Association We have audited the accompanying financial statements of Electronic Products Recycling Association, which comprise the statement of financial position as at December 31, 2016, the statements of operations, changes in net assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Electronic Products Recycling Association as at December 31, 2016, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Other Matter Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in the schedules is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Chartered Professional Accountants, Licensed Public Accountants April 6, 2017 Vaughan, Canada 20 EPRA ANNUAL REPORT 2016

23 ELECTRONIC PRODUCTS RECYCLING ASSOCIATION Statement of Financial Position December 31, 2016, with comparative information for Assets Current assets: Cash and cash equivalents $ 103,311,729 $ 114,132,319 Accounts receivable (note 2) 11,252,611 11,109,877 Short-term investments (note 3) 4,339,936 2,422,774 Prepaid expenses 132,514 66, ,036, ,731,346 Long-term investments (note 4) 2,456,785 4,269,300 Capital assets (note 5) 88, ,608 Liabilities and Net Assets $ $ 121,582,390 $ $ 132,127,254 Current liabilities: Accounts payable and accrued liabilities (note 6) $ 7,135,465 $ 7,854,946 Net assets: Effectiveness and Efficiency Fund (note 7(a)): British Columbia 1,222,252 1,222,252 Nova Scotia and Prince Edward Island 664, ,126 Saskatchewan 289, ,000 2,175,378 2,175,378 Contingency reserve (note 7(b)): British Columbia 27,764,892 27,891,705 Manitoba 9,216,518 9,457,508 Quebec 56,646,937 63,850,492 Nova Scotia and Prince Edward Island 4,288,190 5,404,070 Saskatchewan 12,052,533 12,616,311 Newfoundland & Labrador 2,616,348 2,549, ,585, ,769,295 Invested in capital assets: Quebec 10,349 23,274 Headquarters 67,157 97,026 Newfoundland & Labrador 11,309 6,307 88, ,607 Unrestricted (402,686) 201, ,446, ,272,308 $ 121,582,390 $ 132,127,254 See accompanying notes to financial statements. On behalf of the Board of Directors: Director Director EPRA ANNUAL REPORT

24 ELECTRONIC PRODUCTS RECYCLING ASSOCIATION Statement of Operations Year ended December 31, 2016, with comparative information for Revenue: Environmental handling fees $ 46,693,852 $ 57,954,101 Management fee 2,861,674 2,423,058 Interest 959,210 1,062,254 Expenses: 50,514,736 61,439,413 Direct operations: Processing 25,071,642 26,219,041 Collection 8,589,481 10,010,124 Transportation, warehousing and storage 10,515,584 10,476,294 Quality assurance sampling and recycler audits 414, ,636 44,591,207 47,272,095 Other: Consumer awareness and communications 5,865,058 6,310,251 Administration 9,429,856 9,115,967 Government fees 453,998 87,686 15,748,912 15,513,904 60,340,119 62,785,999 Excess of expenses over revenue $ (9,825,383) $ (1,346,586) See accompanying notes to financial statements. 22 EPRA ANNUAL REPORT 2016

25 ELECTRONIC PRODUCTS RECYCLING ASSOCIATION Statement of Changes in Net Assets Year ended December 31, 2016, with comparative information for 2015 British Columbia Manitoba Quebec Nova Scotia and Prince Edward Island Effectiveness Effectiveness Contingency & Efficiency Contingency Contingency Invested in Contingency & Efficiency reserve Fund reserve reserve capital assets reserve Fund (note 7(b)) (note 7(a)) (note 7(b)) (note 7(b)) (note 7(b)) (note 7(a)) Balance, beginning of year $ 27,891,705 $ 1,222,252 $ 9,457,508 $ 63,850,492 $ 23,274 $ 5,404,070 $ 664,126 Excess of expenses over revenue (12,925) Interfund transfers (126,813) (240,990) (7,203,555) (1,115,880) Invested in capital assets Balance, end of year $ 27,764,892 $ 1,222,252 $ 9,216,518 $ 56,646,937 $ 10,349 $ 4,288,190 $ 664,126 Saskatchewan Newfoundland & Labrador Headquarters Effectiveness Invested Invested & efficiency Contingency Contingency in capital in capital Fund reserve reserve assets assets Unrestricted Total Total (note 7(a)) (note 7(b)) (note 7(b)) Balance, beginning of year $ 289,000 $ 12,616,311 $ 2,549,209 $ 6,307 $ 97,026 $ 201,028 $ 124,272,308 $ 125,618,894 Excess of expenses over revenue (1,523) (29,869) (9,781,066) (9,825,383) (1,346,586) Interfund transfers (563,778) 67,139 9,183,877 Invested in capital assets 6,525 _ (6,525) Balance, end of year $ 289,000 $ 12,052,533 $ 2,616,348 $ 11,309 $ 67,157 $ (402,686) $ 114,446,925 $ 124,272,308 See accompanying notes to financial statements. EPRA ANNUAL REPORT

26 ELECTRONIC PRODUCTS RECYCLING ASSOCIATION Statement of Cash Flows Year ended December 31, 2016, with comparative information for Cash provided by (used in): Operating activities: Excess of expenses over revenue $ (9,825,383) $ (1,346,586) Amortization which does not involve cash 44, ,504 Change in non-cash operating working capital: Accounts receivable (142,733) 7,246,246 Prepaid expenses (66,139) (4,133) Accounts payable and accrued liabilities (719,478) (1,296,658) (10,709,417) 4,781,373 Investing activities: Investments, net (104,648) (102,751) Capital assets acquired (6,525) (29,089) (111,173) (131,840) Increase (decrease) in cash and cash equivalents (10,820,590) 4,649,533 Cash and cash equivalents, beginning of year 114,132, ,482,786 Cash and cash equivalents, end of year $ 103,311,729 $ 114,132,319 See accompanying notes to financial statements. 24 EPRA ANNUAL REPORT 2016

27 ELECTRONIC PRODUCTS RECYCLING ASSOCIATION Notes to Financial Statements Year ended December 31, 2016 The Electronic Products Recycling Association (the EPRA or the Association ) is an industry-led, not-forprofit association dedicated to ensuring the safe, secure and responsible recycling of end-of-life electronics and ensuring compliance with the provincial regulations on electronics recycling. Members of Electronics Product Stewardship Canada and the Retail Council of Canada established the EPRA in The EPRA collects environmental handling fees from registered companies (stewards) which sell electronics into the marketplace. These fees are in turn used to pay the handlers of end-oflife electronics, mainly collection depots, transportation companies and processors. The fees also cover the communication and education outreach on the electronics recycling programs and drop-off locations. The EPRA was incorporated on April 14, 2011 as a Canadian not-for-profit organization without share capital. The Association was previously incorporated under the Canada Corporations Act and was continued under the Canada Not-for-profit Corporations Act in March The Association operates programs in British Columbia, Saskatchewan, Manitoba, Quebec, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador without monetary gain or profit to its stewards. The EPRA also provides management administration to the Ontario Electronic Stewardship program. The EPRA is exempt from income taxes under Section 149 (1) of the Income Tax Act (Canada). 1. Significant accounting policies: These financial statements have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations: (a) Cash and cash equivalents: Cash and cash equivalents include cash on hand and term deposits which are highly liquid. (b) Revenue: The Association follows the deferral method of accounting for revenue. Environmental handling fees ( EHF ) are received from registered stewards within the provinces which participate in the EPRA program. The Association recognizes these fees as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. EHF revenue is recognized as individual stewards report and remit them as required by applicable provincial environmental legislation. Management fee and interest revenue are recognized as earned. (c) Direct collection, handling and processing and other expenses: Processing, handling and collection expenses (including transportation, warehousing and related storage) are recorded on the date the electronics are gathered from collection sites. Other expenditures are recognized as incurred. (d) Allocated expenditures: Allocated expenditures, such as administration services, including harmonization costs, recycling quality office costs, administration and other governance expenses, are allocated to the EPRA regions of British Columbia, Saskatchewan, Manitoba, Quebec, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador based on actual costs as incurred. (e) Capital assets: Purchased capital assets are recorded at cost. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. Repairs and maintenance costs are charged to expense. Betterments which extend the estimated life of an asset are capitalized. When a capital asset no longer contributes to the Association s ability to provide services, its carrying amount is written down to its residual value. Software 3 years Furniture and equipment 5 years Leasehold improvements Over lease term Equipment 5 years EPRA ANNUAL REPORT

28 (f) Financial instruments: Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. The Association has not elected to carry any such financial instruments at fair value. Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight-line method. Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Association determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount the Association expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future year, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value. (g) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, accruals for processing end-of-life electronic products and environmental handling fees, accrued revenue and amortization of capital assets. Actual results could differ from those estimates. 2. Accounts receivable: Included in accounts receivable is an amount totaling $1,400,000 ( $1,400,000) owing from the British Columbia administration service provider that was advanced in order to finance the region s operations. The advance is unsecured, non-interest bearing and due on demand. 3. Short-term investments: Short-term investments consist of a guaranteed investment certificate ( GIC ), bearing interest at 1.65% and maturing on March 21, Long-term investments: Long-term investments consist of a GIC, bearing interest at 1.05% and maturing on August 10, Capital assets: Accumulated Net book Net book Cost amortization value value Software $ 443,763 $ 443,763 $ $ 5,456 Furniture and equipment 114,550 74,568 39,982 62,892 Leasehold improvements 69,904 32,380 37,524 51,953 Equipment 13,050 1,741 11,309 6,307 $ 641,267 $ 552,452 $ 88,815 $ 126, EPRA ANNUAL REPORT 2016

29 6. Accounts payable and accrued liabilities: Included in accounts payable and accrued liabilities are government remittances payable of$518,640 ( $193,557), which includes amounts payable for harmonized sales tax. 7. Restricted funds: (a) Effectiveness and Efficiency Fund: The EPRA Board of Directors established an Effectiveness and Efficiency Fund to promote best practices for the collection, transportation and processing of end-of-life electronics and to ensure overall continued reduction of the environmental impact of the EPRA program. The intent of the fund is for the enhancement of non-funded program elements, such as ensuring that there is adequate capacity to properly handle end-of-life electronics collected through the program, providing improvements to the metrics of the program and ensuring that best practices are employed for the handling of substances of concern. Up to 10% of direct operational expenses incurred by the EPRA may be transferred to the fund annually when there is an excess of revenue over expenses in the year. (b) Contingency Fund: The EPRA Board of Directors established a Contingency Fund to accumulate sufficient funds to ensure stable program operations continued through variable economic conditions. The targeted amount for the fund is the equivalent of one year of projected operating costs. All excess of revenue over expenses not used for the purchase of capital assets and after transfers to the Effectiveness and Efficiency Fund are transferred to the fund until the targeted amount is reached. In a year where an operating deficit occurs, a transfer is made from the Contingency Fund to the general fund to cover the current year operating deficit. 8. Risk management: (a) Credit risk: The EPRA is exposed to credit risk that arises from the quality of its stewards. Credit risk arises from the possibility that the registrants of the EPRA will be unable to fulfill their obligations. The EPRA stewards are numerous and diverse which reduces the concentration of credit risk. Management closely evaluates the collectability to mitigate this risk. There has been no change to the risk exposure from (b) Market risk: The EPRA is exposed to financial risk that arises from fluctuations in the sale of consumer electronic products within the provincial regions in which the EPRA operates. This risk is minimized by the corresponding decreases in program delivery and recycling process expenses and by regulation through each regional Department of the Environment. There has been no change to the risk exposure from (c) Interest rate risk: The EPRA is exposed to interest rate risk arising from the possibility that changes in interest rates will affect the value of fixed income securities held by the Association. EPRA manages this risk by holding GICs and staggering the terms of the investments held. There has been no change to the risk exposure from Commitments: The Association has entered into a lease for office premises. Minimum future payments required under this operating lease are as follows: 2017 $ 195, , , ,800 $ 684,900 EPRA ANNUAL REPORT

30 TM EPRA 2016: Fun with Education and Awareness Mr. Warren Steinley, MLA for Regina Walsh Acres, Roughrider and EPRA SK Ambassador, Rob Bagg, Gainer the Gopher and children from a local Regina school join EPRA SK Program Director Gayleen Creelman at the launch of the Recycle My Electronics educational exhibit at the SK Science Centre on October 17, The 2016 TV campaign helped EPRA-Québec s program to maintain its excellent level of awareness and increase the volume of EOLE collected. The originality and quality of this campaign were recognized internationally at the AVA Digital Awards with a Platinum Award. WHAT DIVERTING 2,500 TONNES OF END-OF-LIFE ELECTRONICS FROM LANDFILLS LOOKS LIKE. Over the past three years, Newfoundland and Labrador has recycled an estimated 227,000 devices through EPRA NL. That s equal to 2,500 metric tonnes or about 70 humpback whales, actually. Thanks for helping our planet thrive and extending nature s warranty in a big way. Tech expert Marc Saltzman and Alan Nursall from Discovery Channel s Daily Planet discuss responsible recycling of electronics through EPRA for Earth Day. For a complete list of Drop-off Centres and hours of operation, visit: recyclemyelectronics.ca/nl EPRA Newfoundland & Labrador celebrates 3 Years of e-recycling in a big way. 28 EPRA ANNUAL REPORT