Cogeco 2013 Annual Report Download - page 27

26 COGECO CABLE INC. 2013 Management's discussion and analysis (“MD&A”)
Our data centres are mostly located in leased facilities.
Almost of all our data centres are located in leased premises, and there can be no assurance that we will remain in compliance with our leases
and that they will not be terminated or can be renewed at commercially reasonable terms. Termination of a lease could have a material impact
on our businesses, results of operations and financial condition.
We may be adversely affected by strikes and other labor protests.
As of August 31, 2013, approximately 22% of our employees were represented by several unions under collective bargaining agreements. We
can neither predict the outcome of current or future negotiations relating to labor disputes, union representation or renewal of collective bargaining
agreements, nor be able to avoid future work stoppages, strikes or other forms of labor protests pending the outcome of any current or future
negotiations. A prolonged work stoppage, strike or other form of labor protest could have a material adverse effect on our businesses, operations
and reputation. Even if we do not experience strikes or other forms of labor protests, the outcome of labor negotiations could adversely affect
our businesses and results of operations. In addition, our ability to make short-term adjustments to control compensation and benefits costs is
limited by the terms of our collective bargaining agreements.
We depend on key personnel and the loss of any of our key executives could adversely affect our ability to manage our businesses.
Our success is substantially dependent upon the retention and the continued performance of our executive officers. Many of these executive
officers are uniquely qualified in their areas of expertise, making it difficult to replace their services. The loss of the services of any of these officers
could adversely affect our growth, financial condition and results of operations. In addition, to implement and manage our businesses and operating
strategies effectively, we must maintain a high level of efficiency, performance and content quality, continue to enhance our operational and
management systems, and continue to effectively attract, train, motivate and manage our employees. If we are not successful in these efforts, it
may have a material adverse effect on our businesses, prospects, results of operations and financial condition.
Our holding company structure could result in our controlling shareholder and our other shareholders having materially adverse
interests.
We are controlled by COGECO Inc. (“COGECO”) through its ownership of multiple voting shares. COGECO is in turn controlled by Gestion
Audem Inc., a company controlled by the members of the family of the late Henri Audet (the "Audet Family"), through its ownership of COGECO’s
multiple voting and subordinate voting shares. Both Cogeco Cable and COGECO are reporting issuers in Canada with subordinate voting shares
listed on the TSX. Pursuant to the Conflicts Agreement in effect between us and COGECO, all cable television undertakings must be owned or
controlled by us. COGECO is otherwise free to own and operate any other business or to invest as it deems appropriate. It is possible that
situations could arise where the respective interests of the Audet Family and other shareholders of COGECO, or shareholders or debt holders
of Cogeco Cable could differ.
ENVIRONMENTAL POLICY
OVERVIEW
As the Corporation has embraced Corporate Social Responsibility ("CSR"), the environmental policy has evolved to take on a more inclusive
approach. CSR is based on the three pillars: environment responsibility, social responsibility and economic responsibility. In 2013, we issued
our first CSR policy which was approved by our Board of Directors.
Cogeco Cable’s CSR policy integrates our corporate social responsibility objectives articulated around five engagements:
• managing our ecological footprint;
• taking part in developing communities;
• integrating the best CSR practices;
• being transparent in communicating our CSR activities; and
• ensuring the Corporation’s growth.
The CSR policy goes further than the previous environmental policy by adding a social dimension to its engagements. Cogeco Cable makes a
point of adhering to these key principles in all its activities, business relationships and dealings with other stakeholders. It contributes to the
broader application of this principle primarily through the delivery of efficient electronic communication.
FISCAL 2013 ACTIVITIES AND ACHIEVEMENTS
We broadened our environment program to become a component of a CSR program throughout 2013. Environmental initiatives from the 2012
program continued, such as carbon calculation and reduction, waste management and recycling, awareness and communications campaigns.
The corporate social responsibility program, currently limited to Cogeco Cable Canada and CDS, will evolve and expand to include other
subsidiaries, affiliates and controlled entities. Some examples of Cogeco Cable’s environmental programs and initiatives include:
• We published our second Carbon Disclosure Report to the Carbon Disclosure Program and expanded the scope of the report to include
CDS.
• We initiated additional environmental management programs at our largest facility in Ontario and obtained a BOMA BEST certification
for the facility. This certification recognizes the good environmental practices implemented over the past years, including energy, waste
and water management, pollution control and environmental health and safety programs. This facility diverts 88% of the waste from
its activities.