CCOOrnerstonernerstone

Making life better in our communities.

2019 2019 SOCIALSOCIALRESPONSIBILITYRESPONSIBILITYREPORTREPORT

03SUSTAINABILITYHIGHLIGHTS

04GM'SMESSAGE

05ENVIRONMENTALRESPONSIBILITY

09OWNERSHIPRETURNS

07 0806EMPLOYMENTENGAGEMENT & SAFETY CULTURE

SOCIALRESPONSIBILITY

COMMUNITYINVESTMENT

TABLE OFCONTENTS

ABOUT USWe believe in the power of people coming together for a common cause. Co-ops were built upon the concept of collective power, knowing that when you multiply a single dollar by thousands you have the resources to build something better, knowing that collectively we can do more, and when thousands of people come together the impact of a single individ-ual is multiplied. There is nothing quite like co-op.

Locally Invested • Community-Minded • Lifetime Benefits

SUSTAINABILITYHIGHLIGHTS

Locally Invested

Community-Minded

Lifetime Benefits

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Recycled 12,552 lbs of plastic

33.5 tonnesof food donated to Food Banks in 2019

Diverted 59% of waste from landfills

$117,458 in member relations & donations, supporting 189 community groups

$32,155 benefiting breakfast & lunch programs at 32 community schools

$3,103 raised on Fuel Good Day

$

Invested $45 million in world class facilities & assets since 2013

More than 480 team members

$16 million in salaries and benefits invested back into local economies

Over 50 Alberta sourced products from vendor partners

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Cornerstone Co-op and our legacy Co-ops have always been dedicated to our local owners and local communities. This sustainability report highlights our initiatives we have been working hard on over the past year to ensure we continue to make life better in our communities. We are proud of being truly local. We are a different kind of business; being member owned means that we invest locally and create shared value. We create value by growing and investing in sustainable ways. We're proud to share our stories in this report. As we continue our local journey we have continued to expand our programs and donations in all of our Communities.

Our Co-op is truly about people and being local. A century ago, we were built by a generation that pooled their resources, banded together, and believed that the Co-op Model was a better way to secure their goods. We still believe in these basic Co-op principles as we continue defining the spirit of cooperation in the communities we live, work and play.

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Gen

eral

Man

ager

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ENVIRONMENTAL RESPONSIBILITY

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This year we established our Environmental Sustainability Committee. It is the first of its kind in the Co-op Federation. Our 11 team members include all levels of team members and all divisions. Our primary objective is to guide the engagement, development and execution of our sustainability strategy. We set 4 action items to meet this objective: Internal & External Engagement, Communication & Education, Waste Diversion & Tracking and Process Execution. Our first external engagement was to join with the Recycling Council of Alberta. This partnership will keep us in the forefront of Alberta’s recycling programs.

Ourenvironmentaljourney continues

Measures that matterMeasurement is central to tracking and improving our performance. Cornerstone Co-op has been collecting data related to our environmental performance for almost 10 years. Here's some stats we'd like to share from 2019:

336 TREES SAVED

59% WASTE DIVERTED

33.5FOOD DONATED

8,000 OIL RAGS

COLLECTED

TONNES KGS

This includes all items to be disposed and that are donated, recycled or reused. Donated items include all food and clothing. Recycled items in addition to plastic shrink wrap, paper and cardboard pallets, milk crates, egg crates, freezer coffin

cases, pop trays from Pepsi and Coke.

We recycle over 400 metric tonnes cardboard and paper

in our recycling programs.

Food products from our Grocery, Bakery and Produce

Departments that do not meet our stringent quality standards are donated to the local food banks and to Second Harvest.

Oily rags are collected at our cardlocks. Approximately 100

liters of oil is recovered, and oily rags are cleaned and reused.

COMMUNITYINVESTMENT

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We care about the causes that are important to you. We are proud to be a part of your community and are happy to lend a hand towards projects and partnerships that are close to home. Local Support

Cornerstone Co-op understands our purpose is making life better in our communities and so continue to build strategic part-nerships. In 2019, we invested in our communities by supporting 189 local community groups, teams, clubs, and charities with over $117,000 in donations. We also coordinate over 100 events from parades to BBQ fundraisers and the relaunch of our Kid's Club program!

Bags for Breakfast

Our Bags for Breakfast program continues to support our 32 community schools and raising funds of $32,155 which bene-fits their breakfast and lunch programs.

COMMUNITIES IN FULL COLOUR

BAGS FOR BREAKFASTACCA CAMP RECIPIENT KAYLA MANGATAL

MANNVILLE CENTENNIAL

FUEL GOOD DAYDEWBERRY PARADEWAINWRIGHT KID'S CLUBCRACKING THE PARM IN VERMILION

LAKELAND COLLEGE AWARDS

HEARTY HARVESTHAYING IN THE 30’S VOLUNTEER SUPPER

CAMP WHITNEY FOOD DRIVE

ELK POINT LIQUOR BBQ FUNDRAISER

TWO HILLS PARADE

EMPLOYMENTENGAGEMENT & TALENT & CULTURE

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We care about providing rewarding experiences for our employees. We encourage our teams to do their best and become their best - at work and in the community.

Talent and Culture contributes to the strategic direction of talent-related responsibilities for the organization; as well as the day-to-day talent-related responsibilities such as: acquisition; onboarding and introduction to the Cornerstone Brand; perfor-mance management, total rewards administration, safety adminis-tration; recognition; retirements and other turnover, etc.

During 2019 the Talent and Culture Team was formed and brought together health and safety, talent acquisition, total rewards management, with strategic support to our Team Leaders in all of these areas.

• Total Rewards: In 2019 we successfully completed a huge transition with our payroll system. The “TIS” project (talent insight solutions) transitioned us to an automated time-keep-ing system as well as a multi-functional human resource software system.

• Talent Acquisition and Management: These programs continue to evolve with direction from FCL. Talent Acquisition and Onboarding as well as introducing a new job evaluation system for Team Leaders were all new initiatives during 2019.

• Safety: We contributed to further development in the area of National Safety Code (NSC) compliance with assistance from our Home and Agro and Petroleum Divisions. In 2019 an internal COR (Certificate of Recognition) Audit was completed with a score of 92% with our Safety Partners from AASP (Alberta Association for Safety Partnerships). We have over 35 Health & Safety Committee members & repre-sentatives across Cornerstone each taking an active support role representing our employees within our safety culture and trained inhouse in workplace inspections, hazard assessments and incident investigations.Our departments conduct weekly briefings with their teams communicating Safety Moments and soliciting feedback from our team members on health & safety concerns.

Whether its running to support the MS Society or taking part in Anti-Bullying Pink Shirt Day, our Cornerstone Co-op team members take pride in everything they do!

SOCIAL RESPONSIBILITY

Cornerstone Co-op is proud to work directly with and support local food manufacturers, which offer unique value to our customers. We also continue to work along side local organizations and assist with other Social Responsibilty initiatives.

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We have partnered with Inclusion Alberta for clothing donations. Since we started in 2019, 26,000 lbs of clothing has been collected from our member/owners to support this non-profit organization. All funds raised continue to remain within our community.

Just a few of our top local producers we support include:

• Al's Market Gardening, St. Paul• Old School Cheesery Ltd., Vermilion• Ryley Sausage, Ryley• Lazy Bee Honey, Irma

From primary production and manufacturing to distribution and retail, Co-op is there for every step of the food production cycle. Co-op not only serves and supplies producers with products and services, but also purchases their products to sell to members and customers—making it a real farm-to-table story.For generations, Co-op has helped producers respond to challenges and opportunities, and we continue to play a central role in bringing local products to the Western Canadian marketplace.

OWNERSHIPRETURNS

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More than $2 million has been allocated to owners for the 2019 fiscal year, $1.4 million of that in cash-back going right into the hands of our owners in June.

Allocation is based upon 2019 financial results and 2019 purchases you’ve made using your Cornerstone Co-op ownership number. Each year your Co-op’s elected board of directors decides whether to put aside a percentage of purchases to be given to owners in the form of cash back and deposits into owners’ equity accounts.The 2019 equity allocation percentages are:

0.75% FOOD & CONVENIENCE,

HOME CENTREPURCHASES

2.5% GAS & DIESELPURCHASES

4% OIL

PURCHASES

4% PROPANE

PURCHASES

3% CAR WASH

PURCHASES

3% HEALTH CAREPURCHASES

CORNERSTONECOOP.CRS CORNERSTONEFUEL.CACORNERSTONELIQUOR.CRS