LRQA Independent Assurance Statement

Relating to Novanta’s GHG Assertion for the Calendar Year 2022

This Assurance Statement has been prepared for Novanta in accordance with our contract.

Terms of Engagement

LRQA was commissioned by Novanta, Inc. (Novanta) to provide independent assurance of its greenhouse gas (GHG) emissions inventory for the calendar year 2022 (CY22) against the assurance criteria below to a limited level of assurance and materiality of the professional judgement of the verifier using LRQA’s verification procedure and ISO 14064 – Part 3 for greenhouse gas emissions. LRQA’s verification procedure is based on current best practise and is in accordance with ISAE 3000 and ISAE 3410.

Our assurance engagement covered Novanta’s global operations and activities under its financial control, and specifically the following requirements:

Verifying conformance with:
- Novanta’s reporting methodologies for the selected datasets;
- World Resources Institute / World Business Council for Sustainable Development Greenhouse Gas Protocol: A corporate accounting and reporting standard, revised edition (otherwise referred to as the WRI/WBCSD GHG Protocol) for the GHG data*.
Evaluating the accuracy and reliability of data and information for only the selected indicators listed below:
- Direct (Scope 1) and Energy Indirect (Scope 2) emissions.

LRQA’s responsibility is only to Novanta. LRQA disclaims any liability or responsibility to others as explained in the end footnote. Novanta’s responsibility is for collecting, aggregating, analysing and presenting all the data and information within the Inventory and for maintaining effective internal controls over the systems from which the Inventory is derived. Ultimately, the Inventory has been approved by, and remains the responsibility of Novanta.

* http://www.ghgprotocol.org/

LRQA’s Opinion

Based on LRQA’s approach nothing has come to our attention that would cause us to believe that Novanta has not, in all material respects:

Met the requirements of the criteria listed above; and
Disclosed accurate and reliable performance data and information as summarized in Tables 1 and 2 below.

The opinion expressed is formed on the basis of a limited level of assurance* and at the materiality of the professional judgement of the verifier.

* The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Summary of Novanta’s Key Data for CY22:

Scope of GHG Emissions	Category	Quantity	Unit
Scope 1	Direct	1,360	MT CO₂e
Scope 2	Location-Based¹	6,758	MT CO₂e
Scope 2	Market-Based¹	4,854	MT CO₂e
Other	Biogenic Emissions	72	MT CO₂e
Note 1: Scope 2, Location-based and Scope 2 Market-based are defined in the WRI/WBCSD GHG Protocol, 2015

Novanta’s GHG Emissions for CY22:

GHG Emissions¹	CO₂²	CH₄	N₂O	HFCs	PFCs	SF₆	NF₃	Unit
Market-based	6,025	1.62	0.24	0.04	0	0	0	MT
Location-based	7,999	0.48	0.10	0.04	0	0	0	MT
Note 1: Greenhouse gases covered by the Kyoto Protocol; these volumes do not include Global Warming Potentials. Note 2: CO2 emissions exclude biogenic CO2 emissions (stated in first Table).

LRQA’s Approach

LRQA’s assurance engagements are carried out in accordance with our verification procedure. The following tasks were undertaken as part of the evidence gathering process for this assurance engagement:

interviewing relevant employees of the organization responsible for managing GHG emissions data and records;
assessing Novanta’s data management systems to confirm they are designed to prevent significant errors, omissions or mis-statements in the Inventory;
reviewing estimation methodologies and recalculating emissions; and
verifying historical GHG emissions data and records at an aggregated level for the calendar year 2022.

LRQA’s Standards, Competence, and Independence

LRQA implements and maintains a comprehensive management system that meets accreditation requirements for ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition and ISO/IEC 17021 Conformity assessment – Requirements for bodies providing audit and certification of management systems that are at least as demanding as the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.

LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent.

Signed
Dated: 14 March 2023
Kate Pagan
LRQA Lead Verifier
On behalf of LRQA, 1330 Enclave Parkway, Suite 200 Houston, TX 77077
LRQA reference: UQA00002264 / 5786790

LRQA Group Limited, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to in this clause as ‘LRQA’. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.

The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into other languages. This Assurance Statement is only valid when published with the Inventory to which it refers. It may only be reproduced in its entirety.