DESCRIPTOR
BUILDING A MORE RESILIENT WORLD 2017 SUSTAINABILITY REPORT
THE FUTURE IS UNKNOWN. PREPARING FOR IT REQUIRES RESILIENCE.
1 DESCRIPTOR THE FUTURE … THE YEAR NATURAL It is opportunity and disruption. Innovation and obsolescence. Calm and crisis. In a word, DISASTERS SHOOK it is unknown.
Preparing for it requires resilience. OUR WORLD
Our collective ability to plan for, respond 2017 was one of the most costly to and recover from the unexpected has years, in both lives lost and property never been more important. We live in a destroyed, that our world has world of extreme weather, diminishing experienced in decades. natural resources and rapidly evolving global tensions. Building more resilient institutions, infrastructure and communities is key to progressing toward a more sustainable planet.
Many of these events were JULY-SEPTEMBER: Southeast Asia was hit exacerbated by changing with one of the worst monsoon seasons climate conditions, producing in history, causing widespread flooding wetter storms, drier forests, throughout Bangladesh, India, Nepal and and unprecedented storm- Pakistan. By September, an estimated 45 million had been affected and more than water flooding. Many more were the result of human error, 1,000 killed. neglect or outright malice.
While 2017 is behind us, the AUGUST: Hurricane Harvey battered Texas, underlying problems of climate Louisiana and parts of Central America, change, extreme weather, causing an estimated $260 billion worth global terrorism, cyber-warfare of damage and hundreds of fatalities. and many other uniquely 21st century threats have just As the United States was still reeling begun to make their mark on from the devastation of Harvey, further east Hurricane Irma began her our world. Anticipating and preparing for the impact they destructive path across the Caribbean will have in the future must be and Florida. a part of every organization’s planning today. At AECOM, we believe that resilience is an SEPTEMBER: Hurricane Maria, a category essential step forward on the five hurricane, made landfall on the island of Dominica. Reaching winds of path to sustainability. 280km/h, causing most damage to the eastern Caribbean, including Puerto Rico, Dominican Republic and The Bahamas.
An earthquake measuring 8.2 on the Richter scale hit the Gulf of Tehuantepec, off the coast of Chiapas, southern Mexico.
OCTOBER: Fires ignited the United States’ Southern California region, charring over 280,000 acres and destroying over 1,000 structures.
2 3 OUR STORY OF RESILIENCE
Resilience is a key pillar in the services we provide our clients and the goals we are pursuing in our own sustainability efforts. While every organization and situation merits its own unique assessment of resiliency considerations and requirements, we believe there are a few, often overlooked principles that bring significant value to every resiliency discussion: IMAGINATIVE, WIDE-RANGING THREAT ANALYSIS; MASSIVE, BOUNDARY-JUMPING PARTNERSHIPS; AND LONG-TERM, HOLISTIC INTEGRATION OF RESILIENCY INTO ALL STRATEGIC PLANNING.
In this report, we share some of our experiences responding to the natural disasters of 2017. We highlight some of our most innovative thinking about building a more resilient world. And we describe some of the inspiring work of our own employees who are taking the concept of resilience to heart and bringing solutions to projects and communities all across the globe.
4 5 TABLE OF CONTENTS RESILIENCE IS KEY TO BUILDING A BETTER WORLD. OUR WORLD IS UNPREDICTABLE AND, AS OUR DIGITAL AND PHYSICAL WORLDS CONVERGE, INCREASINGLY 8 16 22 CHAPTER 1 CHAPTER 2 CHAPTER 3 CONNECTED AND PREPARING FOR DISASTER IN A WORLD SEA LEVEL RISE KNOWS NO BOUNDARIES SOLVING FROM THE INSIDE OUT COMPLEX. WITH THIS OF EXTREMES 18 Leadership Spotlight: 24 About AECOM CONVERGENCE COMES 10 Project Insights: AECOM Connecting our unique teams anticipate and expertise to tackle 25 Environmental Sustainability BOTH OPPORTUNITY respond in the eye of tomorrow’s challenges Darcy the storm Immerman 27 Strategic Partnerships AND RISK. RESILIENCE Scott Lee 20 Project Insights: Working 28 Reducing our IS ABOUT ANTICIPATING 13 Leadership Spotlight: with cities and clients Carbon Footprint Building organizational globally to mitigate the next THE UNKNOWN SO WE resilience for our people and natural disaster 30 Corporate Responsibility clients Claire Bonham-Carter CAN WEATHER THE Mark Niblett 32 Our Corporate Responsibility Highlights Across the Globe UNEXPECTED AND TACKLE 14 Leadership Spotlight: Resilient in the face of a 34 Safety, Health and THE WORLD’S MOST cyber-attack Environment Ronald “Fog” Hahn and COMPLEX CHALLENGES. Bob Butler 35 Wellness and Career Development —MIKE BURKE, CHAIRMAN AND CEO 36 Acting Ethically with Integrity 37 Inclusion + Diversity 38 Enhanced Supply Chain Management 39 Corporate Governance 40 Economic Performance 41 GRI Disclosures
6 DESCRIPTOR DESCRIPTOR
CHAPTER 1 CHAPTER PREPARING FOR DISASTER IN A WORLD OF EXTREMES
In September 2017, Hurricane Maria struck Puerto Rico and propelled 3.4 million residents into a crisis. The Category 5 hurricane raised havoc, downing power lines, destroying homes, knocking out transportation and limiting access to clean water. Building resilience into our institutions, our infrastructure, our systems and our communities has never been more important. This goes beyond standard risk assessment and mitigation planning. It requires a willingness to imagine the unimaginable and create defenses that can weather their occurrence. THE CRISIS HIGHLIGHTED THAT BUILDING RESILIENCE INTO OUR INFRASTRUCTURE AND SYSTEMS HAS NEVER BEEN MORE CRITICAL. FROM NATURAL THREATS TO A POTENTIAL CYBER-ATTACK, RESILIENCE EXPERTS WEIGH IN ON HOW SOME ORGANIZATIONS AND BUSINESSES NOT ONLY SURVIVE, BUT CAN THRIVE IN THE FACE OF ADVERSITY.
8 9 DESCRIPTOR DESCRIPTOR PREPARING FOR DISASTER IN A WORLD OF EXTREMES CHAPTER 1 CHAPTER PROJECT INSIGHTS: AECOM TEAMS ANTICIPATE AND RESPOND IN THE EYE OF THE STORM
Scott Lee from the Water Business Line, shares his insights.
Anticipating Natural Disasters: Acting in Puerto Rico: Advancing our learnings:
Files were backed up to The intensity of Hurricane Maria With the significant wind safeguard client data and was unprecedented and the damage and flooding along the employees were advised to extent of the damage caught U.S. Gulf Coast from Hurricane Harvey, record-breaking seek shelter. many off guard. Now, nearly rainfall throughout Southeast a year after the storm hit, the Texas and the direct impact Hundreds of AECOM staff island’s power grid remains of Hurricane Irma on Puerto members were deployed to fragile and some remote areas Rico, the U.S. Virgin Islands and aid in Puerto Rico’s recovery are still without power. Florida, the need for disaster efforts. From packaging recovery personnel to deploy more than 60,000 meals While the team succeeded to these hard-hit areas, the for survivors to working on confronting many challenges, temporary assignments valuable lessons were learned, need was greater than ever. requiring expertise in civil including the need to invest Throughout hurricane structural, power distribution, in redundant power supplies architecture, water/wastewater and the need for better seasons, AECOM’s emergency management teams and local communication processes to or coastal engineering. resilience teams rigorously proactively check on our people. track weather patterns Our local, cross-functional around areas prone to natural resilience team met daily to To enable an integrated provide support before, during approach to disaster relief disasters. We had boots on the ground in several of 2017’s and after the event. efforts, AECOM has created a most devastating events, virtual Disaster Relief Project Alternative office space was including Puerto Rico. Management Organization identified with reliable power (PMO) that will coordinate and and air conditioning, and server bring together our collective Our procedures are aligned access was quickly restored so expertise to disaster relief with U.S. government and local requirements, and we those who were able to work efforts. Our Disaster Relief PMO have multiple contracts with could do so remotely. will enable cross functional teams to quickly act when the United States’ Federal GoFundMe campaigns were disasters happen and anticipate Emergency Management created to support impacted future disasters whether natural, Agency (FEMA) that allow us to colleagues in need, raising a man-made, or combined. rapidly deploy staff. combined US$350,000 in both employee and corporate giving. 10 11 PREPARING FOR DISASTER IN A WORLD OF EXTREMES CHAPTER 1 CHAPTER United States: In addition and other items through registries at retailers such CARING FOR to raising US$350,000 for colleagues affected by as Target and Amazon hurricanes and other natural and offered non-financial resources, such as spare OUR STAFF disasters in 2017, AECOM LEADERSHIP SPOTLIGHT: employees from all over the rooms, cars and more. world contributed toiletries BUILDING ORGANIZATIONAL RESILIENCE FOR OUR PEOPLE AND CLIENTS
Global Security and Resiliency leader Mark Niblett shares his thoughts to help every organization be agile and efficient when responding to a disruptive event.
identifying threats — whether Organizational resilience is about Crisis preparation is a crucial collaborating to anticipate, protect cyber, sociopolitical, physical or subset of resilience planning. against and manage disruptive environmental — before they hit, Anticipation, a well-understood and swiftly executed recovery plan, and events when they occur. At and creating strong and effective a strong network of collaborative countermeasures that safeguard AECOM, we think about it in two ways: making sure our people are partners are all important elements our data, people, projects and safe and minimizing disruption to in successfully facing down and communities. These teams are composed of representatives our business and our clients. surviving a crisis. The best defense from communications, human is a strong offense, and we have some of the best and brightest Given the nature of the work resources, legal, facilities, finance, AECOM’s nearly 87,000 minds working to help protect our safety, security, information employees deliver globally — from technology, procurement and real people and clients from threats. large infrastructure projects to estate to help anticipate, act and supporting secure government What are three essential elements facilities to designing solutions that to organizational resilience in the learn from disruptive events. can withstand both natural and face of natural disasters? 3. ADVANCE AND COMMUNICATE: man-made disasters — resiliency Have a road map and 1. ANTICIPATE: Whether you are communication protocols in place touches everything we do. pursuing an opportunity, developing How do organizations survive a contractual scope of work or to facilitate timely staff actions adversity? engaging in project planning, start and facilities responses. At AECOM, we have an Operational We enable operational strong by using foresight. Develop Safeguard (Security) Plan as a a risk management plan that baseline document with a view productivity and profit through considers threats unique to your of site protection and associated security and resilience business, operations, region, societal details including journey specialists, technologies and strains and emerging trends. management, communications, processes. We focus on open medical response, disruptive event channels of communication, 2. ACT COLLABORATIVELY: The management and evacuation functional collaboration and bedrock of organizational interdependencies between resilience is your workforce; it is plans. It includes where you go, what to say, how to get help and businesses, our communities, and our cross-functional emergency how to respond — all focused on relevant government agencies and resilience teams who lead the security of our people and to minimize disruptions and during times of disruption. These teams across the globe focus on clients during an emergency. empower recovery efforts. 12 13 DESCRIPTOR DESCRIPTOR PREPARING FOR DISASTER IN A WORLD OF EXTREMES CHAPTER 1 CHAPTER
COMMUNICATION REGULATORY/COMPLIANCE UTILITIES SYSTEMS MANDATES
INFORMATION INDUSTRIAL GOVERNANCE/ LEADERSHIP SPOTLIGHT: TECHNOLOGY CONTROL SYSTEMS POLICIES BUSINESS FACILITY ASSET/INVENTORY SYSTEMS AUTOMATION MANAGEMENT
RESILIENT IN THE FACE OPERATIONAL EMPLOYEE OF A CYBER-ATTACK TECHNOLOGY SAFETY
Critical Infrastructure Protection leaders Ronald “Fog” Hahn and Bob Butler provide recommendations 2. LOOK BEYOND THE FENCE LINE: 3. UPSKILL FOR THE FUTURE: on how organizations can protect Protecting telecommunications, It is no longer sufficient for power supplies and utilities from themselves from the unimaginable. military forces and U.S. state high-end physical and cyber National Guards to be highly threats has become a shared trained in providing physical responsibility. In the United security alone. Supporting cities also require armed forces States, AECOM has partnered to build capability in providing with the Army Cyber Institute, the City of Houston in the state cyber protection. Supporting Infrastructure failures, What are three things an of Texas and the National Guard this, AECOM has developed from poorly designed new organization can do to ensure it to exercise Houston’s ability cybersecurity training which construction to aging roadways, is prepared to manage risks? to respond to a multi-sector incorporates the skills required bridges and dams, are to protect cities in the cases of physical and cyber-attack. The occurring at an accelerating 1. THINK HOLISTICALLY: To avoid a disjointed approach, you need exercise, called Jack Voltaic cyber and physical threat. rate. Persistent, increasingly an integrated risk management 2 (JV2) will run through 2018 disturbing security breaches are and bring together military, civil For more ways government framework that anticipates, avoids plundering the personal data of and commercial stakeholders and business organizations millions of people and assaulting and absorbs evolving threats. can be prepared to manage We developed a to understand the challenges, the critical networks of Converged Safer and approach, which is a mitigate the risks and plan for risks effectively, read Resilience stronger together governments, financial systems risk management framework that the “what if” scenarios. This . and private industry. approaches cybersecurity and ground-breaking work will We live in an era where our operational resilience through a catapult the City of Houston physical and digital worlds holistic lens looking at a range as a state and national leader are rapidly converging. Our of factors. This framework in cyber incident response infrastructure is at constant risk encompasses cyber, wireless and and provide other cities with from cyber-attacks and extreme physical domains — identifying a municipal-level response vulnerabilities and weaknesses weather change. And because framework for how to prepare our networks and systems are within each domain, as well as so thoroughly interconnected aligning critical processes with for cyber-attacks. and interdependent, cities and technologies to ensure business communities need plans in place continuity. We must look at how to ensure they are prepared all of an organization’s systems to minimize the effects when function together. disaster strikes.
14 15 DESCRIPTOR
SEA LEVEL RISE KNOWS CHAPTER 2 CHAPTER NO BOUNDARIES
Climate change affects every corner of our planet. From oceans and deserts to small villages and vast cities, and to the people in those communities and the resources on which they depend, our changing world impacts everything and everyone. This reality is pressuring governments to prepare for the future by driving new regulatory decisions. And it is requiring businesses, entrepreneurs and visionaries to collaborate to solve new challenges and change the way we live, work and travel.
16 17 DESCRIPTOR SEA LEVEL RISE KNOWS NO BOUNDARIES CHAPTER 2 CHAPTER LEADERSHIP SPOTLIGHT: CONNECTING OUR UNIQUE EXPERTISE TO TACKLE TOMORROW’S CHALLENGES
Darcy Immerman, Senior Vice President, Resiliency, shares ways we can all work to inspire, catalyze action, and push along a path to a more resilient future.
How do you fuel innovation? How did we innovate to tackle ecologists, environmental tomorrow’s climate change? scientists, and economists to I call myself a “human router,” I the table to help tackle the connect subject matter In the aftermath of Hurricane experts inside and outside complexity of flood risks from Sandy, the U.S. Department of both storm water and tidal AECOM to transform ideas Housing and Urban surge. Through marrying these into reality. At AECOM, we are Development (HUD) enacted diverse groups, we developed in a unique position to make the Rebuild by Design (RBD) great connections with the multi-benefit, integrated flood Competition in 2013 to promote protection solutions that range of technical expertise development of innovative improved public spaces, that spans across the project resilient projects. reduced impacts to the natural life cycle of design, build, environment, and improved AECOM was chosen to work future resilience for social, finance and operate. with the New Jersey environmental and economic While our organization has Department of Environmental incredible depth of experience Protection to implement the systems. and capability, it is important to Meadowlands project: a RBD Through these robust go beyond our own colleagues real-time iterative study in solutions we are securing our balancing social, environmental and learn from others. This future by developing leaders underlines my belief that and community benefits while innovation is driven by in resiliency. realizing flood risk mitigation and increased resilience for collaboration. This exchange of ideas, research, and growing communities. awareness of the unique urban challenges fuels our solutions We brought our fully-integrated and helps solve our clients’ team of engineers, urban planners, landscape architects, most complex problems.
18 19 DESCRIPTOR SEA LEVEL RISE KNOWS NO BOUNDARIES 2017 RESEARCH HIGHLIGHTS CHAPTER 2 CHAPTER WORKING CHALLENGE SOLUTIONS When both rising sea levels One ABC idea, Tidal Cities, and groundwater flooding proposed floating whole urban are considered cumulatively, neighborhoods in new saltwater WITH CITIES conventional shoreline defense lagoons (embracing the rising strategies often fail to protect waters) and using excavated dirt to build landforms that protect communities from flooding. AND CLIENTS these floating communities.
Designing for urban resilience Sea level rise knows no boundaries, GLOBALLY TO will require us to prioritize so collaboration between collaborative partnerships and jurisdictions, agencies, and break down siloes. communities is essential. Sharing MITIGATE THE goals and collaborating early in the planning process can deliver NEXT NATURAL stronger, more resilient results. The stage for long-term climate Collaborative, working relationships protection must be set with with communities from project DISASTER near-term projects addressing onset is essential to co-design pressing challenges facing locally-embraced solutions that build social and economic existing communities. the urgent issues facing resilience. Inspired by the Rebuild by communities, from rising Design Competition in New York PROJECT INSIGHTS: in response to the devastating housing costs to poor air Click here to see reports from the field. impact of 2012’s Hurricane quality, limited access to jobs, and congested transportation Sandy on the eastern United States, the ecological and transportation Resilient by Design networks. Out of 50 teams who In May 2018, after a five-month officials and local communities in entered, the systems, and strengthens social to sustain their partnerships and (RBD) Bay Area Challenge AECOM-led All design phase, ABC presented was one and economic relationships for move the team’s ideas forward California’s San Francisco Bay Bay Collective (ABC) their findings to the RBD Jury. The proposal includes a network a future of community-driven area brought together cross- toward implementation. of 10 selected. of shoreline-protecting public disciplinary teams that included resilience. ABC’s collaborative spaces, adapts and connects process has inspired city scientists, engineers, planners, The challenge kicked off with designers, and students to a collaborative research phase proactively envision a more in September 2017. Through field tours, teams heard directly resilient and equitable future. from community organizations, The challenge involved residents, and local agencies designing strategies that about the need to pair physical would strengthen the region’s adaptation solutions with resilience to environmental strategies for building social vulnerabilities and address and economic resilience. ABC CAME TO THE CHALLENGE AS A GROUP OF ACADEMIC AND TECHNICAL EXPERTS, BUT THROUGH THIS PROCESS LEFT AS COMMITTED ALLIES IN COMMUNITY-CENTERED RESILIENCE PLANNING.
—CLAIRE BONHAM-CARTER
20 21 CHAPTER 3 De Career and Wellness velopment • Environment and Health Safety, • Corporate Responsibility • Footprint Carbon our Reducing • Partnerships Strategic • Environmental Sustainability • most creative thinkingandinspires theservices we deliver. Resilience iscore to ourwork atAECOM.It’swhowe are andwhatwe do. Itstimulates some ofour OUT INSIDE THE FROM SOLVING Economic Performance • Governance Corporate • Management Chain Supply Enhanced • Diversity and Inclusion • Integrity with Ethically Acting •
DESCRIPTOR SOLVING FROM THE INSIDE OUT
CHAPTER 3 CHAPTER ENVIRONMENTAL OUR VISION To be the world's premier, fully SUSTAINABILITY integrated infrastructure firm. AT AECOM
Healthy societies depend Selected 2017 sustainability CORE VALUES on physical, environmental awards: ADDRESSING TODAY’S and social infrastructure to advance economic • Earned five awards from INFRASTRUCTURE opportunity, protect the the Climate Change NEEDS AND BUSINESS SAFEGUARD environment and improve lives. Business Journal (CCBJ) CHALLENGES REQUIRES AECOM raises the standard for and Environmental sustainability practices in both Business Journal (EBJ), A MUCH MORE HOLISTIC We operate ethically and with integrity, our internal operations and the two leading sources of while prioritizing safety and security in all business intelligence in the APPROACH, ONE THAT delivery of services. environmental industry. IS EVEN DISRUPTIVE that we do. Our commitment to TO ‘BUSINESS AS sustainability goes beyond • AECOM’s Major Infrastructure meeting clients’ requirements Resource Optimization Group USUAL.’ THERE IS NO COLLABORATE and complying with regulations received three awards at BETTER EXAMPLE at the local, state, provincial or the 2017 Business Green OF THIS REQUISITE We build diverse teams that connect national levels. Leaders Awards in London, United Kingdom for its highly Whether we’re reducing innovative approach to THAN THE BALANCE expertise to create innovative solutions. greenhouse gas emissions, optimizing resource use and BETWEEN GROWTH developing new ways to delivering circular models. AND DEVELOPMENT conserve water or promoting INSPIRE renewable energy, our AND ENVIRONMENTAL We develop and celebrate our people, and commitment to sustainability SUSTAINABILITY AND drives innovation, reduces risk RESILIENCY. elevate the communities we touch. and provides attractive project life cycle return on investment. —CRAIG RILEY, DIRECTOR, ANTICIPATE SUSTAINABILITY SERVICES We understand the complexity of our clients’ challenges and help them see further. DELIVER We grow our business through operational excellence and flawless execution. DREAM We transcend the industry by reimagining what is possible – and realizing it. ABOUT AECOM
24 25 SOLVING FROM THE INSIDE OUT CHAPTER 3 CHAPTER STRATEGIC Our work and the Sustainable and opportunity for everyone Development Goals around the world. At AECOM, our work helps clients The United Nations’ 17 Sustainable Development achieve these SDG targets and activates our employees PARTNERSHIPS Goals (SDGs) define global sustainable development to personally engage by priorities and aspirations for participating in our Corporate 2030, and seek to mobilize Responsibility initiatives. We partner with leading 100 Resilient Cities 2017: Addressing the threats global efforts around a organizations to build a more of natural disasters common set of goals and Explore our FY16 Sustainability for a deeper dive into sustainable planet. AECOM is one of a number of targets. The SDGs’ call for Report strategic partners working with worldwide action among To date, AECOM has helped 10 the way AECOM’s work helps CDP cities publish and implement governments, business and to advance each of the 17 100 Resilient Cities (100RC) — civil society to end poverty WE’RE BRINGING pioneered by the Rockefeller resiliency strategies. Following SDGs. Since 2012, AECOM has Foundation. The program this strategy work, CROs and and create a life of dignity TOGETHER OUR partnered with CDP (formerly provides 100 diverse cities with cities have started to change Carbon Disclosure Project) to funding to hire a chief resilience ECOLOGISTS, CIVIL analyze climate change data for their approach to planning. officer (CRO), technical support ENGINEERS, WATER more than 500 cities and report in developing a resilience • San Francisco, California has on the ways urban centers strategy, access to a platform developed a sea-level rise SPECIALISTS, action plan are tackling these changes. In of services and membership in ENVIRONMENTAL 2017, we published an analysis an invaluable global network. • Mexico City, Mexico has ECONOMISTS, of how cities and companies planned and designed “water are collaborating on water ACCOUNTANTS, With 100RC, AECOM parks” — skate parks that governance, as seen on this collaborates with the mayors will act as retention basins in PROCUREMENT infographic . and CROs of 16 global cities to SPECIALISTS AND MANY assess baseline strategies and flooding situations OTHERS TO DELIVER improve resilience. • Melbourne, Australia collaborated with Emergency INVESTMENT GRADE, Management Victoria to REPEATABLE PROCESSES develop a Community THAT LOCK IN NATURE- Resilience Framework for BASED RESILIENCE FOR Emergency Management LONG-TERM BUSINESS SUSTAINABILITY.
—ROBERT SPENCER, DIRECTOR, SUSTAINABLE DEVELOPMENT, EMIA STUDIES HAVE SHOWN THAT ANY DOLLAR SPENT BEFORE A NATURAL DISASTER OCCURS IS SIX TIMES MORE EFFECTIVE THAN THE DOLLAR SPENT AFTERWARDS. NEW ORLEANS IS STILL RECOVERING FROM HURRICANE KATRINA, OVER A DECADE LATER, AND IT WILL SIMILARLY TAKE DECADES FOR PEOPLE TO RECOVER IN TEXAS, FLORIDA AND PUERTO RICO. WITH 100RC, WE’RE HELPING CITIES PREPARE FOR THESE CHALLENGES BEFORE THEY OCCUR, WHICH WILL BETTER EQUIP THEM TO WEATHER ANY FUTURE STORMS.
STEPHEN— ENGBLOM, SENIOR VICE PRESIDENT AND GLOBAL CITIES DIRECTOR
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SOLVING FROM THE INSIDE OUT
CHAPTER 3 CHAPTER REDUCING OUR 2016 2017 Our stakeholders expect us are highly varied in form. To to operate sustainably and prevent pollution, conserve Scope 1: CARBON to continuously improve resources and lead in Fleet Fuel 52,616 25,482.57 environmental sustainability, our efforts to reduce our we regularly measure and carbon footprint. As a large, FOOTPRINT multinational, professional report on our progress to MT CO2E MT CO2E services firm, our sources lower our GHG emissions. of greenhouse gas (GHG) Scope 2:
20 BY 2020: 20 BY Electricity and 178,728 162,222.81 Office Heating Fuel MT CO2E MT CO2E HOW WE MEASURE WE ACHIEVED OUR 20 PERCENT REDUCTION To strengthen our GHG monitoring and improve the data OF GREENHOUSE GAS collection and processing demands involved in measuring our emissions, we began using Fig Bytes, a leading EMISSIONS BY 2020 Total CO2e TARGET AHEAD OF 187,705.38 reporting software tool. SCHEDULE. AS WE CONTINUE TO REDUCE MT CO2E SCOPE 1: OUR EMISSIONS YEAR OVER YEAR, WE ARE Total $Million Direct emissions from fleet vehicles IN THE PROCESS OF (fuel) and heavy equipment EVALUATING A NEW Revs 10.34 SCIENCE-BASED GHG REDUCTION TARGET TO SCOPE 2: SUPPORT OUR OBJECTIVE Indirect emissions from facilities OF CONTINUOUS AECOM SET A TARGET OF A 20 PERCENT REDUCTION IN SCOPE 1 AND 2 GHG (purchased electricity or other sources IMPROVEMENT. EMISSIONS BY 2020. THIS TARGET IS SET ON 2015 OPERATIONS AS ITS of energy) —MIKE HOFFMAN, DIRECTOR OF BASELINE, NORMALIZED BY REVENUE. ENTERPRISE SUSTAINABILITY SCOPE 3: % REDUCTION SINCE 2015 BASELINE Scope 1 + 2 CO2 e= - 43.8% Total annual mileage from business air Scope 1+2 $MM = - 43.4% and ground travel
We focus our efforts on initiatives to consolidate our real estate footprint and upgrade to more fuel-efficient vehicles and heavy equipment. Data applies to our offices worldwide and the fuel used for projects where AECOM owns or leases equipment.
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SOLVING FROM THE INSIDE OUT CHAPTER 3 CHAPTER 2017 HIGHLIGHTS
CORPORATE RESPONSIBILITY In 2017, we introduced colleagues directly impacted organizations such as Blueprint for a Better by Hurricanes Harvey, Irma and Engineers Without Borders World, our new corporate Maria, and the earthquake in USA and Water for People, AT AECOM responsibility platform to align Mexico City, Mexico. offering up to US $100,000 to each organization through our giving efforts with our corporate matching of three pillars. The platform was • AECOM employees inspired by the tangible impact contributed over US $500K employee donations. our employees make and through employee donations In 2018, we are excited to highlights how we are using and corporate matching funds. continue supporting employee our expertise to create a safer, • We supported causes more secure and more resilient participation in skills-based including clean water volunteer opportunities and to world for the future. and sanitation; women’s promote volunteerism across employment; science, Community begins at home our global offices through our and our people rallied when technology, engineering, arts Blueprint Travel Grant program. natural disasters struck the and mathematics education; and environmental opportunity for the leaders areas where we live and work. Aligned with our core values stewardship, to name a few. Learn more: MISSION and strategic priorities, of tomorrow and to protect In 2017 our employees were • We reinforced our we deliver safe and secure our planet so that, together, the first to reach out, helping AECOM Corporate infrastructure to those we can realize our dream of a to raise US $350,000 to aid partnerships with nonprofit Responsibility who need it most, to create better world.
PILLARS
OPENING CREATING PROTECTING DOORS OPPORTUNITY TOMORROW
Deliver access to safe and Help develop the next Use our expertise to lessen secure infrastructure so those generation of the world’s our impact on the planet to who need it most have a place problem solvers and ensure help communities prepare for to call home and resources the future future leaders reflect the to thrive diversity of the world we live in OUR COMMITMENT TO CORPORATE RESPONSIBILITY STARTS WITH OUR EMPLOYEES. OUR EMPHASIS ON SUPPORTING OUR SKILLED EMPLOYEES TO PROVIDE PRO • Public Spaces BONO SUPPORT TO NONPROFIT ORGANIZATIONS AROUND FOCUS AREAS • Vocational Training/Reskilling • Homelessness & Housing for for Adults THE WORLD DEMONSTRATES THAT WE’RE THINKING Displaced • Economic Opportunity for BEYOND WRITING THE BIGGEST CHECKS TO NONPROFIT Women • Urbanization ORGANIZATIONS. WE’RE FOCUSED ON FIGURING OUT WAYS TO CONTRIBUTE TO LONG-TERM STRATEGIC SOLUTIONS TO • Disaster Relief • Environmental Stewardship PRESSING PROBLEMS IN THE COMMUNITIES AROUND US. • Veterans Employment and • Green Design & Building Mentoring (U.S.) • Clean Energy, Water & Sanitation GRACE CHUNG, GLOBAL DIRECTOR OF CORPORATE RESPONSIBILITY • STEAM Education and — Design Thinking • Disaster Preparedness
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SOLVING FROM THE INSIDE OUT CHAPTER 3 CHAPTER HIGHLIGHTS OF OUR CORPORATE AECOM donated in-kind services for the building of a playground for refugee and local children in Mucenieki. Employees RESPONSIBILITY ACROSS THE GLOBE provided pro bono project management and coordination services, technical supervision, safety consultation, on-site Whether volunteering time, raising funds or lending professional expertise to develop next generation support and construction assistance. leaders, AECOM employees contributed in 2017 to build a better world.
As part of our STEM Ambassador AECOM employees participated in United program, AECOM employees in London Way of Greater Los Angeles’ 11th Annual participated in the 2017 “Engineering Your HomeWalk, the only 5K family run/walk Future” career awareness event. dedicated to raising public awareness and Organized by the Institution of Mechanical funds to end homelessness in Los Angeles, Engineers and the Institution of Engineering and Technology, the event AECOM employees partnered with the California. AECOM supported this event as introduced more than 70 senior high Engineering Girls of Turkey initiative, a a VIP sponsor. school students studying science, math program that provides mentorship and scholarships to young girls studying AECOM employees participated as or engineering to careers in engineering. facilitators and subject-matter experts in engineering. Our employees volunteered a Resilience Academy Workshop held in as mentors and AECOM Turkey provided the students with internship opportunities Bangkok to assist eight cities across Asia to come up with community-led projects to further introduce them to the profession. addressing resilience and sustainability.
AECOM committed US $50,000 to support Friends of LA River, a Los Angeles, California-based nonprofit dedicated to ensuring the accessibility and sustainability An AECOM team in Christchurch spent an afternoon planting trees in the nearby Port of the Los Angeles River. AECOM donated US$10,000 to STEM Hills, a range of hills where wildfires burned NOLA, an organization in New Orleans, through 5,130 acres of bush in February Louisiana that introduces kids to 2017. A group of nine AECOM employees science, technology, engineering and joined 70 other volunteers to plant new trees, working hard to give them the best mathematics (STEM) AECOM committed to take on at least 10 indigenous student interns each year for the possible start. AECOM employees built a community next decade. The company partnered with library out of mud in the Kibaoni village CareerTrackers, a nonprofit organization on the eastern slope of Mt. Kilimanjaro. that creates internship opportunities for Utilizing available soil as a sustainable indigenous students and helps to create a building material, the project used traditional construction methods and encouraged more diverse working population. local and international participation to improve the quality of housing.
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CHAPTER 3 CHAPTER SAFETY, HEALTH WELLNESS AND AND ENVIRONMENT CAREER DEVELOPMENT SH&E
What we believe What we believe 2017 wellness highlights
We safeguard our people, We believe that focusing on • Expanded programs and projects and reputation by well-being brings out the best in resources available to everything we do – personally WHEN YOU’RE AT YOUR striving for zero employee AECOM employees and positioned ourselves for the injuries and illnesses, while and professionally. Helping BEST, YOU BRING YOUR operating and delivering employees and their families launch of a global well-being BEST SELF TO EVERYTHING prioritize their well-being is part our work responsibly and program in 2018. YOU DO – YOU BUILD sustainably — from design and of AECOM’s Culture of Caring and supports our Safeguard • Set the stage for two RESILIENCE, MANAGE construction to the operation important initiatives planned and management of projects core value. We also know that a STRESS AND ENGAGE Why is safety mission critical at AECOM? holistic approach to employee for 2018: Europe, Middle INTELLECTUALLY. worldwide. Hear insights from our Chief Safety Officer, Andy Peters. well-being is a business East, India and Africa Mental imperative as we compete Health Week and Global to recruit and retain a highly —BERNIE KNOBBE, VICE PRESIDENT Well-Being Week. GLOBAL BENEFITS skilled workforce.
THE LEADERS I INTERACT WITH AT AECOM ARE NOT 2017 HIGHLIGHTS ONLY INFORMED ABOUT “Nine AECOM’S SH&E PROGRAM, AECOM’s FY17 Safety Report THEY ARE EMPOWERED Ways to Zero” explains our nine Life- Preserving Principles and the state-of- TO MAKE CHANGES, TO the-art techniques we use to keep our CONSTANTLY PUSH THEIR people safe both on and off the job. TEAMS FOR IMPROVEMENT AND TO STRIVE FOR SAFETY Since 2010, we have decreased our “Lost Workday Case Rate” by 93 EXCELLENCE FOR BOTH percent and “Total Recordable Incident THEMSELVES AND THEIR Rate” by 74 percent. CLIENTS. Three projects received a perfect Project Safety Review Score for the —NASH DOYLE, DIRECTOR OF SAFETY first time in AECOM history. HEALTH & ENVIRONMENT, APAC 2017 career development education and skills needed • Introduced StandOut, highlights a strengths-based tool for engineers at all levels to designed by The Marcus Professional development grow their careers. opportunities and career Buckingham Company to build engaged, high- • Added thousands of advancement are powerful technical learning courses to catalysts for employee performing teams. our global learning platform, satisfaction. We provide our • Launched the Career AECOM University: equipping employees with tools and Blueprint, a career capability employees with learning resources to reach their full inventory that highlights opportunities to keep them the experience, exposure, potential. ahead of the industry curve.
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SOLVING FROM THE INSIDE OUT CHAPTER 3 CHAPTER WHAT WE BELIEVE INCLUSION + DIVERSITY IS LESS PROGRAM, ACTING ETHICALLY WITH INTEGRITY MORE MINDSET. AECOM EMPLOYEES, CLIENTS, VENDORS AND THE GLOBAL
Acting ethically and with and reputation for flawless COMMUNITIES WE SERVE integrity is essential for execution. NEED TO FEEL INCLUDED our teams to think big and solve complex challenges, Initiatives IN MULTIPLE ASPECTS OF collaborate to innovate OUR WORK. IF WE DON’T Our seventh annual Ethics what’s next and deliver Week celebration presented FOCUS ON INCLUSION AS A transformational outcomes. opportunities for employees KEY PART OF HOW WE DO to elevate their awareness of AS A GLOBAL ORGANIZATION Promoting a values-based BUSINESS, WE LOSE. culture helps safeguard our ethical behaviors, company WITH A PRESENCE IN MORE people and the company policies and compliance resources through interactive THAN 150 COUNTRIES, —KIM CAMACHO, DIRECTOR, INCLUSION & from potential wrongdoing DIVERSITY and strengthens our brand workshops, games and TRUST IS PARAMOUNT. activities. OUR ETHICAL VALUES ARE A CORNERSTONE TO OUR INCLUSION DAY-TO-DAY ACTIVITIES, + ESPECIALLY WHILE DIVERSITY MAINTAINING TRUST WITH OUR CLIENTS, BUSINESS What we believe • Leveraging the diversity of PARTNERS AND THE our people to lead in the We are fostering a culture of marketplace and engaging COMMUNITIES WHERE WE inclusion + diversity, where the our business and clients in best and brightest can grow discussions around OPERATE. and thrive, and encourage collaboration and creative inclusion and diversity. —MONIQUE NGUYEN, DIRECTOR, thinking to solve the most Initiatives ETHICS & COMPLIANCE complex problems. We have developed a strategic We are increasing our 2017 HIGHLIGHTS 2017 HIGHLIGHTS roadmap that commits to: capabilities by:
environmentally responsible • Building leadership Established a Global Inclusion AECOM adopted the • Creating a respectful and accountability through + Diversity Community of inclusive workplace that Practice to enhance Electronic Industry Citizenship and conducted ethically. measurement draws diverse professionals collaboration and share best Coalition Code of Conduct, 100 percent of employees which establishes standards together — women, veterans • Designing programs to demonstrated their practices across the company. to ensure working conditions and minority groups — to attract and retain women commitment to upholding the in the electronics industry encourage their unique and minorities Scored 100 percent on Human supply chain are safe, highest standards of conduct by talents and inspire students workers are treated with Rights Campaign Foundation’s completing the required AECOM to work in the industry. • Offering leadership respect and dignity and Corporate Equality Index; Code of Conduct training. development opportunities acknowledged as Best Place business operations are • Building capabilities and learning opportunities that to Work for LGBTQ Equality. drive inclusion + diversity across the company. 36 37
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CHAPTER 3 CHAPTER CORPORATE ENHANCED COMMUNICATING AECOM’S GOVERNANCE COMMITMENT TO PURCHASING SUPPLY CHAIN GOODS AND SERVICES IN A SUSTAINABLE MANNER CONTINUES What we believe TO BE A KEY PRIORITY FOR We are guided by our core MANAGEMENT PROCUREMENT TEAMS WORLDWIDE. values and corporate policies SELECTION AND RETENTION OF and practices that ensure the SUPPLIERS IS INCLINED TOWARD company is managed in our What we believe goods and services ethically shareholders’ best interests. In addition, we are committed with full consideration of local THOSE COMMITTED AND ABLE TO to upholding sound principles Our commitment to legislation, environmental, ALIGN WITH AECOM’S CORE VALUES. of corporate governance and sustainable procurement social, ethical and economic 2017 2016 2015 to meeting the requirements drives us to work with a issues throughout the whole STEWART DALTON, SENIOR of various regulatory diverse network of suppliers purchasing and product life — to make a positive impact PROCUREMENT MANAGER, EMIA institutions, including the cycle. governing laws of the markets EXECUTIVE TEAM across global markets. By building long-term Initiatives in which we operate. collaborative partnerships, Number of Our Supplier Code of Conduct AECOM’s Board of Directors Executive we seek to use AECOM’s is comprised of industry 11 9 10 strategic position to support outlines what we expect from leaders and experts who are our supply chain partners. To Officers and influence our suppliers to ensure that suppliers meet highly respected for their extend the impact of AECOM’s accomplishments as well as sustainable procurement our expectations, evidence Percentage actions throughout their own of good business compliance their values. of Female and technical competency Executive 27% 22% 20% supply chains. Our company leadership is required. By collaborating represents some of the best We are committed to with our suppliers and internal Officers safeguarding a culture operations teams, we advance executives in our industry. Many have built their careers our own sustainability values defined by integrity. We have a responsibility to ensure, as and drive market and local at AECOM, reflecting our company’s career far as practically possible, BOARD OF DIRECTORS community transformation. development opportunities, that our suppliers provide and have significantly contributed to our business Number of Board and organizational growth. 10 10 13 Members 2017 HIGHLIGHTS Percentage of In South Africa, in support AECOM UK & Ireland was Introduced AECOM’s of the country’s vision Independent Sustainable Procurement named a Rated Supplier of inclusive economic 80% 80% 77% Policy, and it is now used on the Chartered Institute Directors of Procurement & Supply widely internally and externally growth, AECOM SA Ltd to communicate our continual revised its Management of Sustainability Index for the Third Parties procedure to Percent of third year in a row. commitment to sustainability. demonstrate its commitment Directors toward Broad-Based Black That are 20% 20% 15% Economic Empowerment and Women transformation.
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CHAPTER 3 CHAPTER GRI DISCLOSURES ECONOMIC This 2017 Sustainability Report contains Standard Disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. The GRI G4 sustainability reporting framework informs the process by which the AECOM Sustainability Program PERFORMANCE team identifies and prioritizes what we include in the sustainability report. AECOM will continue to improve our alignment in future reports. AECOM is also a signatory of the United Nations Global Compact, and this report represents our 2017 Communication on Progress.
This report was developed with guidance and input from AECOM’s Sustainability Report Advisory Board, a body of sustainability imagine the exceptional and AECOM’s accomplishments Click here to view AECOM’s and business leaders from around the company representing the company’s business groups, geographies, and functional areas. and strong performance in , which deliver it more efficiently. 2017 Annual Report An independent team of internal reviewers has audited the report to check that the information and facts presented in it reflect fiscal year 2017 reflect our reflect on our progress in our performance. progress in building a company Our competitive advantages building a company that offers are evident in our strong unparalleled value in our that offers significant value in our industry. Our ability to financial results. We: industry and financial results. integrate design, build, finance • Generated a record of more and operate (DBFO) services through the full life cycle than US$23 billion of wins in of a project, along with our the year. experience across a range of • Increased our backlog by 11 global markets, means we can percent to an all-time high of nearly US$48 billion.
WE HAVE ESTABLISHED AN INDUSTRY-LEADING TRACK RECORD OF GENERATING STRONG CASH FLOW, WHICH REFLECTS THE BENEFITS OF OUR DIVERSE BUSINESS MODEL AND OUR CULTURE FOCUSED ON CASH MANAGEMENT THROUGHOUT THE LIFE CYCLE OF A PROJECT.
—TROY RUDD, CHIEF FINANCIAL OFFICER
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CHAPTER 3 CHAPTER DISCLAIMERS
Scope of report
This report covers data and activities for the past several y ears to provide a clearer picture of our performance. This re port covers our owned or operated businesses and does not address the performance of our suppliers, contractors or partners unless otherwise noted. We have prepared the information and case studies sole ly to provide a general overview of our sustainability activities and this report should not be used by anyone making an investmen t decisions. In addition, the information in this report is summarized and is not a complete description of all of our activities; therefore, we have made qualitative judgments as to certain information to include that could be determined to be inaccurate or incomplete. We did not employ any third party firm to audit this report. Forward-looking information
This report contains forward-looking statements relating to the manner in which we intend to conduct our activities based on our current plans and expectations. These statements are not promises of our f uture conduct or policy and are subject to a variety of uncertainties and other factors, many of which are beyond our control. Th erefore, the actual conduct of our activities, including the development, implementation or continuation of any program, pol icy or initiative discussed in this report, may differ materially in the future. The statements of intention in this report speak only as of the da te of this report and we do not undertake to publicly update any statements in this report. As used in this report, the term “AECOM ” and such terms as “the company,” “our,” “its,” “we,” and “us” may refer to one or more of AECOM’s consolidated subsidiaries or affil iates or to all of them taken as a whole. All these terms are used for convenience only and are not intended as a precise description of any of the separate entities, each of which manages its own affairs. For more information please email [email protected].
42 43 About AECOM AECOM is built to deliver a better world. We design, build, finance and operate infrastructure assets for governments, businesses and organizations in more than 150 countries. As a fully integrated firm, we connect knowledge and experience across our global network of experts to help clients solve their most complex challenges. From high-performance buildings and infrastructure, to resilient communities and environments, to stable and secure nations, our work is transformative, differentiated and vital. A Fortune 500 firm, AECOM had revenue of approximately $18.2 billion during fiscal year 2017. See how we deliver what others can only imagine at aecom.com and @AECOM.
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