Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Governance Responsibility

Environmental Achievements

• Reduced total water consumption by approximately 6% as compared to 2018
• Reduced Site Energy Source Intensity and Source Energy Source Intensity by approximately 5.6% and 5.7%, respectively, as compared to 2018
• Aviation segment developing a comprehensive paper, packaging and plastic recycling program
• Fleet segment diverted approximately 289 net tons of packing and shipping material from landfills
• Federal and Defense Services segment sustainably disposed of approximately 26,000 pounds of universal waste and hazardous waste

Social Achievements

• Recordable Incident Rate (RIR) of 1.13 (benchmark 1.50, industry average 2.80)
• Days Away From Work (DART) of 0.79 (benchmark 1.0, industry average 1.50)
• Workforce is approximately 31% female and 69% male; 42% of employees identify with a racial minority; 17% are Veterans
• Implemented new safety protocols and procedures in response to the COVID-19 pandemic
• Formalized VSE Inclusion Policy and implemented a round-table series to encourage open dialogue and feedback amongst employees

Governance Achievements

• Implemented a comprehensive governance structure for managing cybersecurity, privacy and data protection risks
• Information security program aligned with NIST, CIS, and CMMC frameworks
• Robust breach response protocols
• Independent third-party assessment of information security program
• Cybersecurity awareness training for employees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Ongoing effects of the COVID-19 pandemic

Mitigation Strategies

• Fleet segment worked to offset the effects of supply chain disruptions
• Implemented new safety protocols and procedures in response to the COVID-19 pandemic
• Aviation segment exceeded revenue and adjusted operating profit targets despite pandemic

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable practices (waste reduction, energy conservation)
• Reduced environmental impacts (material reuse)
• Energy and water efficiency
• Employee talent attraction, development, and retention
• Workforce diversity and inclusion
• Safe and healthy work environment
• Community engagement
• Board diversity and independence
• Cybersecurity and data protection
• Third-party anti-corruption
• Compliance and ethical behavior

Environmental Achievements

• Launched inaugural Environmental, Social, and Governance Report
• Reduced environmental impacts by reusing materials and working with vendors to restore parts

Social Achievements

• Implemented Total Rewards strategy focusing on compensation, benefits, recognition, well-being, and learning and development
• Integrated inclusion and diversity into company culture
• Supported employee participation in charitable initiatives and community engagements

Governance Achievements

• Nominated a Board with a majority of independent directors
• Held executive sessions of independent directors
• Constituted board committees with only independent members
• Managed cybersecurity and data protection risks through Board oversight and monthly security reviews

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Adherence to Supplier Code of Conduct

Climate-Related Risks & Opportunities