Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Integrity
• Teamwork
• Excellence
• Environmental Stewardship
• Community and Social Services
• Employee Well-being
• Anti-corruption
• Climate Change
• Energy Efficiency
• Renewable Energy
• Human Rights
• Diversity & Inclusion

Environmental Achievements

• Reduced energy consumption by 7.5 million kilowatts globally
• Recycled well over 3.1 million pounds of assorted bulk materials
• Saved 577,000 gallons of water through water-saving measures
• Received no Notices of Violation for environmental issues for the fourth consecutive year

Social Achievements

• Launched Fluor University, a comprehensive training program
• Implemented a new, globally consistent Performance Appraisal System
• Contributed $7 million to community organizations and educational initiatives
• More than 43,000 employee volunteer hours toward 200 team service projects

Governance Achievements

• Established a Sustainability Committee with representation from senior executive management
• Updated Bylaws to provide for majority voting in uncontested director elections
• Named one of the World’s Most Ethical Companies by Ethisphere Magazine

Climate Goals & Targets

Environmental Challenges

• Ongoing labor shortages in the engineering and construction industry
• Global economic crisis impacting expenses and costs
• Corruption risks in global operations
• Climate change and its impact on business and regulation

Mitigation Strategies

• Long-term strategic relationships with universities and technical colleges
• Proactive steps to reduce expenses and contain costs
• Extensive anti-corruption program including training and collective action
• Voluntary global carbon footprint program to identify reduction strategies

Supply Chain Management

Supplier Audits: Evaluations for safety, compliance, quality, environmental and anti-bribery performance on all suppliers and subcontractors with whom we contract over $500,000 of business

Responsible Procurement

• Adherence to local laws and regulations
• Adherence to Fluor policies and procedures on safety, health, environment, and ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Econamine FG+ carbon capture technology
• Powerspan ECO multi-pollutant process

Awards & Recognition

• World’s Most Ethical Companies
• FORTUNE magazine’s World’s Most Admired Companies
• Forbes magazine’s list of America’s Most Trustworthy Companies
• Energy and Environmental Excellence Award

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Governance
• Employees & Workplace
• Health, Safety & Environment
• Community & Social Service

Environmental Achievements

• Reduced energy consumption by more than 8.4 million kilowatt-hours through various energy efficiency initiatives.
• Recycled over 2.4 million pounds of assorted bulk materials and 50,400 gallons of liquids.
• Reduced water consumption by 37 percent over the past five years at Savannah River Site.
• No Notices of Violation for environmental issues and no resulting monetary or other sanctions for non-compliance for the fifth consecutive year.

Social Achievements

• Implemented a new companywide sustainability procedures manual.
• Continued to enhance the quality of the work environment, including improving the company’s performance-assessment process.
• Maintained commitment to developing and supporting sustainable communities and charitable giving.
• Supported numerous universities and scholarship programs, contributing over $1 million.
• Employees contributed $380,000 (matched by the Foundation to $660,000) to 229 elementary/secondary schools and universities through the Matching Gifts to Education Program.
• Combined efforts of employees in 33 locations positively impacted the lives of more than 10,000 children worldwide through Building Futures.

Governance Achievements

• Named one of the “100 Best Corporate Citizens” by the Corporate Responsibility Officers Association.
• Named one of the “World’s Most Ethical Companies” by Ethisphere Magazine for the third consecutive year.
• Honored for having the “Best Overall Governance, Compliance and Ethics Program” for small- to mid-cap companies by Corporate Secretary magazine.
• Strengthened internal reporting mechanisms in preparation for a “Speaking Up” campaign.

Climate Goals & Targets

Environmental Challenges

• Global recession impacting workforce, necessitating employment reductions.
• Addressing the global energy challenge while balancing economic growth, social development, and environmental protection.

Mitigation Strategies

• Handled employment reductions with compassion and respect.
• Implemented flexible staffing strategies, including redeployment of employees.
• Maintained commitment to sustainability initiatives despite economic challenges.
• Implemented energy efficiency and conservation measures to reduce carbon footprint.

Supply Chain Management

Responsible Procurement

• Business Conduct and Ethics Expectations for Suppliers and Contractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Awards & Recognition

• 100 Best Corporate Citizens
• World’s Most Ethical Companies
• Best Overall Governance, Compliance and Ethics Program
• Best Clean Energy Company of the Year

Environmental Metrics

ESG Focus Areas

• Economic growth
• Social progress
• Environmental stewardship

Environmental Achievements

• Reduced energy consumption by more than 10.3 million kilowatt-hours or 1.3 kilowatt-hours per square foot through various energy-efficiency and conservation initiatives.
• Recycled almost 3.5 million pounds of assorted bulk materials and over 1.8 million pounds of paper.
• Received no Notices of Violation for environmental issues and no resulting monetary or other sanctions for non-compliance for the sixth consecutive year.

Social Achievements

• Fluor and its Foundation contributed nearly $6.2 million to community organizations, educational initiatives, and programs in 17 countries.
• Employees volunteered more than 35,000 hours on community service projects, valued at $732,000.
• Successfully transitioned eight Forward Operating Bases (FOBs) in Southern Afghanistan and 62 FOBs in Northern Afghanistan, including HR activities for nearly 5,000 individuals and employment offers/training for nearly 4,000 new employees.

Governance Achievements

• Named one of the World’s Most Ethical Companies for the fourth consecutive year by Ethisphere magazine.
• Updated Code of Business Conduct and Ethics for employees, including a supplement for those serving the U.S. Government.
• Board of Directors focused on Board independence, leadership, composition, and shareholder rights.

Climate Goals & Targets

Environmental Challenges

• Global utilization of natural resources and the risks inherent in natural resource management.
• Continued global financial challenges affecting some Fluor businesses.

Mitigation Strategies

• Maximized workforce planning by sharing resources across businesses to meet staffing and client needs and retain talent.
• Supported the Responsible Resource Development Initiative launched by the World Economic Forum.

Supply Chain Management

Responsible Procurement

• Business Conduct and Ethics Expectations for Suppliers and Contractors
• U.S. Supplier Diversity Program (over $492 million spent with small, minority, and woman-owned businesses)

Climate-Related Risks & Opportunities

Transition Risks

• Additional environmental regulations concerning greenhouse gas emissions or cap and trade legislation.

Opportunities

• Increased pace of development of carbon capture and storage projects, alternative energy facilities, and clean fuel projects.

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Certifications: ISO 14001:2004, OHSAS 18001:2007

Awards & Recognition

• Ethisphere Institute’s World’s Most Ethical Companies
• Numerous other awards related to safety, community service, and corporate responsibility (see page 2.10 of the report)

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Governance
• Employees & Workplace
• Health, Safety & Environment
• Community & Social Service

Environmental Achievements

• Reduced energy consumption by more than 13 million kilowatt-hours or 1.6 kilowatt-hours per square foot.
• Recycled more than 1 million pounds of assorted bulk materials, 94,000 gallons of liquids, and more than 900,000 pounds of paper.
• Conserved more than 460 tons of paper through recycling and double-sided printing.
• Achieved an impressive 34-percent reduction in normalized carbon footprint over a six-year period.

Social Achievements

• Fluor Corporation and the Fluor Foundation contributed nearly $6.1 million to community organizations, educational initiatives, and programs in 17 countries.
• More than 36,800 employee volunteer hours toward team service projects.
• Launched a new Alumni Network to connect with former employees for recruiting purposes.
• Updated Performance Assessment and Career Development Plan system, with 97% of eligible employees assessed.

Governance Achievements

• Fluor was recognized by FORTUNE magazine as one of the World’s Most Admired Companies and, for the fifth consecutive year, by Ethisphere magazine as one of the World’s Most Ethical Companies.
• Implemented two shareholder initiatives: declassifying the Board and replacing supermajority voting requirements with a majority voting standard.
• Strengthened Board independence.

Climate Goals & Targets

Environmental Challenges

• Global corruption in the industry.
• Continuing to reduce emissions despite economic recovery and increased project activity.
• Maintaining a strong safety record while increasing work hours.

Mitigation Strategies

• Active leadership roles in anti-corruption initiatives (B20, G20, APEC, PACI, CAFP).
• Energy-efficiency initiatives (retrofits, upgrades, space consolidation).
• Robust risk-management programs (MS20) and proactive safety measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Business Conduct and Ethics Expectations for Suppliers and Contractors; due diligence in supplier selection; monitoring for red flags.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increased compliance costs due to new environmental regulations; potential reduction in demand for services due to client project delays or cancellations.

Opportunities

• Increased demand for carbon capture and storage projects, alternative energy facilities, and clean fuel projects.

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (South Africa), OHSAS 18001 (South Africa and Poland), LEED (several facilities), ENERGY STAR (two offices)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FORTUNE World’s Most Admired Companies; Ethisphere World’s Most Ethical Companies; numerous other awards listed in GRI Index.

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Governance
• Employees & Workplace
• Health, Safety & Environment
• Community & Social Service
• Supply Chain & Procurement

Environmental Achievements

• Reduced electricity consumption by 7.2 million kilowatt-hours or 0.95 kilowatt-hours per square foot.
• Recycled approximately 770 metric tons of paper, 204 metric tons of cardboard, and 33 metric tons of batteries.
• Recycled approximately 550 metric tons of assorted bulk materials.
• Achieved a 12 percent reduction in its normalized carbon footprint between 2012 and 2013. A 50 percent reduction over eight years.

Social Achievements

• Employees volunteered approximately 44,800 hours to community projects.
• Fluor, its employees and the Fluor Foundation contributed more than $8.5 million to community initiatives.
• Supported more than 900,000 hours of STEM training and enrichment to approximately 36,700 students.

Governance Achievements

• Completed transition to declassified board.
• Granted shareholders the right to call a special meeting.
• Removed supermajority voting provisions.

Climate Goals & Targets

Environmental Challenges

• Corruption risks due to the large number of third parties and government interactions.
• Serious injuries and fatalities remaining a persistent challenge in the industry.

Mitigation Strategies

• Robust risk-management programs to assess and mitigate project business risks.
• Life Critical Initiative to strengthen practices and training on high-risk operations.
• Extensive anti-corruption program with policies, due diligence, and training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive supplier prequalification, bid evaluation, and award processes.
• Requirement for suppliers to comply with Fluor’s Business Conduct and Ethics Expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core Guidelines, UN Global Compact

Certifications: ISO 14001, OHSAS 18001, ENERGY STAR®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune magazine’s “Most Admired Companies” (top ranking in engineering and construction)
• Transparency International-USA Corporate Leadership Award
• Ethisphere Institute’s World’s Most Ethical Companies

Environmental Metrics

ESG Focus Areas

• Safety
• Integrity
• Teamwork
• Excellence
• Community & Social Service
• Employees & Workplace
• Ethics & Compliance
• Governance
• Health, Safety & Environment
• Supply Chain & Procurement

Environmental Achievements

• Received no significant monetary or other sanctions for non-compliance related to environmental issues for the 10th consecutive year.
• No significant spills in 2014.
• 35 percent reduction in normalized carbon footprint over nine years.
• Recycled approximately 1,047 tons of paper, 375 tons of cardboard, 120 tons of iron and steel, and 722 tons of assorted bulk materials in 2014.
• Donated or reused more than 61.7 tons of office items in 2014.
• Saved approximately 63 tons of paper through double-sided printing.
• Anticipated water conservation of 258,360 gallons through low-flush valves and other measures.
• Five office buildings earned EPA ENERGY STAR certifications.
• Amsterdam office building received BREEAM Excellent Design Certificate.

Social Achievements

• Fluor, its employees, and the Fluor Foundation contributed more than $8.5 million in 2014 to support community initiatives.
• Provided more than one million meals to the hungry in 2014.
• Assisted approximately 18,000 individuals through preventive health and emergency services programs.
• Pledged $5.2 million to United Way and other organizations in North America.
• Fluor employees volunteered approximately 41,000 hours to community projects.
• Provided more than 3.3 million hours of STEM training to nearly 47,000 students.
• Implemented a new talent management system.
• 94 percent of employees completed performance assessments.
• Launched Fluor University’s new learning platform with over 2,400 e-learning courses.

Governance Achievements

• Completed transition to declassified board.
• Granted shareholders the right to call a special meeting.
• Removed supermajority voting provisions.
• Named to the World’s Most Ethical Companies list for the ninth consecutive year.

Climate Goals & Targets

Environmental Challenges

• Loss of eight Fluor colleagues in two separate industrial incidents.
• Corruption-related risks due to the large number of third parties and frequent contact with governments.

Mitigation Strategies

• Detailed root cause analysis and measures to prevent reoccurrence of safety incidents.
• Enterprise risk management and Compliance and Ethics Task Forces to assess and address ethics and compliance risks.
• Proactive development and implementation of mitigation strategies for corruption risks.
• Bid/No Bid decisions based on analysis of project’s corruption risks.
• Annual review of The Code (Code of Business Conduct and Ethics).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fluor’s Business Conduct and Ethics Expectations for Suppliers and Contractors
• Sustainability Best Practice Survey and Scorecard for indirect procurement
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core Guidelines, UN Global Compact

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune World’s Most Admired Companies (Engineering and Construction sector)
• Ethisphere’s World’s Most Ethical Companies
• ENR Top 100 Contractors by New Contracts
• Aon Hewitt Top Companies for Leaders
• Procter & Gamble External Business Partners of the Year
• KNOW Network Global Most Admired Knowledge Enterprises
• Weapons Complex Monitor Winner
• Various United Way awards
• Salvation Army awards
• American Road & Transportation Builders Association Contractor Safety Award
• ExxonMobil Transformational Leadership in Safety awards
• Houston Business Roundtable Gold Safety Excellence Award
• Chevron Phillips Chemical Company Gold Safety Award
• RoSPA Occupational Health and Safety Gold Medal

Environmental Metrics

ESG Focus Areas

• Health, Safety & Environment
• Ethics and Compliance
• Community Investment
• Diversity and Inclusion
• Supply Chain

Environmental Achievements

• Achieved U.S. Environmental Protection Agency (EPA) ENERGY STAR® certifications for over 1.25 million square feet of office buildings.
• Reduced energy consumption by almost 12 million kilowatt-hours (approximately 47,000 gigajoules).
• Conserved approximately 578,000 gallons (2.2 million liters) of water in its facilities.
• Recycled approximately 550 tons (499 tonnes) of paper, 96 tons (87 tonnes) of cardboard, 4.3 tons (3.9 tonnes) of batteries and 250 tons (227 tonnes) of mixed recyclable materials.
• Donated or reused approximately 220 tons (200 tonnes) of electrical appliances and used furniture.

Social Achievements

• Contributed more than US$7.5 million to community initiatives and programs.
• Contributed the equivalent of an additional US$1.3 million in employee volunteer time.
• Implemented Safer Together program to improve safety culture.
• 9 of 10 largest permanent offices are led by office general managers from the local community.

Governance Achievements

• Recognized as a World’s Most Ethical Company® by the Ethisphere® institute for the 12th consecutive year.
• Board of directors maintains oversight of the company’s ethics and compliance program.

Climate Goals & Targets

Environmental Challenges

• Data limitations for certain metrics due to the diverse nature of operations and project-based work.
• Managing risks related to corruption and anti-competitive behavior in global operations.
• Maintaining consistent HSE practices across diverse global locations.

Mitigation Strategies

• Implemented Business Risk Management Framework (BRMF) to assess and manage risks.
• Provided extensive ethics and compliance training to employees and business partners.
• Developed and implemented HSE Management System (HSE MS) with continual improvement model.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fluor's Business Conduct and Ethics Expectations for Suppliers and Contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, OHSAS 18001 (various locations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FORTUNE® World’s Most Admired Companies®, FORTUNE 500®, North America Dow Jones® Sustainability Index, ENR awards, Forbes and JUST Capital JUST 100 List, Construction Industry Project Excellence Award, Global Best Projects Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Health, Safety, and Environmental (HSE) Performance
• Supply Chain Sustainability
• Community Engagement

Environmental Achievements

• Continued to reduce Scope 1, Scope 2, and Scope 3 greenhouse gas emissions.
• Achieved a 7.9% reduction in Scope 1 emissions, 25.4% reduction in Scope 2 emissions, and 68.7% reduction in Scope 3 emissions between 2019 and 2020.
• 16.7 million kWh reduction in energy use since 2019
• 21% reduction in Scopes 1 & 2 GHG emissions since 2019
• 35% waste reduction since 2019
• 38% reduction in water use in Fluor offices since 2019
• 69% reduction in Scope 3 GHG emissions since 2019

Social Achievements

• Provided 1,263,302 meals to those in need (130% increase from 2019).
• Achieved a total case incident rate (TCIR) of 0.38, better than their goal of 0.40 and the industry average of 1.20.
• Established and strengthened sustainable partnerships with suppliers, Construction Industry Institute, Carbontech Leadership Council, and Alliance for a Climate Resilient Earth (ACRE).
• Launched Listening & Learning sessions to develop a roadmap for advancing DE&I.
• Expanded supplier diversity initiatives.

Governance Achievements

• Named one of the World’s Most Ethical Companies by Ethisphere Institute for 14 consecutive years.
• Restructured Sustainability Committee in 2020.
• Formed an independent Special Committee to review projects and related issues.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and travel.
• Supply chain disruptions.
• Depleted labor market in some regions.

Mitigation Strategies

• Implemented safety protocols and flexible remote working arrangements.
• Established a COVID-19 Global Task Force.
• Developed a COVID-19 Infection Control and Prevention Plan and Business Resumption Plan.
• Increased remote access capacity by over 800%.
• Developed innovative solutions for remote HSE auditing.
• Implemented surcharge program to reduce construction costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Business Code of Conduct and Ethics Expectations for Suppliers and Contractors
• Supplier prequalification process
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Carbon capture technologies
• Renewable energy projects

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB standards, UN SDGs

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7, 8, 12, 13

Fluor’s sustainability focus aligns primarily with SDGs 7, 8, 12, and 13, and secondarily with SDGs 3, 5, 9, 10, 15, and 16.

Sustainable Products & Innovation

• Econamine FG Plus carbon capture technology
• Fluor Solvent carbon capture technology

Awards & Recognition

• World’s Most Ethical Companies (14 consecutive years)
• Engineering Excellence Award (2019)
• NC Department of Labor 3 Million Man-Hours Safety Award (2019)
• U.S. Department of Energy Sustainability Award
• Smart Business Recycling Award
• 2020 WBEA Cutting Edge Award
• 2020 WBEA Warrior
• Best of the Decade in Supplier Diversity (2 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion (DE&I)
• Governance
• Social Responsibility
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scope 2 indirect GHG emissions by 15 percent
• Reduced indirect energy use (electricity) by 2.4 million kilowatt-hours from 2020
• Farnborough, UK office achieved net-zero Scope 1 and 2 emissions
• Planted more than 8,100 trees and shrubs, restored more than 85 acres, and recycled and disposed of 14,000 tons of litter
• Reduced waste by 13 percent and improved recycle rate by 6 percent from 2020 to 2021

Social Achievements

• Contributed more than $5 million in financial support to communities and employees volunteered nearly 12,000 hours
• Provided contingency and humanitarian support for Afghan evacuees, enabling the resettlement of more than 7,200 people
• 29 percent of salaried employees were women (up from 26 percent in 2020)
• Added three Historically Black Colleges and Universities to the Fluor Global University Sponsorship program
• Implemented Balanced Slate guidelines to expand and support inclusive recruitment practices

Governance Achievements

• Became a signatory to CEO Action for Diversity and Inclusion™
• Implemented Fluor Compliance and Ethics Integrity Portal and Hotline
• Strengthened requirements around conflict minerals, trade controls, anti-bribery and corruption, and other ethical concerns in Supplier Expectations

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 and 3 emissions
• Maintaining sustainability efforts during the COVID-19 pandemic and subsequent economic shifts
• Ensuring consistent sustainability practices across a global supply chain

Mitigation Strategies

• Implementing energy reduction initiatives in offices (e.g., replacing lighting, using more efficient appliances, installing solar panels, purchasing clean energy)
• Piloting innovative solutions for remote HSE auditing
• Developing a questionnaire to better understand the sustainability practices of indirect suppliers and subcontractors
• Adding sustainability requirements to Supplier Expectations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Expectations include requirements for sustainability and diversity
• Questionnaire developed to understand sustainability practices of indirect suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Energy transition projects (e.g., hydrogen production, carbon capture)

Reporting Standards

Frameworks Used: GRI TM Sustainability Reporting Standards, Value Reporting Foundation SASB Standards, World Economic Forum Stakeholder Capitalism Metrics, UN Sustainable Development Goals

Certifications: Null

Third-party Assurance: Fluor’s independent, registered public accounting firm for Fluor’s 2021 Form 10-K

UN Sustainable Development Goals

• Not disclosed

Fluor’s sustainability focus aligns with the United Nations’ Sustainable Development Goals.

Sustainable Products & Innovation

• Econamine FG Plus SM carbon capture technology

Awards & Recognition

• Construction Users Roundtable Construction Industry Safety Excellence Award
• Institute for Sustainable Infrastructure Envision® Platinum Award (Gordie Howe International Bridge Project)
• P3 Bulletin Gold Award (Gordie Howe International Bridge Project)

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion (DE&I)
• Social Progress
• Sustainability
• Safety and Wellbeing

Environmental Achievements

• 25% reduction in Scopes 1 and 2 emissions from 2017 through 2021
• Investment in Rimba Raya Biodiversity Reserve Project to offset emissions
• Achieved net-zero emissions for scope 1 and 2 emissions by the end of 2023 (target)

Social Achievements

• Elevated employees’ overall wellbeing with a holistic approach focusing on mental health
• Participation in STAND UP for Suicide Prevention campaigns
• Supported the U.S. government’s Operation Allies Welcome, assisting with the resettlement of more than 7,100 Afghan evacuees
• Supported communities by contributing more than $7.6 million to community programs and employees volunteered nearly 22,500 hours
• Expanded regional Inclusion Councils to 11 and conducted two global Days of Understanding

Governance Achievements

• Regained stakeholder trust by reducing debt, de-risking backlog, and restoring confidence in the balance sheet
• Revitalized capital structure by continuing to reduce debt with a net debt-to-capitalization ratio at less than 35%
• Improved credit rating

Climate Goals & Targets

Environmental Challenges

• Prolonged pandemic
• Geopolitical uncertainty
• Energy price volatility
• Higher inflation
• Supply chain disruptions
• Risks associated with delays and cost overruns on lump-sum contracts
• Intense competition in the EPC industry
• Foreign economic and political uncertainties
• Unexpected adjustments and cancellations of backlog
• Inherently dangerous work environments and high security risks
• Events outside of control (natural disasters, public health crises)
• Delays or defaults in client payments
• Potential termination of U.S. government contracts
• Foreign currency risks
• Loss of key clients
• Climate change and related environmental issues
• Increasing scrutiny and changing expectations from investors regarding sustainability practices

Mitigation Strategies

• Disciplined pursuit of contracts with fair and balanced terms
• Implementation of various emission-reduction initiatives
• Carbon offsetting efforts
• Enhanced leading indicator programs for safety
• Digital process for conducting employee perception surveys
• Automated assignment of HSE training
• Focus on holistic wellbeing, including mental health
• Development of a portable Smart Pod™ mental health facility
• Shifting to a majority-reimbursable portfolio
• Reducing debt and lowering net debt-to-capitalization ratio
• Cost optimization initiatives
• De-risking the portfolio through disciplined contract pursuit
• Strengthening relationships with stakeholders
• Expanding into energy transition markets
• Implementing lean management practices
• Inaugural Supply Chain Summit to address industry challenges
• ESG programs and initiatives

Supply Chain Management

Responsible Procurement

• 76% of Fluor’s total spend (approximately $4.9 billion) was spent on local suppliers and contractors worldwide

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of storms, floods, wildfires, droughts, hurricanes, freezing conditions, and other natural disasters

Transition Risks

• Growing concerns about climate change resulting in activism, protests, legislation, international protocols or treaties, regulation or other restrictions on greenhouse gas emissions

Opportunities

• Energy transition, including carbon capture and storage projects, alternative transportation, alternative energy facilities, and clean fuels projects

Sustainable Products & Innovation

• Sustainable aviation fuel and renewable diesel hub
• Carbon-free hydrogen home energy project

Awards & Recognition

• 2022 EcoVadis Silver Medal
• British Safety Council International Safety Award
• Royal Society for the Prevention of Accidents Gold Award
• Institute for Sustainable Infrastructure Envision Gold® Award
• USGBC Sustainable Innovation Award for Honor in Equity & Environmental Justice
• Reuters Top 100 Energy Transition Innovators

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions from 47,000 tCO2e in 2021 to 46,000 tCO2e in 2022. Implemented over 30 energy reduction initiatives in offices. Invested in a carbon offset project (Rimba Raya) to offset Scope 1 and Scope 2 emissions.
• Planted 4,200 mangroves in Manila, Philippines (part of an 18,000 mangrove planting initiative).
• Gliwice, Poland office installed solar panels generating nearly 50 kW of electricity, reducing Scope 2 emissions by approximately 25%.

Social Achievements

• Surveyed nearly 2,700 employees on Net Zero 2023 progress and feedback.
• Developed Fluor University® training on Energy Attribute Certificates and Offsets.
• More than 110 volunteers donated hundreds of hours to mangrove planting.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 and Scope 2 emissions to achieve Net Zero 2023 commitment.

Mitigation Strategies

• Implemented energy reduction initiatives, sourced clean energy, established a 15% reduction goal for each location based on 2022 data for 2023, and will consider new energy reduction initiatives, switching to renewable energy and making behavioral changes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol

Certifications: Verra’s Sustainable Development Verified Impact Standard, United Nations Framework Convention on Climate Change’s REDD+

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Community Investment
• Supply Chain Management
• Diversity and Inclusion
• Business Ethics
• Governance

Environmental Achievements

• Achieved Net Zero 2023 commitment by reducing Scope 1 and Scope 2 greenhouse gas emissions of offices and associated fleet to net zero.

Social Achievements

• Community investments, initiatives, and programs totaling $8.2 million.
• 33,700 volunteered hours by Fluor employees globally.
• 25% of U.S. supplier commitments were with diverse suppliers and contractors.

Governance Achievements

• Established a robust Business Risk Management Framework (BRMF) to assess and manage risks, including corruption-related risks.
• Implemented a Code of Business Conduct and Ethics with annual training for all salaried employees.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 emissions due to increased business activity and Stork acquisition.
• Data limitations for smaller offices regarding water usage and waste management.

Mitigation Strategies

• Continued implementation of energy-reduction initiatives in offices.
• Purchase of renewable energy and high-quality carbon offsets.
• Estimation of water consumption for smaller offices using average consumption data.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Business Conduct and Ethics Expectations for Suppliers and Contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Third-party limited assurance for Net Zero 2023

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced Scope 1 + 2 GHG emissions from 47K tCO2e in 2021 to 46K tCO2e in 2022 (although the report doesn't provide a percentage reduction)
• Implemented over 30 energy reduction initiatives in offices worldwide
• Committed to purchasing Energy Attribute Certificates (EACs) in 21 countries
• Launched Fluor University training courses on EACs and offsets
• Strengthened Sustainability Policy
• Published inaugural integrated report
• Invested in the Rimba Raya Biodiversity Reserve Project in Indonesia

Social Achievements

• Launched Fluor University training courses on EACs and offsets
• Strengthened Sustainability Policy including promoting social progress
• Published integrated report focusing on sustainability objectives and results
• Fostering a high-performance culture with purpose (includes advancing sustainability and diversity, equity and inclusion efforts)

Governance Achievements

• Strengthened Sustainability Policy
• Published inaugural integrated report

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions across global offices
• Ensuring effective implementation of EAC purchases across various countries

Mitigation Strategies

• Implementation of energy reduction initiatives (e.g., LED lighting, solar panels, improved heating systems)
• Commitment to purchase EACs in 21 countries
• Development of employee training programs on EACs and offsets
• Strengthened Sustainability Policy
• Investment in carbon offset projects (Rimba Raya Biodiversity Reserve)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol

Environmental Metrics

ESG Focus Areas

• STEM Education
• Community Development
• Economic Development
• Environmental Sustainability
• Volunteerism

Environmental Achievements

• 12,165 trees planted (out of a 40,000 goal)

Social Achievements

• 81,309 individuals received STEM instruction (out of a 145,000 goal)
• 2,377 individuals received job and leadership training (out of a 4,800 goal)
• 388,250 meals provided (out of a 400,000 goal)
• Established a computer lab in India benefiting 520 students
• STEM tutoring program in the Philippines benefiting 600 students
• Supported programs using Micro Bit V2 circuit boards for 2,000 students
• Supported math manipulatives program for 570 students
• African American and Hispanic Pioneers in STEAM traveling museum reached over 28,000 patrons

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant gaps in math and science proficiency among young students globally (e.g., only 21% of US twelfth graders proficient in math)
• Economic challenges hindering STEM progress for students in some communities

Mitigation Strategies

• Investing in STEM education partnerships and opportunities for youth from early childhood to university
• Providing tutoring programs, computer labs, and educational resources
• Partnering with universities and organizations to support STEM education

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality Education)

Fluor's STEM initiatives contribute to ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed