Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Continued focus on safety and accident prevention

Climate Goals & Targets

Environmental Challenges

• Permitting delays in the first half of the year
• Devastating hurricanes impacting 85% of operations in the third quarter

Mitigation Strategies

• Acquisition and integration of a concrete company in the Central Texas market
• Seizing project opportunities arising from hurricane damage

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Unfavorable weather patterns in the second half of 2018 causing delays in concrete operations.
• Non-cash charges for impairment of goodwill and write-down of revenues due to losses in the Marine segment from cost overruns.

Mitigation Strategies

• Invest, Scale, Grow Initiative to implement process enhancements.
• Seeking recovery through change orders for cost overruns (but recovery not assured).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Severe weather and other natural disasters
• Public health epidemics or pandemics
• Terrorist attacks
• Fluctuations in commodity prices
• Inability to obtain sufficient bonding capacity
• Loss of key customer relationships or reputation
• Inability to fully realize the revenue value reported in backlog
• Contract losses due to inaccurate cost estimates
• Penalties for late completion of contracts
• Dependence on third parties
• Higher costs to acquire, manufacture, and maintain equipment
• Unionization, work stoppages, or increased labor costs
• Operating risks and hazards
• Inadequate insurance coverage
• Environmental laws and regulations
• Extensive regulations affecting land development and building construction
• Potential shortfall in anticipated investment in port and marine infrastructure
• Restrictions on foreign ownership of vessels
• Unsuccessful strategic acquisitions
• Bonding requirements limiting ability to incur indebtedness
• Systems and information technology interruption or failure
• Data security breaches
• Significant debt service payments
• Variable rate indebtedness

Mitigation Strategies

• Invest, Scale & Grow (ISG) initiative to improve operating efficiency
• Emphasis on bidding and winning select quality projects
• Strong balance sheet and working capital position to access bonding capacity
• Maintenance of key customer relationships and reputation
• Careful cost estimation and project execution
• Ownership of a large, versatile equipment fleet
• Continuous monitoring and adjustment of fleet size
• Attracting, retaining, and developing employees
• Implementation of safety procedures
• Maintenance of various insurance policies
• Compliance with environmental laws and regulations
• Pursuit of projects in both public and private sectors
• Hedging activities to mitigate interest rate risk
• Implementation of industry-accepted security measures

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Invested $3.2 million to retrofit the Waymon Boyd dredge for 100% shoreside electricity operation, enabling zero emissions and noise in environmentally sensitive areas.
• Invested $6.1 million converting dredge engines from Tier 0 to Tier 2, reducing emissions.
• Invested millions in replacing Tier 0 engines on vessels, cranes, loaders, and dozers with Tier 2, 3, and 4 engines, increasing efficiency and reducing emissions.
• Invested $2.28 million in a dredge material off-loader, significantly reducing environmental impacts.
• Sent over 15,000 tons of scrap metal to recycling facilities between 2015 and 2019.
• Implemented an oil sample analysis program to extend drain intervals and prolong the life of oils and lubricants, reducing environmental impact.

Social Achievements

• Successive reductions in Total Recordable Incident Rate (TRIR) and Lost Time Incident Rate (LTIR) in both marine and concrete segments.
• Implemented a new hire onboarding program to reduce new hire injuries.
• Launched hand injury reduction campaign and training programs.
• Implemented a paperless, cloud-based Safety Data Sheet storage system.
• Developed extensive job hazard analysis, pre-task planning, and project-specific safety planning programs.
• Offered employee wellbeing initiatives including health benefits, screenings, paid time off, wellness programs, and tuition reimbursement.
• Actively recruited veterans, women, minorities, and people with disabilities.
• Established employee resource groups (WINDS and VALOR) to foster diversity and inclusion.
• Implemented a military leave policy with continued benefits and health plan coverage for 24 months.
• Offered an Employee Assistance Program (EAP) for employee well-being.
• Provided tuition reimbursement program up to $5,250 per year for job-related coursework.
• Supported community organizations through donations and volunteerism (Travis Manion Foundation, Toys for Tots, Salvation Army, American Red Cross, Dress for Success, YMCA Operation Backpack).

Governance Achievements

• Established a management sustainability committee to provide strategic leadership and guidance on internal sustainability.
• Adopted corporate governance practices designed to aid the Board and management in fulfilling their duties and responsibilities to stockholders.
• Maintained a Code of Business Conduct and Ethics and a Financial Code of Ethics.
• Implemented enterprise risk management policies based on the COSO framework.
• Actively engaged with investors representing at least 20% of outstanding shares in 2019.
• Improved Board diversity with the addition of female directors.

Climate Goals & Targets

Environmental Challenges

• Governance issues inherent in the complexity of projects, including contingent liabilities and litigation risks.
• Social risks related to labor-intensive nature of the industry, including safety management, skilled labor shortages, and community opposition.
• Environmental risks related to climate change, extreme weather events, and potential for delays and cost overruns.
• COVID-19 pandemic and its impact on employee safety and operations.

Mitigation Strategies

• Prioritized sustainability efforts focusing on social, safety, and governance.
• Implemented comprehensive HSE training and programs.
• Developed a COVID-19 Monitoring and Response Plan to mitigate the spread of the virus.
• Invested in equipment upgrades and retrofits to improve efficiency and reduce environmental impact.
• Implemented spill prevention and recovery plans.
• Engaged in community investment and volunteerism.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Environmental Metrics

ESG Focus Areas

• Diversity
• Ethical Business Practices
• Employee Well-being
• Sustainability
• Responsible AI

Environmental Achievements

• Assisted Matsumoto Precision in implementing a solution to track and report CO2 emissions per product, enhancing their understanding of environmental impact.

Social Achievements

• Ranked #1 in its industry for the 11th consecutive year and #33 overall on Fortune's list of the World's Most Admired Companies.
• Ranked #1 in its industry and #3 overall on the Just Capital CNBC list of America’s most just companies.
• Recognized by Ethisphere as one of the world's most ethical companies for the 17th consecutive year.
• Provided approximately 10 million training hours in Q2, averaging 14 hours per person.
• Launched a generative AI training program for Merck employees.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Clients constraining spending, particularly on smaller projects, leading to delays in decision-making and slower spending pace.
• Clients prioritizing larger transformations that convert to revenue more slowly.

Mitigation Strategies

• Focusing on large-scale transformations to capture growth as spending increases.
• Implementing business optimization actions to reduce structural costs and create greater resilience.
• Investing in acquisitions to scale higher-growth areas and expand into new growth areas.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune's World's Most Admired Companies (#1 in industry, #33 overall)
• Just Capital CNBC's America's Most Just Companies (#1 in industry, #3 overall)
• Ethisphere's World's Most Ethical Companies