Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Physical Security
• Environment
• Information Security and Data Governance
• Supply Chain and Human Rights
• Ethics and Compliance
• Employer of Choice
• Inclusion and Diversity
• Community Engagement

Environmental Achievements

• Launched “KBR One Ocean” to find an engineering solution to eliminate plastics from the ocean.
• Allenby/Connaught project achieved zero-to-landfill goal with 47% recycled and 53% recovered waste.
• Acquired 20 electric cars to replace gasoline-operated vehicles at Camp Lemonnier, reducing fuel consumption and emissions.
• Qatar Expressway Program's Lusail Expressway won “Global Best Project” award, highlighting sustainability initiatives.

Social Achievements

• Total Recordable Incident Rate (TRIR) reduced by 11% from 2017 to 0.191.
• Piloted training on sexual orientation and gender identity with plans for global rollout.
• Delivered harassment prevention and awareness training to selected groups.
• Reviewed ways to enhance management oversight to avoid worker abuse and exploitation, providing training to UK employees.
• Launched Employee Value Proposition project focusing on employee experience.
• KBR annual golf tournament raised over $520,000 for charities.

Governance Achievements

• Began upgrading online platform for ethics and compliance training.
• Continued efforts to increase awareness of reporting channels for COBC violations.

Climate Goals & Targets

Environmental Challenges

• Sustaining business while safely executing projects without harming individuals.
• Environmental degradation and minimizing environmental footprint.
• Increased volume and sophistication of cyber threats.
• Evolving expectations related to human rights in global supply chains.
• Managing corruption and fraud risks globally.

Mitigation Strategies

• Implemented additional on-site safety measures following a fatality (buddy system, site safety briefings).
• Developed project environmental management procedures, conducted environmental surveys, and required vendor commitment to sustainability goals.
• Implemented cybersecurity awareness training, controls, and reviews aligned with industry standards.
• Required suppliers to certify KBR Supplier Code of Conduct, screened high-risk subcontractors, and monitored supplier performance.
• Promoted confidential reporting of violations through Ethics Hotline, conducted anti-corruption training, and upgraded online ethics training platform.

Supply Chain Management

Responsible Procurement

• KBR Supplier Code of Conduct
• Supplier anti-corruption compliance questionnaire
• Pre-qualification questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Downstream flooding exacerbated by increased rainfall events

Opportunities

• Development of energy-efficient products and clean technologies

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Sustainable Products & Innovation

• ROSE® technology
• MAX-ISOM™ Isomerization Technology
• Solid Acid Alkylation Technology (K-SAAT™)
• Energy 2.0
• Propane Dehydrogenation (PDH) Technology – K-PRO™

Awards & Recognition

• Three nominations by the U.K.'s Better Society Awards (Impact Company of the Year, Environment, and Communication and Education)
• Lusail Expressway won “Global Best Project” award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health, Safety & Security
• Governance
• Inclusion & Diversity
• Community Engagement
• Risk Management
• Efficient Energy
• Sustainable Travel
• Recycle/Reuse
• Supply Chain

Environmental Achievements

• Achieved carbon neutrality in 2019 by offsetting Scope 1, 2, and business travel (Scope 3 Category 6) emissions through wind farm projects in India and Plastic Bank initiatives.
• 90% overall reduction in water use across the Reservoir Train Station project lifecycle.
• 20% reduction in greenhouse gas (GHG) emissions from material reductions in the Reservoir Train Station project.
• 37% reduction in GHG emissions across the Buckley Street Underpass project’s construction and operation.
• Diverted 100% spoil, 97% construction waste, and 65% office waste by volume from landfill in the Buckley Street Underpass project.

Social Achievements

• Launched One Ocean sustainability education program, connecting with over 1,000 students globally.
• Established a Global Sustainability Committee in 2019 to implement sustainability practices.
• Developed an action plan for the establishment of the Global Inclusion and Diversity Council.
• Achieved an SROI of £92,702,989 and a total economic impact of £522,932,687 across 14 UK-based projects in 2019.
• Implemented a robust global mass communications system for employee crisis communication.

Governance Achievements

• Established a Global Sustainability Committee chaired by the CEO.
• Implemented a robust Enterprise Risk Management (ERM) framework.
• Implemented a principles-based approach aligned with UN Global Compact principles and Sustainable Development Goals.
• Enhanced control environment and training around ethical behavior to mitigate misconduct and reputational risk.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather, regulatory changes, market shifts)
• Supply chain risks related to human rights vulnerabilities
• Data privacy and cybersecurity risks

Mitigation Strategies

• Developed a Climate Action Plan with a net-zero emissions target by 2030.
• Implemented a risk-based approach to assess human rights vulnerabilities in the supply chain.
• Implemented a multifaceted approach to data security, including annual cybersecurity assessments, training, and compliance with industry standards.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring adherence to principles of zero tolerance for child or forced labor and trafficking in persons.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting operations

Transition Risks

• Regulatory changes impacting clients; shifts in energy markets impacting demand for services

Opportunities

• Providing services to the hydrogen sector and other low-carbon technologies

Reporting Standards

Frameworks Used: GRI Core Option, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: ClimatePartner (for climate and carbon data); Third-party verification of financial data (2018 Annual Report and Form 10-K)

UN Sustainable Development Goals

• 1, 3, 4, 5, 8, 10, 12, 13, 16, 17

KBR's sustainability pillars and people strategy align with these SDGs.

Sustainable Products & Innovation

• KBR ROSE® Residue Upgrade Solution
• KBR MAX-ISOM™ Isomerization Technology
• KBR K-SAAT™ Solid Acid Alkylation Technology
• KBR VCC™ Veba Combi-Cracking
• K-PRO™
• Ammonia technology
• Green ammonia (KBR K-GreeN™)
• Blue ammonia

Awards & Recognition

• National Safety Council “CEOs Who Get It” List (Stuart Bradie)
• South Dakota Safety Council’s Award for Honor for Exceptional Workplace Safety Performance
• Associated Builders and Contractors (ABC) National Excellence in Construction® Eagle Award
• South Dakota Safety Council (SDSC) Award of Honor
• SATORP Contractor Safety Award
• Stella, Nova and Super Nova Awards (KBRwyle)
• Exceptional Scores from Considerate Constructors Scheme
• KBR Race Equality Award (Royal Academy of Engineering)
• WISE ONE TO WATCH AWARD (Stephanie Trevino)
• DIVERSITYFIRST LEADERSHIP AWARD (Eniola Fujamade)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustainable Solutions
• Environmental Stewardship
• Health, Safety & Security
• Cybersecurity & Data Privacy
• Inclusion & Diversity
• Training & Development
• Employee Engagement
• Well-being
• Community Outreach
• ESG
• Sustainability Board Oversight
• Risk Management
• Business Integrity
• Protecting Human Rights
• Supply Chain Management

Environmental Achievements

• 324 days without incident (89% of the year)
• Carbon neutral for three consecutive years
• 34% of KBR’s revenue pointed at sustainability ($1.9B)
• Achieved a 53% reduction in active transport corrections and bike facilities
• Achieved a 24% reduction in carbon savings
• Achieved a 90t reduction in cement replacement
• Achieved a 103% enhancement in project energy use and passive design elements in materials embodied energy through recycled plastic fibers of ecological value

Social Achievements

• Launched In Orbit: A KBR Podcast
• Signed the Women in Nuclear UK Industry Charter
• Partnered with In2science in Australia
• Launched MERGE, an ERG for underrepresented groups
• Signed the CEO Action for Diversity and Inclusion pledge
• Increased access to mental fitness resources
• Expanded the KBR Well-being Ambassadors program
• Named to Forbes’ list of the World’s Top Female-Friendly Companies
• Named to Institutional Investor magazine’s 2022 All-American Executive Team, ranked No. 1 Most Honored Company among mid-cap sector peers, and No. 1 for ESG
• Named to Fortune magazine’s list of the World’s Most Admired Companies

Governance Achievements

• Established a Cybersecurity Committee
• Integrated sustainability into criteria for evaluating senior management performance (10% weighting in short-term incentive plans)
• Updated Global Human Rights Policy
• Established a formal ERM COSO-based program
• Digitalized anti-corruption compliance processes
• Maintained ISO 27001 and Cyber Essentials Plus certifications

Climate Goals & Targets

Environmental Challenges

• Quantifying and monitoring the environmental impact of owned and operated sites and those of clients
• Improving I&D demographics
• Supply chain disruptions due to climate events and geopolitical instability
• Human rights abuses in the supply chain

Mitigation Strategies

• Developing a net-zero roadmap and climate risk and resilience planning
• Implementing a new Flexible Working Policy
• Conducting due diligence on suppliers and other third parties to identify and prevent human rights risks
• Developing robust data collection systems and controls for accurate climate-related disclosures
• Implementing a rigorous enterprise risk management (ERM) framework
• Conducting regular risk assessments of higher-risk projects and locations
• Establishing a dedicated Business Integrity team to investigate allegations of misconduct
• Implementing an Ethics Hotline and Dispute Resolution Program

Supply Chain Management

Supplier Audits: Pilot desktop audit of 34 Government Solutions EMEA suppliers and subcontractors (2021)

Responsible Procurement

• Supplier Code of Conduct
• KBR Code of Business Conduct
• Global Human Rights Policy
• Trafficking in Persons Policy
• Anti-Corruption Compliance Program

Climate-Related Risks & Opportunities

Physical Risks

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

Transition Risks

• Changes in regulation, market shifts, changing customer behavior

Opportunities

• Increased demand for sustainable solutions

Reporting Standards

Frameworks Used: UN Global Compact, SASB (now VRF), TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001, Cyber Essentials Plus

Third-party Assurance: Lloyd’s Register

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

KBR's sustainability pillars closely correspond with the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Green ammonia technology
• Blue ammonia technology
• Ammonia cracking technology
• Hydro-PRT® plastics recycling technology
• KBR INSITE® Energy Management Solution
• Automated Engineering Solutions
• KBR CleanSPENDSM

Awards & Recognition

• Institutional Investor award for Best CEO (2021)
• Institutional Investor Awards for Best ESG, Best Investor Relations Program, Best Investor Relations Team (2022)
• Fortune Magazine ranked #470 on Fortune 500 list
• Fortune Magazine: The World’s Most Admired Companies
• Forbes: The World’s Top Female-Friendly Companies
• Australian Defence Magazine: Top 40 Defence Contractors List
• Ecovadis Silver Sustainability Rating

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Inclusion and Diversity
• Talent Development
• Employee Engagement and Well-being
• Health, Safety and Security
• Protecting Human Rights
• Cybersecurity and Data Privacy
• Business Integrity
• Enterprise Risk Management
• Sustainable Supply Chain
• Climate Action

Environmental Achievements

• Achieved carbon neutrality for four consecutive years (Scope 1 and 2, directly controlled operations)
• 34% of total revenue focused on sustainability in 2022
• Industry-leading total recordable incident rate of 0.079
• 91.23% zero harm achieved in 2022 (333 incident-free days)

Social Achievements

• Launched MERGE, an employee resource group focused on underrepresented groups
• Great Place to Work-Certified™ in several countries
• Named one of Forbes magazine’s Top Female-Friendly Companies
• Named to Fortune magazine’s list of the World’s Most Admired Companies for two years running
• Increased diversity at board and executive levels
• Expanded employee support programs including mental health resources

Governance Achievements

• AAA designation in MSCI’s 2023 ESG Ratings
• Updated Global Human Rights policy
• Robust anti-corruption compliance program
• Formal ERM COSO-based program implemented
• Established a Climate Risk working group
• Invested in an automated ESG reporting system

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change related risks (physical and transitional)
• Maintaining ethical conduct in a global operating environment
• Meeting evolving stakeholder expectations on ESG matters

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented robust risk management framework (ERM)
• Strengthened anti-corruption compliance program
• Proactive engagement with stakeholders
• Investment in clean technologies and sustainable solutions
• Development of robust data collection systems and controls for accurate climate-related disclosures

Supply Chain Management

Supplier Audits: 4,160 supplier evaluations in 2022

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Supply Chain Charter
• ISO 20400:2017 guidance
• CDP Supply Chain membership
• Combating Trafficking in Persons (CTIP) and Modern Slavery Act (MSA) programs

Climate-Related Risks & Opportunities

Physical Risks

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

Transition Risks

• Changes in regulation, market shifts, evolving customer behavior

Opportunities

• Increased demand for sustainable solutions (energy efficiency, energy transition, decarbonization, climate and sustainability advisory services)

Reporting Standards

Frameworks Used: SASB/ISSB, CDP, TCFD, EcoVadis, Science Based Targets initiative, GRI, World Economic Forum's Stakeholder Capitalism, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001, Cyber Essentials, Cyber Essentials Plus, ISO/IEC 20000-1:2018

Third-party Assurance: Third-party assurance provided for financial data in 2023 Proxy Report and 10-k Report

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

Detailed mapping of KBR's work to the UN SDGs is provided in Appendix page XIX

Sustainable Products & Innovation

• K-GreeN® green ammonia technology
• KBR PurifierPlus™ blue ammonia technology
• H2ACTsm ammonia cracking technology
• K-BOOSTSM ammonia efficiency technology
• Ammonia 10,000 technology
• AceticaSM acetic acid production technology
• Hydro-PRT® plastic recycling technology
• PureSAFsm sustainable aviation fuel technology
• KBR INSITE® energy management solution
• End-to-end digitalization solution for green ammonia
• AutoENGINEERsm automated engineering solution
• KBR CleanSPENDSM carbon accounting tool
• EnerTECH renewable energy modeling tool
• H2EVOLUTION green hydrogen solution

Awards & Recognition

• MSCI AAA ESG Ratings
• USA Today America’s Climate Leaders 2023
• EcoVadis Gold Sustainability Rating
• Fortune Magazine World’s Most Admired Companies
• Forbes World’s Top Female-Friendly Companies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health, Safety, and Security
• Inclusion & Diversity
• Human Rights
• Cybersecurity & Data Privacy
• Sustainable Supply Chain
• Business Integrity
• Community Engagement
• Environmental Stewardship
• Energy Transition
• Circular Economy
• Biodiversity
• Talent Development
• Employee Well-being

Environmental Achievements

• 37% of 2023 revenue focused on environmentally impactful projects (decarbonization, energy transition technologies, clean energy solutions).
• Achieved 338 Zero Harm days, maintaining an industry-leading health and safety record.
• Deployment of Hydro-PRT® for plastics recycling.

Social Achievements

• New initiatives to enhance mental health support globally.
• Launched Parental Leave Toolkit.
• Introduced Next Gen of Flex Work in the U.S. (Flex Work and Sabbatical Leave programs).
• Expanded data collection to include veteran status and sexual orientation in relevant markets.
• KBR One Ocean program engaged 10 schools in Saudi Arabia.
• KBR Charity Golf Tournament raised over $1.5 million.

Governance Achievements

• Continued investment in and maturation of enterprise risk management framework.
• Improved information protection and detection capabilities through enhanced security technology and control adoptions.
• Annual enterprise tabletop exercise to test incident response and crisis management procedures.
• Improved streamlined reactive cyber incident reporting process.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts.
• Supply chain disruptions (implied).
• Cybersecurity threats.

Mitigation Strategies

• Climate Transition Action Plan with science-based net-zero commitments.
• Sustainable Supply Chain Charter with supplier sustainability requirements and benchmarking.
• Multifaceted approach to cybersecurity with multilayer safeguards and incident response teams.

Supply Chain Management

Supplier Audits: 1,500+ suppliers signed Supplier Code of Conduct; risk-based audits conducted

Responsible Procurement

• Supplier Code of Conduct
• Sustainability benchmarking (EcoVadis, ISN, KBR Supplier Sustainability Questionnaire)
• Sustainability clauses in contracts
• Carbon reporting requirements
• Modern slavery audits and assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Energy transition
• Decarbonization
• Clean energy solutions
• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB/ISSB, CDP, TCFD/IFRS S2, Ecovadis, SBTi, GRI, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Third-party assurance for financial data and climate data; details in Appendix

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Appendix XV details how initiatives contribute to UN SDGs

Sustainable Products & Innovation

• K-Caps decarbonization solutions
• H2Evolution
• CleanSpend
• PureLis battery technology
• Insite

Awards & Recognition

• NASA Large Business Prime Contractor of the Year
• Association for Project Management Company of the Year
• U.S. Small Business Administration Dwight D. Eisenhower Award