Sustainability and Corporate Citizenship 2016 Summary
We’re solving the world’s challenges through innovation and imagination Global megatrends like urbanization and increasing demand for water, energy and transportation drive unprecedented and escalating needs for infrastructure and natural resources. CH2M serves clients where these megatrends converge: in response to such challenges, we deliver the most sustainable and effective solutions — for the ultimate purpose of improving lives and the condition of our planet.
way to do this is to use nature itself. We’re collaborating with clients and partners like The Nature Conservancy and IMPACT 2030 to enhance freshwater, preserve coastlines, integrate nature into urban environments to protect communities and combat poverty, inequality and climate change.
Our clients face increasing public, regulatory and financial pressure to improve their sustainability performance, and they call on us to help. We’re focusing on the need for resilience as the challenges of accommodating more people, providing water supplies and dealing with the impacts of climate change converge. As it turns out, a cost-effective
In May 2016 we were recognized by the World Environment Center for industrytransforming sustainable practices and our commitment to social responsibility. The more we work around the world, the more I’ve been gratified and relieved to see growing global awareness and collaboration on ecological sustainability, as well as sustainable
We live out our passion for sustainability and corporate citizenship while maintaining our technical excellence, strengthening our business and returning greater value to the bottom line. This means reducing our carbon footprint 25 percent by 2017; improving our safety record, environmental performance, workforce diversity, business growth and employee engagement; and preparing future sustainability leaders.
Visit sccr.ch2m.com to view our full 2016 Sustainability and Corporate Citizenship Report, prepared in alignment with the Global Reporting Initiative (GRI) G4 framework.
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communities, economic growth, gender and cultural diversity and social tolerance. I invite you to explore our Sustainability and Corporate Citizenship Report to learn more.
Jacqueline C. Hinman Chairman and CEO
Our pledge
We see sustainability as an expression of good corporate citizenship, which is a business approach that supports positively affecting the environment, society and the economy. We solve the world’s complex problems in water, energy, environment and development by promoting economic growth and social inclusion through service to our clients and each other.
Highlights from the past year • Conducted workshops to implement our new Worker Welfare Policy. • Increased per-person training hours by 39 percent, including intensive Institute for Sustainable Infrastructure Envision™ training. • Granted more than US$1 million to nonprofit organizations that promote STEM education and sustainable community development. • Named a World’s Most Ethical Company for the eighth consecutive year. • Improved our safety rates, which are 53% lower than U.S. industry averages.
Global megatrends and opportunities for a sustainable future By 2050, 66 percent of the world’s population is projected to be urban. As the world continues to urbanize, sustainable development challenges will be increasingly concentrated in cities. Sustainable communities: resource efficiency and human progress CH2M is a charter member of the Institute for Sustainable Infrastructure—developers of the EnvisionTM rating system—which evaluates environmental, community and economic benefits of projects. Partnering with the University of Washington, we also created Greenroads, a sustainable transportation rating system. We provide support to the London-based Social Mobility Foundation, which helps high-achieving young people from low-income backgrounds enter professions such as engineering, business, law and politics.
381 million people are facing stressed water supplies. As global urbanization progresses and 2 billion people move into cities during the next few decades, the need for more stable urban water infrastructure will only increase.
The circular economy of water: reuse, management and conservation As a founding member of the Value of Water Coalition, CH2M has been an active partner in educating the public about the importance of water as an essential and invaluable shared resource. With the Stockholm Industry Water Award, CH2M was recognized for transforming the practice of wastewater treatment and promoting potable reuse.
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We helped our clients beneficially reuse more than 22 billion gallons of water in 2015 at the 85 client water resource recovery facilities CH2M manages throughout North America.
Climate change is threatening communities and assets. More than 195 countries adopted the historic Paris Agreement, which we supported with more than 400 other companies to combat climate change. Climate risk and resilience: protecting people, economic growth and ecology For more than 30 years, CH2M has played a leading role in adapting innovative approaches to water quality, flood control and stormwater management challenges around the world. As the world’s attention was focused on climate change in Paris, we colaunched the World Business Council for Sustainable Development’s Natural Infrastructure for Business (NI4Biz.org) guide with The Nature Conservancy and the Dow Chemical Company. The White House Council on Environmental Quality released a scorecard to track selfreported emissions disclosure and progress for major federal suppliers. Designed to assist federal agencies in selecting low-carbon contractors, the scorecard lists contractors with more than US$1 billion in federal business and shows their commitment to emissions reductions. CH2M is one of the few contractors in our sector that scored high.
Sources: “World’s population increasingly urban with more than half living in urban areas,”United Nations, July 2014; “Water on an urban planet: Urbanization and the reach of urban water infrastructure,” Global Environmental Change, July 2014
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Our planet, climate risk and resilience Designing infrastructure that engages nature as a partner: by focusing on green infrastructure, natural capital and ecosystem services, we’ve fearlessly set out to transform engineering practice as we know it, to protect nature and communities. Preserving the environment We promote environmental stewardship across our supply chain and by reducing the resources we use, implementing green office improvements, durable kitchen goods, recycled paper, paper reduction programs and recycling programs. We create more abundant water supplies by using—and reusing—what we have and reconnecting people with their watersheds and the water cycle. As we reduce our own impacts, we also help communities adapt to the effects of changing climate through climate risk and resilience services combined with natural capital solutions.
In the past year The U.S. Environmental Protection Agency named CH2M as a Climate Leader for Excellence in Greenhouse Gas (GHG) Management (Goal Setting), and the White House invited us to a roundtable where President Obama set a goal to reduce the federal government’s GHG emissions by 40 percent.
Highlights • Collaborating with The Nature Conservancy, Corporate Eco Forum, the World Business Council for Sustainable Development and other organizations to protect and restore natural ecosystems, establish the business case for natural infrastructure and transform engineering practice. • Delivered US$122.8 million of third-party certified sustainability solutions across our projects worldwide.
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• Developed and launched NI4Biz.org with the World Business Council for Sustainable Development and The Nature Conservancy. • Remained on track to meet our 25 percent carbon emission reduction goal by 2017. • Recycled 70,523 pounds of electronic waste in North America and 109,685 pounds around the world.
• Beneficially reused 4,000+ tons of biosolids at our clients’ wastewater treatment facilities. • Reduced potable water consumption on our Denver-area campus by 320,000 gallons. • Earned several sustainability awards for client projects, corporate citizenship and internal programs.
Most global carbon emissions are from the corporate sector, so we’re doing our part to reduce our own carbon footprint and help our clients do the same. CH2M has made setting and achieving a meaningful internal carbon emissions reduction goal a business model imperative.
CH2M Global Carbon Emission Reductions
Carbon Emissions in Tonnes (tons)
100,000
Total 84,473 (93,116)
Total 84,552 (93,203)
Total 75,808 (83,564)
80,000 Net 68,836 (75,879)
60,000 40,000
EN16
Net 68,085 (75,051)
Total 74,270 (81,869) 17% reduction from baseline
Net 61,431 (67,717)
Net 57,286 (63,147)
20,000 0
2012
2013
2014
2015
Total Scope 1 and 2 emissions have declined since 2012. To achieve our goals, we invested in carbon offsets and RECs to reduce net emissions by 17 percent from our 2012 baseline.
Total carbon emissions Net carbon emissions
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“CH2M has far more than just engineers. Our coastal scientists, ecologists, environmental scientists, planners and stakeholders advise clients of the best way to manage coasts and improve resilience,” says CH2M’s Nigel Pontee. Nigel cowrote “Coastal Risk Reduction: Integrating Natural Defenses into a Sustainable Coastal Risk Management Framework” with Michael Beck, the lead marine scientist with The Nature Conservancy. This framework, which assists coastal communities in developing strategic coastal resilience plans, grew out of joint work on the Science for People and Nature Coastal Defenses project.
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Water management, energy and remediation CH2M works with clients around the globe to better manage our world’s water resources and make our water systems more resilient to climate change. We believe it’s important for communities to have safe, reliable water infrastructure now and in the future. Managing water systems for cities While operating and maintaining water treatment facilities across the United States, we work with cities to implement sustainability improvements that decrease emissions, reduce fossil fuel use, diminish waste and cut annual operating costs. We’ve long recognized that our global community cannot afford to use water once and dispose of it: fresh water sources are precious and growing more scarce. Purifying wastewater effluent to create drinking water seems the logical solution, and CH2M has been at the forefront of removing the technical and public acceptance hurdles— turning one of our world’s great resource challenges into an opportunity to get water
reuse projects up and running, ensuring our world has access to long-term water supplies for centuries to come. For this reason, the Stockholm International Water Institute selected CH2M as the recipient of the 2015 Stockholm Industry Water Award—a prestigious award that honors outstanding and transformative water achievements that contribute to sustainable water management. Creating a certified Community Wildlife Habitat in Arkansas Nature lovers and bird watchers don’t usually flock to wastewater treatment plants, but they do in Fayetteville, Arkansas. CH2M employees revitalized a 13.3-acre plot into a wildlife habitat and created a 1-acre xeriscape garden that uses treated wastewater.
It all starts with water While operating and maintaining water treatment facilities across the United States, we are advancing each city’s vision for sustainable development. For 6 years, we’ve worked with cities to implement sustainability improvements that decrease emissions, reduce fossil fuel use, diminish waste and cut annual operating costs.
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“I feel fortunate to be in a role that immerses personal values into work … At the core of what we do is to protect the river. I identify with that, and it motivates me to excel in my role.” — Mark Copley CH2M sustainability champion
“We believe that water scarcity is one of the top issues facing the world today, and we believe water reuse is one of the keys to making sure that water endures for generations to come. “ — Jacqueline C. Hinman CH2M Chairman and CEO
When it comes to laying the foundation for modern-day progress, our clients are seasoned veterans. Stretching from the remote deserts of Abu Dhabi to the secluded tundra of Alaska’s North Slope, our energy team helps our clients improve safety records, reduce costs, meet regulatory requirements and enhance project delivery predictability. Whether it’s your computer, fuel-efficient car, life-saving medical equipment or children’s toys, oil, gas and chemicals provide the raw materials and refined products to make your day possible. Contaminated soil as a resource During World War II, the Dow Sarnia site in Ontario, Canada, manufactured synthetic rubber for the war effort. Manufacturing operations for chemicals and materials continued at the site for nearly 70 years. Dow retained CH2M to assist with site cleanup and closure. Rather than following traditional disposal methods, Dow and CH2M worked together to manage materials in place through an onsite soil treatment operation. In the ultimate natural partnership, a landfill became a community amenity. Building on our commitment to environmental health, Dow and CH2M planted 400 trees to control groundwater elevations and minimize the spread of contaminated soils. Treating soil onsite reduced the site’s carbon footprint, minimized exposure of harmful materials to neighboring communities and allowed for significant cost savings. To continue to shape future, leading-edge remediation technologies, Dow and CH2M joined with a consortium of Canadian universities to move bench-scale remedial technologies into viable commercial applications.
Innovative water stewardship for the energy industry
Pioneer Natural Resources, a large, Texasbased energy company, is using recycled water in Permian Basin—an arid area with limited water—to reduce its reliance on fresh water sources. Pioneer is evaluating various technologies for water conservation and stewardship, such as creating more efficient water transportation and storage methods to limit water loss. CH2M designed and helped install a water pipeline system that uses nonfresh water from distant sources, including brackish water, municipal wastewater and recycled water, for hydraulic fracturing. In addition to recycling water onsite, Pioneer purchases nonpotable effluent water from multiple sources in Texas.
Facility operations management successes to date
Recorded more than 13,400 volunteer hours
Reduced electrical use by an estimated 59 million kWh
Decreased fuel consumption by nearly 111,000 gallons
Saved $9.9 million for our clients and our company
Reused 55 billions gallons of effluent
Diverted more than 31,000 tons of biosolids and recyclable wastes from landfills
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Building sustainable communities with visionary partners
On the shared path to a sustainable future, we partner with nonprofits directly and through our CH2M Foundation, which focuses on science, technology, engineering and math (STEM) education, sustainable communities and employee engagement. We team with outstanding nonprofits, including Water For People, Engineers Without Borders and Bridges to Prosperity, to strengthen global communities, create opportunity and improve environmental outcomes of engineering and community investment work. In the past 2 years, nearly 60 citizens from around the world have built 5 bridges in 3 countries, improving the lives of 10,000 community members. Employees also work with local nonprofits, mentoring young people, cleaning up the environment and donating time and talent to social and environmental programs. We also provide business opportunities, training and mentoring to local, small and diverse businesses to help them develop and grow.
Highlights • Built two pedestrian footbridges with a global team of employee volunteers in Rwanda and Nicaragua, creating safe access to schools, medical clinics, markets and farmland for thousands of people through our award-winning partnership with Bridges to Prosperity. • Supported our employees with US$1 million in travel grants as they gave their time and technical expertise to strengthen nonprofit organizations around the world. • Continued to be a significant corporate sponsor of Water For People, rallying global employee donations to raise more than US$2 million since 2008. • Joined IMPACT 2030 and our clients as a collaborating partner committed to the United Nations Sustainable Development Goals.
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We collaborate with skilled, visionary clients, employees and nonprofits to engage nature as a partner, striving to create a safer, more abundant world for the next generation. Directly or indirectly, all companies use natural capital—the earth’s stock of air, land, water and biodiversity—to support economic growth and job creation. Green and hybrid infrastructure solutions maximize the value of natural capital, integrating nature into more resilient solutions that offer better economic returns, as well as benefits for human health, society and the environment. As founding members of the Institute for Sustainable Infrastructure—developers of the EnvisionTM green infrastructure rating system—and the Natural Capital Business Hub, we have the opportunity to influence the way companies and organizations value nature.
Teaming up with The Nature Conservancy to integrate natural and conventional infrastructure We’re engaged in a ground-breaking collaborative agreement with The Nature Conservancy to invest in projects and thought leadership opportunities that establish the business case for natural infrastructure. “Now the conservation community is wisely working directly with engineers—not just to reduce impacts, but to jointly find solutions for both people and nature,” says Jen Molnar, The Nature Conservancy scientist, in her blog post Bringing Nature into the Engineer’s Toolbox.
People are talking about NI4Biz.org “The real strength of the NI4Biz.org tool is it’s evidence based. These aren’t ideas but things companies are doing right now to solve their infrastructure problems, save money and benefit the environment and community that they serve.” — Brandy Wilson Global Sustainability Director, CH2M
“In the business context, saving nature for nature’s sake does not work. But saving nature also benefits business. A constructed wetland in Texas delivered US$200 million in value to Dow while also providing several hundred acres of migratory bird habitat.” — Neil Hawkins Chief Sustainability Officer for The Dow Chemical Company
“Green infrastructure is simply a good deal. It often costs less than gray infrastructure, performs better and delivers a whole bunch of co-benefits for free.” — Mark Tercek CEO of The Nature Conservancy
CH2M and The Nature Conservancy received a Diamond Award from the American Council of Engineering Companies New York chapter for the Howard Beach Flood Rish Reducton Study and the resulting Urban Coastal Resilience Report, which demonstrates that naturebased defenses, in conjunction with traditional “gray” solutions, can provide effective protection against climate-related flooding.
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New and improved cities create opportunities for everyone From master planning a new smart city to revitalizing the core infrastructures of historic capitals, we’re dedicated to imagining and delivering innovative yet practical solutions for urban challenges. We help city leaders build healthy, functional communities where people can raise families, connect with neighbors, pursue careers and enjoy fulfilling lives. Shendra-Bidkin Industrial Area Smart City India’s Delhi-Mumbai Industrial Corridor is combining high-value infrastructure with sustainable development to create 24 smart industrial cities along a 921-mile freight corridor connecting the port city of Mumbai on the west coast with Delhi to the north. The largest infrastructure program in India’s history, this multi-billion dollar investment represents the leading edge in international standards, with the goal of transforming the quality of life and economic prosperity for the country’s more than 1 billion people.
Sellwood Bridge: Oregon’s first registered Greenroads project The Sellwood Bridge is one of the largest projects in the country to pursue Greenroads® certification (a sustainable transportation rating system developed by CH2M and the University of Washington). The multimodal, context-sensitive design enables use for bicyclists, pedestrians and transit users and reused the existing span as a detour bridge to reduce environmental impacts, shorten construction time by 1 year and save up to US$10 million. During construction, 91 percent of demolition waste was recycled or reused, and cedar trees removed were donated to local tribes to be made into traditional garments and ceremonial items. CH2M served as engineer of record and participated in the large public involvement outreach program on this high-profile project. We helped the client reduce the final design footprint significantly from early concepts, shrinking the overall cost, materials required, and environmental disturbances, like stormwater runoff and aquatic and riparian impacts.
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Sustainability services grounded in technical rigor and transparency We’ve helped industrial and municipal clients provide accurate and meaningful sustainability information to stakeholders. Our work is grounded in technical rigor, supports integrity and transparency and demonstrates world-class engineering expertise in renewable energy, green buildings, transportation, logistics and other specialties necessary for effective sustainability plans. In the 1990s, one of the world’s leading sportswear companies wanted to address its safety and working conditions, environmental impact and social commitment, so it engaged CH2M to help with its first corporate responsibility report. That work turned into support of the company’s initiative in Asia to help reduce its use of toxic chemicals in manufacturing, increase recycling and upgrade water and wastewater facilities to global operating standards. The water, sustainable manufacturing and supply chain programs we developed helped position the company as an apparel industry leader and improved the communities where its workers live. Saving clients money and energy in data centers CH2M has long been recognized as an innovator in sustainable data center design, and our new modular strategies for data center clients reduce upfront capital costs and long-term energy costs. Recently we received the first of two patents for our energy-saving data center technology. Our modular, pre-assembled data centers are self-contained units with superior energy efficiency and a smaller footprint, reducing electrical power and cooling demand. The superior cooling capabilities at our first installation, at the National Bank of Abu Dhabi, are particularly beneficial in the Middle East’s extreme heat. The modular data center market is projected to grow 37 percent annually, to a US$40 billion market by 2018.
The Exeter Flood Defense Scheme in the UK is a good example of how well integrated design can work within the constraints of an urban environment. Incorporating new and restored wetland habitats has been a vital part of scheme design, promoted by the Environment Agency and supported by their project partners. The Environment Agency-CH2M team collaborated to develop integrated designs that will protect Exeter from flooding as well as safeguard new areas of wetland and river habitat.
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Committed to our people and our values Health and safety CH2M is deeply dedicated to health, safety and the environment. Our people and the environment in which they work are our responsibility. Our simple standard is that everyone comes home safely, every day, on every project. We look out for each other, capturing our people’s hearts and minds through an intensive, ongoing focus on safety, well-being, security and environmental impacts, in the office, out in the field and at home. As a result of this constant focus, our safety rates are 53 percent lower than U.S. industry averages. This commitment extends to wellness. Last year, 2,000 employees on 400 teams across 7 countries logged 1 billion steps, or 600,000 miles. Employees also lost 600 pounds during a wellness challenge. Our clients appreciate our staunch commitment to health and safety on projects, as they’ve demonstrated by recognizing CH2M with nearly 20 major safety awards for work on their projects in 2015/2016. Employee recordable and lost time incident rates 0.4
0.32
0.36
0.33
0.3 0.2 0.1 0.0
0.17
0.14
0.13
2013
2014
2015
0.10
2012
0.30
Recordable incident rates
Lost time incident rates
Number of Recordable Incidents 125 100
82
91
82
75
74
50 25 0
14
2012
2013
2014
2015
Promoting an inclusive workforce Improving the lives of workers around the world CH2M is committed to maintaining the highest level of human dignity on any project we touch. We place great importance on ensuring the welfare of workers involved in the projects we work on, and we have a zero-tolerance policy for human trafficking, child labor and forced labor. CH2M aspires to be at the forefront of our industry, acting as a catalyst for change, both on our projects and in the wider communities in which we work. Since we typically act in a project manager or consultant capacity, we rarely employ construction workers directly. Our focus is compelling our subcontractors and partners to uphold the highest standards. We’re collaborating with key stakeholders and fair labor expert, Verité, to improve worker conditions and to implement our own worker welfare policy, which launched in spring 2015. We’re also sharing our tools and best practices with the rest of the engineering and construction industry to improve worker welfare for everyone. In 2016, we’ll launch a new mobile technology, developed with Humanity United and Caravan Studios, which will allow workers to submit anonymous feedback on their living and working conditions. Inclusion and STEM At CH2M, we believe our differences make us extraordinary, and we are deeply committed to creating a culture of inclusion that inspires us to make meaningful contributions to our team and our clients as we lay the foundation for human progress together. In 2015, we strengthened leadership diversity, with women and people of color constituting 31 and 14 percent of CH2M management respectively, versus industry averages of 16 and 9 percent. We also increased the number of women on our Board of Directors to 31 percent.
Workplace diversity awards in 2015/2016 • 2020 Women on Boards Winning Company • Black Engineer of the Year Awards: Ted Mekuria, Muhammed Abdul-Shakoor, Amini Mills and Thierry Sarr • Employers Network for Equality & Inclusion Employee Network Group of the Year Award • Minority Engineer Magazine Top 50 Employer • National Society of Black Engineers, Golden Torch Award for Corporate Diversity Leadership • San Diego County Breastfeeding-Friendly Workplace Award • Women's Transportation Seminar International Employer of the Year Award • Woman Engineer Magazine Top 50 Employer
Global diversity, equality and inclusion are integral parts of our culture, and we want to bring this commitment forward to our future workforce through STEM education initiatives from our CH2M Foundation. For example, Girls Inc. of Metro Denver’s Eureka! program provides eighth-grade girls with the opportunity to discover more about a STEM education, offering summer enrichment, STEM role models, outdoor activities, a meaningful internship and an experience abroad. The CH2M Foundation also supports the London-based Social Mobility Foundation, which helps high-achieving young people from low-income backgrounds enter top professions. In Abu Dhabi, we support the Emirates Foundation, which sponsors the “Think Science Competition” every spring.
Our employees by the numbers − 2015 by gender Female: 6,049 27%
by region Male: 15,958 73%
by age MENAI 2,173
Latin America 1,231
<25 5%
55+ 21%
Asia Pacific 811 North America 14,319
Europe 3,473
26-35 25% 46-54 22% 36-45 27%
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About CH2M CH2M leads the professional services industry delivering sustainable solutions for the development of infrastructure and industry, providing consulting, design, engineering and management in water; environment and nuclear; transportation; energy and industrial markets. With clients and communities around the world, CH2Mers make a positive difference fostering societal, environmental and economic benefits in iconic infrastructure programs and global events like the Olympic Games. CH2M ranks among the World’s Most Ethical Companies and first in environmental consulting and program management (Engineering News-Record). In 2016, CH2M became the first professional services firm to receive the World Environment Center Gold Medal Award for advancing sustainable development, and in 2015, the firm received the Stockholm International Water Institute’s highest Industry Water Award. Connect with CH2M at www.ch2m.com; LinkedIn; Twitter; and Facebook.
Sustainability is an expression of good corporate citizenship Corporate citizenship is a business approach that supports positively affecting the environment, society and the economy. Sustainability is meeting the needs of the present while creating a healthy and vibrant economy, society and environment for future generations. We solve the world’s complex infrastructure challenges while promoting responsible natural resource use, economic growth and social inclusion.
Available at sccr.ch2m.com, CH2M’s 2016 Sustainability and Corporate Citizenship Report focuses on activities and performance through 2015.
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