Corporate Social Responsibility Report 2023

Building a Resilient and Equitable Future

OTAK’S 2023 CORPORATE SOCIAL RESPONSIBILITY & IMPACT REPORT

Introduction

Since we first embarked on a journey to understand our impact on the environment and communities where we live, work, and play, we have gained valuable insights into what it looks like to make meaningful changes. Now, more than ever, we feel it is imperative to maintain our momentum and prepare to solve the challenges of the future.

We believe in leading by example, infusing our mission to envision, design, and build innovative, resilient and thriving communities into every part of our business. Guided by our mission, we are better equipped to serve our clients and communities with passion while delivering exceptional, meaningful, impactful projects.

The purpose of this inaugural report is to highlight our achievements in 2023, and to provide a baseline understanding of how we can continue to be a more resilient, equitable, and just organization now and into the future.

Cover image from Otak project: Lower Big Quilcene Riverscape Restoration and Bridge Replacement; Jefferson County, WA

Environmental

Our ESG journey began over 15 years ago, when Otak made an initial commitment to the AIA 2030. As a smaller firm in the AEC industry, the guiding principles for organizations presented by the AIA helped to form a strong foundation for our firm to begin to assess, quantify, and take action towards reducing our operating impact. Since then, Otak has appointed a Sustainability Manager to lead the implementation of our Sustainability Action Plan and take our initiative to new heights. We are proud of the work we have done, but recognize that we must keep our skills sharp in a rapidly changing world.

Corporate Sustainability

Our corporate initiatives are focused on reducing the inevitable impact of our business.

SUSTAINABLE CATERING POLICY

In 2023, we revised our sustainable catering policy. The policy is implemented in each office for all events. Our goal is to eliminate single-use plastics, promote familystyle, locally sourced meals where feasible, and limit waste where we are able to.

E-WASTE AND CIRCULARITY

Our IT staff have strong partnerships with our technology suppliers. As we phase out old equipment, they work with our suppliers to ensure that devices that have reached the end of their useful life are sent back to the supplier who reuses, refurbishes, or recycles the e-waste.

OFFICE CERTIFICATIONS

Louisville, CO Our Louisville office has maintained their standing as a City of Louisville Green Business at the Gold level in 2023. They have been recognized for their outstanding efforts to provide education and programming for alternative commuting and community contributions.

Vancouver, WA After relocating to a new office in downtown Vancouver, Otak was re-certified as a Clark County Green Business.

EMPLOYEE COMMUTING

In 2023, we issued a company-wide commute survey to better understand how our employees were getting to and from work. We had a 65% response rate and learned that the average one-way commute distance for our employees is around 13 miles. We are currently working in a hybrid-format, but when employees come to the office, up to 12% are biking, 6% are taking the bus and 3% are walking. We also love participating in annual events like Bike to Work Day and Bike Month in May along with regional commute challenges in our Portland and Louisville offices.

Greenhouse Gas Emissions

Since 2019, Otak has been quantifying and offsetting our greenhouse gas emissions on an annual basis. Looking ahead, we are eager to use the data we have gathered to understand where we can make reductions. We saw our annual emissions drop dramatically during the pandemic and are seeing them return to normal in line with business operations. We acknowledge that achieving a true “Net-Zero” emissions status may not be possible for our business, but we remain committed to ongoing monitoring, evaluation, and implementation of reduction strategies. You can read more about our 2023 emissions here.

Projects

In 2023, we saw a significant increase in the number of projects that were pursing an official certification related to sustainable and resilient design. Otak currently has over ten projects that are actively seeking a certification. Good design, founded on principles of sustainability and resilience, goes beyond certifications and is where many of our teams have expertise to offer clients.

Company Greenhouse Gas Emissions

This retrofit is a truly integrative approach to designing a facility that enhanced treatment of highly polluted highway stormwater runoff through implementation of a custom soil mix, vegetation, and pump and distribution system. Otak supported the City in obtaining an ecology grant for the stormwater retrofit by building a report that demonstrates how the facility would function and how the water quality benefits would benefit the community.

Client: City of Redmond

Otak Services: Survey, Environmental, Landscape Architecture, Planning, Urban Design, Stormwater Planning, Water Resources Engineering

With the goal of re-establishing its floodplain connectivity, the restoration of St. Vrain Creek enhances aquatic habitats, restores riparian health, and improves stream resiliency. The multi-objective design incorporates features to mitigate future flooding and moderate sediment loads from inundating the Town of Lyons.

Client: Boulder County Parks and Open Space

Otak Services: Environmental, Natural Systems Design

NE 40th St. Stormwater Treatment Retrofit | Redmond, WA

South St. Vrain Creek Restoration at Hall Ranch | Longmont, CO

In developing a comprehensive solution to the water quality impacts of a local bond program, the Sandalwood Swale provides water quality mitigation for thirty-six of the program’s projects. The facility itself is a vegetated swale with native plants selected specifically for the area’s environmental conditions that cover its 12-footwide bottom and 189-foot length.

Client: City of Tualatin

Otak Services: Survey, Environmental, Stormwater Planning, Transportation, Water Resources Engineering

Dungeness Nature Center River Restoration & Bridge | Sequim, WA

APWA 2024 Co-winner: Public Works Projects of the Year, Transportation ($5-$25 million)

Cedar

The Dungeness River floodplain was restored reusing the existing trestle structure to design its river-worthy, salmon-friendly replacement. Located at Railroad Bridge Park in Sequim, this multifaceted project supports the Olympic Discovery Trail and the broader redevelopment of the Dungeness River Nature Center. Project improvements also enhance the local salmonid habitat.

Client: Jamestown S’Klallam Tribe

Otak Services: Structural Engineering, Transportation, Survey, Environmental Planning, Natural Systems Design

As essential transportation routes for the University of Colorado and commuting for the general public, updates to these corridors were a priority for the City of Boulder. With the goal of improved multimodal transportation, aesthetic enhancements, and a future master plan for land use in mind, the 30th and Colorado Underpass project provides important safety, accessibility, and drainage improvements.

Client: City of Boulder Public Works

Otak Services: Engineering, Survey, Transportation

In reconnecting Johnson Creek to its historic floodplain, this stream restoration plan provides flood storage for peak flow attenuation, and improves riverine and wetland habitats. Otak led the overall project management, geomorphic assessment, monitoring data interpretation, hydrologic analysis, hydraulic modeling, and the comprehensive restoration design.

Client: City of Portland Bureau of Environmental Services

Otak Services: Environmental, Natural Systems Design

Crossing Restoration | Portland, OR

ACEC OR 2024 Engineering Excellence Award: Small Project Award

ACEC WA 2024 Best in State Gold Award: Social, Economic, and Sustainable Design Considerations

League of Oregon Cities 2023: Good Governance Award

30th & Colorado Underpass and Intersection Improvements | Boulder, CO

Otak’s approach to social outcomes, including Diversity, Equity and Inclusion, is guided by our DEI Strategy, published in 2021. The strategy was the first step in our long-term commitment to building an inclusive and welcoming culture that will help achieve increased diversity among the firm’s workforce. We must build comfort with the conflicts that arise from differences, reduce the discrimination that arises from unrecognized and overt biases, and foster a positive culture with a broad spectrum of diversity—not a simple process or an easy evolution. Otak’s leadership team, DEI Committee, and dedicated People Services and Communications teams set the example for our firm’s contributions to positive change amongst our team members and beyond.

Our Culture

In 2023, we began an impactful speaker series in our Portland office called “Amplifying Voices”. Last year we hosted two panel discussions. Topics included Experiences of Black AEC Professionals, and AAPI Experiences in the Survey Industry. Our communications team was also recognized with a SMPS Merit award for their yearlong DEI campaign that included pieces on Pride Month, Native American heritage, and the intersection of Sustainability and Equity. Otakians also have the opportunity to participate in training, both optional and mandatory, that covers equity and diversity topics. Topics include:

Community Leadership

A recent community leadership survey of Otak staff found that Otakians volunteered over 2,500 hours in their community each year – this is equivalent to over 300 work days! Respondents averaged 55 hours per year.

Our teams participate in a variety of local organizations to stay engaged with our communities, including:

Community Engagement - Where Our Teams Show Up

• Anti-Harassment for managers and employees

• Diversity, Equity and Inclusion: Skills for managers and employees

• Interviewing the Right Way (AAP)

• Acceptable Use Policy

• Wildfire Smoke and Risk

• Heat Illness Prevention

• Federal Privacy Practices

• Safety Orientation

• Job Hazard Analysis

Each office has a representative who serves on the Otak Safety Committee. The Committee is responsible for maintaining and mitigating safety risks. We participate in regular emergency drills, like the Great Shakeout.

• Boy Scouts of America

• Johnson Creek Watershed Council

• Blanchet House

• Portland-Lviv Friendship City Association

• Bicycle Colorado

• Art District on Santa Fe

• Downtown Denver Partnership

• REACH Community Development

• Friends of the Children

• Portland’5 Center for the Arts

• Adopt One Block

From seasoned professionals to new graduates, Otak ensures that our recruitment and hiring processes are in alignment with our DEI objectives. We participated in seven highly attended career fairs in the last year and maintain relationships with over 40 HBCU schools. Our talent acquisition team uses tools to ensure all job postings promote diversity, reduce potential bias, and are written with inclusive language.

PAY EQUITY

Otak is committed to offering a compensation program that is both competitive and equitable. We believe that employees should be rewarded based on the value they bring to their specific positions, considering their skills, experience, expertise, and performance. Our program is designed to attract, retain, and motivate top talent, while aligning with our values, mission, and overall success. Maintaining a fair and competitive compensation program is an ongoing process; we conduct regular market benchmarking. Otak adheres to a strict non-discrimination policy as outlined in our Equal Employment Opportunity statement. This principle extends to all aspects of compensation—ensuring equal pay for equal work regardless of gender, race, ethnicity, veteran status, or disability.

Partnerships

Otak maintains longstanding relationships with our subconsultants, including small, disadvantaged, and women and minority-owned businesses. In 2023, Otak partnered with over 80 subconsultants with one of these designations. Total billings exceeded $6 million, accounting for nearly 40% of total subconsultant revenue on our project work. We also hosted three small business social networking events in our Portland office. We continue to support local organizations that are dedicated to transforming our communities. Over the last two years, Otak has contributed over $85,000 to environmental and social benefit focused organizations.

The demand for technical skills is one of the biggest challenges the AEC industry is facing. Otak has partnered with the ACE Mentorship program to provide scholarships and materials to ACE students in Oregon. We also have a robust internship program. In 2023 we hosted eight summer interns in our marketing, transportation, planning, PM/CM, and structural departments.

Staff Development

CAREER PATHING AND LEADERSHIP

It is important for staff to have a clear, well-defined path for them to advance their career. Over the past year, we have been developing new guidelines for career paths at Otak for each family of roles within the company. The initiative is set to roll out in early 2024. Internal advancement is also a crucial part of growing our business; therefore, we have invested in and continue to work towards developing leadership skills and promoting from within.

ASSOCIATES GROUP

Leadership extends beyond our Executive Leadership Team at Otak. Our Associates Group is an opportunity for Otak to leverage the leadership skill sets of shareholders who are not yet engaged at a firm-wide level of management. This group is focused on identifying firmwide initiatives, opportunities for broader engagement, and organizational sustainability through succession planning of important leadership roles.

EMPLOYEE WELLBEING

Otak offers a comprehensive suite of benefits promoting employee health, wellbeing, and personal development.

Health and Wellness

• 100% coverage of employee premiums for comprehensive medical, dental, and vision coverage, including low premiums for dependents

• FSA and Health Savings Account (HSA) options, with HSA employer contributions

• Short- and long-term disability, life, and AD&D Coverage

• Employee Assistance Plan (EAP) to ensure that our employees have confidential 24/7 access to support and resources in managing life’s daily challenges

Retirement and Financial

• 401(k) retirement plan with traditional and Roth deferral options, including employer match which is 100% vested immediately

• Monthly Flexible Commuter Benefit to offset commuting costs

Professional Development

• Financial support for licenses, certifications, continuing education, and professional memberships

Time Off and Leaves

• Paid Time Off (PTO) that accrues based on industry experience and not seniority with the company, and nine paid holidays

• A paid day on Veterans Day for those who have served in the armed forces

• Paid jury duty and bereavement leave

• Up to an additional three days of PTO can be earned through our volunteer program

Governance

Otak is committed to fostering a culture of integrity, accountability, and transparency in all aspects of our business. We achieve this with five primary focus points: clients, subconsultants, Otak professionals, information security, and leadership.

Clients

We partner with federal, state, local, and select private clients whose values align with Otak’s six core values of health and safety, integrity, innovation, empowerment, client and community focus, and passion for excellence. As a federal and state contractor, Otak maintains a very high level of compliance with Generally Accepted Accounting Practices. Otak’s financials are thoroughly audited annually by third-party auditors and reported to federal clients and state Departments of Transportation. All clients benefit from this similar level of professionalism in our contracting.

Subconsultants

Otak sees the benefits of working with diverse team members and strives to actively identify and partner with disadvantaged and small businesses on our projects. To increase participation in projects, we do the following:

• Strategically waive pay-when/if-paid requirements and commit to paying certain invoices within 30 days of receipt, advancing payment at our risk, even on larger projects.

• Host small business events at our office to make sure we have visibility to each other, an understanding of our projects and clients, and an open dialogue around ways to partner.

• Provide guidance and mentorship to firms for project management, budget control, and scheduling and assisting with technical/ production aspects of the work.

We ask our subconsultants to confirm they can participate in all levels of contracting, and that they are not disbarred by any agencies, or subject to any conflicts of interest in their work.

Otak’s Professionals

Otak is a group of professionals doing our best for our communities. Ongoing training and project mentoring is integral to the development of the firm. Otak University provides a platform for monthly structured Legal, Green Otak, and Project Management and Quality courses. We also provide project management training internally and with trusted third-party providers to support Otak’s professionals in meeting and exceeding our clients’ expectations.

Information Security

Over the last few years, Otak has also invested heavily in information security and privacy. We have partnered with a technical advisor so that Otak manages client, subconsultant, vendor, and employee data with the latest standards appropriate to our scale.

Leadership

All of this is directed by Otak’s Board of Directors and Executive Leadership Team. Otak is a subsidiary of a South Korean company that is publicly traded on the KEX Korean stock exchange, HanmiGlobal Co., Ltd. Otak’s Board of Directors consists of Chairman Jonghoon Kim, who is the founder of HanmiGlobal, several other leaders of HanmiGlobal, and Otak’s Chief Executive Officer Raul Aviles, Jr., Chief Financial Officer David S. Johnson, and longtime Otak leader, Chief Civil Engineer, and Puget Sound Region Manager Nico Vanderhorst.