2017 Corporate Sustainability Report | What We Do Matters/media/files/documents/2017corporate... · When we do grow by acquistion, it has been through long-term relationships that

CORPORATE SUSTAINABILITY REPORTWHAT WE DO MATTERS

2017

What we do matters. Taking care of our planet and people matters. At Burns & McDonnell, we take an ownership stake in the three pillars of sustainability: economic, environmental and social. As 100 percent employee-owners, we feel a personal responsibility for our company’s impact on the future.

We’re accountable to the clients we serve, to each other as employee-owners of our firm, and to the communities where we work and live. We strive every day to meet the needs of these stakeholders without compromising the ability of future generations to meet their own needs. We all share responsibility for our company’s footprint on the planet and for our contributions to our communities.

This report includes environmental, social and economic issues material to Burns & McDonnell employee-owners, clients and stakeholders. It encompasses our global office locations and is informed by the Global Reporting Initiative (GRI) Standards for sustainability reporting.

INTRODUCTION 3

Our people start each day with confidence they can do work that matters — for our clients, our communities, each other and the planet.

A heightened sense of responsibility has always been a hallmark of Burns & McDonnell. It was evident in the entrepreneurial spirit of our founders and it’s enhanced today by our status as a 100 percent employee-owned company.

As employee-owners, we evaluate our performance as a company each year, and 2017 was a year of important milestones. I was honored to become the eighth CEO in our 119-year history. We assessed our sustainability efforts with a fresh eye and laid the groundwork for a more formalized approach.

Key accomplishments in 2017 include:

• Our Board of Directors signed a new environmental management policy on April 21, 2017 to guide our sustainability initiatives.

• We implemented a new Environmental Management System — a powerful tool in understanding our baseline and identifying opportunities for improvement in our environmental footprint.

• We earned the No. 16 spot on Fortune’s list of 100 Best Companies to Work For, the seventh year we’ve made the cut.

• We continued our company’s historic run of stability and profitable growth.

I’ve witnessed how we empower our employee-owners to do amazing things and make the world a better place. Through this Corporate Sustainability Report, I’m glad to share with you what I’ve known since joining Burns & McDonnell 30 years ago — our company is defined by exceptional people who are committed to making a positive impact on the world.

As we look forward, I want to take this opportunity to thank our employee-owners, our clients and our communities for all we’ve accomplished together.

Ray KowalikChairman and CEO

INTRODUCTION

CLOSING

COMPANY

6 PROFILE

1 6 SAFETY

2 0 QUALITY

PEOPLE

6 8 COMMUNITY

7 5 EMPLOYEE-OWNERS

8 5 SUPPLIERS

ENVIRONMENT

3 6 EMISSIONS

2 9 ENERGY

5 4 WASTE & MATERIALS

4 7 WATER

6 1 BIODIVERSITY

2

5

2 5

6 7

8 6

BURNS & McDONNELL | SUSTAINABILITY REPORT 20174

COMPANYA calling to address the world’s challenges, the vision to develop pioneering solutions and the capacity to execute ambitious ideas — these fundamental principles drove our founders to form Burns & McDonnell in 1898. In the 119 years since, we’ve followed their enterprising approach to making the world a better place.

This section summarizes who we are as a company — including our services, markets, diversity, financial strength, growth and business ethics — and outlines our commitment to safety and quality.

5


40+ OFFICESW O R L D W I D E

PROFILE

OFFICES

PROJECT EXPERIENCE

WORLD HEADQUARTERS

I N

E N G I N E E R S , A R C H I T E C T S , CO N ST R U C T I O N P R O F E S S I O N A L S , S C I E N T I ST S , CO N S U LTA N T S A N D E N T R E P R E N E U R S

6,000+To see details on all

of our locations go to: burnsmcd.com/locations

COMPANY 7

We provide 350+ services in a wide range of markets, creating remarkable solutions for our clients’ most challenging problems.

LO C A L P U B L I C AT I O N S T H AT N A M E B U R N S & M c D O N N E L L A B E S T

P L A C E T O W O R K Y E A R A F T E R Y E A R

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F O R T U N E M A G A Z I N E ’ S 2 0 1 7 L I S T O F 1 0 0 B E S T CO M PA N I E S

T O W O R K F O R N AT I O N W I D E

#16

See more atburnsmcd.com/about-us/

industry-awards

We’re proud to rank among the nation’s leading design and construction firms, recognized both for our employee ownership culture and the quality of our projects.


COMPANY 9

#6IN INDUSTRIAL SECTOR

ENGINEERING

#7IN SOLAR

#6IN GREEN BUILDING

ENGINEERING

#6 IN REFINERIES AND

PETROCHEMICAL

#5IN AIRPORTS

#1IN TRANSMISSION

AND DISTRIBUTION

#5 IN WIND

#3 IN AEROSPACE

IN IN ENGINEERING NEWS-RECORD’S 2017

INDUSTRY-SPECIFIC LISTS

Top 10

#2IN AIRPORT FACILITIES

ENGINEERING

#1IN POWER

#3IN COGENERATION

#3IN FOSSIL FUEL

#6IN FOOD & BEVERAGE

#7IN GOVERNMENT

OFFICES

#9IN TOWERS AND

ANTENNAE

#1MILITARY SECTOR

ENGINEERING

IN BUILDING DESIGN + CONSTRUCTION’S

2017 GIANTS 300 LIST

Top 10 #4IN ENGINEERING/

ARCHITECTURE FIRMS

OWNERSHIP AND GOVERNANCE In 1986, Burns & McDonnell became 100 percent employee-owned — a defining milestone for our firm. As owners, we share a stake in our company and receive comprehensive information about Burns & McDonnell’s strategic, financial and operational performance. Employees participate in two annual meetings: a spring shareholder meeting and a fall financial update. We are governed by a seven-person Board of Directors chaired by our

CEO, supported by a leadership team including officers and principals.

Supporting the Board and leadership team are appointed employee-owner representatives, who participate in quarterly meetings, relay important questions and propose new ideas to upper management. Meeting minutes are published on Burns & McDonnell’s intranet, accessible to all employee-owners.

BURNS & McDONNELL | SUSTAINABILITY REPORT 20171 0

The No. 1 responsibility of our board is to take care of our shareholders first, and fortunately our shareholders also happen to be our employee-owners.

COMPANY 1 1

O F F I C E R S P R I N C I PA L S

B O A R D M E M B E R S

66 130

7Chairman and CEO: Ray Kowalik

Board of Directors: • Paul Fischer, president and general manager,

Regional Office Group

• Randy Griffin, president and general manager, Construction/Design-Build Group*

• John Olander, president and general manager, Transmission & Distribution Group

• Bob Reymond, president and general manager, Oil, Gas & Chemical Group*

• Denny Scott, chief financial officer

• David Yeamans, president and general manager, Aviation & Federal Group

* Added in 2018.


FINANCIAL STRENGTH Our historic growth and stability reflect our strong financial performance. Annual revenue in 2017 was $2.8 billion and remained above $2.3 billion in each of the past four years. We maintain a positive net income, cash and investment balances and an aggregate surety program of over $1 billion in assets as of Dec. 31, 2017. Our current backlog levels are at approximately $2.5 billion, and the company has no current or long-term debts. As a private company, Burns & McDonnell does not release detailed public financial statements.

Through the Burns & McDonnell Employee Stock Ownership Plan (ESOP), employee-owners participate directly in the company’s profitability. Enrollment is automatic. At year-end, our company makes a cash contribution to the ESOP, which is allocated to eligible employee-owners. An independent valuation consultant reviews Burns & McDonnell's financial performance to determine our ESOP stock price each year.

COMPANY 1 3

GROWTH We are committed to organic growth. When we do grow by acquistion, it has been through long-term relationships that solidify a good fit, fills a definite need and is a good financial decision for employee-owners. Our acquisition of AZCO INC.,* one of the nation’s premier industrial contractors, at the end of 2016 is an excellent example of this approach, given our shared commitment to client success and safety.

Our entrepreneurial spirit continually propels us forward to new services and markets. We continue to respond to the forecasted growth in infrastructure investment across our core markets in North

America and also see opportunity in new global markets. In the coming year, we anticipate:

• Core markets in the United States to expand at a steady pace, responding to forecast growth in infrastructure investment.

• Employee-owner growth at our world headquarters in Kansas City, continuing the historic growth over the past decade. At our regional offices throughout the United States, growth is due to a geographically diverse client base and a robust talent pool drawn to working for an award-winning company.

N E W O R E X PA N D E D O F F I C E S

S Q U A R E F E E T O F A D D E D O F F I C E S PA C E P O W E R A S S E T T E S T I N G

A N D R E S E A R C H L A B

1 8

68,617 $100,000E X PA N D E D

GROWTH IN 2017

J O B G R O W T H

4 %

*Numbers associated with AZCO INC. are not included in this report.


GLOBAL PRACTICESOur diversity is one of our biggest strengths. It means we can bridge the gaps and respond to market changes without compromising our most important asset: our people. Our global practices might be internal business divisions, but they’re united around the same goal: to make our clients successful. And although global practices have a defined focus, they adopt a collaborative approach. This gives employee-owners the opportunity to make an impact on projects spanning multiple industries.

BUSINESS ETHICSWe are committed to conducting business lawfully and ethically, in accordance with the detailed requirements in our Business Conduct Guide. All new hires are required to complete business ethics training within three months of their start date. We also require all employee-owners to complete a refresher course every two years. Every employee-owner is required, upon risk of penalty including possible termination of employment, to adhere to our high standards of personal and professional integrity.

Energy

Environmental Services

Aviation & Federal

Business & Technology Solutions

Construction/Design-Build

GlobalFacilities

Oil, Gas & Chemical

Transmission &Distribution

Transportation

Water

GLOBAL PRACTICES

COMPANY 1 5


SAFETY

Keeping employee-owners, our clients and our subcontractors safe is our highest priority, the first and most important of our corporate values. Because safety relies on the daily mitigation of hazards, our employees are constantly trained on its importance. Each global practice also identifies an employee to guide safety efforts. In 2017, employees and contingent workers completed more than 13,370 hours of safety training.

A team member encounters a safety message a minimum of five times in an average workday. On projects, a detailed six-step quality control process adds an additional safety net. Through training, management, behavior modification and recognition, our Safety & Health Department aims to achieve the goal of zero recordable incidents.

While we provide safety guidelines, we also give employees the freedom and expectation to improve on them. We don’t just have a safety department to improve our standards. We have a safety department that makes the standards incrementally better each day.

In addition to physical safety, we address cybersecurity threats for on-site and cloud-based environments. Internally and on behalf of clients, we develop and implement strategic security postures to defend against evolving threats — whether from ransomware, social engineering or next generation tools. Our team includes four Certified Information Systems Security Professionals and one Certified Ethical Hacker.

Tools we utilize include:

• Onboarding training

• OSHA 10-hour construction/general industry safety training

• 40-hour hazwoper training

• First aid and CPR training

• Hazard-specific training

• Pre-task analyses on-site

• Site safety orientation

• Safety toolbox talks

• Task safety observation

• Site and workplace signage

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T H A N T H E I N D U S T R Y A V E R A G E

O U R R E CO R D A B L E I N C I D E N T R AT E I S

93 % LOW E RO F S A F E S T A E C F I R M S

P L A C E D I N T H E

TO P 5 %

Jamie Butler,

Vice President, Safety & Health

Taking ownership of safety is instinctive here. There’s an accountability that’s hard-wired into employee-owners that I don’t see anywhere else.”

OUR SAFETY RECORDBurns & McDonnell’s safety record compares favorably with the Bureau of Labor Statistics and the Construction Industry Institute (CII) contractor averages.

• We experienced zero fines, OSHA citations or work-related fatalities in 2017.

• Our combined recordable incident rate is 93 percent lower than the industry average.

• Our combined Days Away Restricted or Transferred (DART) rate is 95 percent lower than the industry average.

We are also one of few firms to include subcontractors in our safety statistics though it’s not an OSHA requirement, demonstrating our commitment to safety extends beyond reporting the numbers. Our reported numbers reflect that approach.


INNOVATIONS IN SAFETYTechnology has incredible potential to enhance human safety by minimizing the need to place team members in potentially dangerous situations. Our people are constantly exploring and testing new ways to use tech for good.

• Drones are revolutionizing the way architecture, engineering and construction (AEC) firms gather critical project data. Burns & McDonnell was one of the first AEC firms to receive certification from the Federal Aviation Administration and Transport Canada to fly drones for commercial use in North America.

• 3D scanning — including lidar (light detection and ranging) and photogrammetry — is increasingly used for site surveys, deployed either from the ground or the air. It’s especially valuable in environments where manual scanning is impractical or unsafe.

• With 3D modeling, automation supports the engineer’s experience in designing electrical systems. Software sends an alert when energized parts are too close together, cost-effectively adding another layer of protection on a vital safety issue.

SAFETY IS OUR TOP PRIORITY

Total Recordable Incident Rate

Days Away Restrictions/Transfers Rate

Hours Worked

TRIR

DART

Combined employee-ownerand subcontractor data

Fatalities

2015 2016 2017

0.17

0

0.15

0

0.17

0

0.07 0.04 0.09

17,211,520 16,782,229 16,224,791

Experience Modifications Rate 0.37 0.46 0.48

COMPANY 1 9

Burns & McDonnell has developed a national center of excellence for fire protection engineering based in our Minneapolis office. Tony Schoenecker and his team work alongside code officials and firefighters to help keep people and property safe. For a wide range of building types, they consider everything from corridor width and egress to smoke exhaust, fire alarms and sprinklers.

“Fire protection is integrated, transcending disciplines.disciplines," Schoenecker says. "At some companies, the mechanical engineer designs the sprinklers, the electrical engineer designs the alarms — and they never really talk. We communicate from the beginning. It’s a holistic approach to the design of fire protection that increases safety, but it's efficient to the point we often return money to our clients’ budgets.

"The better you understand the concepts of fire — what burns and how — the better you can understand why codes are written a certain way. You should know fire to protect against fire. Having a team of fire protection walking encyclopedias is a huge asset to our clients. To foster awareness, we maintain a fire support email address where anyone in the company can ask a question. We can quickly provide an answer where it might have otherwise taken them hours of research.”

Tony Schoenecker,

Fire Protection Engineer

SAFETY SPOTLIGHT

QUALITY

We achieve operational sustainability through the quality of our projects. Burns & McDonnell is an industry leader in providing professional services that meet or exceed applicable requirements. We maintain this high standard by continually reinvesting in our people and processes. All project-related work products — from reports to design plans to engineering specifications — are developed according to a stringent quality management system.

Our corporate Quality Assurance Department maintains and communicates quality polices, monitors implementation and evaluates effectiveness to foster continuous improvement. A designated quality assurance manager from each regional office and global practice helps implement corporate quality standards, concentrating on initiatives and activities that provide the most value.

Our Quality Management System (QMS) is a set of policies, processes and practices directly associated with the planning, execution, evaluation and improvement of our services and deliverables. The system helps identify and mitigate risk, and

fosters a framework to provide innovative solutions for our clients’ complex challenges.

• Quality is integrated throughout the entire project process, from the proposal to kickoff to completion.

• Frequent visioning sessions anticipate and identify issues with the greatest impact on clients.

• Our robust quality manual defines requirements and best practices.

• Metrics are measured and delivered to decision-makers for constant evaluation.

An atmosphere of integrity and personal accountability is a key attribute of the quality program. All employee-owners contribute to its continuous improvement by individually striving for excellence on every step of project development. As employee-owners, we believe every work product is an opportunity to put our best foot forward and exceed client expectations.

Quality is meeting our client’s expectations, with a continuous process that’s relentless in focus. Quite simply, quality is a foundation of our business."

David Rogers,

Director of Quality Assurance


COMPANY 2 1

QUALITY MANAGEMENT PROCESS

PROJECT EXECUTION

IMPROVEMENT

PLANNING EVALUATION

DELIVERABLES

CUSTOMER SATISFACTION

SERVICES

CUSTOMER REQUIREMENTS

ORGANIZATIONAL REQUIREMENTS

NEEDS OF RELEVANT STAKEHOLDERS

LEADERSHIP { }


The proprietary Quality Tracking System (QTS) software system — tailored to the specific needs of the architectural, engineering and construction industry — experienced a major upgrade in 2017. Amy Renato helps develop the software, trains project team members on its use, and analyzes reports to inform ongoing improvement of the QA process.

“Our QTS system is really unlike anything in the industry," Renato says. "The software makes it easier for employee-owners to integrate quality control into their everyday work and provides documentation for every step of the process. These forms stay with a project forever — time-stamped and associated with the personnel that request and perform the reviews.

"We’re here to control risk and provide the best product to our clients. That’s what makes us sustainable. The process we follow drives accountability in a permanent manner. And it lets us make the most of the diverse technical experience our company offers. A colleague might see an improvement or innovation you didn’t. It fosters collaboration and personal responsibility in the best ways.”

QUALITY SPOTLIGHT

Amy Renato,

Quality Assurance Manager

COMPANY 2 3

QUALITY TRACKER SYSTEM (QTS)The Quality Tracker System is a proprietary electronic system that manages workflow and implementation for a well-defined quality process. Employees who create or review project-related work product are provided training on the software. The review process includes an employee-owner’s evaluation of his or her own work, as well as reviews from independent peers with specialized knowledge about the work product being considered.

A 2017 upgrade provides additional functionality that enhances the department’s ability to identify and correct both individual and systemic quality issues. The system can now:

• Provide a more streamlined and intuitive interface to users.

• Provide guides and checklists for specific review types to make compliance easier.

• Offer reporting capabilities to better track on-time completion, analyze client relationships across global practices and identify opportunities for process and technical improvement.

GLOBAL QUALITY CERTIFICATIONSTeams within Burns & McDonnell earned certification with the International Organization for Standardization (ISO) and Occupational Health and Safety Assessment Series (OHSAS). These certifications are globally recognized standards validating that rigorous quality control processes and standards are being followed.

Burns & McDonnell UK• ISO 9001:2015 for quality management

• ISO 14001:2015 for environmental management

• OHSAS 18001:2007 for safety and health management

Burns & McDonnell Transmission and Distribution, Kansas City and Burns & McDonnell India• ISO 9001: 2015 certification for engineering design

of electrical transmission, distribution and network telecommunications for power infrastructure


Antelope Valley Solar Ranch — a 242-megawatt (MW) photovoltaic power plant in Southern California — is one of the country’s largest solar farms on the grid. In 2017, it generated more than 600 gigawatt hours of clean energy. During its development, Burns & McDonnell’s quality process identified and solved a significant potential safety issue on this complicated project.

“The QC process and a grounding analysis uncovered a potential safety concern," says Cary Galloway, an electrical engineer. "On this project, the substation shared part of its fence with a larger fence surrounding the solar field. We designed the grounding system so that there was a safe allowable step and touch voltages along the project fence.

"Our analysis found that because of the connected fence, in combination with the high soil resistivity and high available fault current, a substation employee could place a hand on the fence and encounter a dangerous voltage difference from far down along the fencing. We evaluated many different solutions, and incorporated a fence with isolation sections to eliminate runs of metallic fencing more than 100 feet. This wasn’t an issue our team had ever faced, but because we’re committed to checking every detail, we identified and solved a safety issue before it could ever become a problem.”

Cary Gallaway,

Electrical Engineer

QUALITY SPOTLIGHT

2 5

ENVIRONMENTWe all share responsibility for our company’s impact on the planet. We are committed to environmental responsibility, from how we conduct our business to the services we provide clients. This section tells the story of our progress in energy, emissions, water, waste and materials, and biodiversity.

In 2017, we formalized our sustainability initiatives through three key actions:

• Our Board of Directors approved a formal environmental management policy to guide our efforts. The well-defined initiatives include actively working to reduce our environmental footprint, providing training and resources to support our environmental objectives, improving the sustainability of our supply chains and setting new targets for improvement annually.

• You can’t manage what you don't measure. A newly implemented Environmental Management System allows us to track, monitor and analyze our operational impacts. Baseline measurements for our environmental performance provide perspective on the areas of greatest need and offer a strong foundation for establishment of improvement goals.

• We reorganized our Corporate Sustainability Committee efforts, designating an executive sponsor as a sustainability champion and increased the frequency of the meeting schedule. We also planned new task forces for several categories, including energy and emissions, travel and transportation, water, waste and materials, and biodiversity and mitigation banking. This approach allows for a wider range of voices to shape our environmental approach.


KEY INITIATIVES

ENVIRONMENT 2 7

KEY INITIATIVES


ENVIRONMENT 2 9

ENERGY

As engineers, architects and builders, our work changes the world’s landscape. It’s not enough to integrate energy-saving strategies into our own offices. We also incorporate these tactics into the project development process on our clients’ behalf.

In 2017, the primary buildings at our Kansas City world headquarters earned ENERGY STAR scores of 99 and 95 out of a possible score of 100. These scores signify the buildings are top performers for energy efficiency, based on U.S. Environmental

Protection Agency methodology. We continue to deploy techniques for reducing electricity and natural gas consumption at our headquarters and at our offices around the globe. These include:

• High-efficiency lighting and LED lighting retrofits

• Energy-efficient HVAC systems

• New energy-efficient doors and windows

• Motion sensor lighting

• Optimized building system controls

2017 ENERGY USAGE*

*Data calculated based on world headquarters per person electricity and natural gas consumption.

P E R P E R S O N

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The commercial and residential building sectors account for about 40 percent of total energy consumption in the United States, a statistic that emphasizes the importance of energy-efficient facilities. In 2017, our team deployed a pilot program testing analytic software packages — using advanced technology to identify energy saving opportunities.

The program currently focuses on our world headquarters, with the goal of expanding to client projects. The software package integrates data from multiple building systems, including building automation, sub-metering and lighting systems. Ongoing monitoring identifies and prioritizes energy efficiency faults — both unique and systemic — for immediate action. Applying this program reduced building energy use by 15 percent in 2017.

The technology takes commonly available data and uses it to empower building operators to make quantitative and qualitative decisions regarding energy efficiency measures. Based on early pilot results, we expect the use of data analytics to improve energy savings for our clients by 5 to 20 percent on average.

ANALYTICS SPOTLIGHTENERGY EFFICIENCY

MOVING OUR CLIENTS FORWARDWe design projects that conserve, generate or distribute energy. For some clients, we’re advancing the transition to renewable energy: solar photovoltaic and solar thermal facilities, wind turbines, hydropower, biomass and even experimental renewable energy pilot projects. We rely on significant transmission and distribution experience to help our clients deliver energy from the renewable power sources to the communities where the power is used.

For other clients, we’re helping buildings function more efficiently, taking advantage of advanced systems and building controls to achieve optimized energy management strategies. These high-performing projects can sustain or increase performance over building life cycles, reducing environmental impact and operating costs while maintaining safe and reliable energy delivery.

Through the services we provide, we break down silos to identify innovative technologies, research projects and new opportunities to improve energy efficiency.

ENVIRONMENT 3 1

See more atburnsmcd.com/services/

industries/power

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Our clients’ projects cover a wide range of objectives and industries. At the new Command and Control Complex for the U.S. Navy’s Broad Area Maritime Surveillance operations in Jacksonville, Florida, our team delivered mission-critical security while achieving energy conservation goals. The facility meets LEED Silver requirements and features sophisticated control systems, high-efficiency motors and occupancy lighting sensors. In 2017, the project earned a State Award from the American Council of Engineering Companies of Georgia.

In California, our team helped deliver wind-powered electricity from central California to the Los Angeles

Basin with the Mira Loma-Vincent Underground Transmission Project — one of the first in the world to install 500-kV transmission lines underground. Weaving through densely populated areas and roadways, the project demonstrates the feasibility of delivering large-scale renewable energy in sensitive environments. For its groundbreaking efforts, the project won an Honor Award from the American Council of Engineering Companies of California, as well as a National Recognition Award.

“ This project — and Burns & McDonnell — has allowed us to continue delivering safe, reliable, renewable energy to our customer base of more than 15 million.”

- Roman Vazquez Southern California Edison


One of the largest wind projects in Portland General Electric’s portfolio, the Tucannon Wind Farm is helping the utility meet Oregon’s Renewable Portfolio Standard of 50 percent renewable sources by 2040. In 2017, more than 40 percent of the energy the utility delivered was from carbon-free sources, thanks to this project and other sustainable generation efforts.

Covering 20,000 acres, the 267 megawatts of installed capacity generates enough electricity annually to serve about 84,000 customers. Our team designed and implemented a comprehensive program, including 41 miles of new roads, 20-plus miles of transmission line, a substation and 116 Siemens SWT-2.3-108 turbines.

The wind farm received a Gold award from the Institute for Sustainable Infrastructure (ISI) Envision program — the first energy project to receive an ISI Envision-verified sustainable infrastructure award in North America. Burns & McDonnell has been a charter member of the ISI since 2013.

PROJECT SPOTLIGHT TUCANNON RIVER WIND FARM

Tucannon River Wind Farm was the first energy project in North America to receive an ISI Envision-verified sustainable infrastructure award.

ENVIRONMENT 3 3

With this 106-acre photovoltaic (PV) array, our team helped the utility validate utility-scale PV as cost competitive with traditional generation. The project feeds 23 megawatts of DC capacity into the power grid and can power 3,300 homes. The 202,000 thin-film PV panels have sensors and drive motors that track the sun’s movement, earning a 20 percent energy gain over fixed installations.

The location presented distinct challenges to the project team. Because the entire site sits in a flood plain, our team elevated the tracker system

10 feet in the air and treated the piles with an uber-corrosive-resistant-coating. On-site weather-monitoring stations automatically identify high-wind conditions and move the panels to a safe position. A design wind speed of 135 miles per hour exceeds the standards of a hurricane wind zone.

Completed in 2017, the project is the largest single source of solar power in the area. It was selected as a finalist for Solar Builder magazine’s Project of the Year in the utility category.

PROJECT SPOTLIGHTCONFIDENTIAL CLIENT


ENVIRONMENT 3 5

PROJECT SPOTLIGHTUNIVERSITY OF TEXAS CHILLING STATION

For the University of Texas, unprecedented campus growth created the opportunity to reduce energy consumption, thereby saving on costs and minimizing the environmental footprint. With the $800 million addition of the Dell Medical School and the Dell Seton Medical Center, the district used the accompanying load growth as a chance to optimize power, cooling and heating systems.

The campus self-generates power through an already efficient combined heat and power (CHP) system. A new 5.5 million-gallon storage tank at the chilling station provides up to 13,000 tons of cooling for up to five hours, enabling the university to offset up to 6 megawatts of peak electrical load to nighttime hours. Teamed with an existing thermal energy tank, the system shifts enough peak load to offset the power demands of the new medical facilities while helping the CHP system run more efficiently.

In 2017, the project earned a Silver Award from the Texas chapter of the American Council of Engineering Companies.

In 2017, for the first time, we submitted to the Carbon Disclosure Project, a global not-for-profit that helps organizations manage environmental impacts.

Reducing emissions is far more than meeting regulatory requirements. For ourselves and our clients, we reach for optimal efficiency in processes and facilities to convert environmental challenges into opportunities. It’s good for business and it’s good for our planet.

We strive to limit our own carbon footprint through in-house initiatives. Our efforts to reduce the consumption of electricity, natural gas and water at our offices also serve to reduce the amount of greenhouse gases (GHGs) emitted.

We value face-to-face connections with our clients, so business travel is a major component of our emissions output. One way we’re reducing that

impact is by growing our regional offices, hiring local to reduce the physical distance between our employee-owners and our clients. In 2017, we established or expanded 18 office locations.

We are also pragmatic in deploying tech tools to virtualize meetings when appropriate, seeking to reduce travel through telecommuting, videoconferencing and other collaboration technology. Newly developed in-house task forces on Emissions and on Travel and Transport will further seek to identify and set goals for practical improvements. We have also initiated pilot programs using augmented reality, which allow team members to visit a job site virtually.

EMISSIONS


In 2017, for the first time, we submitted to the Carbon Disclosure Project, a global not-for-profit that helps organizations manage environmental impacts.

As electric vehicle (EV) adoption edges into the mainstream, we’re taking steps to put our company ahead of the charge. In collaboration with the local electric utility, we have installed 10 EV charging stations at our headquarters in Kansas City. Regional locations like Washington D.C., New England, Dallas, San Diego and Phoenix have also installed charging stations this year. Charging is provided to employee-owners at no cost, further encouraging adoption.

According to a U.S. Department of Energy study, employees of companies with at-work charging stations are 20 times more likely to drive electric vehicles than those whose workplaces do not accommodate EV charging. Our world headquarters contributes to the Kansas City region’s status as the fastest-growing EV market in the United States.

TECHNOLOGY SPOTLIGHT EV CHARGING STATIONS

“ Driving electric is good for the planet and our pocketbook, with free workplace charging. Having charging station infrastructure at Burns & McDonnell is an asset in encouraging electric vehicle adoption among employee-owners.”

- Jamie Precht Project Manager

ENVIRONMENT 3 7


ENVIRONMENT 3 9

Repurposing and renovating existing facilities can dramatically reduce embodied carbon emissions, saving from 50 to 75 percent in emissions compared to new projects. In Independence, Missouri, a vacant but centrally located office building became a sustainable showcase.

Our team helped transform a dilapidated structure into a welcoming and environmentally conscious home for the city’s municipal utilities. The facility features LED lights with occupancy sensors, water-efficient plumbing fixtures, salvaged barn wood from Kentucky, low-VOC materials and a wind turbine that provides 15 percent of the building’s energy. Rooftop solar photovoltaic panels support facility operations and variable refrigerant flow to efficiently heat and cool the building.

Combined, the building’s sustainability features save enough energy to power six homes for a year. In 2017, the facility earned LEED Platinum certification for exceptional energy and water conservation, site connectivity and development, and sustainable construction techniques. The Kansas City Business Journal also honored the project with a Capstone Award in the green design category.

PROJECT SPOTLIGHTINDEPENDENCE UTILITIES CENTER


For Burns & McDonnell’s team of environmental services air engineers, it’s not enough to keep up with regulations. Team members stay ahead of them, anticipating changes that may impact client projects and contributing to the dialogue with articles, white papers and industry presentations.

Team members calculate emissions and develops strategies for how clients can reduce emissions and comply with regulations, especially on power projects. Their deep knowledge of permitting and the regulatory environment helps “future-proof” projects, finding the most efficient solutions for compliance, today and decades from now.

By considering all angles — the development, jobs and electricity these projects provide as well as the environmental impact — they can successfully develop a balanced plan.

On projects, they serve as a conduit among clients, regulatory agencies, environmental groups and the public, often translating highly technical issues into language everyone can understand. They credit their teamwork and passion for their problem-solving acumen — knowing that several motivated, caring brains are better than one for determining the best solutions.

INNOVATION SPOTLIGHTAIR ENGINEERS

ENVIRONMENT 4 1

DEFINING OUR CARBON FOOTPRINTOur carbon footprint is the total amount of GHGs produced to directly and indirectly support the human activities associated with our company’s efforts. In 2017, we began implementing a new Environmental Management System to track our GHG output, establishing a baseline against which we will measure future progress.

Launched in 1998, the Greenhouse Gas Protocol is a universally recognized joint effort of the World Resources Institute and the World Business Council for Sustainable Development. It establishes global standards for the measurement and management of GHGs. The protocol categorizes GHG emissions as Scope 1, 2 or 3 based on the source of the emission. We’ve calculated our 2017 numbers in accordance with the protocol’s guidelines.

Greenhouse Gas Protocol

• Scope 1 — Direct GHG: Emissions from sources owned or controlled by our company, including office natural gas consumption and fleet gas consumption.

• Scope 2 — Energy Indirect GHG: Emissions from the consumption of purchased electricity.

• Scope 3 — Other Indirect GHG: Emissions that are a consequence of our company’s operation, but not directly owned or controlled by us. This includes employee commuting, business travel, and purchased products and materials.

2017 CARBON FOOTPRINT*

*Data gathered through our new Environmental Management System.

S CO P E 3 :

20,097T O TA L :

38,588

S CO P E 2 :

13,671S CO P E 1 :

4,820

Carbon Dioxide Equivalent (CO2e)

SCOPE 1 — DIRECT GHG

SCOPE 2 — ENERGY INDIRECT GHG

SCOPE 3 — OTHER INDIRECT GHG

MOVING OUR CLIENTS FORWARDThe building sector is responsible for nearly 40 percent of CO2 emissions in the United States. Because it’s a significant percentage, that statistic offers significant opportunity for improvement. We reduce the global carbon footprint by helping our clients develop renewable energy projects and make conventional energy plants operate more efficiently. We also construct high-performing buildings that save energy, water and resources — elements that contribute to reduced emissions. Our comprehensive approach to reducing a facility’s carbon footprint is reflected by our LEED accredited professionals and in our LEED certified projects.

GREEN RATING SYSTEMS


L E E D A CC R E D I T E D P R O F E S S I O N A L S250+

280+

3SILVER

37SILVER

1PLATINUM

18PLATINUM

1 CERTIFIED

2GOLD

31GOLD

6LEED CERTIFIED

PROJECTS IN 2017

87LEED CERTIFIED

PROJECTS TO DATE

E N V I S I O N S U S TA I N A B I L I T Y P R O F E S S I O N A L S ( E N V S P s )

*US Energy Information Administration and USGBC

ENVIRONMENT 4 3

We take measures to reduce embodied carbon — the energy and emissions from materials and construction. Our global reuse services team identifies opportunities for reclamation and reuse. We engineer efficient structural systems. Where possible, we specify high-recycled content and low-carbon materials.

Our environmental professionals track evolving rules and regulations to support air quality and compliance. Our team estimates emissions, conducts air pollution control analyses, prepares air permit applications and predicts ambient air impacts through dispersion modeling.

Often, the effort to reduce emissions encompasses not just one facility but an entire campus. The energy used to heat, cool and illuminate buildings can account

for more than 75 percent of total carbon emissions. Retro-commissioning efforts can optimize mechanical and electrical systems to minimize energy use and meet campus sustainability goals.

Our commissioning team completed several such efforts in 2017. At the 40-building Argonne National Laboratory campus near Lemont, Illinois, we identified a list of retro-commissioning measures that will reduce the building’s energy use by almost 25 percent. The reduction in emissions is equivalent to taking 400 cars off the road yearly. Similarly, at Naval Station Newport in Rhode Island, retro-commissioning measures are expected to reduce total campus energy use — and emissions — by 9 percent.


The pipeline infrastructure in the United States is now the world’s largest. Yet more than half of the 2.5 million miles of pipelines spanning the country were built before 1970. Aging pipes used for natural gas distribution can leak methane, which is 30 times more potent than CO2 as a heat-trapping gas.

Our team supports utilities — including Con Edison and Baltimore Gas & Electric — in replacing leaky pipes with corrosion-resistant piping, significantly reducing methane leaks.

Recognizing our team’s commitment to sustainable solutions, Con Edison extended its partnership with our company to include management of its distributed resource integration portfolio. This includes the Shared Solar program, which installs solar panels on company facilities throughout New York City, and its Demand System Portfolio, which facilitates the incorporation of renewable energy sources into the utility’s electric distribution grid. Both efforts reduce greenhouse gas emissions while improving grid reliability and efficiency.

PROGRAM SPOTLIGHTNATURAL GAS MAIN REPLACEMENT

A Port of Los Angeles project is showing how large industrial facilities can run on clean energy. The Green Omni Terminal Demonstration Project is a full-scale, real-time demonstration of zero and near-zero emission technologies at the Pasha marine terminal.

The three-year effort creates a working laboratory to test clean energy vehicles, cargo handling equipment and infrastructure. It’s expected to reduce 3,200 tons of greenhouse gases and nearly 28 tons of other harmful emissions annually. This equates to removing 14,100 cars a day from the road.

The project also increases the terminal’s resiliency by enabling off-grid operations in the event of a power loss. With a solar-powered microgrid, a 2.6 megawatt-hour battery storage system, and charging equipment that can receive and supply power, Pasha will be the world’s first marine terminal to generate all its energy needs from renewable sources. Launched in 2016, the project is nearing the end of the construction and equipment manufacturing phase. The demonstration phase is scheduled to kick off in the summer of 2018.

PROJECT SPOTLIGHTGREEN OMNI TERMINAL DEMONSTRATION

ENVIRONMENT 4 5

PROJECT SPOTLIGHTBIOGAS FOR RENEWABLE ENERGY STORAGE

Biogas energy projects have a starring role — offering the capacity to offset natural gas and produce renewable electricity. Excess solar and wind energy is often wasted because there’s no economical method to store it. With power-to-gas, a bioreactor system converts excess renewable energy to renewable natural gas.

Pilot projects can serve as living laboratories to explore and perfect these technologies. Burns & McDonnell is working with Southern California Gas Co. to design, build and operate the first power-to-gas facility in the United States. The process uses renewable electricity to power an electrolyzer, which splits water to produce hydrogen. The hydrogen is next mixed with

carbon dioxide and fed to a bioreactor, which uses archaea microorganisms to produce pipeline-quality methane.

This renewable natural gas can be stored and delivered using existing infrastructure. And when the CO2 is sourced from biogas or fermentation, the process is also carbon-neutral. The system is efficient and scalable — two keys to helping significantly increase the amount of renewable energy we use. With the insights gained from the test project, Southern California Gas Co. will be able to put pilot into practice, identifying locations where this grid-scale energy storage would make the most positive impact.


In 2017, the American Council of Engineering Companies of Colorado honored Burns & McDonnell with an Excellence Award and two Merit Awards for water-related projects.

2017 WATER USAGE*Water sustains life, making thriving communities possible. This resource is critical — and threatened. In the past century, water use has grown at more than twice the rate of the population. We develop critical water infrastructure that protects this vital resource, design facilities and systems that reduce consumption, and reduce runoff and contamination on our job sites.

While we help clients conserve, cleanse and capitalize on what’s retained and what’s released, we also apply the same level of focus to our own facilities. Techniques for the proper management of water at our headquarters and at offices around the globe include:

• Stormwater management systems

• Drought-tolerant landscaping

• Reclaimed water for landscaping and irrigation

• Aerators at sink fixtures

• Dual-flush toilets

• Water-efficient appliances in kitchen areas

WATER

ENVIRONMENT 4 7


industries/water

*Data calculated based on world headquarters per person water consumption.

9.8K GallonsP E R P E R S O N

PROJECT SPOTLIGHTBURNS & McDONNELL EXPANSION

When our team of architects, engineers and contractors developed a plan for a new four-story building at our headquarters in Kansas City, the group's vision centered on sustainability. In fact, drainage issues on the site ended up being a major design driver.

Previously, stormwater flowed onto the site through an open concrete channel into an underground drainage culvert. During planning, our team discovered this runoff was considered a navigable waterway under the jurisdiction of the U.S. Army Corps of Engineers and to move it would require a permit that could delay the building process for two to three years.

The project team worked with the water instead of against it. Historical records showed the waterway’s original path flowed between our existing building and the development site. Restoring the waterway — designed in accordance with APWA 5600 and stormwater quality best management practices — allowed the project to progress. That waterway, now a vegetated stream, is a scenic amenity.

The environmentally conscious approach to stormwater management was one of many sustainable elements at the new building. The team reused materials from the building previously on the site, including crushed asphalt and reclaimed white marble.

Specialized glazing helps reduce heat gain and increases energy efficiency at the new facility. The project exceeds Energy Code requirements for energy conservation, exceeds International Electrotechnical Commission standards for sustainable installations, and offers 40 percent savings over International Energy Conservation Code 2012. The Kansas City Business Journal awarded the project the 2017 Capstone Award in the office category.


ENVIRONMENT 4 9

MOVING OUR CLIENTS FORWARDOur company was founded on the principles of providing clean water and efficient wastewater systems, and we’re still an industry leader more than a century later. Our clients, whether small rural water providers or large regional wastewater districts, face increased demand, aging infrastructure, evolving regulations and limited resources.

Together with our clients, we design and build sustainable water systems. We track the regulatory environment. We dive into the science of wetlands and other waters. Above all, we serve as problem solvers to meet our clients’ varied needs.

Sometimes, the solutions are extensive and complex. The $4.5 billion Smart Sewer Program in Kansas City, Missouri, is one of the largest green infrastructure projects in the United States. The city must

substantially reduce overflows in its sewer system within a 25-year time frame to meet the terms of a consent decree. Our work on this long-term project will improve water quality by rehabilitating aging infrastructure systems throughout the city’s combined and separate sanitary sewer systems.

Other times, the solutions are surprisingly simple. Poche Beach in San Clemente, California, had more bacteria-related warnings than any other beach in Southern California, even after the state installed a $3 million system to filter urban runoff. Our team found the answer in a biofilm on the bottom of the underground storm drain system. The system drains to the Pacific Ocean. At the beach, the biofilm attracted flocks of seagulls, whose droppings contaminated the water. Instead of a costly fix, the deployment of live falcons and fake coyotes to scare away the gulls made all the difference.


PROJECT SPOTLIGHTEQUUS BEDS AQUIFER

STORAGE AND RECOVERY

Blessed with both surface water supply and groundwater supply from the Equus Beds Aquifer, the city of Wichita, Kansas, was in better shape than many communities. But drought and heavy agricultural use had depleted the aquifer, potentially subjecting it to groundwater contamination from abandoned oil field developments and natural sources of chlorides.

To protect the community’s long-term water supply, our team added a third water supply source to the mix — aquifer storage and recovery, allowing the capture and storage of excess rainfall in the ground until needed. This third supply draws excess flows from the Little Arkansas River during rain events, treats the water to drinking water standards through a sophisticated membrane and advanced oxidation plant, and reinserts it into the Equus Beds Aquifer for future withdrawal.

The city can capture and recharge up to 35 million gallons per day, and water levels in the depleted aquifer now reach nearly 100 percent recovery. The project earned a National Design-Build Project Award from the Design-Build Institute of America.

ENVIRONMENT 5 1

“ Big Canyon is an excellent example of how natural biological systems can be engineered to treat urban stormwater runoff. The partnership between the City and Burns & McDonnell was key in developing and implementing this innovative solution.”

- Mark Vukojevic City of Newport Beach


PROJECT SPOTLIGHTBIG CANYON RESTORATION AND WATER QUALITY IMPROVEMENT

Big Canyon Creek in Newport Beach, California, drains to an ecological preserve, so when city officials found high levels of selenium in its waters, they took action. A proposed treatment plant had been rejected because it wouldn't address pollutant-laden stormwater runoff from a nearby road and other issues affecting the creek’s water quality.

Searching for a more inclusive approach, the city reached out to our environmental specialists for help. Our team developed a more comprehensive — yet less expensive — solution. In an innovative treatment train, the project integrated water quality improvements of dry-weather flows, passive treatment of wet-weather runoff through wetland creation, streambed and streambank stabilization, riparian restoration, and improved public access.

The effort lowered selenium levels, reduced pollutants and restored a degraded habitat, providing a blueprint for a watershed-based approach to the restoration of coastal California. Recently, the American Council of Engineering Companies of California honored the project with its Engineering Excellence Honor Award.

“ Big Canyon is an excellent example of how natural biological systems can be engineered to treat urban stormwater runoff. The partnership between the City and Burns & McDonnell was key in developing and implementing this innovative solution.”

- Mark Vukojevic City of Newport Beach

When the J.R. Simplot Co. developed plans to build a state-of-the-art potato processing plant in Idaho, it’s no surprise sustainability was a key component of its vision. After all, “respect for resources” is a pillar of the organization.

The 400,000-square-foot plant is a zero-liquid-discharge facility, reclaiming up to 1.7 million gallons of water each day for reuse in the production process. Any remaining discharge irrigates crops on-site. Our team collaborated with the local utility to develop energy-efficient systems that save enough electricity to power 850-plus homes annually. Even waste finds

purpose. Potato peelings and other edible waste sources head either to a nearby feedlot as cattle feed, or to an anaerobic digester where the resultant methane gas is scrubbed and used to heat boilers.

The plant achieved LEED Gold accreditation. In addition, it earned accolades from several organizations, including the WateReuse Association Industrial Project of the Year, an Idaho Governor's Award for power reduction, and the 2017 Food Processing magazine Green Plant of the Year.

PROJECT SPOTLIGHTJ.R. SIMPLOT CO. POTATO PROCESSING

ENVIRONMENT 5 3


WASTE & MATERIALS

Because office materials make up a sizable percentage of landfill waste, we feel a responsibility to minimize the impact our operations have on the environment. We start within our own offices with sustainable material choices and recycling programs. Through the decisions we make with our clients, we go beyond traditional recycling — we reuse materials and design smart solutions for solid waste.

At our offices around the globe, we exercise policies and procedures to minimize waste, including:

• Comprehensive recycling programs at offices and job sites.

• A shift to digital documentation to reduce the need for printed copies.

• Minimal paper file storage to encourage electronic filing.

• Electronic archiving program.

• 3D scanning and building information modeling for design development.

• Digital transfer of plans and drawings to suppliers, clients and subcontractors.

• Dishwashers and dishware provided to minimize paper goods use.

• Green cleaning programs.

Paper plays a key role in ongoing operations, from accounting to producing specifications. Paper manufacturing is a resource-heavy endeavor, dependent on the utilization of forests, water and energy. To reduce this impact, we’ve pledged to purchase paper with a minimum 30 percent recycled content from environmentally and socially responsible suppliers. This policy helps align our paper and print procurement decisions with our overarching sustainability commitments.

Our world headquarters is certified LEED Gold for the operations and maintenance of existing buildings. This means we have achieved ambitious targets for solid waste management, indoor environmental quality (including use of green cleaning products), purchasing, water efficiency, energy and atmosphere, and innovation in operations.

In 2017, we reinvented Recycling Day at our headquarters in Kansas City, organizing the collection of paper, eWaste, building supplies and other materials. We also developed a partnership with Ripple Glass, a regional glass recycler, in which employees pledged to collect and recycle glass at home and in the workplace.

2017 RECYCLING DAY AT WORLD HEADQUARTERS

E WA ST E (CO M P U T E R S A N D OT H E R E L EC T R O N I C S) D I V E RT E D F R O M LA N D F I L L S

8,731 lbs.400 lbs.G L A S S R E C YC L E D

1,500 lbs.O F B I K E S A N D A CC E S S O R I E S D O N AT E DB U I L D I N G M AT E R I A L S D I V E RT E D FO R R E U S E

4,880 lbs.PA P E R R E C Y C L E D

2,159 lbs.

ENVIRONMENT 5 5

INNOVATOR SPOTLIGHT

Two-dimensional computer-aided design processes can sometimes have a heavy footprint, in both data-gathering efforts and printed output. Senior electrical engineer Alan Washburn uses 3D technology to pursue future workflows with a lighter touch.

“3D scanning — including lidar (light detection and ranging) and photogrammetry — is a giant leap forward in gathering information from project sites," Washburn says. "It requires a small, unobtrusive footprint and collects a tremendous amount of data, even in complex environments. Integrating 3D technology during the design process helps projects reach the next level of efficiency and quality, eliminating conflicts among disciplines and updating plans among subconsultants — all without the need for paper.

"Three-dimensional models come equipped with built-in intelligence that delivers even after the project is completed. Building Information Modeling (BIM) data can become the basis for an asset maintenance and management system. The design team can even help building owners eliminate thousand-page operational manuals by creating an augmented or virtual reality model.”

ALAN WASHBURN

Alan Washburn, PE

Senior Electrical Engineer


PROJECT SPOTLIGHTREUSABLE OVER DISPOSABLE

More than 6,000 hardworking employee-owners can use a lot of drinking cups in a year. In 2017, we took steps to prioritize reusable over disposable cups.

To celebrate our ranking on the Fortune's list of 100 Best Companies to Work For, Burns & McDonnell presented all employee-owners with a personalized, insulated aluminum tumbler. These tumblers are now commonplace on desks across our global offices. In many break rooms, dishwashers and fully stocked sinks encourage consistent use of tumblers and other reusable cups and mugs.

Our Southern California office took it a step further. The office instituted “No Paper Cup June” as a reminder to use reusable cups. The monthlong campaign was one part of an ongoing waste reduction and recycling program that included replacing wastebaskets with single-stream recycling containers in most areas of the office.

By providing each employee-owner with a reusable drinking cup, we can save more than 1.5 million disposable cups each year.

ENVIRONMENT 5 7


MOVING OUR CLIENTS FORWARDAs the market moves toward zero-waste goals, one of the most dramatic ways we can help clients is through material reuse and recycling. Our global reuse services team connects usable materials removed from renovated spaces with new projects incorporating reclaimed materials.

We’ve helped Starbucks facilitate the reuse of more than 35,000 LED lamps with usable life and coordinated with 25 separate warehouses on the donation of surplus fixtures from canceled projects. Our team also partnered with Kohler to devise a sustainable solution for the disposition of post-manufacturing mirror waste, identifying suitable secondary outlets for the use of these materials.

For our professionals, waste also means waste management. As population growth generates increased solid waste, our clients are facing local challenges that carry global impacts. Improperly managed solid waste may be a threat to the environment and a risk to human health.

Establishing sound waste management and recycling programs is a balancing act — and not all waste can be repurposed. Energy from waste projects can be part of the solution for waste management. We've helped our clients construct emerging conversion technologies and systems, including thermal, biological, chemical and other energy from waste systems. We work with solid waste and utility clients to harness renewable landfill gas to generate electricity and, more recently, to produce pipeline-quality and compressed natural gas.

We also perform hydrogeological and geotechnical stability investigations, design liner systems and geosynthetic systems, and design operations and closure systems for solid waste landfills. When waste migrates off-site or becomes an environmental problem, we assist our clients with cleanup. Our teams of geologists, chemists and engineers remediate water and soil contamination to restore the quality of the environment.

“ Burns & McDonnell is a valued partner in our solid waste resource recovery planning, including the recent procurement process for the new $20 million Material Recovery Facility at McCommas Bluff Landfill. Their innovative solutions are integral to the city’s sustainability efforts.”

- Kelly High Director, City of Dallas Sanitation Services

PROJECT SPOTLIGHTAMC THEATRES REUSE

Going to the movies has become a more luxurious experience, complete with comfortable leather recliners. For the nation’s largest theater chain, that meant disposing of thousands of old theater seats, many with years of service left in them. At first, these bulky, traditional seats were relegated to the dumpster.

But AMC Theatres worked with Burns & McDonnell to find a cost-efficient way to do the right thing: reuse. At theaters across the United States, our team coordinated the reuse of discarded seating and fixtures during renovations. We identified a secondary market for the theater seats, as well as sources interested in AMC’s nationwide inventory. A materials handling plan guided the assessment and removal process for seats.

So far, we’ve helped AMC divert more than 3 million pounds of material from landfills. The approach reduces waste and landfill fees, helps owners meet sustainability goals and enables recipients to outfit facilities at a fraction of the cost they might otherwise pay. Based on its success, the program grew from a pilot into a national program within six months.

ENVIRONMENT 5 9

's list of


PROJECT SPOTLIGHTSTATE OF TEXAS RECYCLING STUDY

Seeking to understand the economic effects of municipal solid waste recycling programs, the Texas Legislature passed a bill calling for the creation of a Study on the Economic Impacts of Recycling. Our team came on board to carry out the comprehensive effort, examining recycling methods, marketing campaigns, ongoing programs and other efforts statewide.

Completed in 2017, the study demonstrated the economic importance of recycling in Texas. In just one year, recyclers collected and diverted 9.2 million tons of municipal solid waste worth an estimated $702 million. The study also outlined an overall impact on the Texas economy exceeding $3.3 billion.

The findings will inform years of infrastructure improvement projects for state and local governments, providing insights on recycling infrastructure needs, funding mechanisms for recycling programs, and opportunities for programs in rural and underserved areas.

We believe project development and the environment don’t have to be at cross purposes. Through conscientious efforts over the course of a project’s life cycle, we help them coexist successfully. For instance, when we designed an expansion to our world headquarters, we restored 1,100 feet of open concrete channel to a natural high-quality stream channel with native plant riparian buffers.

The new stream captures and filters stormwater, improving the quality of runoff from our headquarters and positively affecting biodiversity downstream. The project, which exceeded U.S. Army Corps of Engineers requirements, is one way we show we don’t just follow environmental laws and regulations — we believe in doing the right thing for our clients, communities and company.

MOVING OUR CLIENTS FORWARDEnvironmental services are a core part of our business, from upfront ecological studies to environmental monitoring post-construction. We go beyond helping clients mitigate the impact of project work — we help locate and design projects to limit impacts to biodiversity in the first place. We help clients avoid impacts to wetlands, nesting birds, important habitat, and land and aquatic special status species. And we have been providing biodiversity services for a long time; our Environmental Services team has served Burns & McDonnell clients for more than 40 years.

ENVIRONMENT 6 1

BIODIVERSITY

PROTECTION THROUGHOUT THE PROJECT

Our multidisciplinary teams understand potential effects to biodiversity throughout a project life cycle, from project planning to post-construction.

• During siting and routing studies, we consider wetlands, habitats, nesting and hibernation areas, and archaeological and historic resource areas when recommending the right location.

• To reduce potential impacts, project planning identifies best management practices (BMPs) to reduce any potential impact, including brightly colored flagging, buffer zones and timber matting.

• During construction, field inspectors and environmental monitoring staff work together to confirm compliance with BMPs and regulations.

• Post-construction, we revegetate sites, including with native seed mixes, and monitor to check the site is returning to vegetated conditions.

Our diverse team includes soil scientists, avian and bat specialists, wetland scientists, threatened and endangered species biologists, aquatic ecologists and fisheries biologists, environmental permitting specialists, hydrologists and wetland scientists. They support our clients’ ecological responsibility by:

• Conducting field surveys for special status species and their habitat.

• Performing ecological studies for threatened or endangered species.

• Mapping and delineating wetland areas.

• Assessing fisheries and surface and ground water quality.

• Developing plans for bed/bank stabilization, erosion and sediment control, and stormwater management.

In many areas, our scientists are at the forefront of their industries, helping to interpret and even shape policies within their fields. Environmental scientist Jim Burruss has been instrumental in the preparation of avian protection plans (APP) for electric transmission and distribution lines, wind power and hydroelectric projects. The plans — a relatively recent arrival, as the first APP was developed in 1999 — help reduce avian and operational risks that can result from avian interactions. Burruss contributed to the first official APP guidelines in 2005 and continues to help introduce new guidelines and BMPs today.


environmental


For some, bats are nothing but a nuisance. But Josiah Maine understands the value of these species to our world. An environmental scientist in our natural and cultural resources department, he specializes in U.S. Endangered Species Act surveys, compliance and consultation.

“The better I understand a threatened or endangered species, the better I can help my colleagues plan projects that respect their habitats," Maine says.

"Part of that is tracking species in crisis. Through habitat assessments and habitat conservation plans, we can help these species rebound.

"I’m particularly passionate about the protection of bats, a commonly misunderstood animal that provides vital and valuable services to society. We’re using acoustic and netting surveys to collect data about their habitats, providing a solid foundation for recommendations regarding development that won’t have significant impact. We’re even doing groundbreaking work in the development of a conservation bank devoted to the Indiana bat, offering our clients a way to move projects forward without adversely affecting bat populations.”

INNOVATOR SPOTLIGHTJOSIAH MAINE

Josiah Maine

Environmental Scientist

ENVIRONMENT 6 3

U . S . CO N S E R V AT I O N B A N K F O R I N D I A N A B AT S

A C R E S I N CO N S E R V AT I O N B A N K

1st

1,300+


PROJECT SPOTLIGHTCHARITON HILLS CONSERVATION BANK

An adverse ecological impact from a development project is sometimes unavoidable — but conservation banks can help offset the impact. Conservation banks are areas of land set aside to permanently protect threatened or endangered species and their habitats. Developers can buy credits from the bank to compensate for adverse impacts to similar, nearby ecosystems.

Conservation banks also take advantage of scale. By helping consolidate smaller sensitive species compensation projects into large, contiguous preserves, the approach offers higher wildlife habitat values for endangered species.

Experience conducting bat surveys has earned our bat biologists close relationships within the scientific community and regulatory agencies. When discussion began about creating a conservation bank specifically for the endangered Indiana bat, our team was an ideal choice. Burns & McDonnell purchased land for the 1,300-acre Chariton Hills Conservation Bank in northern Missouri in 2017. In 2018, we anticipate selling credits in the bank, making it the first conservation bank approved by the U.S. Fish and Wildlife Service for the protection of the Indiana bat.

“ Conservation and mitigation banking offers multiple sustainable benefits. They permanently protect wetlands and habitats for special status species. They provide turnkey, sustainable options for our clients. And they expand our range of environmental solutions.”

- Mark Van Dyne Vice President, Environmental Services

ENVIRONMENT 6 5


INNOVATOR SPOTLIGHT

For scientist Bri Richards, a 10-mile hike through a mud-soaked landscape is all in a day’s work as a wetland delineator. She walks the land, then processes spatial GPS data, classifies photos and fills in forms — all in service of completing a wetland delineation report.

“I’ve slogged through tangles of cattails and crawled under countless barbed wire fences, but it’s worth it to help identify and protect our nation’s wetlands," Richard says. "Decades ago, United States wetlands were drained at an alarming rate, at the cost of surrounding ecosystems. Now, the law states that if development results in the net loss of a wetland area, an equal or greater amount of wetlands must be created.

"In support of that law, I spend every day identifying wetlands, quantifying impacts and creating new wetlands. During a typical survey, I might dig seven soil pits, identify 20 botanical species, note various indicators of wetland hydrology and help my field partner meticulously map boundaries with a GPS unit. This is why I became a scientist — and why I’m particularly choosy about my hiking boots.”

BRI RICHARDS

Bri Richards

Wetland Scientist

Our people are our most important asset. We foster a culture of safety, excellence, well-being, giving back and personal growth that encourages all employee-owners to reach their full potential. We seek to reflect these values in the processes and policies we implement, from recognition within our offices to community involvement outside them.

This section describes our corporate culture and commitment to community. It also spotlights how our employee-owners are supported in their pursuit of personal growth and client success.

PEOPLE

PEOPLE 6 7


COMMUNITY

We do work that matters every day, for the clients we serve and the communities in which we live. We build airports for Fortune 100 companies and houses for our neighbors. We improve water quality and cook breakfast for families in need. We give our time on boards of nonprofits. And we believe that building strong communities starts from the inside, by reaching out to help those who are in need because of circumstance or crisis.

We are in a special position to help — because of our technical knowledge as engineers, scientists, architects and builders, and because we are employee-owners who can make tremendous contributions to our Burns & McDonnell Foundation and to other charitable organizations.

T O TA L V O L U N T E E R H O U R S

2 2 ,0 0 0T O TA L I N V E S T M E N T

N E A R LY

$7M I L L I O N

2017 COMMUNITY INVESTMENT

BURNS & McDONNELL FOUNDATION AND EMPLOYEES

$ 3 . 35 M I L L I O N + R A I S E D CO M PA N Y W I D E F O R U N I T E D W AY, S U P P O R T I N G I N I T I AT I V E S A C R O S S T H E U N I T E D S TAT E S

$1 3 3 ,0 0 0 + D O N AT E D CO M PA N Y W I D E T H R O U G H D E N I M D AY S

1 0 S C I E N C E C E N T E R S S U P P O R T E D I N E I G H T U . S . S TAT E S

$ 26 0,0 0 0R A I S E D T H R O U G H T H E E M P LO Y E E M AT C H I N G G I F T S P R O G R A M , C U LT I V AT I N G T H E C A U S E S O F E M P LO Y E E S B Y S U P P O R T I N G O R G A N I Z AT I O N S T H AT M AT T E R T O T H E M

$ 4 6 0,0 0 0 +1,000 SERVICE HOURS

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While every honor we earn is meaningful, our placement among Fortune’s 100 Best Companies to Work For stands out. The rankings are based on employees’ ratings of workplace culture, including the level of trust they feel toward leaders, the pride they take in their jobs and the camaraderie they experience with colleagues.

After surveying more than 230,000 employees from companies across the United States, Fortune ranked Burns & McDonnell No. 16 on its 2017 list. At our offices nationwide, we celebrated with milk and cookies during the middle of the day. We are honored to have made the list seven times as of 2017.

As part of the survey, our employee-owners cited “tightknit, collaborative teams” and an environment where “every employee has a purpose.” Of those surveyed, 96 percent stated, “People here are

willing to give extra to get the job done” and “I feel good about the ways we contribute to the community.” In addition, 98 percent of employees cited the great atmosphere and great sense of pride, and 95 percent noted great rewards, great communication and great bosses.

CULTURE SPOTLIGHT

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“I’m proud to tell others I work here.”

95% of Burns & McDonnell employee-owners responding to the 2017 Fortune’s 100 Best Companies to Work For survey

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BURNS & McDONNELL FOUNDATIONWe formed the Burns & McDonnell Foundation to reflect our belief in corporate citizenship and philanthropy. A 501(c)(3) organization, the Foundation directs giving, volunteering and grant programs in support of four primary areas:

education, community development, health, and arts and culture. A Corporate Citizenship Committee, which includes a representative from each business practice and regional office, supports program implementation and encourages employee-owner involvement.

Giving back is a major component of our corporate culture, but it’s also a personal commitment among our employee-owners. It’s not an obligation; it’s a privilege.

Julee Koncak,

Director, Burns & McDonnell Foundation


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STEM EDUCATION Our employee-owners rely on STEM (science, technology, engineering and math) skills, passion and a lifelong curiosity to change the world. We value the opportunity to light the same spark and build the same foundation in students.

With generous support from the Burns & McDonnell Foundation, we take our time, talents and monetary contributions to students and the institutions supporting them. This can come in the form of donations, volunteer judges for science fairs and other STEM competitions, or something bigger like the Burns & McDonnell Battle of the Brains — a K-12 academic competition to design a new science center exhibit.

In 2017, Burns & McDonnell employee-owners offered:

• Students and teachers the ability to explore STEM careers through job shadowing.

• Engineering U, a free academy where students take part in hands-on engineering projects.

• Your World: Empowered sessions introducing students and their parents to opportunities in the industry.

• Prospective student nights with local universities.

• Career jumping sessions where school groups explore STEM disciplines and career paths.

• Volunteer time at STEM events, including FIRST programs, science fairs and MATHCOUNTS.

• Educators Summit, a capacity-crowd event that provides teachers with resources to engage STEM learning they can take back to their classrooms and offers connections to industry professionals.


Burns & McDonnell Battle of the Brains is an immersive K-12 STEM competition with a premise that’s wholly unique. Schools earn a piece of the $155,000-plus grant for STEM education by dreaming up an exhibit concept for Science City, Kansas City’s science center. The winning team works alongside Burns & McDonnell architects, engineers, construction managers and designers to develop a $1 million permanent exhibit.

Over the past decade, Burns & McDonnell has invested more than $6 million on six major exhibits, and 18,000 students in 55 school districts have participated in the competition. The 2017 competition was the largest ever, with 820 entries from more than 7,000 students. Burns & McDonnell employee-owners have donated 4,500 collective hours as mentors and judges.

Also in 2017, students from Mason Elementary, winners of the 2015 competition, joined with the Burns & McDonnell project team they collaborated with over the past two years to launch Science City’s first outdoor exhibit — Simple Machines at Play.

2017 BATTLE OF THE BRAINS

STEM SPOTLIGHT

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EMPLOYEE-OWNERS

Thirty-one years of employee ownership has shaped the Burns & McDonnell culture. Our prosperity is shared with all employee-owners who created that success, rather than with just a single leader or outside investors. Our hard work leads to client success, which leads to our company’s success. It’s a profitable cycle that directly benefits each employee-owner financially and drives us to achieve the best for our clients.

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HIRING AND RETENTIONTo support our company’s rapid growth, our Human Resources (HR) department focuses on identifying, recruiting and retaining top talent. With an average of 43 applicants per job opening, HR representatives have the freedom to find people with both exceptional skills and the temperament to succeed. Our chief administrative officer monitors progress toward formal recruiting, retention and diversity goals.

We aggressively recruit new graduates and experienced professionals and onboard them into an extensive training program. Many of these new team

members are graduates of our robust internship program that engages more than 200 college students each year.

New employees attend a comprehensive orientation on their start date. They also meet their assigned mentor, an employee-owner selected based on shared areas of interest or knowledge. Thanks to employee ownership, team members walk through the door every day into an entrepreneurial and collaborative atmosphere.

J O B G R O W T H4 % 15%

NEW HIRES BY EMPLOYEE REFERRALS

16%OPENINGS FILLED BY CURRENT EMPLOYEES


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WORKPLACE DIVERSITYWe value diversity in race, ethnicity, religion, gender and sexual orientation. The connections and collaborations among a diverse workforce give us new perspectives and drive innovation. Together we’re stronger, smarter and more creative.

Our 31-member Diversity Advisory Committee leads efforts to heighten appreciation for cultural diversity. Those efforts include a monthlong celebration of diversity, which includes training courses on generations and gender differences, a social event with local chambers and societies, diversity-related trivia and a presentation featuring award-winning speakers such as entrepreneur and author, Justin Jones-Fosu, who highlighted the importance of everyday diversity. Throughout the month,

employee-owners are highlighted showcasing and appreciating differences that exist within our employee population.

Additionally, the committee hosts a quarterly event that brings in such speakers as close personal friends of Martin Luther King Jr. like Mary Liuzzo Lilleboe, Andrew Young, Dr. Bernard LaFayette and Dr. Claybourne Carson, as well as the daughters of George Wallace and Rev. Ralph Abernathy.

Other guest speakers have included Jessica Cox, born without arms who spoke about overcoming obstacles; Richard Montañez, a janitor who invented the Flamin’ Hot Cheetos and became a PepsiCo executive; and the president of the Negro Leagues Baseball Museum and retired Major League Baseball players.


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HEALTH AND WELLNESSAll eligible employee-owners are offered a robust health and welfare benefit plan, including coverage for mental health care. In 2017, an updated wellness incentive program allowed employee-owners to receive a discount on health insurance by earning points through wellness events, health coaching, classes and challenges.

Employee-owners can take fitness classes at the headquarters fitness center. In other offices, they may benefit from free access to on-site gyms and discounts at off-site gyms. Company-sponsored intramurals and corporate challenges offer additional opportunities to encourage physical fitness. We offer programs such as bone density and skin cancer screenings, flu shots, tobacco cessation and more.

Other wellness benefits include a bike at work program (new for 2017), health fairs, on-site farmers markets and a community-supported agriculture delivery program, which offers direct access to fresh, locally grown produce. Additionally, at the end of 2017, stipends were given to each employee-owner to purchase a fitness tracking device as a commitment to wellness.

Rewarding Smart Choices

Health insurance premium discount for meeting wellness requirements

Health insurance premium discount for nontobacco users


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PROFESSIONAL DEVELOPMENTContinuous growth is a priority. Our Education and Training team helps professionals fulfill continuing education requirements for professional registrations and offers more than 2,450 internal classes annually. Taught by employee-owners for employee-owners, these classes reflect an effective and cost-efficient approach to knowledge sharing.

Professional development support includes:

• In-house training through Burns & McDonnell University on a wide range of topics including

safety, anti-corruption, alternative project delivery methods and project management professional certification.

• Tuition assistance for an advanced degree in a technical field or a master of business administration, after six months of employment.

• Paid time off to take examinations for professional registrations and 100 percent coverage of the initial registration fee.

• 100 percent coverage for dues for select professional or technical organizations.

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What began as an internship at Burns & McDonnell has grown into a career. Working as an electrical engineer is a natural progression for Daniel Sierra, who served as an electrician’s mate in the U.S. Navy. As a veteran, our “team-first” company culture resonates.

“HR does an excellent job finding the right people with the right attitude," Sierra says. "Employees don’t have to be brainiacs, though they usually are here. But they should have the ability to put others first. A team-first attitude is shown in leadership, too. My project manager is always helping me achieve. Not only is it great for the company when we all do well, but also he cares about being a great leader.

"I love that I learn something new every single day. New projects are constantly coming in, so you’ll never work on the exact same thing twice. The training is amazing, from the brown-bag seminars to information about every global practice to how to wire a current transformer correctly. My mentor is one of the best I have ever had. Not only has he helped me technically but he has opened doors for me to meet others.”

EMPLOYEE-OWNER SPOTLIGHTDANIEL SIERRA

Daniel Sierra,

Electrical Engineer

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SUPPLIERS

Working around the world demands broad knowledge, so we build our practice on proactive inclusion of small and diverse business partners. Suppliers with specialized experience, skill, equipment or local know-how help us deliver successful projects, increasing our capability and value in the marketplace. We count on these companies to provide essential materials and innovative services at competitive prices.

Businesses owned by women, veterans, minorities and other underrepresented sectors help prepare us to exceed our clients’ expectations, creating results that are critical for the success of all.

We seek suppliers and contractors who share our values and priorities, beginning with safety. We evaluate companies by strict criteria before awarding work, including:

• Safety record as evaluated against industry norms.

• Ability to comply with performance standards, indicated by experience in work of comparable magnitude and complexity.

• Financial strength, measured by comparative data, bank references and credit reports.

• Record of business, including evidence of capability, integrity and business ethics.

• Adequate staffing of experienced managerial, technical and supervisory personnel.

• Written evidence of quality certifications and quality assurance/quality control programs.

• Existing trade and/or working agreements and records of labor relations.

We actively participate in more than 15 chambers and organizations that positively impact business diversity and inclusion. We engage in both informal and formal mentoring for small businesses through the U.S. Small Business Administration’s Mentor-Protégé program.

Our annual Supplier Diversity Awards recognize outstanding diversity partnerships that strengthen local businesses and empower communities. The awards also inspire our project managers to continue broadening our sourcing and project inclusion initiatives.

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LASTING COMMITMENTOur company culture is built on a boundless drive to explore big ideas, find innovative solutions and discover new opportunities. That drive extends to our sustainability initiatives.

We are engineers, architects, construction professionals, scientists, consultants and entrepreneurs who care about our impacts on the environment and our communities. We understand what we do matters, now and in the decades to come.

To learn more about our sustainable efforts, contact us at [email protected].


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“We believe what we do matters, so we integrate a strong commitment to sustainability into our processes and procedures for clients, communities and company.”

- Mark Van Dyne Vice President, Environmental Services

2017

“What can be more romantic and thrilling than to be engaged in a profession that saves human lives and adds to the health, happiness and prosperity of your own community?”

- Robert E. McDonnell Co-Founder

1927

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burnsmcd.com | Offices Worldwide

9400 Ward Parkway, Kansas City, MO 64114

Documents

2017 Corporate Sustainability Report | What We Do Matters/media/files/documents/2017corporate... · When we do grow by acquistion, it has been through long-term relationships that