SUSTAINABILITY REVIEW 2012 - Pristine Environments · 2012 Sustainable Highlights . KBM’s Sustainable Leadership Continues Unabated • KBM chemicals & dispensers decrease landfill

SUSTAINABILITY REVIEW 2012

KBM is a national building maintenance company offering

cleaning services to office complexes, retailers, manufacturers,

schools, government buildings and more.

KBM utilizes energy-efficient equipment, effective labor

allocation, sustainable cleaning solutions, programs to reduce

waste and recycling – all with formal processes for measuring

results.

KBM’s services reduce company operational costs, improve

indoor air quality and provide clean, healthy and enjoyable

working environments.

Table of Contents

Page 4 2012 Highlights 6 A message from our CEO 7 A message for our COO

Page 9 ABOUT KBM

10 Company Highlights for 2012

11 2012 operations at a glance 13 Corporate governance

14 How KBM operates 15 KBM’s services 16 The (OS1)® process 17 Company history 19 Company affiliations 20 Company accomplishments 21 Report Parameters 22 KBM’s Code of Conduct

Page 23 PEOPLE 24 KBM’s sustainable philosophy 25 KBM’s people 26 Diversity, equal opportunity 27 Hiring and employee engagement 28 Compliance with regulations 29 Employee development

30 Caring for employees 31 Workplace safety 32 Contributing to society

KBM Facility Solutions (a Pristine Environments Company) Sustainability Review 2012 3

Page 33 PLANET

34 Product responsibility

35 Energy consumption 36 Energy improvements 37 Water withdrawal 38 Greenhouse gas emissions 39 Waste management

Page 40 PROCESS

41 Governmental incentives

42 Using local supply base 43 Customer satisfaction 44 Sustainability scorecard 45 Compliance with laws 46 Application level table

2012 Sustainable Highlights KBM’s Sustainable Leadership Continues Unabated

• KBM chemicals & dispensers decrease landfill waste. Volume of chemical

containers being sent to landfills from customer sites is reduced by 97%.

• KBM’s use of paper products cuts consumption by 16%. By replacing paper

towels used in cleaning with reusable cotton and microfiber cloths, KBM has

reduced paper towel disposal by 11.47 tons per year.

• KBM uses recycled materials. Chemical containers used are 40% recycled

milk cartons and last over 100 refillings. They’re color-coded for safety and

have product information written in three languages.

• KBM saves trees by supplying 100% recycled content quality janitorial

paper products, wherein ZERO trees are cut down.

• KBM saves water. Our cleaning process saves an average of 10.4 gallons

per fixture per year for general cleaning, .052 gallons per sq. ft. per year for

hard surface floor cleaning, and .09 gallons per sq. ft. per extraction for

carpet cleaning.

• KBM saves energy. Portion Pac chemicals shipped in highly concentrated

pre-measured packs (saving transportation fuel) are mixed on site using cold

water (just as effective as warm water).

• KBM’s corporate electricity usage from its solar system is slightly down in

2012 to 86% from 93% in 2011. But blame the sun as very cloudy conditions

prevailed during a period when the sun usually shines the most (August to

early October).

Continued . . .


2012 Sustainable Highlights

In the spirit of giving to those less fortunate, KBM has made a generous

donation to Cleaning for a Reason on behalf of our valued partners.

Hundreds of cleaning services all over the United States have

committed to providing charitable cleaning to those undergoing

treatment for cancer. Cleaning for a Reason is the only foundation in

America cleaning homes for those with cancer.

We are happy to do our part and are proud to be called a Cleaning for a

Reason Partner Company.

About Cleaning for a Reason Making A Difference One Home At A Time, 501c3 non-profit, www.cleaningforareason.org

Mission Free house cleaning to women with cancer. Please ONLY use a Maid Service that is Cleaning For A

Reason.

Company Overview Cleaning homes for women with cancer for FREE. Our Partner maid services have helped over 11,000

women receive over $2.6 million in free house cleaning. We grant a free cleaning every 90 minutes. We

have more than 1,100 professional maid services nationwide and in Canada providing the gift of a clean

home to women in need.

Description The nonprofit dedicated to cleaning homes for women battling cancer completely free of charge.

General Information Please ask your maid service if they are a CLEANING FOR A REASON Partner company.

Continued . . .


http://www.cleaningforareason.org/

From Our CEO

MAUREEN E. GRAY

Chief Executive Officer and Founder

Once again, I’m proud to share with you some of the things that KBM has accomplished in

2012 with our customers, co-workers, suppliers and vendor partners. Working together,

taking many small steps in the same direction, means that we can make huge

contributions towards a more sustainable environment to help keep our work place, homes

and the outside world cleaner and healthier for everyone.

The KBM vision is to create a better “everyday” life for many people, and we believe that

after ones home, the work-place, for most people, is the most important place in the world

– after all a great deal of our lives are spent there.

At KBM we offer the highest standards in building maintenance, cleaning technologies

and in the products we use . . . while taking responsibility for people and the environment.

We want our customers to be able to freely choose from our range of services, knowing

that they do not have to choose between sustainability, type of service or price.

KBM has begun a long journey, now into our 4th year of formal review, with sustainability

as one of the main cornerstones in our overall direction. This, combined with a 31-year

history and culture built on enthusiasm and a constant striving for renewal, makes us well-

equipped to tackle some of the challenges we are all facing.

I’m convinced that we will find new, unique opportunities to build a better tomorrow for all

who are connected with KBM.

MaureenGray


From Our COO

RENE TUCHSCHER

Chief Operating Officer

We are committed at KBM to driving the highest standards for social responsibility

throughout our organization and supply base. For instance, we require that our

suppliers and vendor-partners provide the safest working conditions possible, treat

workers with dignity and respect, and use environmentally responsible processes for

wherever KBM uses its products and services.

We have a Code Of Conduct our suppliers must live up to (see page 19) as a

condition of doing business with us. Drawing on internationally recognized standards,

our Code lays out KBM’s expectations in the areas of labor and human rights, worker

health and safety, environmental impact, ethics, and management systems. If

suppliers fail to live up to our standards, we stop working with them.

Our audit program reaches all levels of our supply chain and we continue to expand

our program to reach deeper into our supply base.

We are always looking for ways to make our programs even stronger and more

transparent.

On behalf of all of KBM, I thank you for taking the time to read this review and share

our progress!

ReneTuchscher


2012 Company Highlights KBM Continued Its Distinguishable Development

• In 2012 KBM distinguished itself by being presented the annual

“Supplier of the Year” award by the National Minority Supplier

Development Council, Inc.® (NMSDC) and presented this year at the

NMSDC annual conference in Denver, Colorado.

• Received CIMA Green Building Certification with honors. CIMA is a

program developed by ISSA, it sets forth processes, procedures, and

supporting documentation proven to be characteristic of customer-

driven organizations. CIMS is non-prescriptive and each individual

organization has the flexibility to choose the most effective ways in which

to meet its requirements

• KBM hired PR company, Mulberry to execute a multi-faceted public

relations program. Mulberry specializes in the cleaning industry and truly

understands the fundamentals of the business

• KBM opens Seattle operations with three large hospitality accounts, the

Starwood Hotel chain with locations in the Pacific Northwest

• KBM‘s national client, AT&T Wireless gets their first LEED certification for

retail store in Chicago, IL.

Rene Tuchscher (COO) and Maureen Gray (CEO) of KBM

holding their NMSDC award at the national minority supplier

conference held in Denver, CO

Continued . . .


2012 Company Highlights

• KBM has recently become certified by the Womens Business Enterprise

National Council (WBENC). WBENC is dedicated to advancing the

success of Corporate Members, certified women's business enterprises

and government entities. WBENC's world-class certification is accepted

and encouraged by more than 1,000 corporations representing America's

most prestigious brands.

• KBM received the (OS1) Green Certified Program Award for 6 locations:

Bay Area Building - The Boeing Company, Houston TX

Tower II - The Boeing Company, Houston TX

HPSC - The Boeing Company, Houston TX

Takeda - San Diego

The Boeing Company, St. Louis, MO

The Boeing Company, St. Charles, MO

The (OS1) organizational certification is determined by (OS1) audit criteria, on

a building-to-building basis, within a cleaning organization. A facility that

achieves this certification is successfully managing their (OS1) Program &

would achieve maximum points allowed in janitorial services in USGBC

LEED Certification.

• KBM becomes the Class III, “Supplier of the Year” by the San Diego

Regional Minority Supplier Development Council (MSDC) for the second

consecutive year. The prestigious award was distributed at the 2012

Regional Supplier Development Award Gala, an event celebrating

organizations that have made significant contributions to supplier diversity

in the community.”

Paul

Paul Condi (third from left) and Paul Pangaro(far left)are presented with the OS1

Green Certified Award for six locations

Continued . . .


2012 Operations at a Glance

The Company

Headquarters San Diego, CA

Frontline employees 550*

Office employees 34

Customer base 197

National accounts (multi-location) 24

Avg. size account (sq. ft.) +100,000

Total sq. ft. cleaned annually 42 m

Tons of products (paper, soap etc.) 39 m tons

Tons of material recycled 22.7 m

Net Revenue $1.6m Gross Revenue $33m

* Including vendor-partners approx. 1,500 personnel

Activities

KBM took steps in 2012 to rethink traditional ways of doing business and prepared for changes and improve operations. KBM’s list of top 2012 resolutions for facility managers included:

• Piloting new projects: To gain new ideas, processes, procedures and product.

• Testing new programs, such as a new way to clean carpets or train staff.

• Studying the expertise of KBM cleaning contractors and partners to identify new

and innovative ideas and attend industry events that highlight new innovations.

• Recognize and reward individuals with good ideas to help incentivize

participation.

• Consider partial day cleaning. When done correctly, day cleaning can be a socially

and environmentally sustainable practice.


DISTRIBUTION / WAREHOUSE AutoZone FedEx Jerome’s Furniture Pep Boys

AEROSPACE Boeing Houston SSG Northrop Grumman

BIO-TECHNOLOGY Gen-Probe, Inc. HRL Laboratories

La Jolla Research Center Takeda

RETAIL AT&T Mobility Aveda Brooks Brothers Chainstore H&M JLL M.A.C. Union Pacific Railroad Verizon Wireless Origins Sprint

COMMERCIAL 24-Hour Fitness Headquarters Acushnet Company (Titelist, Cobra & FootJoy) Arroyo Parkway Union Tribune Walt Disney Studios

HOSPITALITY Marriott Gaslamp Quarter Sheraton Harbor Island Starwood Hotels & Resorts Worldwide U.S. Grant W Hotel San Diego Westin Gaslamp Quarter

PROPERTY MANAGEMENT Carleton Management CB Richard Ellis Davis Partners Emcor Meissner Jacquet Merit Property Management N.N. Jaeschke Newmark Merrill Transwestern Westcore Properties, LLC

HIGH RISE Boeing Space Center Sempra Energy Huntington Plaza Northrop Grumman Space

FINANCIAL INSTITUTIONS Pacific Premier Bank Morgan Stanley OneWest Bank UBS Financial Wells Fargo Advisors

GOVERNMENT City of Escondido City of Loma Linda City of Rancho Mirage County of Riverside DPSS Banning

United States Postal Service

Partial Client List

2012 Operations at a Glance


Senior Management

Finance

Payroll

A/R and A/P

Accounting Sales &

Marketing

Human Resources

Operations Regional

Managers

Janitors

Floor Care

Hospitality

Construction TI Mgt.

Day Porters

1. The KBM culture is key in defining

how we integrate sustainable

behavior throughout our

organization.

Among our values are togetherness,

humbleness, simplicity and cost-

consciousness.

2. Every KBM manager is responsible

for sustainability in his or her area of

responsibility and to set goals.

To support them, we have a

sustainability manager and access to

social and environmental specialists.

3. All KBM offices have a social and

environmental coordinator who work

with sustainability related training,

working conditions, safety, waste

management, and water and energy

conservation.

Corporate Governance


People, Process, Planet

KBM is committed to building long-term relationships by

continually evolving our services and how we operate our

business in order to meet the changing profiles of customers,

technology, our materials and services suppliers, employees

and local community.

We support personal and professional growth through

continuing education, tuition reimbursement programs, and

implementation of innovative ideas, which have proven to be

a successful formula to encourage employees to take

ownership of their work.

Our management team practices an open door policy,

maintaining a workplace culture where customers and

employees feel safe to make inquiries and offer suggestions.

We expect a high level of performance from employees and

applaud outstanding work through recognition and awards,

including Employee-of-the-Month in each division; Cash-For-

Safety; special events and work-site awards provided by a

Recognitions Committee . . . and through individual

performance scorecards, resulting in profit sharing.

How KBM Operates


KBM’s Services

KBM’s janitorial services are provided in all 50 states, including Puerto Rico and

Canada

Background

KBM’s Janitorial Services Include: • Full Service Janitorial

• Day Porter Services

• Construction Clean-Up

• Pressure & Power Washing

• Window Washing

• Parking Lot Sweeping

• Building Engineering

• Clean Room/Vivarium Cleaning

• Glass Washing

• Exterior Cleaning

• Graffiti Removal

• Janitorial Supplies/Paper Products

KBM provides commercial and retail facilities services

throughout the United States, Canada and Puerto Rico.

KBM also provides its services to the hospitality industry – a fast

growing out-sourced service segment that provides significant

value to hotels, motels, college dormitories and more.

Besides having one of the highest rated standards of cleanliness

in the janitorial/building maintenance industry, KBM‘s

sustainability record also comes in very highly rated through

the use of certified green cleaning products, low energy-

consuming equipment and other processes that mitigate

cost and the potential for inadequate service.


Total Client Satisfaction

KBM’s janitorial services cover over 42 million square feet of

office space

To maintain truly the highest levels of cleaning perfection, KBM deploys (OS1)® is

an intensive high-performance, sustainable cleaning system designed to increase

operational efficiency and reduce a client’s carbon footprint.

The program features team-cleaning where workers are trained as “Job

Specialists” to perform specialized tasks. Each Job Specialist is outfitted with the

exact tools and chemicals necessary to perform their specialist task. This increases

efficiency and reduces waste.

The (OS1)® process also improves the cleaning program by utilizing the most

energy efficient equipment and in-depth employee training.

Each of these factors collectively are proven to increase indoor air quality, lessen

the impact on the environment and reduce operational costs.

The (OS1)® process gathers and tracks essential data daily to utilize in reporting

and benchmarking. With accurate and tangible data, we are able to proactively

identify opportunities to improve the efficiency of operations.

Called ManageMen®, it is a (OS1)® process that is the only organization to date

that has obtained scientifically verified statistics for a cleaning process.

Sustainable Solutions

• Green Seal (GS37) Certified Chemicals

• Carpet & Rug Institute Certified Vacuums

• Microfiber Mops and Cleaning Cloths

• Chemical Compound Reduction & Usage Tracking

• Use of the only vacuums certified by the American Lung Association

• Rigorous Vacuum Filter Changes & Tracking

• Cleaning Materials Logistics System

• “Beyond Compliance” Safety Program

• Real-Time Service Request and Inspection Software

Cleaning Best Practices


Company History Background

Maureen Gray founded KBM in 1981, providing a fresh approach to the cleaning of homes in

San Diego County. Establishing a stellar record with customers, Ms Gray expanded into

providing similar services the commercial janitorial industry. Over the past 30 years KBM has

grown to become an award-winning building services contractor, specializing in sustainable

janitorial and maintenance solutions.

We're pleased to share a few highlights from KBM's rich history:

1997 to 2001

• KBM employs sustainable green cleaning methods. The tenant improvement and

construction division launched, servicing commercial offices, business parks, retail centers,

high tech, HOA’s and biotech facilities.

• KBM added a full-service floor division, which offers maintenance, restoration, and

installation for all kinds of flooring.

• KBM management team attends ManageMen® Janitor University™.

2002 to 2004

• KBM transitions into using ManageMen's Operating System One (OS1), a 100% sustainable

cleaning process, and switches to Green Seal GS-37 approved chemicals.

2004

• KBM receives the distinguished Better Business Bureau's Finalist Award for Marketplace Ethics.

• KBM exceeds $1 million in monthly sales.

• 32 members of KBM management graduate from Managers As Motivators Academy.

KBM started out as a maid service in 1981 using the name Kleenhouse Maid Service

Continued . . .


Continued . . . 2005 to 2006

• KBM joins the San Diego Chapter of the United States Green Building Council.

• KBM establishes relationship with the Service Employees International Union (SEIU), which

increases benefits to those employees assigned to union sites.

• KBM celebrates its 25th anniversary by hosting events for employees, vendor partners, and clients.

• First (OS1)® Boot Camp is complete with 22 KBM graduates.

• KBM expands service into Los Angeles and Orange Counties.

2007

• KBM implements 3rd-party audits as part of our sustainable cleaning program, and baseline

audits are performed at client facilities.

• The first KBM (OS1)® training room is completed.

2008

• KBM merges with Moore Maintenance and Janitorial Services, a Certified Minority-

Owned Business Enterprise founded in 1983 by John Moore and Scott Brill.

• KBM expands to provide janitorial and facility maintenance services throughout the

United States and Canada.

• KBM grows its hospitality cleaning services division through the acquisition of Knightly Building

Services LLC.

2009 - 2012

• Nine of KBM’s accounts become (OS1)® Green Certified. KBM helps Houston aerospace

client achieve LEED-EB Certification.

• KBM succeeds in achieving (OS1) Green Certification for fifteen client accounts.

• KBM celebrates its 31st anniversary.

Company History


Company

Affiliations KBM is proud to be recognized by or

affiliated with many sustainability-related

and other industry organizations and

programs, including.

KBM Facility Solutions Sustainability Review – 2012 19 KBM Facility Solutions (a Pristine Environments Company) Sustainability Review 2012 19

Company Accomplishments

• KBM Facility Solutions is a proud Medallion winner of the

“2012 Workplace Excellence Awards,” recognizing San Diego‘s most outstanding workplaces. The award, sponsored by the San Diego Society for Human Resources Management (SHRM), educates and enlightens San Diego business leaders on the contributions that exceptional HR practices make to the success and profitability of an organization.

• In 2012 KBM was named “MBE Supplier of the Year” by the San Diego Regional Minority Supplier Development Council. The award recognizes the company’s diversity initiatives and commitment to the economic development of local minority, disabled veteran, and women-owned businesses. KBM was nominated for the prestigious award by the Walt Disney Company, a KBM client. • KBM's CEO, Maureen Gray, honored as one of San Diego's "Top Influentials" by the San Diego Daily Transcript

• Cleaning Industry Pioneer Award (Simon Institute) (OS1)® Green Certifications for 5 new KBM accounts

Awards


Report Parameters

This is our third annual “Sustainability Review” and includes all of KBM’s

North American operations. Data in this report covers the period from

January 1, 2012 through December 31, 2012. This report was prepared

using the Global Reporting Initiative’s (GRI) G3 Reporting Guidelines.

The company’s sustainability priorities fall into three broad categories:

Our People; Our Processes and Products; and Our Planet. These priorities

reflect issues of key concern to KBM and its owners as well as areas

where the company is uniquely positioned to have a positive impact.

Our fourth report

KBM’s data collection systems are designed to be simple enough so

that the people closest to the work can use the tools, regardless of

their location. This simplicity enables the Company to collect data

and update systems annually at a relatively low cost. Each business

unit is responsible for the accuracy and consistency of its data. All

data is reported on a national basis.

About this report

To ensure the standard collection of data, KBM established these processes:

• Key terms are defined

• The data to be collected are identified

• Flow sheets are agreed upon regarding who collects data and on what systems

• Technically sound methods are used by facilities to estimate data and validate

year-to-year results

• Personnel are trained on the work process, as appropriate.


KBM Code of Conduct

Below is a summary of some of the key points of KBM’s Code of conduct:

1. Legal Compliance The KBM supplier shall always comply with the most demanding requirements whether they are relevant applicable laws or KBM CoC specific requirements.

The KBM Code of Conduct (CoC)

KBM’s Code of Conduct specifies the requirements that placed on suppliers of products and

services. Suppliers of goods and services are responsible for communicating the content of

the KBM Code of Conduct to their employees and sub-suppliers.

•Ensure that workers handling chemicals and hazardous waste have the right competence and are adequately trained

4. Social & Working Conditions KBM expects its suppliers to respect fundamental human rights, and to treat their workers fairly and with respect. Suppliers must:

• Provide a healthy and safe working environment • Provide health and safety training for workers • Ensure their equipment is safe • Have reasonable privacy; are quiet and have facilities for personal hygiene • Pay at least the minimum legal wage

and compensate for overtime • Base overtime on voluntary agreements, not exceeding legal limits • Allow time off and regular breaks • Not discriminate on any basis • Not prevent workers from exercising collective bargaining activities • Not accept corporal punishment, threats of violence or other forms of mental or physical coercion

6. Young Workers KBM supports the legal employment of young workers. Young workers of legal working age have, until the age of 18, the right to be protected. KBM requires all its suppliers to ensure that young workers are treated according to the law, including measures to avoid hazardous jobs, night shifts and ensure minimum wages. limits for working hours

and overtime should be set with special consideration to the worker’s young age.

5. Legal Labor Force Suppliers shall maintain documentation for every worker verifying the worker’s date of birth, social security number and citizenship status. This is accomplished over the federal government’s eVerify system

3. Environmental Standard Suppliers shall have plans in place to reduce the environmental impacts from their services and operations. Suppliers must:

• Work to reduce energy consumption • Prevent pollution to air, ground and water

7. Monitoring Suppliers are obliged to keep KBM informed at all times about status of employees and sub-contractors. KBM has reserved the right to make unannounced visits at any time to all places of work (including their sub-contractors) and conduct audits as necessary.

2. Start-Up Requirements The following criteria need to be fulfilled before starting up a business relationship with KBM:

• Equal Opportunity Employer • No child labor • No illegal immigrant labor • No severe environmental pollution • No severe safety hazards • A transparent and reliable system for records of working hours and wages • Insurance covering medical treatment for work related accidents to all workers

• Handle, store and dispose of chemicals and hazardous waste in an environmentally safe manner


Sustainable Philosophy Our commitment

KBM is committed to improving people’s everyday lives by

providing services and products that are better for the

environment.

To understand how we can make our services and products

more environmentally sustainable, we analyze their footprint

throughout their entire life cycle — from the creation of raw

materials that are part of the cleaning products we use, to the

actual way our services are delivered, to how our clients use our

products, to disposal.

This helps us focus where we can make the most significant

impact.

For example, by rethinking the raw materials phase of some of

our products and how the products are actually used, we’ve

been able to reduce the type of materials we use, the way we

use them on the job and the waste at the end of their use.

We’ve also begun to replace petroleum-based materials and

products with sustainably sourced renewable materials.

KBM guarantees clients it only uses

the most environmentally sustainable cleaning products and cleaning

procedures


KBM’s Management Valued resources

KBM employees are our most valuable resource.

We want co-workers that share our values to stay

and grow with us. This is why we place emphasis

on safe and healthy working conditions, sound

benefits and career development based on

equal opportunities and strong moral values.

We want our co-workers to stay and thrive with

KBM, and we continuously monitor overall job

satisfaction and motivation through company-

wide “evaluations” called 360 degree reviews

and where an employee and their manager

discuss openly how they have not only been

evaluated by their manager, but how the

employee evaluates their own efforts and the

manager’s too. This transparency and objectivity

leads to a more balance assessment of both

parties’ true strengths and weaknesses while

building trust and employee development.

In 2011 KBM decided to introduce more open

ways of spotting potential and promoting co-

workers in order to increase diversity and expand

the pool of upcoming talent. A number one

priority is that all new positions are recruited

internally whenever possible.


Diversity, Equal Opportunity Personnel by Work Type

KBM is an equal opportunity employer.

We do not discriminate on the basis of race, color, religion, national

origin, sex, age, sexual orientation, veteran status or disability. As a

women-owned minority business we have

honored diversity and inclusiveness.

We are proud to employ people with a wide

range of backgrounds and experience from

all gender, ethnic cultural and religious groups.

11.14%

1.90%

94.36%

Admin

Executive

Service

22%

71.60%

6.30% Under 30 yrs

30 - 50 yrs

51 + yrs

1.50%

5.20%

87.40%

7.10%

Asian

Afro-American

Latino

White

Personnel by Age Distribution

Personnel by Race

Salary-based employees consist of

executive/senior-level officers and managers.

The majority of the front line personnel are paid

on an hourly basis. All personnel receive their

compensation biweekly (26 pay periods

annually) with approximately 90% by direct

bank deposit.

Of the total workforce, approximately

59% are women and 41% are men. As the

chart shows to the left, 72% are between

30 and 50 years of age. Those over 50

represent just 6%. Under 30 years old

represent 22%.


KBM’s Sustainable Hiring Personnel management

KBM implemented a talent acquisition and staffing management software

that brings together the myriad building blocks of sourcing, recruiting &

hiring in one easy-to-use solution. KBM can post to job boards, manage

email, coordinate background checking and candidate prescreening,

generate on-boarding packages, submit hiring data, customize your

workflow, integrate with other service providers, and support best practices.

The talent acquisition process supports and enhances our sustainability

efforts and has reduced our paper footprint.

KBM’s Employee Engagement Personnel management

To continue to be a top-performing organization KBM understands that

employee engagement is a force that drives performance outcomes. KBM

measures employee engagement with our Q-7 survey each year. The seven

questions survey focuses on the strategic foundation of the way KBM has

conducted their business. KBM measures employee’s feedback and creates

actions plans to be more productive, more customer-focused, safer, and

focusing on the true customer “the employee.”

SmartSearch brings together the building blocks to the

personnel hiring process


Critical regulations

Compliance with laws and regulations is

critical to the success of the company due

to recently enacted immigration labor laws

and rules for fulfillment. This is especially

acute in the hiring and vetting process. So

to conform, KBM subscribes to the eVerify

system. This ensures prospective personnel

are in the United States and can work

legally. eVerify is connected to Federal

Government databases and therefore

provides a high level of indemnification

should U.S. Immigration and Customs

Enforcement conduct an audit of

company records.

KBM pays all its employees above state and

federal minimum wages. However due to

the nature of the building maintenance

business all new jobs provided are

considered “entry level.” New hires at KBM

still are paid over the minimum wage. This

has been found to foster a strong referral

reputation, decrease turnover as well as

foster employee loyalty while the company

is still able to remain competitive in the

market.

Compliance with Regulations


Teamwork and Personal Development

Diversity is an integral part of our national strategy, just as it is part of the

social fabric for a company operating in al 50 states, Canada and

Puerto Rico. We understand that diversity encompasses more than

race and gender. Inclusiveness, respect and cooperation are core

values that help drive the way we do business with our customers and

suppliers. New employees receive a detailed orientation on our Code

of Conduct policy and regular refreshers throughout their time at KBM.

Employee Development

• Operating on a personal basis founded on teamwork

• Promoting from within

• Practicing objective, careful hiring methods

• Encouraging and assisting employee development

by communicating regularly with employees

• Compensating employees fairly • Shunning favoritism

• Respecting each employee’s point of view and

encouraging input

• Providing training and recognizing accomplishments.

In 2012 our frontline employees completed a total of 6,848 hours of

Green Certified training, an average of about 17 hours per employee.

Employees attended programs that include training in technical areas,

safety and ethical issues. In addition, our non-frontline employees

completed 592 hours of training, an average of about 22 hours per

employee. This training included the Janitor University program, (OS1)

Symposium and various leadership programs.

Green Certified Training

These include:


http://managemen.com/wp-content/uploads/2011/04/IMGP2063.jpeg

Caring for Employees Our focus

Our management focus comes with a “family focus” element - as so many of our

employees refer friends and family. This substantially mitigates high turn-over and

significantly reduces incidents of discrimination. In 2012 we once again had zero

reports. Statistics show our rate of turn-over for that year was 46.2%, lower than in

2011 and well below the janitorial industry average of 300%.

KBM offers different medical plans to provide

employees and their families with protection

should they incur health issues. They may

select from a Preferred Provider Organiz-

ation or a Health Maintenance

Organization. Employees may elect to

cover themselves , employee plus one

dependent or domestic partner, or cover

the entire family. In addition, employees

may use the Employee Assistance

program, prescription drug benefits, life

Insurance and dental and vision programs.

KBM currently pays 70% of employee-only

coverage and 30% of the employee’s dependents and/or domestic partner.

KBM offers new office employees the opportunity to accrue annual leave for their

personal use during the course of employment. Within specific guidelines,

employees may use their leave for events such as vacations, illness, injury, and to

care for family members. KBM observes seven paid holidays per year. All KBM

benefits vary per union contract and/or employment status.

Scott Brill, KBM Vice President , talks with Chris Tarase, Director of National Operations at the annual Professional Retail Store Maintenance Association


A critical component

Workplace Safety

In our working environment., approximately 20% of employees are covered

by collective bargaining agreements. The agreements cover health and

safety issues including personal protective equipment. Joint management-

employee health and safety committees, participation of worker

representatives in health and safety inspections. Audits, accident

investigation, training and education, complaints mechanisms, their right to

refuse unsafe work, periodic inspections, compliance with the International

Labor Organization, arrangements or structure for resolving problems, and

commitments regarding target performance standards or level of practice

to apply. KBM’s Workers’ Compensation rating for 2012 was 81%.

KBM’s “Play It Safe Now” (PSN) expanded and started focusing on the

safety training for frontline employees. The PSN program also helps identify

and prevent accidents and give employees the ability to interact with

front line employees.

In 2012, as an incentive to maintain high safety levels of safety, KBM

introduced a prize of $1,000 awarded through a raffle to participating

employees for reaching thirty days accident free. The supervising manager

of the employee’s team each receives $200.

The PSN expanded program and monetary incentives helps Human

Resources & Operations reach all frontline employees every month where

they focus on proactive safety, personal protection equipment safety and

blood borne pathogen training. The programs allow for monthly on-site

safety training prior to graveyard shifts. Training subject matter includes,

“Safety Mind Set,” “Slips and Falls,” “First Aid,” “Know Your Chemicals,” and

“Fire Safety.”

The PSN on-site training allow supervisors and employees to communicate

in an effective, positive way to resolve issues as well as providing

recognition for safe behavior.

KBM’s “Play It Safe Now” (PSN) expanded and started focusing

on monthly safety training for front line employees


Contributing to Society Community service

KBM partners with “Profits 4 Purpose” which empowers and engages KBM

employees in achieving a positive impact in the various cities where the

employees live. KBM actually pays their employees up to 4 hours per month

to participate in this program.

In 2012 $22,516 was donated to a number of causes including 144 hours of

community service. Money was provided to: Junior Achievement, Boys and

Girls Club, Homeward and Habitat for Humanity among a number of other

organizations. The program shows KBM employees how to get involved in

local communities and help make

a difference to those needing

a bit more help in life.

KBM also encourages employees

to participate in four KBM beach

clean-ups per year with the aim

of not only picking up litter but

spreading the word for people

to be aware and participate in

sustainable incentives, recycling,

community events, education

. . . and giving something back

to the community.

2013 goal is $25,000 and 500 hours!

Donations At Glance

Type of

Organization

Dollars

Donated

Hours

Donated

Food and Shelter $19,454 8

Health & Human

Svcs. 714 10

Youth & Elderly 593 12

Arts & Education 300 18

Planet 0 0

Other 1,455 100

TOTAL $22,516 144

KBM volunteer team at ski beach, San Diego for

one of KBM’s quarterly beach clean-ups


KBM Facility Solutions Sustainability Review – 2011

33

Product Responsibility

The conservation of global resources and reduction of material waste is

important to KBM and to our customers. We obtain consumable material from

external suppliers for cleaning and other uses in our customers’ facilities. (KBM

does not produce any of these consumables).

These suppliers provide such items as hand towels, toilet tissue, liners for waste

baskets, soap and other products used to clean floors, windows, bathrooms,

offices, carpets and more. Products are used by almost every customer of

KBM including KBM’s own company facilities.

Every year, KBM conducts a detailed analysis of all suppliers and potential

ones to insure that products purchased are environmentally sustainable, yet

provide the highest level of service possible.

Materials by Weight & Volume

Description Weight (lbs) % Recycled

Input

Hand

Towels 92 <1%

Toilet Tissue 162 34%

Copy Paper 1,551 32%

Cleaning

Materials 24,243 45%

TOTAL 26,048

Life-Cycle Stages for Health & Safety Impact

Description of Life

Cycle Suppliers KBM

Product Concept Yes n/a

R&D Yes n/a

Certification Yes n/a

Manuf. &

Production Yes n/a

Marketing &

Promotion Yes Yes

Storage Yes Yes

Use & Service Yes Yes

Disposal, Reuse,

Recycling Yes Yes

KBM uses approximately six carefully selected primary suppliers for its cleaning

materials and consumable products (mostly paper). KBM ensures these

suppliers have a program in place to evaluate the safety and sustainability of

their products throughout their life-cycle.

KBM also evaluates the health, safety and environmental impact for all of the

products it buys including that they are used in a safe a responsible manner.

Overall, between 80% and 100% of all product categories and services are

assessed for compliance with the above criteria.

The table at left lists the key stages manufacturers evaluate their products, from

new to the point it is disposed of, reused or recycled.

Materials and Usage

Customer Health & Safety


Energy Consumption Reduce, reduce, reduce

Reducing energy consumption has such a positive impact on

climate change, on the air we breath and reducing our

dependency on foreign of oil, KBM made a significant

investment in a solar system in 2009. KBM also replaced an HVAC

system that is 42% more efficient and a new high efficiency cool

roof that reflects heat and light, reducing summer temperatures

within the building by about 70%.

212,764

167,746

114,015 110,444 111,739

0

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011 2012

Electricity Consumption

(kWh)

86% of electricity

produced by solar

energy in 2012.

KBM’s 75.6 kW solar photovoltaic system showing one of three arrays with a total of 360 panels

In 2012 the solar system produced 97,819 kWh of electricity at its

national headquarters in San Diego, CA. This was 9.8% less than in

2011 (due to unusually cloudy conditions during the summer(. This

represented 86% of total electricity usage. (KBM’s other facility

locations are leased and no figures are available for 2012). KBM

used 1,674 therms of natural gas, about 5% less than in 2010.

Green columns indicate after

solar and energy upgrades completed 12/30/09. Solar provided approx. 90% of usage since Jan. 1, 2010


Energy Improvements

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1980 1990 2000 2010 2011 2012

THw

Primary Energy Sources

Renewables

Fossil

Nuclear

Hydro

Primary Energy Sources

All electric and natural gas energy consumption was

purchased from San Diego Gas & Electric (SDG&E). To

calculate the primary fuels consumed, KBM used the

U.S. EPA’s “Clean Energy Power Profiler.” For

determining primary fuel sources, KBM relied on data

from SDG&E’s database. The company is located in the

WECC California (CAMX) sub-region where the primary

sources for producing electricity were found to be: coal,

crude oil, natural gas, nuclear, hydro and renewables

(see chart at left for USA totals).

For the electricity KBM receives from SDG&E: 1% is from

oil, 10% from renewable sources such as wind and solar

feeding the grid, 12% from coal, 17% from nuclear, 18%

from hydro and 42% from natural gas.

Daily solar output of electricity in kWh can be see from any computer by logging in remotely to: http://live.deckmonitoring.com /?id=kbm. Also a click-thru from KBM website


Water Usage by Source Water mitigation

2012 repeated another drought year impacting all our California facilities. 90% of

the water used at company HQ in San Diego and at office complex in Rancho

Mirage, CA imports its water from northern California and the Colorado River.

Companies are urged to conserve water, recycle grey water for outdoor

irrigation of landscaped areas and use water reclamation for drinking and other

potable uses.

At KBM, the primary consumption of water at its San Diego HQ includes

landscape irrigation, laundry machines used to wash cleaning cloths and

domestic water used in restrooms and break rooms.

Usage in 2012 decreased 19% over 2011. As seen on the graph to the left, usage

has been reduced every year since 2008 after KBM added about 25% more

employees.

Plans in 2013 are to reduce landscape water irrigation by removing a large lawn

area and replacing with an “Arizona” garden with plants using 75% less water.

0 200 400 600 800 1000

2008

2009

2010

2011

2012

1024

1105

932

757

730

Thousands of Gallons

Water Consumption (000 Gals)

KBM consumed 7,300 gallons in 2012 3.5% less than in 2011


Greenhouse Gas Emissions Commitment to Saving Energy

Greenhouse gas emissions are created from

various combustion processes including the

generation of electricity, mobile transportation

of people and materials, heating systems and a

plethora of industrial applications.

The primary source of KBM’s emissions is from its

fleet of 25 vehicles. In 2008 KBM implemented

a program to replace its vehicle fleet (except

cargo vehicles) with hybrid (gasoline and

electric) vehicles and in 2009 installed vehicle

plug-ins to the solar system array at its San

Diego headquarters.

The 7% of electricity it takes from the grid

(representing a fraction of what is used in

vehicles) with the other 93% provided by solar

which produces zero emissions. The a/c system

is electric, so no natural gas emissions to count.

Other emissions are produced by natural gas

from cleaning towel dryers, and energy

expended (and estimated only) at other KBM

offices at Rancho Mirage, Anaheim and other

KBM offices.

The Toyota Prius (left) is an example of vehicles used in the new KBM fleet. As an electric hybrid it gets three times better fuel mileage than most non-hybrid vehicles

Vehicle Fuel Energy Consumed and Annual Savings

Year Gasoline

(gals)

Electricity

(kWh)

Other

(tons of

CO2)

TOTAL

CO2

TONS

Year on

Year

Savings

2012 22,457 1,621 1.33 198.51 4%

2011 23,322 -4,751 2.01 206.27 15%

2010 25,331 167,746 1.88 240.58 10%

2009 28,329 212,764 1.72 264.56 Base

year


Waste Management Recycle, Reduce, Reuse

KBM works hard to reduce the amount of

solid waste it sends to the landfill each year

and therefore it’s a high priority to ensure

that what can be recycled gets recycled

both at KBM’s headquarters and with its 192

corporate customers.

Recycling programs continue to be

implemented and existing ones refined and

include paper, cardboard, scrap wood,

aluminum cans, glass, bottles and batteries.

In 2012 KBM put in place a program to begin

collecting out of use electronic items such

as computers, printers, fax machines and

other office related appliances from

customer sites. These are dropped off at a

specialty electronics recycling center.

In 2012 KBM recycled 21 tons of recyclable

material which was sent to Waste

Management of San Diego. In addition, KBM

generated 73.4 tons of solid waste that was

sent to the landfill, 6% less than in 2010.

Happily, KBM reported no spills of waste

including any hazardous wastes.

Waste Sent Landfill - Tons

Year

Total

Tons to

Landfill

Year on

Year

Reduction

2012 74.8 -.11.01%

2011 75.7 -2.1%

2010 77.3 Base Year

Waste Recycled - Tons

Year Total

Material

Recycled

Year on

Year

Increase

2012 21.5 +7.9%

2011 19.8 +9.1%

2010 18.0 Base Year

Company’s such as Synthenol Energy have developed technology to process and then

through gasification, convert landfill waste to “green” gasoline and diesel


Governmental Incentives Financial Assistance

KBM continues to leverage government incentives for reducing its

energy consumption. 2012 is the third year KBM used its

accelerated depreciation tax credit to write down costs

associated with the solar electricity generating system the

company installed in 2009.

Additionally, San Diego Gas and Electric (SDG&E), through the

California Solar Initiative incentive program, made monthly

payments, based on amount of solar electricity generated, for an

annual total in 2012 of $21,297.

2012 is the third of five years this payment is made and is based on

a rate of $0.22 per kWh the solar system produces. For over-

production for the year (the amount of solar electricity generated

above the amount of electricity taken from SDG&E) a payment of

$0.035/kWh is paid at the end of each year.

KBM’s solar system qualified the company to receive additional State and Federal tax incentives for another year including solar electric production

incentives totaling $26,566

KBM’s solar system at its HQ in San Diego


Using Local Supply Base Buying Locally Matters

KBM believes that by supporting local businesses in

their supply chain, the company is able to stimulate

the local economy. Also, by maintaining ties to local

suppliers helps build community relations and

provides for a better overall business relationship that

benefits both entities.

In 2012, KBM spent approximately $878,000 with local

vendors which primarily consisted of sustainable

cleaning products, tools used to provide the janitorial

services and general supplies such as paper, trash-

liners and other miscellaneous items.

Also, by using local suppliers, products can be

ordered just in time (JIT) which not only helps KBM with

its cash-flow, but also acts as a storage for inventory

thereby reducing the amount of floor space KBM

needs to devote to its operations.

In many cases, supplies are taken directly to KBM’s

customers which not only saves human resource

costs, but also mitigates expending unnecessary

energy in transportation.


Customer Loyalty* Survey Survey says . . .

KBM strives to be the business services provider and employer

of choice. Our client survey program is one tool and

resource we use to build customer loyalty.

With our goal of achieving 90% client retention for regional

and 99% for national, it is very important that we consistently

gauge how we are doing in terms of quality, responsiveness,

creativity and overall client satisfaction

From our client responses, we can make adjustments where

needed and keep our customers renewing their services with

KBM year after year

KBM utilizes a web based survey company, which generates

email invitations to clients who can then take the survey on

line. The survey is used for national clients and regional

clients. There may be more than one contact survey for

each client.

* And if there should be any doubt . . . Loyalty is the

willingness of someone – a customer, an employee, a friend –

to make an investment or personal sacrifice in order to

strengthen a relationship.


Sustainability

Scorecard Measuring Counts

“What gets measured, gets counted.” An

age old adage and one KBM adheres to

very carefully as the entire success of the

business rests upon providing errorless

service day in and day out. No excuses! So

the importance of monitoring all the

metrics on a daily basis is meticulously

carried out.

Called the KBM Performance Scorecard, it

is a tool for measuring work-flow activity as

well as for meeting sustainability goals and

is communicated to employees,

customers, suppliers and even the

community.

The table at left is a summary of the KBM

Performance Scorecard for 2012. Not

every metric evaluated is on this table, just

the most important ones as we look back

on 2012 and reflect on our current status.

KBM Sustainability Scorecard - 2012

Category Results

% Reduction (-) or Increase

(+)

Over Prior Year

PLANET 2012 2011 2010 2009

Electricity (reduction in kWh) +3% -75% -21% 212,764

Water (reduction gallons) -18% -15% +8% 10,240

Trash to Landfill (reduction in tons) -11% -2% 77 5%

Office Materials (reduction in lbs) -15% -3% -3% 1,200

Recycled Materials (reduction in tons) -8% -9% 18 n/a

Vehicle Fuel Consumption (reduction in

gals) -4% -15% -10% 28,329

PEOPLE

Employee Turnover -1% -2% 52% n/a

Health & Safety (Experience

Modification Rate) -2% -4% 80% n/a

Training (average hours/employee) +2% +2% 31 n/a

Charitable Contributions +2% +3% $17,237 n/a

Team 50 (voluntary service hours) +8% +14% 112 n/a

PROCESS n/a

Customer Satisfaction (1 worst; 10 best) +2% +7% 8.7 n/a

Employee Satisfaction (1 worst; 5 best) +3% 0% 4.14 n/a

Number of OS1 Buildings +19% +11% 71 n/a


Compliance with Laws Obeying All the Rules

There are numerous health, safety, and environmental

requirements nationwide. KBM offices and locations where

services are provided are subject to safety rules and emission

limits with operating requirements that may be embodied in

sources such as statutes, regulations, laws and permits.

It is KBM’s intent to comply with both the letter and the spirit

of statutes, regulations, laws, and permit requirements.

Identified compliance issues are treated seriously, and all

noncompliance matters are resolved as expeditiously as

possible.

Along with facing tough competition and the challenges of

entering new markets, KBM must continually adapt to new

laws and regulations.

Our venues for making our case when problematic issues

occur include active participation in trade associations,

interactions with public officials, submitted op-ed pieces in

the media, and other support mechanisms for regulatory

and legislative action that we believe is beneficial to KBM,

our markets, and the communities we serve.

In 2012 KBM complied with all laws, regulations and permit

requirements with no complaints or issues with any

government entity.

The United States Supreme Court, Washington, D.C.


Application Level Table The following table outlines the reporting criteria required to declare various levels of reporting:

Standard Disclosures

Report Application Level C+ B B+ A A+ A

* Note: KBM’s self-declared level was still pending at the time this report was completed

G3 Profile

Disclosures Ou

tpu

t

G3 Management

Approach

Disclosures Ou

tpu

t

G3 Performance

Indicators & Sector

Supplement

Performance

Indicators

Ou

tpu

t

Report on all criteria

listed

1.1

2.1–2.10 3.1-3.8, 3.10-3.12

4.1-4.4, 4.14-4.15

Not Required

Report on a

minimum of 10

Performance

Indicators, including

at least one from

each of: Economic,

Social and

Environmental

Re

po

rt E

xte

rna

lly A

ssu

red

Re

po

rt E

xte

rna

lly A

ssu

red

Re

po

rt E

xte

rna

lly A

ssu

red

Report on all criteria

listed for Level C plus:

1.1

3.9, 3.13 4.5-4.13, 4.16-4.17

Same as requirement

For Level B

Management approach

Disclosures for each

Indicator Category

Report on minimum of 20

Performance Indicators,

at least one from each of

Economic,

Environmental, Human

Rights, Labor, Society,

Product Responsibility

Management approach

Disclosures for each

Indicator Category

Report on each core G3 and sector Supplement*

Indicator with due regard

to the Materiality

Principle by either: (a)

reporting on the

Indicator, or (b)

explaining the reason for

its omission.


Documents

SUSTAINABILITY REVIEW 2012 - Pristine Environments · 2012 Sustainable Highlights . KBM’s Sustainable Leadership Continues Unabated • KBM chemicals & dispensers decrease landfill