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1 DESCRIPTOR BUILDING A MORE RESILIENT WORLD 2017 SUSTAINABILITY REPORT THE FUTURE IS UNKNOWN. PREPARING FOR IT REQUIRES RESILIENCE.2 3 DESCRIPTOR THE FUTURE It is opportunity and disruption. Innovation and obsolescence. Calm and crisis. In a word, it is unknown. Preparing for it requires resilience. Our collective ability to plan for, respond to and recover from the unexpected has never been more important. We live in a world of extreme weather, diminishing natural resources and rapidly evolving global tensions. Building more resilient institutions, infrastructure and communities is key to progressing toward a more sustainable planet. Many of these events were exacerbated by changing climate conditions, producing wetter storms, drier forests, and unprecedented storm- water flooding. Many more were the result of human error, neglect or outright malice. While 2017 is behind us, the underlying problems of climate change, extreme weather, global terrorism, cyber-warfare and many other uniquely 21st century threats have just begun to make their mark on our world. Anticipating and preparing for the impact they will have in the future must be a part of every organizations planning today. At AECOM, we believe that resilience is an essential step forward on the path to sustainability. JULY-SEPTEMBER: Southeast Asia was hit with one of the worst monsoon seasons in history, causing widespread flooding throughout Bangladesh, India, Nepal and Pakistan. By September, an estimated 45 million had been affected and more than 1,000 killed. AUGUST: Hurricane Harvey battered Texas, Louisiana and parts of Central America, causing an estimated $260 billion worth of damage and hundreds of fatalities. As the United States was still reeling from the devastation of Harvey, further east Hurricane Irma began her destructive path across the Caribbean and Florida. SEPTEMBER: Hurricane Maria, a category five hurricane, made landfall on the island of Dominica. Reaching winds of 280km/h, causing most damage to the eastern Caribbean, including Puerto Rico, Dominican Republic and The Bahamas. An earthquake measuring 8.2 on the Richter scale hit the Gulf of Tehuantepec, off the coast of Chiapas, southern Mexico. OCTOBER: Fires ignited the United States Southern California region, charring over 280,000 acres and destroying over 1,000 structures. THE YEAR NATURAL DISASTERS SHOOK OUR WORLD 2017 was one of the most costly years, in both lives lost and property destroyed, that our world has experienced in decades. 24 5 OUR STORY OF RESILIENCE Resilience is a key pillar in the services we provide our clients and the goals we are pursuing in our own sustainability efforts. While every organization and situation merits its own unique assessment of resiliency considerations and requirements, we believe there are a few, often overlooked principles that bring significant value to every resiliency discussion: In this report, we share some of our experiences responding to the natural disasters of 2017. We highlight some of our most innovative thinking about building a more resilient world. And we describe some of the inspiring work of our own employees who are taking the concept of resilience to heart and bringing solutions to projects and communities all across the globe. IMAGINATIVE, WIDE-RANGING THREAT ANALYSIS; MASSIVE, BOUNDARY-JUMPING PARTNERSHIPS; AND LONG-TERM, HOLISTIC INTEGRATION OF RESILIENCY INTO ALL STRATEGIC PLANNING. 4 5TABLE OF CONTENTS 8 CHAPTER 1 PREPARING FOR DISASTER IN A WORLD OF EXTREMES 10Project Insights: AECOM teams anticipate and respond in the eye of the storm Scott Lee 13L ea d e r shi p S p o t li g h t : Building organizational resilience for our people and clients Mark Niblett 14L ea d e r shi p S p o t li g h t : Resilient in the face of a cyber-attack Ronald “Fog” Hahn and Bob Butler 16 CHAPTER 2 SEA LEVEL RISE KNOWS NO BOUNDARIES 18L ea d e r shi p S p o t li g h t : Connecting our unique expertise to tackle tomorrows challenges Darcy Immerman 20Project Insights: Working with cities and clients globally to mitigate the next natural disaster Claire Bonham-Carter 22 CHAPTER 3 SOLVING FROM THE INSIDE OUT 24A b o u t A E C O M 25E n v ir o n m en t al S us t a in a b i l i t y 27S t ra t e g i c P a r t n e r shi p s28Reducing our Carbon Footprint 30Corporate Responsibility 32Our Corporate Responsibility Highlights Across the Globe34Safety, Health and Environment 35Wellness and Career Development 36Acting Ethically with Integrity 37Inclusion + Diversity 38Enhanced Supply Chain Management39Corporate Governance 40Economic Performance 41GRI Disclosures RESILIENCE IS KEY TO BUILDING A BETTER WORLD. OUR WORLD IS UNPREDICTABLE AND, AS OUR DIGITAL AND PHYSICAL WORLDS CONVERGE, INCREASINGLY CONNECTED AND COMPLEX. WITH THIS CONVERGENCE COMES BOTH OPPORTUNITY AND RISK. RESILIENCE IS ABOUT ANTICIPATING THE UNKNOWN SO WE CAN WEATHER THE UNEXPECTED AND TACKLE THE WORLDS MOST COMPLEX CHALLENGES. MIKE BURKE, CHAIRMAN AND CEO 68 9 DESCRIPTOR DESCRIPTOR PREPARING FOR DISASTER IN A WORLD OF EXTREMES In September 2017, Hurricane Maria struck Puerto Rico and propelled 3.4 million residents into a crisis. The Category 5 hurricane raised havoc, downing power lines, destroying homes, knocking out transportation and limiting access to clean water. Building resilience into our institutions, our infrastructure, our systems and our communities has never been more important. This goes beyond standard risk assessment and mitigation planning. It requires a willingness to imagine the unimaginable and create defenses that can weather their occurrence. CHAPTER 1 THE CRISIS HIGHLIGHTED THAT BUILDING RESILIENCE INTO OUR INFRASTRUCTURE AND SYSTEMS HAS NEVER BEEN MORE CRITICAL. FROM NATURAL THREATS TO A POTENTIAL CYBER-ATTACK, RESILIENCE EXPERTS WEIGH IN ON HOW SOME ORGANIZATIONS AND BUSINESSES NOT ONLY SURVIVE, BUT CAN THRIVE IN THE FACE OF ADVERSITY.10 11 DESCRIPTOR DESCRIPTOR PROJECT INSIGHTS: AECOM TEAMS ANTICIPATE AND RESPOND IN THE EYE OF THE STORM Anticipating Natural Disasters: With the significant wind damage and flooding along the U.S. Gulf Coast from Hurricane Harvey, record-breaking rainfall throughout Southeast T exas and the direct impact of Hurricane Irma on Puerto Rico, the U.S. Virgin Islands and Florida, the need for disaster recovery personnel to deploy to these hard-hit areas, the need was greater than ever. Throughout hurricane seasons, AECOMs emergency management teams and local resilience teams rigorously track weather patterns around areas prone to natural disasters. We had boots on the ground in several of 2017s most devastating events, including Puerto Rico. Our procedures are aligned with U.S. government and local requirements, and we have multiple contracts with the United States Federal Emergency Management Agency (FEMA) that allow us to rapidly deploy staff. Acting in Puerto Rico: Files were backed up to safeguard client data and employees were advised to seek shelter. Hundreds of AECOM staff members were deployed to aid in Puerto Ricos recovery efforts. From packaging more than 60,000 meals for survivors to working on temporary assignments requiring expertise in civil structural, power distribution, architecture, water/wastewater or coastal engineering. Our local, cross-functional resilience team met daily to provide support before, during and after the event. Alternative office space was identified with reliable power and air conditioning, and server access was quickly restored so those who were able to work could do so remotely. GoFundMe campaigns were created to support impacted colleagues in need, raising a combined US$350,000 in both employee and corporate giving. Advancing our learnings: The intensity of Hurricane Maria was unprecedented and the extent of the damage caught many off guard. Now, nearly a year after the storm hit, the islands power grid remains fragile and some remote areas are still without power. While the team succeeded confronting many challenges, valuable lessons were learned, including the need to invest in redundant power supplies and the need for better communication processes to proactively check on our people. T o enable an integrated approach to disaster relief efforts, AECOM has created a virtual Disaster Relief Project Management Organization (PMO) that will coordinate and bring together our collective expertise to disaster relief efforts. Our Disaster Relief PMO will enable cross functional teams to quickly act when disasters happen and anticipate future disasters whether natural, man-made, or combined. CHAPTER 1 PREPARING FOR DISASTER IN A WORLD OF EXTREMES Scott Lee from the Water Business Line, shares his insights. 10 1112 13 CARING FOR OUR STAFF United States: In addition to raising US$350,000 for colleagues affected by hurricanes and other natural disasters in 2017, AECOM employees from all over the world contributed toiletries and other items through registries at retailers such as Target and Amazon and offered non-financial resources, such as spare rooms, cars and more. 12 LEADERSHIP SPOTLIGHT: BUILDING ORGANIZATIONAL RESILIENCE FOR OUR PEOPLE AND CLIENTS Organizational resilience is about collaborating to anticipate, protect against and manage disruptive events when they occur. At AECOM, we think about it in two ways: making sure our people are safe and minimizing disruption to our business and our clients. Given the nature of the work AECOMs nearly 87,000 employees deliver globally from large infrastructure projects to supporting secure government facilities to designing solutions that can withstand both natural and man-made disasters resiliency touches everything we do. How do organizations survive adversity? We enable operational productivity and profit through security and resilience specialists, technologies and processes. We focus on open channels of communication, functional collaboration and interdependencies between businesses, our communities, and relevant government agencies to minimize disruptions and empower recovery efforts. Crisis preparation is a crucial subset of resilience planning. Anticipation, a well-understood and swiftly executed recovery plan, and a strong network of collaborative partners are all important elements in successfully facing down and surviving a crisis. The best defense is a strong offense, and we have some of the best and brightest minds working to help protect our people and clients from threats. What are three essential elements to organizational resilience in the face of natural disasters? 1. ANTICIPATE: Whether you are pursuing an opportunity, developing a contractual scope of work or engaging in project planning, start strong by using foresight. Develop a risk management plan that considers threats unique to your business, operations, region, societal strains and emerging trends. 2. ACT COLLABORATIVELY: The bedrock of organizational resilience is your workforce; it is our cross-functional emergency and resilience teams who lead during times of disruption. These teams across the globe focus on identifying threats whether cyber, sociopolitical, physical or environmental before they hit, and creating strong and effective countermeasures that safeguard our data, people, projects and communities. These teams are composed of representatives from communications, human resources, legal, facilities, finance, safety, security, information technology, procurement and real estate to help anticipate, act and learn from disruptive events. 3. ADVANCE AND COMMUNICATE: Have a road map and communication protocols in place to facilitate timely staff actions and facilities responses. At AECOM, we have an Operational Safeguard (Security) Plan as a baseline document with a view of site protection and associated details including journey management, communications, medical response, disruptive event management and evacuation plans. It includes where you go, what to say, how to get help and how to respond all focused on the security of our people and clients during an emergency. Global Security and Resiliency leader Mark Niblett shares his thoughts to help every organization be agile and efficient when responding to a disruptive event. CHAPTER 1 PREPARING FOR DISASTER IN A WORLD OF EXTREMES14 15 DESCRIPTOR DESCRIPTOR RESILIENT IN THE FACE OF A CYBER-ATTACK Infrastructure failures, from poorly designed new construction to aging roadways, bridges and dams, are occurring at an accelerating rate. Persistent, increasingly disturbing security breaches are plundering the personal data of millions of people and assaulting the critical networks of governments, financial systems and private industry. We live in an era where our physical and digital worlds are rapidly converging. Our infrastructure is at constant risk from cyber-attacks and extreme weather change. And because our networks and systems are so thoroughly interconnected and interdependent, cities and communities need plans in place to ensure they are prepared to minimize the effects when disaster strikes. What are three things an organization can do to ensure it is prepared to manage risks? 1. THINK HOLISTICALLY: T o avoid a disjointed approach, you need an integrated risk management framework that anticipates, avoids and absorbs evolving threats. We developed a Converged Resilience approach, which is a risk management framework that approaches cybersecurity and operational resilience through a holistic lens looking at a range of factors. This framework encompasses cyber, wireless and physical domains identifying vulnerabilities and weaknesses within each domain, as well as aligning critical processes with technologies to ensure business continuity. We must look at how all of an organizations systems function together. COMMUNICATION SYSTEMS INFORMATION TECHNOLOGY BUSINESS SYSTEMS UTILITIES OPERATIONAL TECHNOLOGY INDUSTRIAL CONTROL SYSTEMS EMPLOYEE SAFETY FACILITY AUTOMATION REGULATORY/COMPLIANCE MANDATES ASSET/INVENTORY MANAGEMENT GOVERNANCE/ POLICIES CHAPTER 1 2. LOOK BEYOND THE FENCE LINE: Protecting telecommunications, power supplies and utilities from high-end physical and cyber threats has become a shared responsibility. In the United States, AECOM has partnered with the Army Cyber Institute, the City of Houston in the state of T exas and the National Guard to exercise Houstons ability to respond to a multi-sector physical and cyber-attack. The exercise, called Jack Voltaic 2 (JV2) will run through 2018 and bring together military, civil and commercial stakehol
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