Integrity 7 The guiding force behind all our activities Opposite: National Tree Day, Ithaca Creek, Australia / Above Left: KBR engineers work on a project / Above Center: Team KBR at WalkMS / Above Right: KBR employee at LNG facility Who We Are As a global engineering, procurement and construction services leader, KBR has many opportunities to positively impact the world, from the way we choose to conduct business, to how we hire, train and develop our employees, preserve the environment and protect the health and safety of our people. KBR’s business practices and philanthropic activities call for an enduring, integrated approach to balancing sustainability with the need to meet client requirements and corporate objectives. To be a responsible corporate citizen, we always lead by example. At KBR, our values and our integrity are at the heart of who we are, what we believe and how we conduct our business. Sustainable Leadership To ensure that our sustainability initiatives meet the needs of our stakeholders, KBR created a global Sustainable Development (SD) Committee, with members selected from diverse departments and office locations to achieve a broad Our integrity is at the heart of who we are, what we believe and how we conduct our business worldwide. Delivering Expertise - Engineering - Procurement - Construction - Design/build - Proprietary process technologies - Program and project management - Operations and maintenance - Logistics management and support Supporting Diverse Markets and Industries 8 Above: EBIC Ammonia Plant, Egypt representation of the company. The SD Committee provides a centralized and comprehensive global perspective regarding the diverse views of sustainability in the regions of the world where we operate, and the issues that are important to our clients and the communities we serve. It also supports all of our corporate responsibility programs by recommending and overseeing an overall framework for sustainable development that works alongside our company’s strategy and goals. To enable communication and collaboration between our sustainability initiatives and business operations, the SD Committee is led by a Steering Committee, comprised of representatives from each KBR business unit, and the Vice President of Quality, Health, Safety and Environment (QHSE). Designated by the CEO, the Vice President of QHSE is also KBR’s Chief Corporate Social Responsibility Officer. The Corporate Social Responsibility Committee, comprised of members of the KBR Board of Directors, governs all sustainability matters. Ethics The KBR Code of Business Conduct (COBC) is a collection of 17 corporate policies that guide the behavior we expect of employees every day at our workplace. The COBC applies to every employee and those we hire to perform work on our behalf, from upper management to all full-time employees, and from craft/hourly employees to subcontractors. At KBR, the COBC is not just a document— it is an active part of our daily work. It showcases our values that are so much a part of our company’s culture. It is how we present ourselves to the world and build our strong reputation for professionalism and fair, ethical behavior toward all. Put simply, it’s how our global team does business. Each employee is required to become familiar with the COBC upon hire. To demonstrate our commitment to maintaining an outstanding workforce, KBR employees are required to refresh their ethics training with an annual course. As an extension of our COBC, KBR adopted a Global Human Rights Policy that acknowledges the principles contained in the United Nations Declarations of Human Rights. While KBR believes it is the role of government in each country to protect the human rights of its citizens, we play an important role in upholding equality, dignity and respect for all people by our actions in the countries where we conduct business. Our human rights policy serves as a powerful guide for our - Energy - Hydrocarbons - Mining and minerals - Power, including alternative and renewable energy sources - Industrial services and infrastructure - Commercial infrastructure - Civil infrastructure - Government and defense employees and subcontractors. For example, KBR has a zero-tolerance policy regarding Trafficking in Persons compliance. We enforce these requirements by conducting pre-award reviews, mandating that all employees and subcontractors deployed overseas attend a Trafficking in Persons training program, performing monthly inspections at subcontractor temporary labor camps, and offering an ethics hotline for employees to report any concerns, including potential Trafficking in Persons violations. Since KBR became an independent company, we have strengthened our compliance with the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. Under the oversight of our Board of Directors, CEO and other company officers, KBR has implemented a monitor-certified anti-corruption program, which includes a whistleblower program; policies regarding improper payments, commercial bribery and international business relationships; and processes and policies covering international commercial intermediaries, international services intermediaries, partners and business transactions with foreign officials. KBR offers an independently operated, global ethics hotline for reporting possible violations of the KBR COBC or applicable anti-corruption laws. These allegations are investigated to resolve any issues, and KBR takes disciplinary action as needed. Upper management reviews all alleged violations of the COBC. Between 2011 and 2013, the KBR Ethics Hotline received 1,294 calls, of which 330 concerned potential COBC violations. Health and Safety Much of KBR’s work is technically complex, occurs in some of the world’s most challenging environments and potentially involves hazardous materials. The safety of our employees, subcontractors, clients and those impacted by our activities is KBR’s top priority and one of our core values. Safety is a fundamental behavior that guides how KBR approaches every project — regardless of size, complexity or location. Our global success and the success of our customers depend on a robust safety culture and the rigorous standards we integrate into everything we do. To ensure that clients’ projects are completed with an emphasis on safety excellence, quality and long-term value, KBR has adopted a Health, Safety and Environment (HSE) policy within our COBC. We complete all projects according to current local, state and federal regulations, as well as industry standards, including the American Society of Mechanical Engineers, American Petroleum Institute, National Fire Prevention Association and ISO 9000. These requirements are complemented by the KBR Integrated Management System (IMS), our corporate library of standards, specifications, lessons learned and best practices. The following processes are part of the KBR IMS, and are conducted throughout each project: • Process hazard review • Safety and integrity reviews • Design and design risk reviews • Technical oversight meetings • Safety checklists • Risk mitigation • Emergency prevention and response Another important component of our safety culture is company-wide awareness programs that help KBR maintain a healthy workforce, while minimizing costly delays, increasing productivity and ensuring high-quality results for clients. KBR encourages personal responsibility and empowers employees with the knowledge, skills and training necessary to make safety decisions — even giving employees the authority to stop work if a potential hazard is detected, until the problem is corrected. Our employees recognize hazards and take proactive steps to resolve them before an incident occurs. As a result, KBR consistently maintains an outstanding safety record, and many of our projects around the world have been recognized by clients and industry organizations for achieving significant safety milestones. as well as employee-improved behaviors. We also evaluate the effectiveness of our IMS. KBR actively participates and provides leadership within organizations that produce safety methodologies, including: American Institute of Chemical Engineers, Occupational Safety and Health Administration, American Society of Safety Engineers, National Safety Council, British Safety Council, Safety Institute of Australia, Association of General Contractors of America, Houston Business Roundtable, Board of Certified Safety Professionals, Canadian Operators Association and Canadian Society of Safety Engineers. KBR is committed to the general well-being of all our employees. We understand that it is often challenging to maintain wellness while working extensively on complex projects, coupled with external stressors — and we strive to show employees that KBR values them and their many contributions to the company. That’s why KBR offers our employees specific services and programs intended to promote healthy lifestyles. Environment KBR is dedicated to a future that achieves the preservation of our natural resources and economic prosperity around the world. To that end, our environmental pledge is to reduce the impact of our services and operations, and to consistently work with our global partners, clients, contractors and suppliers to improve energy efficiency, conserve resources and reduce waste and air emissions. One of the ways that KBR delivers value to the global marketplace is by creating sustainable solutions. We aim to develop products and services that have no undue environmental impact, are safe in their intended use, are efficient in their consumption of energy and natural resources, and can be recycled, reused or disposed of safely — in accordance with applicable laws and industry standards. Each year, KBR conducts an annual management review with our CEO to examine our HSE policies, goals and achievements, Putting Safety First — 17 Years without a Lost-Time Incident KBR consistently demonstrates that, when everyone on the team is committed to safety, we create an incidentand injury-free workplace. Our employees at the Boise Cascade Pulp and Paper project in Jackson, Alabama, recently celebrated a major accomplishment. For nearly two decades — the entire time KBR has operated at this job site — this crew of 60 year-round workers has successfully performed small-capital projects and maintenance services without a single lost-time incident. KBR employees at the Boise Cascade Pulp and Paper project Site managers adopt several practices focused on maximizing employee involvement in the safety process and empowering them to report safety violations and recommend improvements — all in alignment with KBR’s robust global safety culture. From completing a safety instruction card each time an employee switches tasks, demonstrating that he or she received training and understands how to safely work, to participating in team safety meetings, employees play an important role in implementing safety initiatives. 9 In alignment with these three charitable focus areas, both KBR and our employees take action to ensure the communities where we live and work are vibrant and successful. Through our corporate giving program, KBR donates funds to assist many nonprofit organizations in fulfilling their missions. 10 Employee volunteerism is at the heart of our corporate philanthropy and our connection to the communities where we operate. Every day, KBR employees generously donate their time and funds to reach out to those in need through numerous corporate charitable initiatives, volunteer organizations and community outreach programs — including planning, staffing and participating in hundreds of events annually. Above Left: KBR volunteers clean a marsh / Above, Top Right: KBR riders in the MS 150 / Above, Bottom Right: KBR volunteers build a home for Habitat for Humanity We recognize diverse views on climate change, and we successfully perform work within countries around the world according to varying laws. The global conversation about climate change and increasing regulation is generating interest among our customers and stakeholders, and KBR is responding through our service offerings. Our activities range from undertaking studies and producing strategies related to climate change adaptation, to helping customers comply with anticipated requirements, developing strategies to market existing licensed technologies in new ways and evaluating alternative technologies. In anticipation of increasing demand for cleaner energy, KBR also has developed our own licensed, energy-efficient technologies to support a range of industries and processes. Globally, KBR consistently evaluates methods to reduce our operational carbon footprint and implements those options when economically feasible. KBR has been honored worldwide for our commitment to the environment and sustainable operations through major industry awards and high ratings within prestigious certification systems that recognize environmentally friendly and energy-efficient construction, including LEED (Leadership in Energy & Environmental Design), BREEAM (BRE Environmental Assessment Method) and NABERS (National Australian Built Environment Rating System). Diversity With more than 27,000 employees in 70 countries across six continents, KBR is truly a global company. But being a global company means more than having a large staff and project sites located around the world — it also means actively recruiting and retaining the best talent from a multinational pool. KBR’s goal is to have our workforce reflect the diverse communities that we serve around the world. We recognize that valuable lessons come from beyond the workplace, and we strive to bring different viewpoints together to learn from this varied knowledge. We believe strength comes from team members of many different cultures, races and backgrounds contributing their experience toward a common goal: delivering any project, any time, in any environment to customers worldwide. KBR’s commitment to diversity includes partnerships with local communities around the world. KBR strives to hire local and indigenous workers from the regions where projects are located. In doing so, our goal is to create jobs, many of which are affiliated with projects of international importance; expand workers’ skills, knowledge and experience to develop their careers; support local businesses, suppliers and contractors, including minority- and women-owned enterprises; and provide more opportunities for communities. KBR’s work results in the delivery of a better future for our local partners. Reflective of our commitment to a diverse workforce, KBR is a Level 5 Contributor and Value-Adding Supplier of the Broad-Based Black Economic Empowerment (BBBEE), a South African government initiative to enhance the participation of its black citizens in the national economy. Health As with our employees, KBR wants as many people as possible to enjoy a healthy lifestyle, access to high-quality care and a positive state of well-being. To that end, we support health initiatives that are of concern to our employees and integral to where we work around the world. KBR donates funds and supplies to victims of natural disasters, and supports organizations dedicated to patient services and medical research for diverse causes that include cancer, mental health, multiple sclerosis, and prenatal and infant health. We are also a contributor of funds to the Texas Children’s Hospital Global Health Initiatives program. Education KBR is dedicated to developing the next generation of innovators and leaders, particularly in the areas of science, technology, engineering and mathematics (STEM). We encourage more individuals, including students, women and minority groups, to choose STEM careers. With engineering among the fastest-growing occupations around the world, it is KBR’s goal to strengthen and diversify the pipeline of talent, especially at the primary education level, choosing STEM careers. Environment To create a sustainable and secure future, KBR strives to reduce the impact of our operations by improving energy efficiencies, conserving natural resources and minimizing waste and air emissions. We take this commitment a step further by providing financial assistance and volunteers for organizations that work toward the conservation of land and wildlife around the world and the restoration of public spaces and waterways, including the reduction of pollution and litter. We also support causes that educate the public about the importance of environmental stewardship and how to protect our planet. KBR and the Nature Conservancy: A Global Mission With the Nature Conservancy as our partner, KBR is playing a notable role in protecting a culturally and ecologically significant stretch of land in Northern Australia. Located in central and western Arnhem Land in Australia, the Warddeken and Djelk Indigenous Protected Areas were established to protect culture and nature across 5 million acres. KBR is helping the Nature Conservancy support these indigenous people in their efforts to live on and manage their lands for conservation. Indigenous rangers are leading this initiative, combining science with traditional knowledge to perform activities such as fire management, feral animal control and invasive plant removal. At KBR, we believe that our expertise, particularly in areas such as hydrology, can work alongside centuries-old knowledge to result in far-reaching conservation benefits. Corporate Citizenship KBR is more than a global company — we are a citizen and neighbor in hundreds of communities around the world. Our ability to positively impact local communities and populations isn’t limited to job creation or worker development — KBR provides direct assistance and social benefits to those in need. With a focus on improving health, education and the environment, KBR is part of the drive to build a better world. Above Left: Indigenous Warddeken and Djelk people / Above Right: Protected lands in Northern Australia For more stories about how KBR is positively impacting communities around the world, visit www.kbr.com/Social-Responsibility/Community 11
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