AECOM : 2024 Sustainability Report

Published: 2024-06-18 09:16:07 ET ACM

Delivering

Sustainable

Legacies

Our 2024 Sustainability Report

Table of Contents

Letter

AECOM

Sustainable

Q&A with

AECOM's

from the CEO

at a Glance

Legacies

President

Approach

Lara Poloni

to Sustainability-

Related Reporting

Achieving

Improving

Enhancing

Embedding

SASB and

Net Zero

Social

Governance

Sustainable

TCFD Tables

Outcomes

Development

and Resilience

Across Our Work

Letter from the CEO

Troy Rudd

Chief Executive Officer

Since adopting our Think and Act Globally strategy, sustainability and resiliency have remained paramount in our business decisions, forming the core of our current strategy. Reflecting this commitment, we developed our Sustainability Legacies strategy that ensures we take action across our organization. Over the past year, we've made significant progress on these initiatives, placing us at the forefront of sustainable practices. This has not only extended our competitive advantage as industry leaders but also enabled us to lead more comprehensively, delivering for both clients and the communities we serve. Ultimately, our aim is to create a lasting impact on the planet for future generations.

As we reflect on our achievements and progress made over the past year, I am proud of our team's unwavering commitment and the progress to our purpose of delivering a better world. Our Sustainability Report highlights our ongoing commitment to embedding leading sustainability, resilience and governance practices in everything that we do.

Embracing sustainability in our culture

Our employees are our greatest asset, and we have taken several steps to create the best workplace in our industry, with sustainability and resilience at the center. Last year, this included implementing required sustainability and related training programs to help our employees work safely, sustainably, and ethically. We have achieved strong employee engagement and training compliance due to our efforts for the fourth consecutive year, reflecting our commitment to our workforce and training initiatives. As part of this process our teams are trained on our global sustainability risk framework that aligns with our Sustainable Legacies strategy and is critical in continually assessing project and environmental risks in every decision we make.

This year, we took our initiatives a step further by improving the diversity of our workforce and achieving our near-term goal of women comprising at least 20% of our leadership. We continue to make further progress against our 35% near- term target of women company-wide while also advancing our nongender diversity targets within each region of our business. In addition, we have implemented required unconscious bias training and set specific targets within each of our regions. We also strengthened our professional development programs to help our employees build meaningful careers and foster talent.

I am pleased to report that these actions are receiving positive feedback. In our latest employee survey, a record number of employees recommended AECOM as a great place to work. In addition, our employee retention midway through fiscal 2024 is well ahead of pre-pandemic levels.

We extended these practices focused on social impact by launching our AECOM relief campaign in collaboration with the American Red Cross's Hawaii Wildfires Relief Fund.

1 | AECOM 2024 SUSTAINABILITY REPORT

Letter from the CEO

AECOM has a long and proud history of delivering for clients and communities across Hawaii, and through this campaign we have made a corporate donation combined with offering a global matching program to collectively raise $300,000 to aid in the challenging recovery. On

a global scale, we partnered with the Government of Ukraine to provide program management and advisory services that will aid in the reconstruction of Ukraine. These are notable examples of the type of initiatives that unify our teams across the world and deliver sustainable legacies for generations to come.

Within AECOM, we have established a culture centered on flexibility, trust, and collaboration. For the tenth consecutive year, we have been recognized as a Fortune World's Most Admired Company, a testament to our continued excellence in our field. Sustaining our recognition is only possible because of the strength of our employees-52,000 talented professionals who are dedicated to our clients and our purpose of delivering

a better world. To ensure we continue fostering a culture focused on impact and providing greater opportunities for our professionals, we continue to invest in professional and technical development programs. In 2023, we also celebrated the value and success of these programs that led to TIME magazine naming us one of the Best Companies for Future Leaders, complementing our status as one of the World's Most Ethical Companies for the eighth year, as recognized by Ethisphere.

Winning with our technical expertise

Over the last year, our ESG Advisory practice, which provides our clients with leading sustainability and resilience- related consulting services, grew a double-digit pace and have made key senior hires in nature-based solutions and the energy transition. Serving as a complement to our world-class program management and advisory services, we have expanded our addressable market to support our clients more holistically across the lifecycle of their investments- from assessing risk and developing

a strategy to the detailed design and execution of the project.

By engaging with our clients earlier and longer, we have created a competitive advantage in our offering. Our global scale and experience are proving to be key differentiators as we are winning work at an all-time sustained high. As part of this, we are winning the work that matters by focusing our environmental technical expertise on the largest and most profitable markets. Critical pursuits such as the UK Network Rail, California High- Speed Rail, and NEOM International Airport highlight the breadth of our advisory and program management services that, when coupled with our technical expertise,

are setting new standards for complex, sustainable infrastructure.

Our progress was no more apparent than in our leading industry recognitions that were announced by the Engineering-NewsRecord in April 2024. In these rankings, we were named the number-one Water design firm, displacing two of our closest competitors, while our number one rankings in Transportation and Facilities design were also reaffirmed. Moreover, our recent acknowledgment from USA Today as one of America's Climate Leaders for 2024 underscores our progress on our environmental commitments. With these recognitions, we are now the top ranked firm across each of our major end markets, further reflecting the tremendous value we bring to clients every day.

Driving sustainable infrastructure

Our commitment to sustainability drives us forward with the latest technology, particularly in our role leading the Sustainable Markets Initiative task force on measurement and transparency. This work has led us to build the innovative and collaborative SMI Nature Risk Tool. Developed in partnership with stakeholders and industry experts, we've created a solution designed to guide early- stage infrastructure decisions. This tool empowers users to assess and address the impact of projects on nature, mitigating risk, and maximizing value. Leveraging global data sets and frameworks, it offers comprehensive insights into biodiversity and ecosystem dependencies. User friendly visualizations simplify complex

data, enabling informed decision making from site selection to risk identification. As we embark on pilot projects, our aim is to democratize access to this transformative tool, advancing sustainable and resilient infrastructure worldwide. Our work on this tool underscores the type of impact we can have as a company to promote and enhance nature and biodiversity.

Looking ahead

We are leading across our markets at a time when sustainability factors have become increasingly important for clients around the globe. This is due to the changing effects of climate change and environmental issues, including evolving regulatory frameworks following continued multi-decade investments in areas such as sustainability and the energy transition. Our clients are increasingly turning to us to navigate these evolving priorities.

We are beginning to witness a surge in momentum in our pipeline from the Infrastructure Investment and Jobs Act (IIJA) and other substantial infrastructure funding initiatives around the world, and we expect substantial growth opportunities on the horizon. We are best positioned to advise and execute on these priorities with our multiple decades of experience and the digital delivery capabilities required to navigate in this changing landscape.

I am incredibly proud of the impact we are making through our sustainability efforts. These are complex challenges that cannot be solved in a day, and, through our Sustainable Legacies strategy, we are committed to continuously improve our capabilities to create infrastructure opportunities for all.

I would like to extend a thank you to our employees, clients, and stakeholders for supporting us on this sustainability journey. Together, we will continue to build a better and more equitable future.

Troy Rudd

Chief Executive Officer

2 | AECOM 2024 SUSTAINABILITY REPORT

Letter from the CEO

AECOM at a Glance

Geographies by Revenue

Canada

U.K. and

Europe

Ireland

Hong Kong

Middle East

U.S.

Other

Australia-New Zealand

Key strategic priorities

Focused

Leading

Strengthened

Capitalizing

on our core higher-

in key transportation, water

financial profile with

on market leading positions,

returning and lower-

and environment markets

transformed balance

substantial backlog and ongoing

risk businesses.

and ideally positioned to

sheet and returning capital

continuous improvement

advise clients on their

to shareholders.

initiatives to drive long-term

sustainability and

profitable growth.

resilience priorities.

3 | AECOM 2024 SUSTAINABILITY REPORT

AECOM at a Glance

As a Professional Services business, AECOM is poised to thrive

24%

Water

State & Local

U.S. Government

Attractive

Diverse

Exposure

Funding

to Key End

Sources

Markets

38%

Transportation

29%

Non-U.S. Governments

28%

Facilities

Federal U.S. Government

10%

Environment/New Energy

39%

Private

42%

54%

Engineers

Cost-Plus Design

Deep

Lower-Risk

Technical

Business

Expertise

Model

16%

Program Managers

38%

Fixed-Price Design

12%

Consultants/Planners

Construction Management

10%

Scientists

20%

Design, Digital & Other

All figures presented as a percentage of FY'23 NSR

4 | AECOM 2024 SUSTAINABILITY REPORT

AECOM at a Glance

Engineering News-Record

A leader in helping our clients deliver their most challenging projects

#1 #2 #3 #4

Transportation

Environmental Firm

Marine and Ports

Hazardous Waste

Design Firm

Water Treatment

Program

Environmental

Lines and

and Desalination

Management

Consulting Firm

Aqueducts

Clean Air

Sewer and Waste

Facilities Design Firm

Wastewater

Compliance

Wind Power

Environmental

Treatment Plants

Site Assessment

Engineering Firm

Education

and Compliance

Chemical Remediation

Green Design Firm

Green Contractor

Mass Transit

Airports

Highways

Dams and Reservoirs

Water Design Firm

Source: 2023/2024 ENR Rankings, reflecting global revenue

Percentage of FY'23 Gross Revenue Aligned with the Sustainable Development Goals (SDGs)

SDG 6: Clean Water and Sanitation

SDG 3:

Good Health

and Well Being

SDG 9: Industry, Innovation and Infrastructure

40%

SDG 11: Sustainable Cities and Communities

SDG 4:

Quality

SDG 7:

Education

Affordable and

Clean Energy

72%

SDG 13: Climate Change

Percentage of

FY'23 gross

revenue aligned

SDG 16: Peace, Justice,

with the SDGs

and Strong Institutions

<1%

SDG 15:

Life On Land

5 | AECOM 2024 SUSTAINABILITY REPORT

Sustainable Legacies

Sustainable Legacies is AECOM's strategy for reaching ambitious objectives across four key pillars: embed sustainable development and resilience across the company's work, improve social outcomes for communities, achieve net- zero carbon emissions, and enhance governance. AECOM is committed to publicly reporting on its Sustainable Legacies pillars as we work to enhance performance in the most responsible manner possible. Our strategic approach not only helps us manage and measure our progress, but also helps us to engage with key stakeholders from around the world.

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Sustainable Legacies

Delivering Sustainable Legacies

Our strategy in detail

Embedding Sustainable

Development & Resilience

Across Our Work

Achieving Net-Zero Carbon Emissions

Improving Social Outcomes

Enhancing Governance

7 | AECOM 2024 SUSTAINABILITY REPORT

Sustainable Legacies

Progress Against Our Sustainable Legacies Strategy

Embed sustainable

Improve social

Achieve net-zero

Enhance

development and

outcomes

carbon emissions

governance

resilience across our work

OUR TARGETS

OUR PROGRESS

Leveraging Sustainable Legacies to create competitive advantages to win key pursuits

Growing our ESG advisory practice at a double-digit pace and added key senior hires in nature-based solutions and energy transition

Driving substantial engagement with internal ScopeXTM portal to aggregate project-specific case studies and decarbonization data

Leading Sustainable Markets Initiative task force on measurement and transparency

Continue to implement diversity-specific KPIs and associated near- and long- term targets in each region within our business in FY'24

Employee-matched donation campaign to support Maui recovery efforts concluded with nearly $300,000 raised

Set net-zero emissions targets approved by SBTi, among the first companies globally

Kicked off innovative supplier engagement program, engaging approximately 500 of our most emitting suppliers

Achieved operational net zero for FY'23 and already positioned to maintain operational net zero for the next several years

Implemented quarterly sustainability dashboards for each region including regional travel emissions reduction goals

Awarded Terra Carta Seal by SMI in FY'23

Incorporated sustainability- related KPIs in CEO and executive officer compensation aligned with sustainability-linked financing amendment

Implemented an enterprise- wide risk framework to ensure work aligns with our Sustainable Legacies strategy and ensures alignment with climate science

Achieved 100% training compliance in FY'23, including completion of Sustainable Legacies training; implemented further enhanced Sustainable Legacies training curriculum for FY'24 program

8 | AECOM 2024 SUSTAINABILITY REPORT

Sustainable Legacies

Disclaimer

AECOM published this content on 18 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 June 2024 13:15:06 UTC.