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Delivering a Sustainable Future
SUSTAINABILITY REPORT 2015
2015 KBR SUSTAINABILITY REPORT
Contents
> ABOUT THE REPORT
2
> A MESSAGE FROM OUR PRESIDENT AND CEO
Building a Sustainable Future
> MESSAGE FROM THE VP HSSE –
A Year of Zero Harm
> ABOUT KBR
16
> DELIVERING A SUSTAINABLE WORKFORCE
3
4
6
> DELIVERING A SUSTAINABLE BUSINESS MODEL
14
20
> DELIVERING SUSTAINABLE TECHNOLOGY
> DELIVERING SUSTAINABLE PROJECTS
22
> DELIVERING A SUSTAINABLE LEGACY
27
> DELIVERING SUSTAINABLE PERFORMANCE
Sustainability by the Numbers
> Global Reporting Index 4.0
34
37
ABOUT OUR REPORT
The legacy companies that form today’s KBR go back to the roots of modern industry: the first oil fields of Pennsylvania, the dirt roads of Texas, the early
power plants and refineries of New York and New Jersey. Today, we are a leader in technology, engineering, construction and government services, with
over 22,000 employees and operations in more than 70 countries.
Throughout the course of our history, we have experienced great transitions and every kind of business cycle more times than we can count. We have
been here this long and come this far because of our ability to adapt to change. That ability has been tested in the past few years, but despite the
challenging times in our industry that exist today, we are committed to delivering a sustainable future for our shareholders, customers, employees,
government and industry partners, as well as the communities we serve.
This report, which covers business activity in calendar year January 1, 2015 to December 31, 2015, has been prepared according to GRI G4 Core
guidelines and discloses KBR’s relevant and material aspects of sustainable development. It is part of our continuing effort to engage with our
stakeholders and to share our own aspirations, our progress and our challenges in support of our commitment to corporate sustainability.
The content of this report is provided using the “in accordance “core to provide full disclosure of KBR managed operations; as stated in previous reports
the environmental data is provided for KBR-owned facilities. Economic, social and environmental information found in this report is also mentioned in
our 2015 Annual Report, including Form 10-K and Annual Proxy Statements. This report is prepared under the direction of the VP of HSSE and KBR’s
Sustainable Development Committee, which has executive management representation.
If you have questions on this report please email us at [email protected].
Click here for more information on our website
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2015 KBR SUSTAINABILITY REPORT
A MESSAGE FROM OUR PRESIDENT AND CEO
Delivering a Sustainable Future
The theme of our 2015 report, Delivering a Sustainable Future, reflects the transformation we started last year
to move our company toward a more sustainable future. While we still face many challenges, including a
continuing low-price oil environment, we have made substantial progress toward our goals.
S
ince the introduction of our Zero Harm
program, we have strengthened our
commitment to safety, establishing a company
culture where safe execution is non-negotiable
and no safety or environmental incidents are
tolerated, all within a framework of training,
personal responsibility and accountability.
We have made significant strides toward
our strategy for growth, refocusing on our
core strengths by divesting non-strategic
businesses. We have also established key
relationships aimed at cultivating new clients
and expanding our offerings.
In 2015, we simplified our corporate structure
by embedding corporate functions in the
businesses to reduce overhead and foster
collaboration. We have also strengthened
our regional presence, tailored to our clients’
specific needs.
To encourage greater communication and
transparency, KBR’s Executive Leadership
Team continues to reach out to our various
communities within KBR to communicate our
plans and solicit comment. Through consistent
internal communications and our KBR Listens
employee feedback tool, we regularly address
employee concerns and seek opinions from
throughout the organization on how to improve
our day-to-day business activities and how
to actively demonstrate our values. We also
provide an Ethics Hotline available to all
employees and contractors and an investors’
hotline for stockholders.
Going forward, Zero Harm remains our objective
for safety. Our goal is continuous improvement
as we strive towards zero incidents. In 2016,
we aim to move into the top quartile of
International Association of Oil & Gas Producer
(IOGP) Safety Performance. Zero Harm also
extends to the environment and we consistently
aim to increase environmental awareness at
our offices and project sites worldwide with the
goal to leave each place where we operate as
good as or better than we found it.
We will continue to execute our strategy
and maintain our focus in order to meet the
expectations of our customers, stakeholders,
and our employees. We will continue to invest
in growing our people because that is where
our future lies. We will build on the gains we
have made with investors this year and further
grow our shareholder base. We will pursue
growth opportunities in a focused and strategic
way as we continue to make strides toward
becoming a truly sustainable company.
Beyond our corporate goals, we will continue
to concentrate on delivering a sustainable
future to our employees, customers and
communities through innovative technologies
that help customers maximize their resources
efficiently, at less cost to the environment
and with fewer risks.
We will also continue to contribute to the
economic development of communities around
the planet by various means, including assisting
in the delivery of oil and gas revenues to host
governments and providing local employment,
training and trade through our global
businesses. At KBR, we understand the power
and the opportunity of our globally connected
community, and, we are committed to being
part of it.
In the end, an enduring sustainable future
depends on a foundational culture that values
sustainable principles in everything we do.
It means putting our customers’ success first
with the knowledge that their success fuels
our own. It means attracting and motivating
the best workforce in offices around the world.
It means building relationships based on the
highest business ethics, as well as on conduct,
transparency, accountability, honesty and
respect. These values are at the very heart
of our company, and they are the foundation
for a company that lasts.
Stuart Bradie
KBR President and CEO
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2015 KBR SUSTAINABILITY REPORT
HSSE BRANDING
CMYK
A MESSAGE FROM OUR VICE PRESIDENT, HSSE
A Year of Zero Harm
At KBR, Health, Safety, Security & Environment (HSSE)
is a core value for all employees and a key element in our
Code of Business Conduct. Establishing and incorporating
HSSE responsibility and accountability is a priority within
our organization.
First and foremost, we believe strongly that as a company doing business
in 40 countries around the world, we have a responsibility to the people
and the communities in which we live and work. At its most basic, it
can be expressed as “first do no harm.” For KBR, it means upholding the
highest standards with regard to workplace safety and environmental
protection.
Maintaining safe, incident-free workplaces – on project sites, in
government and military facilities and our offices – also creates value
for our customers who rely on us to help them meet their objectives of
financial performance, worker safety and environmental protection.
Since the introduction of our Zero Harm initiative in 2014, we have seen
significant improvement in our safety performance. Our Total Recordable
Incident Rate (TRIR) has improved by 32% and our 12-month rolling TRIR
by 38%, major progress from where we were last year. And notably,
recordable incidents are down 34%.
Support and active HSSE engagement by KBR executives has also
increased. In 2015, we established a training program for our executive
leadership team (ELT) championed by KBR CEO Stuart Bradie: “Being a
Visible HSSE Leader at KBR.” In addition to 100 percent participation in
the training program, KBR’s senior leadership completed more than 70
Shaping Accident Free Environment (SAFE) tours at active project sites
and offices, well over the targeted goal of 50 tours.
We introduced other focus areas as part of our 2015 HSSE Strategy.
• Strengthening Our Global HSSE Communication – developing
a robust HSSE branding plan to enhance Zero Harm awareness and
engagement; establishing Incident Review Boards to review high
potential incidents through a fair, consistent and equitable process.
The Incident Review Boards provided a platform for capturing and
communicating lessons learned globally and enhanced our HSSE
Alert and HSSE Achievement Process.
• Hazard and Risk Control – expanding training and communication
of project managers and supervisors in KBR’s Total Safety Task
Instructions (TSTI); developing an HSE intervention process and
behavior-based Courage to Care Conversations (CtCC) backed by
classroom and hands-on training; tracking and trending CtCC data
globally.
• Continue to develop a viable HSSE Management System and a
corporate culture to achieve Zero Harm in safety, security and
environmental incident rates.
• Refine tracking and reporting methodology to capture and analyze
economic, HSE and social performance data to establish a baseline
and benchmarks for sustainable performance.
For KBR, safety is more than policies, procedures or rules; it is about
being part of a strong HSSE culture, all day, every day. This vision is
embodied in KBR’s Zero Harm 24/7 initiative, which empowers all of
our employees, customers and contractors to display the courage to
care by looking out for one another. We also envision the KBR Zero
Harm philosophy extending into the personal lives of all employees,
empowering them to make positive, HSSE-conscious decisions based
on personal values.
Nick Anagnostou, Vice President
Health, Safety, Security and Environment
“Sustainability plays a vital role in the
future of our business. The demand
for businesses to contribute to the
communities where they operate is
here, and we must respond to that
demand in a way that demonstrates
our commitment to create value for our
stakeholders. We have made significant
progress in our sustainability efforts,
from compliance initiatives that ensure
continuous improvement in our safety,
environmental and quality management
systems to project pre-planning efforts
that incorporate programs designed to
serve the communities we are engaged in.
Sustainability is integrated into all areas
of our operations, and KBR continues
to be willing and capable to incorporate
these sustainable development activities
for the benefit of the community, our
operations, and our clients.”
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2015 KBR SUSTAINABILITY REPORT
Our Sustainability Outlook
CHALLENGES
GOALS
The challenges outlined below are those that we believe are significant in today’s
business climate, and addressing them will be instrumental to building a sustainable
future.
The following represents areas of focus for 2016 as we
continue to integrate sustainability across our business.
Safety. In 2015, KBR suffered a fatality on one of our construction sites in Kentucky.
We cannot state strongly enough that any loss of life is a tragedy not only for
the families involved but also for all of us at KBR. The tragic loss of one of our
own serves as a reminder that safety is personal, and that we must continue to
do everything we can to work safely all day, every day, to ensure our goal of zero
incidents is achieved.
Financial. We continue to address litigation and regulatory matters related to
the Company’s restatement of its 2013 annual financial statements. We have also
received requests for information and a subpoena for documents from the Securities
Exchange Commission (SEC) regarding the restatement of our 2013 annual financial
statements. We have been and intend to continue cooperating with the SEC.
Environmental. We are subject to numerous environmental, legal and regulatory
requirements related to our operations worldwide. In addition to federal and state
laws and regulations, other countries where we do business often have numerous
environmental regulatory requirements by which we must abide in the normal
course of our operations. These requirements apply to our business segments
where we perform construction and industrial maintenance services, or operate and
maintain facilities.
Remediation. We continue to monitor conditions at sites owned or previously
owned, which created various environmental issues including deposits of metals,
volatile and semi-volatile compounds and hydrocarbons impacting surface and
subsurface soils and groundwater. These sites have been remediated, and we
continue our ongoing site analysis involving the timing and techniques used to
implement remediation activities.
We have been named as a potentially responsible party in various clean-up actions
taken by federal and state agencies in the U.S. All of these matters have been
settled or resolved and as of December 31, 2015 we have not been named in any
additional matters.
Safety. Zero Harm continues to be our ambition for
personal safety. Our goal is to continuously improve our
safety performance in 2016 and strive for consistent
top quartile safety performance benchmarked against
the International Association of Oil & Gas Producers
(IOGP).
Environment. We want to improve environmental
awareness at our offices and project sites worldwide.
Zero Harm extends to the environment with our goal
of leaving each place where we operate as good as or
better than we found it.
Feedback. We want to improve our community
feedback mechanisms and reporting in order to address
concerns of stakeholders in communities where we
operate and assess the effectiveness of our response.
We currently provide an Ethics Hotline for employees
and contractors to report possible Code of Business
Conduct violations and an investors’ hotline to enable
stockholders to call with concerns. Additionally, there
is an Annual Meeting of Stockholders that gives
shareholders an opportunity to speak with the Board of
Directors as well as the Executive Leadership Team.
Metrics. We realize the need to increase metrics to
measure our environmental performance and assess
our overall progress with regard to our commitment
to Sustainable Development principles. At KBR, we
understand the power and the opportunity of our
globally connected community, and, despite areas that
we still need to address we are committed to reaching
out and being part of it.
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2015 KBR SUSTAINABILITY REPORT
About KBR
A VALUES-DRIVEN COMPANY
KBR’s Behaviors are the principles that
drive our day-to-day business activities.
They are the backbone of our corporate
culture and reinforce our shared mission
of “We Deliver.”
KBR’S behaviors are:
WE DELIVER
We are committed to standing by our promises
to deliver projects through collaboration,
discipline and the KBR Way.
WE VALUE OUR PEOPLE
We value and respect our employees as people.
We are committed to Zero Harm for every
person. We emphasize development of each
person to reach his or her full potential.
WE ARE PEOPLE OF INTEGRITY
We are people of character. We value honesty,
trust, courage, prudence, and tenacity. We will
not sacrifice our integrity.
WE EMPOWER OUR EMPLOYEES
We trust our employees to be independent
decision makers while being held accountable
to quality and delivery. We enable our employees
to be proactive in their work and adaptive
to change.
WE LEAD BY EXAMPLE
We own our work, individually and as a
company. We have a passion to deliver high
quality work and a will to succeed. We value
the success of KBR over individual success.
We are ONE KBR.
As of December 31, 2015, KBR had approximately 22,000 employees
worldwide, and recorded revenues of $5,096,000,000.
KBR, Inc. and its subsidiaries are an
engineering, construction and services
company supporting the global hydrocarbons
and international government services market
segments. With operations in 40 countries,
KBR has more than 22,000 people delivering
services to customers in over 80 countries.
Our major operations in regards to revenue are
in the U.S., Australia, Africa, Europe, Middle
East and Canada. KBR’s major operations with
regards to property, plant and equipment are in
the U.S., United Kingdom and Asia-Pacific.
We trace our history and culture to two
businesses, The M.W. Kellogg Company
(Kellogg) and Brown & Root, Inc. (Brown &
Root). Kellogg dates back to a pipe fabrication
business which was founded in New York
in 1901 and has been creating technology
for petroleum refining and petrochemical
processing since 1919. Brown & Root was
founded in Houston, Texas in 1919 and built
the world’s first offshore platform in 1947.
Halliburton acquired Brown & Root in 1962
and Kellogg in 1998 through a merger with
Dresser Industries. KBR became a standalone
company on Nov 16, 2006.
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2015 KBR SUSTAINABILITY REPORT
KBR’s Businesses
KBR delivers technology, value-added consulting services and integrated EPC skills through three distinct
global businesses, ensuring consistent project delivery with predictable results. Our businesses are:
TECHNOLOGY & CONSULTING
ENGINEERING & CONSTRUCTION
GOVERNMENT SERVICES
KBR has been creating innovative technology for petroleum refining
and petrochemical processing since 1919, and building plants
based on those technologies for almost as long. Our licensed
technologies, whether full units or key equipment, can be found in
thousands of installations around the world. In addition to KBR’s
proprietary technology in refining, ethylene, ammonia and fertilizers,
and gasification, we offer niche consulting and know-how through
Granherne/Energo and GVA, an industry leader in innovative offshore
technologies as well as a strong technology portfolio through unique
partnerships, joint ventures and alliances with industry leading
technology providers such as Shell Global Solutions, BP, ExxonMobil
Chemical, SK Innovation, Southern Company, SK-KBR and more.
KBR is one of the world’s largest and most
diverse providers of engineering, procurement,
construction, commissioning and start-up services
to the hydrocarbons industry, including Upstream
Oil & Gas; LNG/GTL; Downstream Oil & Gas,
Petrochemicals and Chemicals; and differentiated
EPC. Our experience spans the entire range of the
energy services cycle – from feasibility studies
and front end designs through global procurement
and logistics, direct hire construction and
construction management on some of the most
demanding energy projects onshore and offshore.
KBR has a long history of delivering effective, integrated services
to support the missions of defense and governmental agencies
worldwide. Our Government Services division serves United States,
United Kingdom and Australian governments through long-term
services contracts. We provide facility and equipment asset
management, military/defense and agency programs, program
management, emergency response and logistics programs and
training and consulting services to support our clients wherever
and whenever they need us. KBR’s goal is to assist governments
in maintaining operational excellence; from making soldiers’ lives
better by providing them with the modern accommodation they
deserve, to maintaining vital transport networks, to managing the
world’s largest energy programs.
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2015 KBR SUSTAINABILITY REPORT
The World’s Contractor
DELIVERING THE KBR WAY
KBR REVENUE
Whether it’s providing the technology and consulting know-how to develop our customers’ valuable assets; designing and
constructing the infrastructure and facilities to develop energy resources in some of the world’s more remote and challenging
locations; or providing highly-specialized services and mission support for men and women of their countries’ armed forces
and governmental agencies, our clients depend on KBR because they know We Deliver.
By geographic location as a percentage
of total revenues:
Other countries, 2%
Latin America, 8%
Africa, 8%
United States, 34%
Europe, 8%
Middle East, 13%
Australia, 25%
Canada, 10%
2013
Other countries, 4%
Latin America, 8%
Africa, 4%
United States, 37%
Europe, 10%
Middle East, 11%
Australia, 22%
Canada, 12%
2014
Other countries, 6%
Latin America, 8%
United States, 43%
Africa, 8%
Europe, 8%
22,000+
Employees
40+
Countries (operations)
80+
Countries (customers)
Middle East, 13%
Australia, 16%
Canada, 4%
2015
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2015 KBR SUSTAINABILITY REPORT
Statement of Risk
As a global company, KBR encounters considerable
risk in the process of our day-to-day activities. The
markets that we serve are highly competitive and
require substantial resources and highly skilled
and experienced technical personnel in order to
compete and succeed. A significant portion of our
revenues is derived from companies in the oil and
gas industry, a cyclical industry subject to the levels
and volatility of oil and gas prices.
Around the world, our operations may be adversely
affected by unsettled political conditions, acts
of terrorism, civil unrest, force majeure, war or
other armed conflict, as well as governmental
actions, inflation and foreign currency exchange
controls and fluctuations. We strive to manage or
mitigate these risks through a variety of means
including contract provisions, contingency planning,
insurance schemes, hedging and other risk
management activities.
Please refer to our 2015 Annual Report for more
details, specifically Item 1A. Risk Factors, Item
7A. Quantitative and Qualitative Discussion about
Market Risk and Note 20 to our consolidated
financial statements for information regarding our
exposures to foreign currency fluctuations, risk
concentration and financial instruments used to
manage our risks.
A significant portion of our revenues is derived from companies
in the oil and gas industry, a cyclical industry subject to the levels
and volatility of oil and gas prices.
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2015 KBR SUSTAINABILITY REPORT
2015 Business Strategy
To achieve our business strategy, KBR’s goal is to create enhanced customer satisfaction leading to repeat business through a best-in-class delivery
platform. KBR projects are generally long-term in nature, and an essential feature of our global strategy is to establish local operations in locations where
services demand growth is expected. Our core skills are conceptual design, front-end engineering design (“FEED”), engineering, project management,
procurement, construction, construction management, logistics, commissioning, operations and maintenance.
ORGANIZATIONAL CHANGES
TO SUPPORT OUR STRATEGY
In December 2014 following an intensive
analysis of our operations, KBR announced a
strategy for growth that refocused KBR on our
core strengths – Technology and Consulting,
Engineering and Construction and Government
Services – and simplified the corporate
structure in order to maximize synergies,
reduce overhead costs and create a more
market-focused business.
As a key part of this strategy, we began to
rebalance our business portfolio through sales
of non-strategic businesses and the formation
of strategic partnerships.
In the third quarter of 2015, we finalized the
sale of our Infrastructure Americas business
to Stantec Consulting Services Inc. and closed
on the sale of our U.K. office facility located
in Greenford and a U.S. office facility located
in Birmingham, Alabama. Our Building Group
subsidiary was sold to a subsidiary of Pernix
Group, Inc.
Two strategic relationships were established
within our E&C business segment in order
to grow our business in North America: the
Brown & Root Industrial Services 50/50 joint
venture, which included our Industrial Services
Americas business, and the acquisition
of a minority interest in a Gulf Coast pipe
fabrication business, EPIC Piping LLC. We
contributed a majority of our Canadian pipe
fabrication and module assembly business to
the EPIC acquisition.
Subsequent to December 31, 2015, we
acquired three technology companies from
Chematur Technologies AB, a subsidiary
of Connell Chemical Industry Co., Ltd.
This acquisition will be reported within
our technology and consulting business
segment in 2016.
KBR’s business strategy is to provide our customers with differentiated
and superior capital project delivery and service offerings across the entire
engineering, construction and operations project lifecycle.
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2015 KBR SUSTAINABILITY REPORT
Governance
Good governance is the hallmark
of a well-run company. KBR’s board
of directors adheres to a fair and
honorable model of governance to
guide its role as the guardian of
shareholder interest. In addition
to specifying the rights and
responsibilities of the board, and
the board committees, this general
model of governance also provides
the structure through which company
objectives are set – as well as the
means of attaining those objectives,
monitoring performance and
promoting fairness, transparency and
accountability.
Our corporate governance guidelines are
reviewed annually to reflect today’s dynamic
and evolving business environment, to
enhance the board’s effectiveness and to
ensure compliance with new regulatory
requirements enacted by the U.S. Securities
and Exchange Commission, the Internal
Revenue Service and others.
Board members also complete annual selfassessment questionnaires for the Board
and for each committee on which they
serve, along with an annual Directors’ and
Officers’ Questionnaire (D&O) and a NYSE
Independence questionnaire. All questionnaire
results are presented at Nominating and
Corporate Governance Committee meetings.
KBR, Inc.’s Board of Directors currently
comprises 10 directors. All of the directors
are independent, non-executive directors
except for the CEO. Directors are elected
annually, with nominees standing for election
to one-year terms. At this time, the Board
has four standing committees to which it has
delegated certain duties and responsibilities:
Audit, Compensation, Health, Safety, Security,
Environment and Social Responsibility
(HSSE & SR) and Nominating and Corporate
Governance (NCG).
The NCG committee has the responsibility
of selecting and recommending prospective
nominees to the Board for approval.
Prospective candidates come from a variety
of sources, including recommendations by
current committee and board members,
an independent executive search firm or
nomination by stockholders in accordance with
KBR’s Bylaws. Candidates are evaluated based
on their background, complementary skills and
reputation, as well as personal characteristics
such as practical wisdom and mature judgment,
an inquiring and independent mind, and the
highest levels of ethics, integrity and values.
While diversity in personal background, race,
gender, age and nationality for the Board as
a whole may be taken into account when
considering individual candidates, KBR does
not have a specific policy relating to any
particular aspect of diversity. All candidates
must also possess the highest personal and
professional ethics, integrity and values.
KBR has established a process for
stockholders and other interested parties
to communicate with the Audit Committee
and the Board of Directors. The process
has been approved by our Board and its
Audit Committee and is designed to meet
the requirements of the NYSE and the SEC.
Individuals may communicate with our Board
of Directors or the non-executive directors
via mail (Board of Directors c/o Director of
Business Conduct, KBR, Inc., P.O. Box 3406,
Houston, Texas 77253-3406), telephone
(1-855-231-7512 (toll-free from the U.S.
or Canada) or 1-503-619-1884 (calling
collect from any other country), or e-mail
([email protected]).
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2015 KBR SUSTAINABILITY REPORT
Sustainability Governance
The HSSE & SR Committee was
created to assist the Board in
fulfilling its responsibilities to
provide global oversight and
support of KBR’s health, safety
and sustainable development
policies, programs and initiatives.
Currently the committee includes
three Board members and KBR’s
vice president of HSSE, who reports
to the committee quarterly on
the company’s performance.
The Committee’s members
bring a variety of experience
from industry and government.
In 2015, the Committee was led by Lester Lyles,
a retired Four-Star General of the U.S. Air Force,
with over 35 years of service as Commander of
the Space and Missile Systems Center, Director
of the Ballistic Missile Defense Organization,
Vice Chief of Staff of the Headquarters of the
U.S. Air Force and Commander of the U.S. Air
Force Materiel Command. In addition to serving
on the boards of various corporations and
organizations, General Lyles is a member of the
International Security Advisory Board at the U.S.
State Department and a member of the NASA
Ann D. Pickard joined the committee in
December 2015 after retiring from Royal Dutch
Shell plc. She last served as Executive Vice
President, Arctic and was responsible for Shell’s
Arctic exploration efforts. Previously with Mobil
prior to its merger with Exxon, Ms. Pickard has
significant business experience in South America,
Australia, the countries of the former Soviet
Union, the Middle East and Africa.
Advisory Council. He has served on the Defense
Science Board in the Pentagon since 2009, and
he served on the President’s Intelligence Advisory
Board in the White House from 2009-2013.
Committee member Umberto della Sala has 40
years of experience in engineering, procurement,
and construction with Foster Wheeler, serving
as its President and Chief Operating Officer from
2007 until his retirement. In addition to his long
industry experience, Mr. della Sala has extensive
experience in foreign markets. He is Industrial
Advisor to the Italian Strategic Fund (FSI), serving
as Chairman of the Board of Ansaldo Energia
and director of Trevi Finanziaria Industriale SPA
and Kedrion SPA, of which FSI owns minority
participations.
The Committee’s primary responsibility is to
ensure KBR’s compliance with applicable health,
safety, security, environmental and social
responsibility policies, laws and regulations,
and consistency with the company’s policies
and goals. It also provides input to KBR on
managing current and emerging health, safety,
security, environmental and social responsibility
issues. Other activities include overseeing
KBR’s activities in managing major HSSE & SR
risk exposures; reviewing KBR’s political and
charitable contributions and social responsibility
activities; and reviewing KBR’s public
sustainability report.
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2015 KBR SUSTAINABILITY REPORT
Sustainability at KBR
CONTRIBUTING TO THE
INDUSTRIES WE SERVE
At KBR, our sustainability initiatives are built on
our values of uncompromising commitment to
quality, health, safety and the environment.
We implement rigorous safety programs designed
to keep our employees and subcontractors safe
and healthy. Our commitment to Zero Harm means
all workers take ownership of their own safety
as well as the safety of their colleagues, even
empowering employees to stop work to correct
potential hazards.
We volunteer with and donate funds to charitable
organizations and causes that align with our
mission of improving health, education and the
environment in the communities in which we live
and work around the globe.
Whenever possible, we hire local workers in the
countries where we operate, contributing to the
development of communities, new job creation
and the growth of local businesses.
We help customers navigate the increasingly
complex regulatory landscape, reduce operating
costs and enhance efficiencies through the
production of environmentally friendly solutions,
technologies and best practices.
affecting Australia. Its expressed aim is to
promote national economic development in a
sustainable and socially balanced way.
We strive to protect and minimize our impact on
the environment wherever we operate. In this way,
our commitment to our values creates tangible
significance for our customers.
KBR has participated in the CDP since 2010.
CDP works to transform the way the world does
business to prevent dangerous climate change and
protect our natural resources.
KBR subscribes to a number of economic,
environmental and social charters, principles
and organizations around the world including:
COMMITTEE FOR ECONOMIC
DEVELOPMENT OF AUSTRALIA (CEDA)
CEDA is a bipartisan, non-profit, national,
independent, member-based organization
providing thought leadership and policy
perspectives on the economic and social issues
CARBON DISCLOSURE PROJECT (CDP)
THE CENTERS FOR HOUSTON’S FUTURE
KBR supports this community-based
organization that works to solve our region’s
toughest problems. The organization uses
meaningful research, innovative strategies
and leadership engagement to identify, measure
and support Houston’s progress toward achieving
a balance between the social, ecological and
economic factors that will enable it to become a
competitive, sustainable region for the 21st century.
KBR acknowledges the 15th principle contained in the United Nations Rio Declaration on Environment and Development
Principles as a general standard for sustainable development concerns worldwide. We will continue to play a role in upholding
sustainable development principles by our actions in the countries in which we do business.
KBR is an active participant and
contributor to many professional
organizations, codes and standards
committees and other industry
forums that promote awareness of
current industry trends and provide
opportunities to contribute KBR’s
expertise to the industries we serve.
Our involvement in these committees
translates to direct benefits for our
customers, helping us to implement
innovations and design solutions
that meet current and future
requirements.
Globally KBR and its employees
participated in a number of
professional organizations during
2015, a sampling of which is listed
below:
• Aerospace, Defence and Security
Association
• American Chamber of Commerce – Australia,
Azerbaijan, Brazil
• American Council of Engineering Companies
of Texas (ACEC Texas)
• American Fuel & Petrochemical
Manufacturers (AFPM)
• American Immigrations Lawyers Association
(AILA)
• American Institute of Architects
• American Institute of Certified Public
Accountants (AICPA)
• American Institute of Chemical Engineers
(AIChE)
13
2015 KBR SUSTAINABILITY REPORT
Delivering A Sustainable Business Model
At KBR we believe that for a company
to be sustainable, it must also be
profitable and viable. In 2015,
KBR committed to our strategy for
sustainable growth and took great
strides toward transforming our
company into an engine of efficiency,
innovation and value creation.
The legacy companies that formed KBR – MW
Kellogg and Brown & Root – were established
around 100 years ago – in 1914 and 1919
respectively. Both separately and now together
these great companies have navigated the
shifting economic tides because of their ability to
adapt and change. A corporation must renew and
regenerate or it ultimately will fail.
A STRATEGY FOR GROWTH
In 2014, after an intensive analysis of KBR’s
global operation, we announced the results of this
review and began taking steps to transform KBR
structurally and culturally in order to succeed in a
highly competitive market.
Since the earliest times, a long and prosperous
future has been the hope of almost everyone
on this planet. The secret of longevity is one
of humankind’s greatest quests. While human
lifespans have increased significantly since 1950,
company life expectancy has declined from
61 years in 1958 to just 27 years today.
We successfully restructured our business
by refocusing the company around our core
strengths in the hydrocarbons and international
government services businesses; rebalancing our
business portfolio through sales of businesses or
through the formation of strategic partnerships,
significantly reducing our overhead costs; and
deploying a balanced capital allocation strategy
while maintaining a strong balance sheet. We
are well on track to successfully complete our
business transformation by the end of 2016 as
announced during Analyst Day in New York, NY,
on December 11, 2014.
One of the best definitions of sustainability is from
the 2005 World Summit on Social Development,
which embraced the three pillars of sustainable
development — economic development, social
development and environmental protection — as
interdependent and mutually reinforcing.
As a global corporation, we are conscious of our
responsibility to our employees, our customers
and our shareholders to maintain an economically
sustainable company. And as citizens of
the planet, we are also conscious of our
responsibilities to determine a course that honors
and supports each place where we work and the
people whose lives that we touch.
CONTRIBUTING TO THE
INDUSTRIES WE SERVE (con’t)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Ongoing
Re-focus
Growth
Strategy
•
•
•
Restructure
& Streamline
Operating
Segments
Reduce
Costs &
Achieve
Margin
Targets
Expand
B&R
Industrial
Services
Model
Globally
Ongoing
Broaden
Technology
Portfolio /
EPC PullThrough
Ongoing
Expand
Government
Services
Offering
Solid foundation for earnings growth – ability to grow bottom line even during periods with challenging market conditions
Disciplined management team with track record of delivering on commitments
$200 million cost savings plan achieved with reductions identified and actioned and additional reductions underway
Continue
Balanced
Capital
Allocation
Strategy
•
•
•
•
•
•
•
•
•
•
•
American Institute of CPA’s
American Petroleum Institute (API)
American Society of Civil Engineers
American Society of Mechanical Engineers
(ASME)
American Welding Society (AWS)
ASIS
Associated Builders & Contractors National
Diversity Committee
Association for Financial Professionals
Association of Corporate Travel Executives
(ACTE)
Association of General Contractors (AGC)
Association of the United States Army
(AUSA)
Australian Petroleum Production and
Exploration Association (APPEA)
Bayou Preservation Association
Bi-lateral U.S. Arab Chamber of Commerce
BIPAC
Birmingham Business Alliance
Board of Certified Safety Professionals
(BCSP)
British Chemical Engineering Contractors
Association (BCECA)
British Safety Council
Business Council of Alabama
Business Council of International
Understanding
Business Roundtable – Golden Triangle,
Houston
CAPS Research
Center for Houston’s Future
Chamber of Commerce
Committee for Economic Development of
Australia
Construction Industry Institute
Construction Management Association of
America (CMAA)
Consult Australia – National Sustainability
Roundtable
14
2015 KBR SUSTAINABILITY REPORT
Delivering A Sustainable Business Model
CREATING SUSTAINABLE
BUSINESS PRACTICES
CONTRIBUTING TO THE
INDUSTRIES WE SERVE (con’t)
A key feature of KBR’s strategy for growth is to
eliminate silos and foster collaboration. While we
have many successful business offerings, in the
end we are one company and we are strongest
when we work together as One KBR.
One KBR harnesses the collective genius of our
company to deliver value to our stakeholder. The
KBR Way is the platform for how we do our work
– a consistent, unified focus grounded in a set of
processes and procedures that have been honed
over thousands of projects, including some of the
largest on land and offshore.
Through the KBR Way we streamline, globalize
and embed these lessons learned and best
practices throughout the company so that any
project, anywhere in the world is instantly
recognized as a KBR project.
It assures our clients that they will receive a
reliable project that delivers cost and schedule
certainty. It also establishes sound business
practices that reduce risk and ensure that we are
good stewards of our shareholders’ money.
The KBR Way helps us operate efficiently and
effectively in a complex, risky, highly competitive
market. It enables us to continuously strengthen
our work processes, remove inefficiencies and
eliminate bureaucracy to ensure profits in the
future as well as today.
CODE OF BUSINESS CONDUCT
At KBR, we believe that there is no value more
important than integrity. Our ethical and legal
obligations must never be sacrificed in the name
of profits. This belief is reflected in our Code
of Business Conduct – the ethical and legal
foundation of our Company. As defined in Item
406(b) of Regulation S-K, KBR’s Code of Business
Conduct (COBC) applies to all directors and
officers, including the principal executive officer,
principal financial officer, principal accounting
officer and controller, and also applies to all
employees of KBR and KBR’s agents.
The COBC establishes a common set of ethical
standards and legal principles that all are
expected to exhibit when dealing with clients,
communities and each other. COBC training is
available to all employees through classroom
and online sessions. KBR has posted its Code of
Business Conduct on its website, www.kbr.com.
Any violation of the law or the Code of Business
Conduct can be reported either directly or
anonymously through the confidential KBR Ethics
Hotline and Reporting system at EthicsPoint. The
hotline is available 24 hours a day, 7 days a week.
• Design Build Institute of America (DBIA)
• Energy Institute
• Engineering and Construction Contracting
Association (ECC)
• Engineering and Construction Risk Institute
(ECRI)
• Engineering Construction Industry Training
Board (ECITB)
• Engineers Australia - Society for
Sustainability and Environmental
Engineering
• Gas Processors Association Ltd.
• Gasification Technologies Council (GTC)
• Global Business Travel Association (GBTA)
• Golden Training Business Round Table
• Greater Houston Partnership
• Gulf Coast Power Association
• Gulf Petrochemicals and Chemicals
Association (GPCA)
• Houston Business Roundtable
• Houston Minority Supplier Development
Council
• Institute for Supply Management
• Institute of Electrical and Electronics
Engineers (IEEE)
• Institute of Materials, Materials and Mining
• Institute of Measurement and Control
• Institution of Engineering and Technology
(IET)
• Institution of Structural Engineers
• International Facility Management
Association (IFMA)
• IT Service Management Forum (ITSMF)
• Manufacture Alabama
• Manufacturers Alliance for Productivity and
Innovation (MAPI)
• National Association of Industrial & Office
Product (NAIOP) Northern Virginia
• National Association of Minority Contractors
15
2015 KBR SUSTAINABILITY REPORT
Delivering a Vital and Sustainable Workforce
As a company delivering services in
a competitive, demanding world our
people are what make the difference.
Their dedication and know-how wins
jobs, innovates and delivers results.
We treat our employees with dignity
and respect, taking responsibility for
their health, safety and professional
development because that is where
our future lies.
CONTRIBUTING TO THE
INDUSTRIES WE SERVE (con’t)
TRAINING
KBR is committed to ensuring that each employee
achieves his or her full potential in an environment
that values productivity and results. To this end,
KBR provides educational opportunities that
enable employees to improve their knowledge and
skills beyond the standard, informal on-the-job
training.
Career development is a shared responsibility
between the employee and the company.
Each individual must decide their career
goals, and select or create their opportunities
accordingly. Employees must manage his or her
performance and career, honestly assessing
skills, competencies and gaps and obtaining
input and feedback on their performance. KBR
is responsible for providing career development
strategies, resources and tools and for creating
an environment where talented people will want
to build their careers and share responsibility for
achieving our goals and objectives
In 2015, KBR delivered more than 42,000 hours of
training to employees at all levels of the organization:
professional, technician, craft, administrative, service
workers and managers up to executive senior leadership.
Learning opportunities are designed to help
employees meet both short-term job requirements
and the longer-term needs of each individual and
KBR. KBR provides blended learning for business
and management skills, as well as core technical
skills via its online learning management system.
Learning is mapped to KBRs Transferable
Competency model and role-based technical
competencies. The model consists of eight
leadership competencies grouped into four
Leadership Imperatives: Think Strategically and
Grow the Business; Execute and Engage; Develop
Teams and People; and Lead Courageously and
Safely.
The model is core to The KBR Way and the
creation of a culture focused on hiring the right
people, driving our business values, and executing
processes that will enable us to deliver in the
marketplace.
• National Contract Management Association
(NCMA)
• National Defense Industrial Association
(NDIA)
• National Foreign Trade Council
• National Petroleum Council
• National Association of Minority Contractors
• National Safety Council
• Partners for Environmental Progress
• Petroleum Federation of India (PetroFed)
• Process Industry Practices
• Procurement Executives Group
• Professional Services Council
• Program Advisory Committee (PAC) Kitimat
Valley Institute (KVI)
• Project Management Institute (PMI)
• Renewable UK
• Restore America’s Estuaries
• Roads Australia – Sustainability Chapter
• Safety Institute of Australia
• Simulation Australia
• Society for Human Resource Management
(SHRM)
• Society of American Military Engineers
(SAME)
• Society of Naval Architects and marine
Engineers (SNAME)
• Society of Women Engineers (SWE)
• South African Institution of Chemical
Engineers
• Subsea Energy Australia
• Technical Association of Pulp and paper
Industry (TAPPI)
• US Chamber of Commerce – Iraq Business
Initiative
• US-China Energy Cooperation Program
• US Green Building Council (USGBC)
• Water Services Association of Australia
• Women Business Enterprise Alliance
• Women in Defence
• Women’s Energy Network
16
2015 KBR SUSTAINABILITY REPORT
Delivering a Vital and Sustainable Workforce
WORKFORCE DIVERSITY
At KBR, we recognize the value of diversity – not just in race
and gender, but also in culture, religion, age, nationality
and language. We understand that our sustainability as
a company depends on our ability to maintain a highly
skilled workforce that reflects the diversity of the countries
where we operate and addresses growing local content
requirements.
Our goal is to build and sustain a high-performing
organization – one with an empowered, dynamic workforce
that possesses the right combination of attitudes, skills,
expertise and behaviors to meet our customers’ expectations
and our business objectives. We know that the diversity of
our workforce makes us a stronger competitor and employer.
LOCAL CONTENT
KBR has a long history and an excellent record in maximizing
local content for the execution of projects in various countries
in the world, including Angola, Australia, Chad, Nigeria,
Yemen, Indonesia, Malaysia and Egypt. We believe that by
transferring valuable skills to local workers and businesses,
we help create greater economic opportunities for the
entire community, while helping our customers fulfill their
sustainability requirements.
In Canada, for instance, owners are increasingly seeking
ways to hire and develop local residents, including aboriginal
or “First Nations” people, in communities where they operate
as part of their sustainable development commitment. As a
contractor, KBR is asked to support its clients’ initiatives by
recruiting, training and hiring local and First Nations people
and sourcing goods and services from local suppliers.
Since 2001, KBR has implemented successful local and First
Nation’s engagement strategies using a comprehensive
approach, engaging local and First Nations organizations,
economic development and tribal councils to attract, train
and develop local and aboriginal craft, supervision and staff
with the skills to ensure safe, reliable, completion-driven
execution.
This approach has been used successfully on projects
in Alberta and British Columbia. Recently, we explored
forming a joint venture with Aventur Energy, an Aboriginalowned company in Northern BC to execute projects in the
region. Aventur Energy has set the benchmark for strategic
collaboration of First Nation partnerships engagement, and
for implementing training and development programs that
create strong safety, quality and project management cultures
that result in successful project execution.
Aventur consistently maintains 40-50% aboriginal
employment and a core following of skilled local and
aboriginal workers. Together we offer a seamlessly
integrated, locally based offering, along with a strong
commitment to grow our local and First Nation’s resources
and capabilities and create a lasting legacy of sustainable
development in British Columbia.
17
2015 KBR SUSTAINABILITY REPORT
18
Delivering a Vital and Sustainable Workforce
CULTIVATING WOMEN LEADERS
In 2015 KBR launched ASPIRE, a new employee resource
group started in Houston to cultivate women leaders,
promote diversity and make KBR an employer of choice
where women are influencing, leading and learning.
Sponsored by KBR executive leadership led by CEO Stuart
Bradie, ASPIRE’S mission of diversity and empowerment
epitomizes KBR’s core values and our key behaviors of
We value Our People and One KBR. By connecting
employees across business lines and functions, ASPIRE
helps to encourage diverse perspectives and build
relationships that can drive innovation.
ASPIRE will also serve as a model for KBR’s long-term
diversity and talent development goals of identifying and
mentoring the next generation of talent, and acting as an
advocate as opportunities arise for them to advance in
their careers.
We will continue to follow and report on their progress
as they continue to pursue their vision of cultivating
women leaders and promoting gender diversity through
a collaborative community for the benefit of employees
and KBR.
HELPING WOMEN BUILD FUTURES
IN CONSTRUCTION
The construction industry is quickly discovering that women
provide a new set of talents, communication skills and
abilities to tackle challenges that offer a unique view and
vision to the industry. Still, women make up a very small
percentage of the construction workforce—8.9% in 2014
according to the U.S. Bureau of Labor Statistics.
In Canada, KBR is a key participant and sponsor of Women
Building Futures (WBF) and the first Christian Labour
Association of Canada (CLAC) signatory contractor to
sponsor a WBF program. WBF is a leader in trades training
for women. Between 2010 and 2012, over 3,900 women
participated in the WBF Career Assessment Program of
which over 1,400 were Aboriginal women. The WBF KBR
Wabi Construction Basics Program yielded 12 graduates,
three of which were Aboriginal.
At the end of 2015, women comprised 31.5 percent of KBR’s workforce in Houston.
11.5%
59.7%
11.7%
10.2%
Career Level 20 & Below
Career
Career
LevelLevel
20 &20
Below
& Below Career
Career
LevelLevel
30-4530-45
13.4%
Career
Career
LevelLevel
20 &20
Below
& Below Career
Career
LevelLevel
30-4530-45 Career
Career
LevelLevel
50/5550/55 Career
Career
LevelLevel
60/6560/65
Career Level 30-45
Career Level 50/55
Career Level 60/65
16.9%
Career Level 70/75
Career Level 90+
31.1%
Career Level 30-45
Career
Career
LevelLevel
50/5550/55
Career
Career
LevelLevel
60/6560/65
Career
Career
LevelLevel
70/7570/75
Career
Career
LevelLevel
90+ 90+
EEPC, EEPM, & OCMM
TEACHING AND INSPIRING
THE NEXT GENERATION
In 2015, Holley Thomas, a certified Welding
Inspector for KBR, was named the national
Craft Professional of the Year by the
Associated Builders and Contractors. She is
the second woman ever to receive this coveted award.
This achievement, the highest honor bestowed by the ABC, is
awarded to a construction craft professional that excels in the
field while also demonstrating a commitment to safety and
training.
Holley was among 100 people who were nominated for this
coveted national award. ABC’s judging panel selected four
finalists, who were interviewed during the national competition
in Fort Lauderdale, Fla., in early March.
This isn’t Holley’s first time at winning a major industry award.
She was the first woman to win the gold medal in the structural
welding competition at ABC’s national competition in 2010.
On the jobsite, Holley's crews consistently achieve superior
productivity rates and maintain a zero accident and zero injury
record. She is also at the forefront of inspiring as well as training
future generations. Each summer she teaches high school girls in
Alabama at SWEETY (Summer Welding and Technology) Camp,
which KBR sponsors, and last summer came to Houston for
MAGIC (Mentoring a Girl in Construction) Camp.
Career Level 50/55
Career Level 60/65
Career Level 70/75
Career Level 90+
Career
Career
LevelLevel
70/75to be
Career
Career
LevelLevel
90+ 90+as a
EEPC,
EEPC,
EEPM,
EEPM,
&
OCMM
& OCMMin the industry,”
“I70/75
want
remembered
positive
influence
EEPC,EEPC,
EEPM,
EEPM,
&Thomas
OCMM
& OCMM
said. “I want to be helpful toward other women and
encourage them to enter the field of construction and welding.
I want my legacy to be that a woman can rise through the ranks
of the construction industry, all the way to the top.”
EEPC, EEPM
2015 KBR SUSTAINABILITY REPORT
Supporting Our People
To maintain a highly functioning workforce, we
must address the day-to-day stresses that can
affect an employee’s ability to work safely and
productively. KBR offers two programs that
deal specifically with employee issues: the
Employee Assistance Program and the Dispute
Resolution Program.
KBR Benefits by significant
locations of operations
U.S.
Canada
UK
Saudi
Australia
Medical





Pharmacy





Dental


Vision


Life Insurance




EMPLOYEE ASSISTANCE PROGRAM
Accident Insurance




Valuing our people is a core value of KBR and
why the Employee Assistance Program (EAP)
is provided 24 hours a day, free of charge to all
employees.
Disability


Employee Assistance Program


Retirement Savings – 401(k)





In Houston, EAP is staffed by trained licensed
mental health professionals, including licensed
clinical social workers, licensed professional
counselors, licensed chemical dependency
counselors and certified employee assistance
professionals, who understand KBR’s corporate
culture. Other regions contract with outside
organizations to administer their programs,
although every KBR employee around the world
has access to both local and global resources.
Stock Purchase Program
Since it started at KBR 35 years ago, EAP has
helped thousands of employees and their
dependents cope with parenting, mental
health concerns, drug and alcohol use, divorce,
grief and mental resiliency, enabling the
employee to come to work clear-eyed, clearminded and capable of working safely and
productively.
Along with individual counseling, KBR EAP
provides critical incident stress management
for crises that can affect an entire work
Pension



Workers Compensation
confidentiality, neutrality and independence
standards set by the International Ombudsman
Association (IOA).
An Ombudsman’s major function is to provide
independent, impartial, confidential and
informal assistance, but he or she takes no
action without the employee’s permission in
accordance with established IOA standards.
If an issue cannot be resolved internally,
mediation and arbitration are also available
for those issues where legal rights may have
been violated. This allows the dispute to be
resolved more quickly and at less expense than
if it went through the judicial system.

Note: Significant locations of operations is defined as having a local headcount of 500 or more employees.
site or office, such as industrial accidents,
natural disasters or the death of a co-worker.
Managers also use the EAP to deal with
challenges they may be facing with regards to
an employee’s behavior.
DISPUTE RESOLUTION PROGRAM
EAP staff counseled employees on the project
site at Ghent, Kentucky, following the death of
a co-worker in September. EAP also responded
when 10 workers required medical evaluation
following the leak of anhydrous ammonia at a
chemical plant in Borger, Texas.
Many types of situations can be handled in
this safe environment, including everyday
misunderstandings between co-workers, job
performance concerns, issues of fair and equal
treatment or compensation, or even possible
violations of legally protected rights.
By helping to support the mental health and
wellbeing of the individual employee and his
or her family, KBR’s EAP program benefits
the employee’s coworkers, KBR clients and
communities where we work.
Because the program includes options that are
both internal and external, there are a variety
of ways concerns may be addressed. The
method used most frequently is through KBR’s
Ombudsman’s Office, which operates under the
KBR’s Dispute Resolution Program (DRP)
provides employees with a process and flexible
options outside formal reporting channels for
raising and settling workplace disputes.
The goal of the DRP is to resolve all issues at
the lowest possible level, as early as possible.
This allows relationships to be preserved,
improves communication, keeps the conflict
from growing larger and more complicated and
helps to maintain organizational performance.
BENEFITS
KBR is committed to offering competitive
wages to our employees. We routinely
conduct labor surveys in order to develop
a comprehensive compensation plan for
wages, benefits and incentive plans designed
to attract and retain skilled employees.
KBR continually monitors the marketplace
to establish and maintain comprehensive,
competitive compensation packages that
provide employees and their families with
security and peace of mind.
19
2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Technology
KBR has been creating technology for
petroleum refining and petrochemical
processing since the 1920s, and
building plants based on those
technologies for almost as long.
From co-developing and
commercializing the first FCC process
unit in 1942, to revolutionizing the
fertilizer industry with the Kellogg
ammonia process in the 1960s, to
commercializing heavy oil and coal
monetization processes for a changing
energy landscape, KBR and our legacy
company M.W. Kellogg has been a
pioneer and an industry leader.
We do not rely on past successes to address
tomorrow’s problems. Our emphasis on
“bottom-of-the-barrel” solutions, along with our
extensive experience in refining, petrochemical
and ammonia processes, continues our longstanding commitment to deliver leading edge,
cost-effective solutions in every market and
meet our customers’ pressing challenges.
FLUID CATALYTIC CRACKING (FCC)
KBR has been a world leader in the application
of FCC technology since the 1938 when KBR
(The M.W. Kellogg Company) and a consortium
of energy and technology companies worked to
develop the first commercial powdered-catalyst
We do not rely on past successes to address tomorrow’s problems.
Instead, we continue to deliver leading edge, cost-effective solutions
to meet our customers’ pressing challenges.
cracking process. Four years later, Kellogg built
the world’s first FCC unit for Standard Oil in
Baton Rouge, Louisiana.
We continue to innovate and push the reaction
system performance with designs that increase
reliability, capacity and efficiency and value
from heavy feedstocks. With a variety of FCC
solutions, KBR has the flexibility to meet a wide
range of production goals, while minimizing
environmental issues.
KBR’s counter current regeneration technology
has been proven to minimize nitrogen oxide
(NOx) formation, which is produced as an
undesired side reaction during the FCC reactor
operation. A toxic air pollutant by itself, NOx
also reacts in the atmosphere to form ozone and
acid rain.
KBR’s FCC designs not only increase service
life, lower maintenance costs and reduce plot
plan requirements, but also significantly reduce
NOx emissions during combustion. The KBR
Low NOx regeneration system operating in
complete CO combustion produces 60-80% less
NOx in the flue gas compared to other types of
regenerators, and not only in KBR-designed FCC
units. The technology has been successfully
retrofitted into existing FCC units of many
different types and has consistently reduced
NOx emissions.
20
2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Technology
ROSE®
CLEAN COAL
Heavy oil, extra heavy oil, oil sands and bitumen
account for about 70 percent of the world’s
total oil resources; heavy oil alone accounts
for 15 percent. KBR’s ROSE (Residuum Oil
Supercritical Extraction) technology is a proven,
simple, and cost-effective solution for upgrading
low-value resid materials streams generated
from heavy oil processing into high-value
products, enhancing the profitability of refineries
Some 60 percent of the world’s fossil energy
reserves are in coal, which is located in areas
where the energy demand is greatest: North
America, Europe, Russia and Asia. KBR is at
the center of initiatives to develop clean coal
technologies for power generation.
AMMONIA
The ROSE process uses supercritical solvent
recovery, which separates most of the
solvent from the deasphalted oil (DAO) in the
supercritical phase rather than using energy
intensive boil-off and condensation for solvent
recovery. ROSE greatly reduces energy usage
associated with operation of the units by more
than 60 percent over conventional solvent
deasphalting.
As the inventor of the ammonia process for
fertilizer production, KBR’s technology helped
revolutionize the food industry in the 1960’s.
Indeed, it could have been said to almost
any person walking down any street in the
world: “Unless you ate entirely from the ocean
yesterday, it is almost a certainty that at least
some of your food was nurtured by fertilizer
from a Kellogg-designed ammonia plant.”
In addition, ROSE units are designed for ease of
operation, safety and high reliability, typically
achieving over 95% availability and six years
between turnarounds.
KBR has been the premier partner to the
fertilizer industry for over 60 years, delivering
innovative process technologies and expert
engineering and construction services. It was
in the 1950s that KBR introduced the first largescale ammonia plant and helped revolutionize
food production. The KBR ammonia process
cut production costs to less than half and
increased crop production, thus contributing to
an increased food supply that enabled producers
to keep up with population growth.
KBR’s ROSE technology is continuously updated
and improved, with multiple flow schemes for
optimum integration with either grass roots or
existing refineries. Consequently, KBR has the
largest licensed capacity and largest installed
base of operating units of any supercritical
technology. KBR has licensed 57 ROSE units
with a combined capacity of about 1.3 million
barrels per day
Since then KBR has continued to pioneer
new designs that lead the industry in energy
efficiency, reliability, safety and economy of
scale. KBR’s PurifierPlus™ ammonia process
combines proven and reliable technologies from
our Purifier™, KBR Reforming Exchanger System
(KRES™) and Horizontal Ammonia Synthesis
Converter enabling plant owners to have the
most efficient, low-cost ammonia plant with
greater than 97 percent uptime and a smaller
plot plan footprint, 25-35 percent less than a
conventional ammonia plant. It also reduces
NOx and CO2 emissions
Owners of older ammonia plants confronting
fluctuating feedstock prices, a changing
regulatory landscape and competition from
larger, more energy efficient plants in low-cost
gas areas also benefit by revamping existing
facilities using KBR ammonia technology. For
plants built in the 1970-1980s, a conventional
ammonia revamp can boost capacity up to 50
percent; while a reforming exchanger revamp
can improve reforming capacity up to 30 percent
– all while reducing natural gas consumption
and energy requirements on a per-ton of product
ammonia basis.
The KBR Transport Integrated Gasification
(TRIGTM), derived from our fluid catalytic
cracking technology, is a simple and robust
design that operates at a much lower
temperature than commercially available
alternatives. It effectively handles low-rank
coals, including sub-bituminous coal and lignites
that make up half the proven worldwide coal
reserves, but which might otherwise remain
uneconomical as energy sources due to high
moisture and ash contents.
In traditional coal-fired plants, direct combustion
of low-grade coals to eliminate the moisture
burns up much of the carbonaceous energy.
In the KBR process, the moisture actually
constitutes a useful reactant, while the ash is
recovered in solid form, contributing to higher
energy efficiency and improved environmental
performance.
KBR Technology and Southern Company are
partnering to develop a commercial scale facility
at Southern Company subsidiary Mississippi
Power’s Kemper County plant using KBR’s TRIG
technology.
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2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Projects
KBR is a project-driven global contractor that undertakes a variety of business
activities across a range of industry and government sectors. Our customers
expect their contractor to help them maximize profitability, reduce risk and
achieve their sustainability objectives.
As a contractor, KBR is frequently responsible for implementing our customers’ environmental
and socio-economic management plans to protect the country’s resources and its people. In other
assignments with less defined sustainability initiatives, our task is to define what sustainability
issues we can influence and how our processes can make a difference. Our activities must be based
on what each location needs so that we can leave the greatest lasting benefit.
SUSTAINABLE SOURCING
SUPPLIER DIVERSITY
The globalization of our business and the reality
of today’s resource-constrained market are
creating new and more urgent challenges to
deliver products and services to our customers
on time and at the right price in the most
challenging environments.
At KBR, we believe that supplier diversity gives
us a competitive advantage that enhances our
ability to meet our customers’ needs. Wherever
we operate in the world, we seek to maximize
opportunities for diverse business owners.
KBR delivers proven procurement strategies to
substantially reduce supply chain costs, control
schedule and deliver the lowest total cost of
ownership for our customers’ projects through
our longstanding alliances and collaborative
relationships with suppliers in over 109
countries. Along with an ever-expanding group
of qualified high value suppliers, KBR is able
to efficiently source anything our customers
require from qualified sources close to our
customers in every region of the world to deliver
value, quality and an optimal logistics solution.
We are committed to providing jobs to local
people and fair trade opportunities to local
companies. As part of this commitment,
the company continually seeks to provide
opportunities for local minority and womenowned business enterprises that offer goods,
subcontracting services and professional
services on a competitive basis.
In addition to providing value to our customers
and helping them meet their local content goals,
KBR believes that by transferring valuable skills
to local workers and businesses, we will help
create greater economic opportunities for the
entire community.
SUPPLIER DEVELOPMENT
To substantially reduce supply chain costs
and deliver the lowest total cost of ownership
for each project, we continually seek out
new suppliers and build strategic, long-term
relationships to support our global projects.
KBR has established guidelines and processes
to evaluate and approve suppliers. We work
closely with our customers to select suppliers
that match a project’s requirement and
objectives. This not only involves preparing an
overall project bidders list, but also includes
strategic supplier alliances.
As we expand our local supplier relationships,
we never lose sight of maintaining KBR’s
HSSE and ethical standards. Our process
for evaluating and approving subcontractors
requires selected suppliers to undergo an HSE
evaluation as part of the pre-selection and
post-award process. Our Procurement and
HSE organizations work with our suppliers to
continuously improve their performance and
eliminate injuries and environmental incidents.
KBR expects its Suppliers to observe the
highest standards of personal and business
ethics and to comply with all applicable laws
and regulations. Our Supplier Code of Conduct
defines KBR’s expectations of suppliers and
subcontractors concerning their work with KBR,
including compliance with laws, HSE, the U.S.
Foreign Corrupt Practices Act and other anticorruption laws, as well as human rights issues
relating to discrimination and harassment,
child labor and human trafficking. KBR does not
condone any illegal or unethical actions on the
part of its employees, directors or any supplier
or sub supplier with whom KBR performs
business.
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2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Projects
RECENT PROJECTS
To deliver high quality, world-class, sustainable projects to our
existing and future customers, we must address the issues they
are facing. Our customers depend on us to help them reduce their
risks and maximize opportunities for the triple bottom line by
contributing sustainable solutions to their projects – reinforcing
their policies and commitments with the systems, technologies
and culture of the KBR organization.
A SERIES OF “FIRSTS” HIGHLIGHT
KBR’S DYNO NOBEL AMMONIA PROJECT
The new Dyno Nobel ammonia plant currently being constructed
in Waggaman, La., adjacent to the Mississippi River is a landmark
project. It’s one of the first onshore U.S. ammonia plants built in
the U.S. in the past 20 years, and the first built in Louisiana in
25 years.
It’s the first to use an integrated KBR solution of KBR’s PurifierTM
ammonia technology, engineering, construction and procurement
(EPC). And it’s the first EPC lump sum ammonia project executed
by KBR in the US in 30 years.
On Jan. 12, 2015, when the plant’s 815-metric-ton ammonia
converter designed by KBR’s Technology Business Unit arrived
in the Port of New Orleans from India, the ship to barge lift was
the heaviest project cargo lift in the Port’s history. The converter
was rolled off the barge at a secure area off the Mississippi River,
staged and then transported 25 miles to the jobsite by special
Goldhofer trailers and then barged 25 miles downriver to the
project site where it was installed in March.
This is a showcase project, not only for Dyno Nobel and its parent
company Incitec Pivot Limited, but also for KBR’s ammonia plant
technology and EPC services.
Using KBR technology and expertise, Dyno Nobel is the first onshore ammonia plant built in the U.S. in 30 years.
A cornerstone of the ammonia industry for more than 60 years,
KBR plants are recognized around the world for delivering safe,
low-cost, reliable performance. In all, KBR has been involved in
the licensing, design, engineering and/or construction of more
than 230 ammonia facilities.
Slated for mechanical completion in November 2015 the project
is meeting, and exceeding its schedule and budget milestones –
and it’s doing it safely. More than 2 million man-hours have been
executed to date, with no lost time incidents (LTIs). KBR will also
be providing pre-commissioning, commissioning and start-up for
the plant when it goes online in 2016.
Material for the plant was sourced from vendors in Asia, Europe,
Southeast Asia, India and the United Arab Emirates by KBR’s
procurement and logistics team in Houston, which spent nine
months planning and executing the project. KBR booked a
dedicated ship to move the approximately 30 thousand freight
tons of heavy mechanical equipment from India to New Orleans,
a voyage that took around 35 days.
While challenging, it was all in a day’s work for KBR Procurement,
which has procured $37.9 billion in equipment, materials and
subcontracts since 2007 and transported more than 20 million
tons of freight to KBR projects around the world.
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2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Projects
CREATING ABU DHABI’S MASTERPIECE
Yas Island in Abu Dhabi is a multi-purpose
residential, leisure, shopping and entertainment
center located within a 30-minute drive of the
UAE capital. As Project Management Consultant
for Yas Island, KBR has played an integral role
in its development since 2006 helping to create
a unique international tourist destination and a
sustainable residential community.
Led by Aldar Properties, Abu Dhabi’s largest
property development, investment and
management company, the team has completed
the first of three phases of the project. Phase
one included seven hotels, a golf course,
multiple marinas and an F1 race track where
the first Etihad Airways Formula One Abu Dhabi
Grand Prix was held in November 2009.
Phase two involved the leisure and retail sectors
of Yas Island which will attract more tourists
and residents. Phase three is still being defined.
MARINA HOTEL YAS ISLAND
As the project management consultant, KBR
is currently involved in two major projects
including the Yas South and West Yas mixeduse developments. KBR’s project managers,
project controls, and contracts team members
have assisted with concept design, procurement
strategies, schedules, and budgets – all key
components used to shape decisions and secure
approval, prior to managing construction.
KBR’s Yas South team is program managing the
whole development and delivery of the sitewide infrastructure and public realm to Miral
Asset Management, LLC.
Yas Island, a sustainable community in Abu Dhabi is expected to achieve a coveted Estidama 2 Pearl rating.
The West Yas Team has 24 dedicated staff,
four major contractors and seven consultants
working collaboratively, with a common goal of
delivering the project safely and on time. It’s a
real time demonstration of One KBR at its best.
The project scope includes over 1,000 four- and
five-bedroom two-story residential villas, along
with all the infrastructure, utilities, marine
works and landscaping to support what will be a
vibrant, modern community.
WEST YAS ISLAND
Characterized by low rise buildings with a public
realm facing a mangrove marine park, West
Yas facilities will include a mosque built for
2,000 worshippers, two schools, retail center,
sports facilities, a petrol station and extensive
landscaping and greenery in the open public
spaces.
The KBR West Yas team recently achieved
100,000 man-hours on execution of the West
Yas School, 12 million total man-hours for the
entire project, including all contractors. Going
forward, KBR will be employing a wider range
of project management skills and using its
knowledge gained to assist in the next stage of
delivery.
The Yas Mall complex is expected to achieve
Estidama Two Pearl rating for sustainability.
The Estidama program was created by Abu
Dhabi, a rating system for buildings, villas
and neighborhoods that takes its cues from
two established predecessors – the British
Research Establishment Environmental
Assessment Method (BREEAM) rating system
and the American Leadership in Energy and
Environmental Design (LEED) rating system.
The goal of the Pearl Building Rating System
(PBRS) is to promote the development of
sustainable buildings and improve quality of life
through water, energy and waste minimization,
local material use and improving supply chains
for sustainable and recycled materials and
products. In a broader sense Estidama is part of
Abu Dhabi’s 20-year plan, known as Plan Abu
Dhabi 2030, to redefine what a contemporary
Arab city should be.
KBR along with its contractors and consultants
is working hand-in-hand with the developer and
the government of Abu Dhabi to ensure that
the Yas Island development is a pearl among
Middle Eastern developments, and a model of
sustainability for the world.
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2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Projects
A STORY OF INNOVATION
One of the world’s premier E&C contractors,
KBR has always been known as a company
that does big projects – some of the largest
and most complex in the world. But the biggest
and longest continuous engineering program
we have delivered is for the Caspian Projects
operated by BP: Azeri-Chirag-Gunashli (ACG) oil
fields and Shah Deniz (SD) gas field, two of the
world’s largest offshore hydrocarbon fields in
the Azerbaijan sector of the Caspian Sea.
The story of ACG-SD is one of innovation in
a complex and demanding environment. Its
onshore terminal is one of the largest. It has the
first use of subsea drilling templates, the first
use of underwater pile driving hammers in the
region. It uses the largest water injection pumps
ever built. The logistical complexity and size of
these developments is staggering.
The original contract for BP’s Caspian work was
signed in June 1997 between Brown & Root and
Amoco. Over the years, countless KBR employees
played a role in the multiphase, offshore and
onshore program in KBR offices in London, Baku,
Houston, Singapore and Jakarta - making it a true
global effort.
KBR completed ACG Phases One, Two and Three
and SD Phase 1, solidifying KBR’s position as
the leading design contractor in the Azerbaijan
Sector of the Caspian Sea. In 2009, KBR was
contracted to provide FEED and procurement
support services for the Chirag Oil Project (the
next phase of ACG), consisting of a single, large
drilling platform that tied into the existing ACG
offshore infrastructure.
In 2013, KBR was awarded a contract by BP
Exploration (Shah Deniz) Limited to provide
EXECUTE engineering and procurement support
services for the Shah Deniz Stage 2 Project
following the successful completion of the FEED
services. SD2 consists of an offshore complex
made up of two bridge-linked platforms (jackets
and topsides) as well as a massive upgrade of
the onshore gas processing facility.
For KBR, the big story isn’t only about
overcoming the technical or logistical challenges
– although there are plenty of them in a project
of this scope and scale. We also measure
success in other ways.
KBR has provided engineering and procurement to the massive ACG-SD gas development since 1997—a story of innovations
and collaboration.
One of them is the client relationship. KBR
was awarded Phase I in a competitive tender.
By continually improving on our productivity,
delivering on our promises, and fostering a
collaborative relationship that balances risk and
reward, KBR has proven its value, becoming one
of the client’s core team of contractors.
Another success story has been the
development of the Baku office. When KBR
first set up shop there, we were starting from
scratch. The USSR had collapsed, Azerbaijan
was facing serious recession and the legendary
Baku oil fields were in decline. KBR hired
promising university graduates and trained
them in the international style of business. KBR
also developed employees for supervisory and
management positions, infusing our company
with global talent.
Today the country’s economy is among one of the
fastest growing in the world, and KBR is proud to
have played a part. And while we have achieved
many significant milestones during our 18 years
on the developments, one of the most significant
was reached in August: reaching more than
17 million man hours on the project while setting
an incredibly high standard for safety.
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2015 KBR SUSTAINABILITY REPORT
Delivering Sustainable Projects
BUILT TO LAST
Moored off the Grand Banks of Newfoundland,
the Terra Nova Floating Production, Storage
and Offloading (FPSO) vessel operates in one of
the harshest environments on earth. It rides in
approximately 100 meters of water with waves
cresting over 20 meters, 100-knot winds, extreme
cold and iceberg collision a permanent threat.
The area is also at risk for severe storms, known
as 100-year storms, which are of such magnitude
that they would be expected to be equaled or
exceeded only once in one hundred years
As engineering, procurement, construction,
installation and commissioning (EPIC) contractor
for the project, KBR had to design and build a
vessel capable of withstanding such conditions
over the projected 15-year life of the field.
Among its many innovations, Terra Nova is the
first ice-strengthened FPSO built to withstand a
100,000 ton iceberg impact with a quick release
disconnecting turret mooring and riser/umbilical
system for iceberg avoidance. A state-of-the-art
subsea system features submerged flowlines to
protect the wells from iceberg scour.
Terra Nova achieved an important milestone
on Feb. 23, 2015, reaching the original sanction
estimate of 370 million barrels of recoverable
resources.
As for the sustainability of KBR’s design, some
13 years and 34 days after first oil Terra Nova
has not only exceeded the original recoverable
reserve target, it has also withstood every
challenge nature has hurled at it and is still
going strong.
Completed in 2001, Terra Nova was the most
innovative FPSO of its day and one of the largest
ever built. At a length of 292.2 metres—the
equivalent of three football fields laid end to
end—it stands more than 18 stories high.
Terra Nova FPSO operates in one of the harshest
environments on earth. KBR had to design and build
a vessel capable of withstanding such conditions over
the projected 15-year life of the field.
Located in one of the world’s harshest environments, Terra Nova has operated continuously since 2001.
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2015 KBR SUSTAINABILITY REPORT
Building a Sustainable Legacy
INVESTING IN PEOPLE
MENTOR GOVORI—
SAFETY CHAMPION
To leave a place as good as or even
better than we found it, has always
been a guiding principle at KBR.
As contractors, the form this takes
depends on where we do business
and the extent of our clients’
commitments.
In Chad, for instance, KBR worked with EssoChad
and the World Bank to create a new, sustainable
model for project implementation on the massive
Chad-Cameroon Oil Field Development. In Nigeria,
where we were EPC contractor for Nigeria LNG,
we trained workers in crafts and computer skills
and made significant investments in Nigerian
contractors and suppliers by playing a prominent
role in the development of their businesses.
These are just two of the many examples of how
KBR engages with the communities where we
operate. It would be easy to remain behind a
chain link fence – to complete a project and then
simply pack up and leave; but, we are dedicated
to making sustainability an integral part of our
business and it’s critical that we deliver.
The largest U.S. military camp since Da Nang in Vietnam, Camp Bondsteel was built in a record 90 days by KBR and the Army.
KBR AND CAMP BONDSTEEL—
A MODEL FOR SUSTAINABLE RELATIONSHIPS
Camp Bondsteel in Kosovo was built after the
bombing of Serbia when the region came under
the control of the international peacekeeping
mission. Located near Ferizaj in the eastern
part of Kosovo, the base serves as the NATO
headquarters for KFOR’s Multinational Battle
GroupEast.
KBR has supported the U.S. Army Europe
(USAREUR) and multinational forces in the
Balkans region continuously since 1994 under
the various support contracts.
When KBR arrived in Kosovo after U.S. troops
drove Serbian troops back to Serbia following
a 78-day air war in 1999, there was nothing
here but grass. Soldiers were living in mud and
wet tents. But the Army had a motto, “soldiers
in seahuts in 90 days.” Working with the 94th
Engineer Construction Battalion, 568 Combat
Support Engineer Company under the direction
When Mentor and his family
returned to Kosovo after the war,
they had no money and no home.
Needing to find work, he heard of
a U.S. company that was looking
to hire locals. The company was
operating out of a Ferizaj Hotel
dubbed Hotel California.
Walking past Army servicemen and
contractors, he located a KBR safety
manager, “Hi, I’m looking for a job.”
of the Army Corps of Engineers, KBR rose to the
challenge, and met it.
The KBR manager told him, “From
now on you have a job.”
Over the next months, a small city rose on a
955-acre (360,000 square meters) field:
250 SEAhuts first used in Southeast Asia for
living quarters and offices, dining halls, chapels,
assorted meeting and recreation rooms, a hospital
and police station – in all 300 structures and
11 watchtowers. The outer perimeter of the base
is about 9.4km and is surrounded by a 2.5m high
earthen and concrete barrier wall. The south
perimeter of the base has a 52-helipad airfield
for helicopter aviation. It is the largest U.S.
military camp since Da Nang in Vietnam.
“What am I to do?” asked Mentor.
Building the camp was just the start. KBR is also
the prime contractor for the operation of the
camp rail and airfield facilities and also provides
firefighting services, electricity, water, laundry,
mail delivery and meals.
“Bring as many people as you can.”
“How many? 10 people, 20?”
“No, thousands,” said the manager.
Initially hired as an interpreter,
he continued to grow his skills,
attending safety training and
other courses provided by KBR or
the U.S. Army. As his knowledge
and skills increased, 17 years
later, he has progressed through
the organization. Today, he is the
program’s HSE manager, and leads
the implementation of Health,
Safety and Environmental policies
and procedures in Kosovo, Romania,
Turkey and Bulgaria.
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2015 KBR SUSTAINABILITY REPORT
Building a Sustainable Legacy
CAMP BONDSTEEL, con’t
A LASTING LEGACY
KBR’s execution of the original contract has
led to a successful, long-term relationship with
the U.S. military and additional task orders
to support its mission throughout the region.
While the continuing expansion of KBR’s
contact is important to the sustainability of our
company, we also judge our success in Kosovo
by the contributions we have made to the local
communities.
After 17 years in Kosovo, KBR is a valued member
of the community. We have hired and trained
workers, instilled a strong safety culture and
contributed to the vitality of the region. KBR
in Kosovo is a model of how we do business
wherever we operate in the world.
Those contributions were recognized in September
2015 when the communities of Ferizaj and Gjilan
awarded KBR with a Certificate of Appreciation
for its positive impact on the local economy.
As one of the largest employers in the region,
KBR has helped not only to alleviate the high
unemployment rate in the region but also improve
the economic welfare of these communities.
We have provided job training and mentoring for
the people employed at Camp Bondsteel, which
has helped shape a local culture that emphasizes
work and education. The training and hands-on
experience KBR has provided has enabled other
companies in the region to hire a talented local
workforce, fueling the economy and supporting
the careers of many in the region. Many former
KBR employees from Camp Bondsteel have
We judge our success in Kosovo by the contributions
we have made to the local communities.
Andrew Pringle, former President, Government Services,
receives a certification of appreciation from the communities
of Ferizaj and Gjilan on behalf of KBR.
gone on to open their own businesses and are
better prepared to succeed after working for the
company at several locations throughout Kosovo.
With current and former KBR employees, U.S.
Military groups, local officials and community
members in attendance at the awards ceremony,
Deputy Mayor of Gjilan Rexhep Kadriu spoke of
KBR as, “the company that changed the economic
and social situation for our families.”
As Muharrem Svarqa, Mayor of Ferizaj also
noted, “The experience that people have gained
by working for KBR will have a positive impact on
their homeland in Ferizaj.”
Beyond the economic benefits, KBR’s influence
can be seen in other ways. When KBR arrived in
Kosovo, safety was a new concept. There wasn’t
a word for safety in the Albanian language. But
as workers began to experience the effects of
working safely the idea took hold. Local job sites
began equipping workers with fall protection
and respirators. As an example, an employee
in the Camp Bondsteel fire department had an
automobile accident with his wife and children
in the back seat. None of them sustained injuries
because they all were wearing seatbelts. Stories
like this spread through word of mouth and began
changing the local culture.
Elements of KBR’s environmental program are
also finding their way into the local communities.
Currently, there is no wastewater treatment
facility in Kosovo. Representatives from the
Kosovo government recently toured the Camp
Bondsteel water and wastewater facilities as part
of their plans for establishing similar facilities in
local communities that draw on some of KBR’s
best practices.
Andrew Pringle, KBR’s former President,
Government Services who accepted the award
on behalf of the Company said, “KBR is grateful
to receive this award and to work in the great
country of Kosovo. I am amazed by the significant
changes I have seen here over the past 16 years.
It is a sign that Kosovo is moving forward and we
are proud of the part we played and look forward
to many more years of work in the region.”
INVESTING IN PEOPLE
YLBER BEQIRI—
FROM CONSTRUCTION WORKER
TO MANAGER
Another early employee, Ylber
Beqiri was hired as a carpenter
in August 1999 at the start of
Camp Bondsteel construction. A
quick study, he was soon assigned
to perform inspections, and by
2004, he was a foreman, leading
two inspection crews. Two years
later, he was promoted to senior
supervisor.
Ylber was lead project manager
for the construction of the dining
facility in Bulgaria. When KBR
received a task order in 2010
to support Mihail Kogălniceanu
Air Base in Romania, Ylber was
assigned to perform Technical
Inspections and train the locals in
inspection services. He also led a
number of temporary construction
projects.
Ylber now manages the Building
& Structures department at Camp
Bondsteel overseeing all carpentry,
painting and plumbing, a sign
shop, welding and lock shop.
He is the face of KBR to the military
and a vital part of KBR’s success
in Kosovo.
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2015 KBR SUSTAINABILITY REPORT
Building a Sustainable Legacy
CAMP BONDSTEEL, con’t
KEY ACCOMPLISHMENTS
SAFETY
As of December 31, 2015, The USAREUR
Support Contract II (USC-II) Project has
achieved 6.5 million man-hours without a Lost
Time Incident (LTI), a significant achievement
that highlights the remarkable and
uncompromising commitment of every project
employee to sustain the ZERO HARM–Courage
to Care environment. Special emphasis in
our program is given to HSE orientation,
training, development and coaching of all
our employees. Employee HSE training is
conducted based on the applicable OSHA
Regulations and the KBR HSE Guidelines
and Policies. The core HSE training, which
includes 14 mandatory classes, is provided to
all new hires initially and annually thereafter.
Specific training in Confined Space Entry, Fall
Protection, Respiratory Protection and Scaffold
Safety are provided to applicable departments
and personnel.
This safety milestone, while significant, is
notable for another reason: approximately
97% of USC-II employees are local national
employees. Prior to joining KBR in 1999, local
nationals in Kosovo had not experienced
occupational safety. Since becoming KBR
employees, they have instilled the “Safety
First” vision into their daily work ethic.
Perhaps even more important, the safety
culture cultivated in the KBR family at Camp
Bondsteel, Camp Monteith and other US Army
bases in Kosovo has spread into employee’s
families and local communities.
Employee HSE training is conducted based on the applicable
OSHA Regulations and the KBR HSE Guidelines and Policies.
HUMAN RESOURCES
In 1999, KBR employed 977 U.S. citizens and
5,881 Host Country National (HCN) employees,
most employed in trades, interpreting and
administrative positions. Today, only 25
employees in Kosovo are U.S. citizens.
Ninety-seven percent or 803 employees are
locals. Of those, over 600 employees have
worked for KBR 10 years or more. Many have
been hired at entry-level positions and trained
and progressed to supervisory roles or roles
managing shops and departments. Thirty-four
local employees are now in key positions.
For many local employees, Camp Bondsteel
was the beginning. Over 500 Kosovar
employees have been hired on other KBR
projects in Houston, Afghanistan, Iraq,
Dubai, Bahrain, Kuwait and Djibouti. A large
number have traveled to other USAREUR
sites in Romania, Bulgaria,Turkey, Lithuania
and Poland to train other subcontracted
personnel assigned at those sites. Kosovars
also provide remote support services in
accounting & finance, information technology/
communications, HR and project controls.
Seven KBR Kosovar employees that worked at
Camp Bondsteel are currently assigned to our
site in Kurecik, Turkey (Site-K) as Third Country
Nationals (TCN) working in operations and
work control, HSE, quality and maintenance.
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2015 KBR SUSTAINABILITY REPORT
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CAMP BONDSTEEL, con’t
PROCUREMENT
The KBR procurement office effectively
contracts with small, locally-owned businesses
whenever possible to support the USC II
contract. We subcontract locally for automotive
equipment, general supplies and tools, electrical
equipment, janitorial supplies, paint, refuse
collection and other supplies and services.
Historically we have procured over $2 million
dollars per year in equipment, supplies and
services from the local economy. KBR also
provides safety training and oversight for our
subcontractors to ensure they are aware of KBR
Safety and Quality Policies and Procedures to
perform work in a safe, efficient manner with
the proper personal protective equipment (PPE),
fall protection and oversight while operating
machinery.
PROJECT FIRE ACADEMY TRAINING
The fire department at Camp Bondsteel was
created in 2000 to provide fire and emergency
response services. It was staffed 100 percent
with expats. That same year KBR established an
on-site fire academy to train and certify locals
as firefighters. Today we have an all-English
speaking Fire Department, including 46 Kosovar
local nationals holding positions up to Assistant
Fire Chief and only two US expats. The
department is also fully integrated with both
ethnic Albanian and ethnic Serbian Kosovars
and has responded with mixed crews to fires in
both communities.
Ten fire academies have been conducted in
Kosovo and one in Macedonia since 2000, with
class sizes ranging from 50 trainees initially,
to an average of 10 to 20 for later academies.
Graduates are trained and certified using
National Fire Protection Association (NFPA)
standards as required by the Department of
Defense (DOD) and Army regulations.
KBR provided 14,772 hours of training in 2015.
In addition to firefighter certification courses,
the Academy offers mandatory recurring
training, along with scheduled crew proficiency
training, un-scheduled training, unannounced
exercises, base-level exercises and follow-on
training to equip the department to deal with a
wide variety of emergencies.
We have also developed and qualified
firefighters for KBR’s Airborne Rescue Team.
The team uses a medical evacuation
(MEDEVAC) helicopter to respond to military
vehicle or aircraft accidents. The firefighters are
also trained in the proper way to carry injured
personnel on a litter, connect them to a hoist
and lift them away from danger and into the
hands of trained medics.
The Fire Department at Camp Bondsteel has trained ethnic Albanian and Serbian Kosovars to be certifed
firefighters, equipted to respond to a wide variety of emergencies.
30
2015 KBR SUSTAINABILITY REPORT
31
Building a Sustainable Legacy
CAMP BONDSTEEL, con’t
PROJECT SUSTAINABILITY
KBR’s environmental management program at Camp Bondsteel developed with
Army and Army Corps of Engineers personnel has been expanded and refined
over the life of the project. Elements of our programs have been incorporated
into the Army in Europe Pamphlet 200-2 Contingency Operations Environmental
Guide, written directly from lessons demonstrated and learned on Camp
Bondsteel. The following examples highlight our accomplishments during
the 2015 fiscal year from February 2015 to 31 January 2016.
WASTEWATER BIOSOLIDS
COMPOSTING OPERATION
KBR began its composting operations
in the camp’s early days. An Army
reservist with the 412th Engineer
Command who had developed a
waste composting operation for his
contract chicken growing business in
Mississippi recognized the potential
of using USEPA Class A compost,
that would otherwise be burned or
land-filled, for erosion control and
maintenance of the camp’s sports
fields turf.
The process evolved from open
windrows to covered, aerated heaps
better suited to the harsh Kosovo
winters, and in 2005, KBR and the
Army tested and implemented a full
production mobile aerated static
heap composting system. This
highly efficient system produces
high-quality mulch in about six weeks
using sewage sludge and food waste,
along with chipped wood, paper,
cardboard and yard trimmings.
The compost operation has
significantly reduced the camp’s
waste stream and produced Class A
soil/finished compost blend for top
dressing and erosion control.
RECYCLING TREATED
WASTEWATER EFFLUENT FOR
DUST ABATEMENT
AND IRRIGATION
One of the issues that KBR
confronted early on was dust
pollution caused by camp
construction and heavy traffic from
tanks, trucks and helicopters. To
manage the situation, KBR regrassed the flight line and built
a USEPA Secondary Standards
wastewater treatment plant with
facultative lagoons for collecting the
treated effluent. The system provides
a source of safe water to irrigate
the camp’s grassy areas and sports
fields and offers dust abatement
and water for construction projects.
The successful re-establishment of
grass also reduces the wear and tear
on helicopter engines, extending
operating hours and reducing
maintenance expenses.
RECYCLING WATER
COLLECTED FROM SECONDARY
CONTAINMENT BERMS
FOR WASH RACK USE
Water removed from secondary
containments supporting diesel-fired
heaters and generator sets is treated
in an oil/water separator and added
to the wash rack water supply. The
recycled water meets TB MED 577
standards for field water quality
and surveillance requirements. The
separator also recovers a small
quantity of petroleum, which is
provided to the local economy
through a Defense Logistics Agency
DRMO subcontract.
RECYCLING OF PETROLEUM
CONTAMINATED SOIL
Petroleum fuels and solvents are
used at military bases around
the world for aircraft, trucks and
other vehicles creating the need to
remediate contaminated soil. Since
the early years of Camp Bondsteel,
KBR has used land farming for
the bio-remediation of petroleumcontaminated soil. The process
allows natural microbes to eat
pollutants in the soil to grow “clean”
dirt to be re-used throughout the
camp. A second land farm is currently
being developed.
WASTE STREAM REDUCED TO LAND FILL, M3
WASTE STREAM REDUCED TO LAND FILL, M3
6,000
5,000
6,000
5,099
5,354
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0
2013
2014
5,099
5,000
4,598
4,598
0
2015
CLASS A SOIL/FINISHED COMPOST PRODUCED, M3
1000
2013
800
2014
2015
WATER RECLAIMED AND REUTILIZED IN WASH RACK, GAL
800,000
876
5,354
763,850
700,000
711
600,000
621
600
500,000
506,765
483,960
400,000
400
300,000
200,000
200
100,000
0
2013
2014
0
2015
COMPOST INGREDIENTS USED, M3
from February 1, 2015 to January 1, 2016
1200
1,155
1,037
1000
792
800
700
600
465
400
200
0
141
49
Hay
Used
Wood
Chips
New
Wood
Chips
Sewage
Sludge
Food Landscaping Shredded
Waste
Yard
cardboard/
Waste
paper
2013
2014
2015
2015 KBR SUSTAINABILITY REPORT
Building a Sustainable Legacy
GIVING BACK
KBR employees have a history of giving back
to the communities where they live and work.
Employee volunteer projects are typically
local community outreach programs involving
a small number of volunteers. Collectively,
their efforts add up to thousands of hours of
volunteer service and benefited people and
organizations worldwide.
In 2015, employees worldwide built new
homes, participated in walks to benefit
diabetes and breast cancer research,
supported orphanages, donated gallons of
blood, cleaned beaches and helped all kinds
of local education activities. Here are a few of
those stories.
UNITED WAY 5K
In Orange, Texas, a team of KBR employees
gave up their Saturday morning sleep
to volunteer for the 2nd Annual Granger
Chevrolet 5K benefitting the Orange County
United Way. Showing up for their shift
at 5:30 a.m., the KBR volunteers directed
traffic, assembled and disassembled the
start line, handed out water to the runners
and worked the registration table. In all, the
event raised over $14,000 to support the
mission of the United Way of Orange County,
Texas to improve people’s lives by supporting
organizations that provide a wide range of vital
social services.
In 2015, KBR employees have volunteered over 10,500 hours and KBR
donated over $225,000 to global charities. KBR also contributed, in early 2015,
$355,136.86 to charities as matching gifts from the 2014 employee payroll
deduction Community Matters Program.
TEAM KBR RACES TO A $50,000 PAYDAY
FOR THE MULTIPLE SCLEROSIS SOCIETY
Participating in the BP MS150 is a tradition at
KBR. Each year, the KBR cycling team comes
together to raise donations and participate
in the bike ride that covers 180 miles in
two days from Houston to Austin. The BP
MS150 was started in 1985 to raise funds
for multiple sclerosis research and to support
those affected by the disease. Team KBR has
participated since the ride’s inception.
This year the 38 members of Team KBR raised
over $50,000 for the MS Society and earned
the Mission Possible Award, one of only 15
teams of the 250 teams entered to receive the
honor. The award recognizes teams for their
achievements in safety and fundraising. With
13,000 riders in the event, safety is of primary
importance and Team KBR exemplified KBR’s
commitment to Zero Harm by riding safely and
completing the race with zero injuries.
CYCLING FOR HEROES
Also riding for charity was Jim Bowden in the
U.K., Director, Business Development, EMEA,
who cycled 600 miles from the Brandenburg
Gate in Berlin to Windsor, England for the Help
for Heroes charity. The organization provides
support for wounded and injured soldiers and
their families in the form of financial support
for those with life-changing injuries and
illnesses, recovery centers offering state-ofthe-art facilities and equipment, and an array
of practical and emotional assistance to help
rebuild lives. Jim’s team, Team Sapper, is a
group of retired Royal Engineers who have
been cycling together since 2009. In the last
six years, Team Sapper has raised £150,000 to
support the charity.
KBR KIDS DAY AT BUFFALO BAYOU PARK
IN HOUSTON
Another group of dedicated KBR volunteers
hosted KBR’s booth for KBR Kids Day at
Buffalo Bayou Park in Houston, Texas. KBR is
the major sponsor of this free community-wide
event, which provides multiple environmentrelated activities including live animal exhibits
and ecological craft demonstrations. Children
learn about the importance of protecting
wildlife and preserving nature. Every year
KBR hosts a booth manned by KBR employee
volunteers who provide fun activities for
the children, including boat rides on Buffalo
Bayou that bring them up close and personal
with live turtles and alligators. KBR Kids Day
offers kids a hands-on day of learning about
the environment and how important it is to
preserve it.
32
2015 KBR SUSTAINABILITY REPORT
Building a Sustainable Legacy
KBR VOLUNTEERS DISPLAY THEIR
COMMITMENT TO ZERO HARM—
AT WORK AND AT PLAY
Halfway around the world, KBR’s Singapore
Impact group participated in Batam Build, a
Habitat for Humanity Singapore initiative. Seven
KBR Impact members took part in this ongoing
initiative to build housing for underprivileged
families in Batam Island, Indonesia, by
contributing financial support and manual labor.
The KBR volunteers worked at the housing
construction site, digging foundation holes, tying
up reinforcement bars and mixing and casting
concrete. In addition to contributing to Habitat
for Humanity, the trip was a chance for the team
of KBR volunteers, all young engineers, to put
their engineering skills to work in the field while
supporting a great cause.
KBR CHARITY GOLF TOURNAMENT
SETS RECORD
Started in 2007, the KBR Charity Golf tournament
raises funds for local charities—more than
$3,946,000 since the tournament began. This
year’s event took place on September 16th
and raised $563,000, the largest amount
in the tournaments’ nine-year history. The
tournament is organized by IMPACT, KBR’s young
professional organization, and is overseen by a
steering committee of KBR leaders from all over
the company.
IMPACT provided over 40 volunteers on the
day of the event, which included set-up at
4 a.m., registration, hauling hundreds of boxes
of supplies to and from the event, and clean-up
which finally concluded around 8 p.m.
Over 430 golfers—18 teams—registered,
including a number of KBR executives and partner
company representatives. Proceeds from the
tournament were donated to nine charities which
align with KBR’s charitable tenets of education
and health.
33
2015 KBR SUSTAINABILITY REPORT
34
2015 KBR SUSTAINABILITY REPORT
35
Sustainability By the Numbers – Our Performance
Transparency and accountability are at the heart of any effective
corporate sustainability culture. Stakeholders must have trust
in management’s leadership to guide the organization forward
and know that the success of the company is based on a strong
foundation of energized employees, high quality customer service,
cohesive strategic direction, innovative research/technology and
vibrant communities where we work and our employees live.
Engineering & Construction
Technology & Consulting
0.35
0.12
0.30
0.32
0.28
We are committed to continued
development of the internal processes
necessary to support accepted
sustainability reporting criteria for
transparency and accountability.
EMPLOYEE SAFETY
Our most important concern is the
safety of each and every one of
our employees. We view safety as
critical to our success and long-term
sustainability, and we are committed
to continuously improving our
performance. Our HSE commitments
are supported by KBR’s Zero Harm
24/7 Initiative, which is championed by
executive leadership.
KBR’s Zero Harm initiative incorporates
three dynamic components – Zero
Harm, 24/7, and Courage to Care.
Every week, KBR leadership hosts
a teleconference with the various
business units and their respective
projects from around the globe to share
information globally and review the
previous week’s incidents to ensure
that steps have been taken to prevent
recurrence.
With our emphasis on reducing
incidents through Zero Harm, we
continued to improve our safety record
with a 32-percent reduction in our
Total Recordable Incident Rate and a
62-percent reduction in the Lost Time
Incident Rate since 2014.
0.114
0.10
0.27
0.25
0.08
0.19
0.20
0.06
0.15
0.04
0.10
0.052
0.05
One way to establish and reinforce this
trust is to report accurately on metrics
that connect to our overall business
goals/activities and to track progress
over time against these metrics.
0.11
0.00
0.041
2012
2013
0.02
0.026
2014
0.011
2015
.00
.00
2013
.00
2014
160,971,485
0.30
0.3
Workhours
0.19
0.167
0.21
0.21
0.125
Recordable Incident Rate
0.1
0.0
.00
2012
0.46
0.4
0.2
.00
KBR GLOBAL
2015 SAFETY PERFORMANCE
Government Services
0.5
0.00
0.068
2012
Recordable Incidents
2013
2014
Lost Time Incidents
0.040
2015
0.015
Lost Time Incident Rate
.00
2015
2015 KBR SUSTAINABILITY REPORT
Sustainability By the Numbers – Our Performance
ENVIRONMENTAL INITIATIVES
KBR is committed to pursuing
sustainable environmental solutions
to offset human activities that may
contribute to global warming. We
make efforts to mitigate any negative
contribution to this issue and find ways
to reduce carbon emissions.
Although the majority of our energy
consumption is by office operations, we
continue to work with our clients and
suppliers to reduce the overall usage of
all natural resources through recycling
and other forms of waste diversion.
ISO 9001, ISO 14001 AND OHSAS
18001 COMPLIANCE
The objective of every KBR project is
to deliver a product that meets our
customer’s requirements and our own
internal expectations, which are to
ensure that all components of the
project meet “built right the first time,”
thus eliminating costly re-work, and
making sure that budgets and schedules
are maintained. To achieve this goal
KBR uses an Integrated Management
System certified to ISO 9001-2008,
Quality Management Systems (QMS),
ISO 14001-2004, Environmental
Management Systems (EMS) and
OHSAS 18001-2007, Occupational
Health and Safety Management
Systems.
KBR ELECTRICITY CONSUMPTION, tCO2e
10000
12000000
10000000
8000
2,448
Certifying to these ISO compliance
guidelines indicates a commitment by
KBR to third party auditing, goal setting,
corrective action, management review
and documentation. In 2015, KBR had 46
ISO-certified locations in the Americas,
EMEA (Europe, Middle East, Africa),
APAC (Asia Pacific).
2,315
8000000
2,073
6000
4000
1,209
3,443
3,493
3,224
2,242,127
2,242,127
6000000
2,699
3,053,036
2000
0
CARBON EMISSIONS REDUCTION
1200
Although KBR is not a producer or
refiner of petroleum products, we pursue
efficient, energy-saving approaches to
the operations, products and services
we provide to our customers. KBR’s
Leatherhead office has achieved the
Carbon Trust Standard, a mark of
excellence awarded in recognition of
measuring, managing and reducing CO2
emissions.
1000
2,854,643
1,487,817
2,999,145
2,908,270
2,920,157
4000000
2000000
2,448
2,315
2,073
2,009
2012
2013
2014
2015
KBR NATURAL GAS CONSUMPTION, tCO2e
The following highlights our carbon
emission reduction at KBR offices and
project sites.
KBR OFFICE FACILITY WATER USAGE, GALLONS
0
4,165,421
3,064,966
2,216,615
2,567,406
2012
2013
2014
2015
TOTAL WEIGHT OF OFFICE WASTE, LBS
1200000
1000000
328
281
800
246
800000
182
600
230,846
740
835
680
186,522
600000
400000
400
309,032
682,021
553,360
644,816
30,819
34,492
15,971
2012
2013
2014
638,403
555
200000
200
0
2012
2013
2014
2015
PAPER CONSUMPTION, LBS
100000
80000
325,986
15,774
60000
309,032
230,846
682,021
553,360
45,112
47,886
36,904
38,193
2012
2013
2014
2015
837,756
40000
172,344
20000
0
0
Greenford
Leatherhead
2015
Birmingham
36
2015 KBR SUSTAINABILITY REPORT
Sustainability By the Numbers – Our Performance
RECYCLING
Responsible management of waste is essential for the sustainable management of resources. Waste management
has three components: eliminating waste where possible; minimizing waste where feasible; and reusing materials
that might otherwise become waste. We continue to work with our clients and suppliers to find ways to minimize
materials that will later become waste before they get to the project sites, and make every effort to reduce what
we use and recycle generated material to help sustain natural resources.
ZERO TO LANDFILL
Project Allenby/Connaught (PAC) is a major 35-year
PFI contract let by the UK Ministry of Defence (MOD)
to Aspire Defence Limited in 2006 for the upgrade and
operation of the MOD’s Salisbury Plain and Aldershot
Army garrisons. KBR and Carillion, operating as Aspire
Defence Services Limited (ADSL) and Aspire Defence
Capital Works, have provided program management,
procurement, construction and total facilities
management service support, enhancing the quality of
life of thousands of soldiers.
When ADSL was first contracted under PAC, 10% of
waste was recycled with 90% going to landfill. Through
a series of initiatives, ADSL has achieved around 45%
recycling for all wastes. Residual waste that cannot
be recycled with existing technology is treated in two
ways:
1.
Energy from waste (EFW) – Mixed waste from
the Aldershot garrison is taken to an energyfrom-waste (EFW) facility near Slough where it is
burned to produce electricity for the national grid.
Residual ash is used as a component in building
materials.
2.
Micro biological treatment (MBT) – Mixed waste
from Salisbury Plains sites is taken to the MBT
facility at Westbury where it is composted for
two weeks, sorted to remove metal and then
processed into fuel to generate electricity in
specialist power stations.
Using a combined recycling/waste treatment initiative,
ADSL has achieved Zero to Landfill since 2014.
37
Global Reporting Index 4.0 Indicators
General Standard Disclosures
EC Economic Performance
EN Environmental Performance
HR Human Resources and Human Rights
LA Labor Practices and Decent Work
PR Product Responsibility and Compliance
SO Social Performance and Society
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Report the name of the organization
INDICATOR
PROFILE DESCRIPTION
RESPONSE
Organizational Profile
G4-1
Statement from the most senior decision-maker of the organization.
President and CEO letter, p. 3
G4-2
Description of key impacts, risks, and opportunities.
About the Company, Statement of risk, p. 9
G4-3
Report the name of the organization.
KBR, Inc.
G4-4
Report the primary brands, products, and services.
About the Company, p. 6
G4-5
Report the location of the organization’s headquarters.
601 Jefferson Street, Suite 3400 Houston, Texas 77002
G4-6
Countries where the organization operates, and has significant operations
About KBR, p. 6
G4-7
Report the nature of ownership and legal form.
2015 Form 10-K, p. 1, 2
G4-8
Markets served.
About KBR, p. 6
2015 Form 10-K, p. 4,5
G4-9
Scale of the organization.
About KBR, p. 6
2015 Form 10-K, p. 6, 9
G4-10
Size and demographics of the workforce.
About KBR, p. 6
Complete data not available
G4-11
Percentage of total employees covered by collective bargaining agreements.
8% of employees are covered by collective bargaining agreements.
G4-12
Describe the supply chain
Delivering Sustainable Projects, p. 22
G4-13
Changes during the reporting period in the organization’s size, structure or supply chain.
About KBR, p. 10
2015 Form 10-K, pgs. 7, 8
G4-14
Report whether and how the precautionary approach or principle is addressed by the organization.
About KBR, Sustainability at KBR, p. 13
G4-15
List externally developed economic, environmental and social charters, principles, or other
initiatives.
About KBR, Sustainability at KBR, p. 13
G4-16
List memberships of industry associations and national or international advocacy organizations.
About KBR, Contributing to the Industries We Serve, p. 13
Identified Material Aspects and Boundaries
G4-17
Entities in the consolidated financial statements and entities in the consolidated financial statements not covered by the report.
2015 Form 10-K, pgs. 7, 8
G4-18
Process for defining the report content and Aspect Boundaries and how the Reporting Principles
are implemented.
About the KBR, Sustainability Governance, p. 12
G4-19
Material Aspects identified in the process for defining report content.
G4-20
Aspect Boundary for each material aspect in the organization.
All aspects identified in G4-19 are material within our organization.
G4-21
Aspect Boundary for each material aspect outside the organization.
We are not engaged with aspect boundaries outside of our organization.
G4-22
Effect of any restatements of information in previous reports, and the reasons for restatement.
2015 Form 10-K, pg. 93
Please view KBR 2013 10-K/A for more information.
G4-23
Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
The 2014 Sustainability Report followed GRI 3.1. This report provides information on GRI indicators that may not have been
addressed in previous reports.
39
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Stakeholder Engagement
G4-24
Stakeholder groups engaged by the organization.
KBR engages with a broad range of stakeholder groups including shareholders, clients, communities, nonprofit organizations,
governments, suppliers and employees.
G4-25
Basis for identification and selection of stakeholders.
2015 Form 10-K, pgs. 4, 6, 8
KBR views stakeholders are those individuals and entities who can affect or be affected by the actions of our business.
G4-26
Organization’s approach to stakeholder engagement and frequency of engagement.
KBR’s approach depends on the stakeholder group. Our shareholders can contact us through an investors’ hotline and the Annual
Meeting of Stockholders.
G4-27
Key topics and concerns raised through stakeholder engagement, and how the organization has
responded.
No key topics reported for 2015.
G4-28
Reporting period (fiscal or calendar year.
January 1, 2015 through December 31, 2015
G4-29
Date of most recent report.
December 2015
G4-30
Reporting cycle.
Annual
G4-31
Contact point for questions regarding the report or its contents.
[email protected]
G4-32
Report the GRI Content Index and “in accordance” option chosen by the organization.
About the Report, p. 2
G4-33
Policy and practice for seeking external assurance for the report.
This report was not third party verified.
G4-34
Governance structure, including any committees responsible for decision-making on economic,
environmental and social impacts.
About KBR, p. 12
G4-35
Process for delegating authority for economic, environmental and social topics from the highest
governance body to senior executives and other employees.
About KBR, Sustainability Governance, p. 12
G4-36
Report where the organization appointed an executive-level position with responsibility for
economic, environmental and social topics and reporting structure.
About KBR, Sustainability Governance, p. 12
G4-37
Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics.
About KBR, Sustainability Governance, p. 12
G4-38
Composition of the highest governance body and its committees.
About KBR, Governance, p. 11
G4-39
Report if Chair of the highest governance body is also an executive.
The Chairman of the Board is an independent, non-executive director.
G4-40
Nomination and selection processes for the highest governance body and its committees, and
the criteria used.
About KBR, Governance, p. 11
G4-41
Processes for the highest governance body to ensure conflicts of interest are avoided and
managed and if conflicts of interest are disclosed.
At this time, except for the CEO, all of our directors are independent, as set forth in KBR’s Corporate Governance Guidelines.
Access at: https://www.kbr.com/About/Corporate-Governance/
G4-42
Roles of the highest governance body and senior executives in the development, approval,
and updating of the organization’s purpose, value or mission statements, strategies, policies,
and goals related to economic, environmental and social impacts.
All of KBR’s four Board committees review and economic, environmental and social impacts. Those committees are:
Audit Committee, Compensation Committee, Health, Safety, Security, Environment and Social Responsibility Committee,
Nominating and Corporate Governance Committee.
About KBR, Governance, p. 11
Proxy Statement, p. 23, 24, 25
Report Profile
Governance
40
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
G4-43
Measures taken to develop and enhance the highest governance body’s knowledge of economic, environmental and social topics.
Presentations to the Board of Directors and the HSSE & SR Committees from senior executives provide the Board with economic,
environmental, and social topic information. In addition, Board members tour project sites around the world to better understand
how the Company’s operations influence these topics. Board members also participate in HSSE & SR-related activities that are
available to employees such as training, seminars and Zero Harm Day.
G4-44
Processes for evaluating the highest governance body’s performance with respect to economic,
environmental and social governance.
About KBR, Governance, p. 11
G4-45
The highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities.
About KBR, Sustainability Governance, p. 12
Proxy Statement, p. 20, 21
G4-46
The highest governance body’s role in reviewing the effectiveness of the organization’s risk
management processes for economic, environmental and social topics.
About KBR, Sustainability Governance, p. 12
G4-47
Frequency of the highest governance body’s review of economic, environmental and social
impacts, risks, and opportunities.
About KBR, Sustainability Governance, p. 12
G4-48
The highest committee or position that formally reviews and approves the organization’s
sustainability report and ensures that all material Aspects are covered.
About KBR, Sustainability Governance, p. 12
G4-49
Process for communicating critical concerns to the highest governance body.
President and CEO letter, p. 3
VP HSSE Letter, p. 4
About KBR, Governance, p. 11
G4-50
Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.
Remuneration and Incentives
G4-51
Report the remuneration policies for the highest governance body and senior executives.
Proxy Statement, Compensation Discussion & Analysis, p. 26-40
G4-52
Report the process for determining remuneration.
Proxy Statement, Compensation Discussion & Analysis, p. 26-40
G4-53
Report how stakeholders’ views are sought and taken into account regarding remuneration.
Stockholders may present a proposal to be considered for inclusion in KBR’s proxy material for its Annual Meeting of Stockholders
by submitting the proposal in writing to KBR’s Corporate Secretary at 601 Jefferson Street, Suite 3400, Houston, Texas 77002. KBR
must receive proposals not later than the 120th day prior to the date on which KBR estimates that it will send its materials for its
Annual Meeting of Stockholders. Proposals submitted for inclusion in KBR’s proxy materials must comply with Rule 14a-8 under
the Exchange Act.
G4-54
Ratio of annual total compensation for the organization’s highest-paid individual in each country
of significant operations to the median annual total for all employees.
G4-55
Ratio of percentage increase in annual total compensation for the organization’s highest-paid
individual in each country of significant operations to the median percentage increase in annual
compensation for all employees.
Ethics and Integrity
G4-56
Describe the organization’s values, principles, standards and norms of behavior such as codes
of conduct and codes of ethics.
Code of Business Conduct, p. 15
41
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
G4-57
Proxy Statement, Code of Ethics, p. 25
Directors, Employees and Legal Agents may contact the Code of Business Conduct office to seek advice on ethical and lawful
behavior through a toll-free and online Ethics Hotline, Code of Business Conduct post office box, and contact directly to the
Director of the Code of Business Conduct, appropriate representative of the Law Department, Audit Services, Human Resources,
Health, Safety, Security & Environment or other compliance-related department, the Employee’s supervisor or manager, or
a member of the executive senior management. G4-58
Internal and external mechanisms for seeking advice on ethical and lawful behavior, such as
helplines or advice lines.
Individuals may seek advice by contacting KBR’s confidential Ethics Hotline either through a toll-free phone call or online. Other
avenues include KBR’s Director of the Code of Business Conduct or an appropriate representative of the legal department, audit
services, human resources, health, safety & environment or other compliance-related department. Employees are also encouraged to speak with their supervisor or manager, or a member of the executive senior management.
Direct economic value generated and distributed (EVG&D) on an accruals basis including the
basic components for the organization’s global operations.
Revenues: $5,096,000,000
Aspect: Economic Performance
G4-EC1
Costs of revenues: $4,771,000,00
General and Administrative: $155,000,000
Other Non-operating income: $2,000,000
Provision for taxes: $86,000,000
Net income attributable to KBR: $203,000,000
Corporate giving: $224,107.87
Employee giving and corporate matching: $355,136.86
G4-EC2
Financial implications and other risks and opportunities for the organization’s activities due to
climate change.
2015 Form 10-K, p. 95
G4-EC3
Coverage of the organization’s defined benefit plan obligations.
None
G4-EC4
Financial assistance received from government.
None
Aspect: Market Presence
G4-EC5
Ratios of standard entry level wage by gender compared to local minimum wage at significant
locations of operation.
G4-EC6
Proportion of senior management hired from the local community at significant locations of
operation.
Aspect: Indirect Economic Impacts
G4-EC7
Development and impact of infrastructure investments and services supported.
N/A
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Global Reporting Initiative (GRI)
G4-EC8
2015 KBR SUSTAINABILITY REPORT
Significant indirect economic impacts, including the extent of impacts.
Changing the productivity of organizations, sectors, or the whole economy
n Provide the knowhow and project management behind the processes to convert natural gas to a liquid (Gorgon LNG and
Ichthys LNG) producing a cleaner energy source for export to new or better-supplied markets for natural gas production
n Transportability of “stranded gas” from regions with large supplies and relatively small market to regions with growing
demand and relatively little resource promotes a more efficient global allocation of resources (Gorgon LNG, Ichthys LNG and
Dyno-Nobel).
n Transfer of technology to produce ammonia and fertilizers that improve food supplies and yields for a growing population.
KBR has provided services in support of 3 ammonia and fertilizer facilities in 2014 and 2015 alone.
Economic development in areas of high poverty
n KBR offices in Luanda, Delhi, Chennai, Jakarta and Monterrey provide professional and clerical employment, as well as
multiplier effects in which living conditions are improving but are not yet fully developed.
n Higher crop yield using fertilizers derived from KBR ammonia technology increases the availability of food and exports for
growing populations.
Economic impact of improving or deteriorating social or environmental conditions
n KBR’s knowledge and project management skills help countries convert natural gas to a transportable liquid, enabling wider
use of a cleaner fuel for heating, electricity and other energy requirements.
n KBR technology and EPC capabilities used in construction of natural gas powered facilities that replace existing and incremental coal-fired or oil-fired energy facilities resulting in reduced SOX, NOX, particulate and other emissions.
Enhancing skills and knowledge amongst a professional community or in a geographical region
n KBR provides professional engineering jobs and associated training in Angola, China, India, Indonesia, Mexico, Saudi Arabia
Jobs supported in the supply chain or distribution chain.
Thousands of jobs provided through KBR’s global network sub-contractors, equipment vendors and OEM manufacturers
supporting the construction of world-class processing plants.
n
Stimulating, enabling, or limiting foreign direct investment
n Enabling large-scale FDI in Australia (Gorgan and Ichthys), Mozambique, Saudi Arabia (Dow), inward United States (Dyno-Nobel) with competitive designs, schedules and pricing along with capable project management in LNG, refining, petrochemicals
and ammonia.
Economic impact of change in location of operations or activities
n KBR’s increasing presence in India provides professional and clerical job opportunities to a growing market.
Aspect: Procurement Practices
G4-EC9
Proportion of spending on local suppliers at significant locations of operation.
N/A
G4-EN1
Materials used by weight or volume.
KBR does not manufacture products.
G4-EN2
Percentage of materials used that are recycled input materials.
KBR does not manufacture products.
G4-EN3
Energy consumption within the organization.
Sustainability by the numbers, p. 34
G4-EN4
Energy consumption outside of the organization.
G4-EN5
Energy intensity.
Sustainability by the numbers, p. 35
G4-EN6
Reduction of energy consumption.
Sustainability by the numbers, p. 35
G4-EN7
Reductions in energy requirements of products and services.
ENVIRONMENTAL
Aspect: Materials
Aspect: Energy
43
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
G4-EN8
Total water withdrawal by source.
Water sources consist of municipal water supplies; we do not consider usage in an office environment to be significant.
However; we take every effort to reduce usage whenever possible.
G4-EN9
Water sources significantly affected by withdrawal of water.
Water sources consist of municipal water supplies; we do not consider usage in an office environment to be significant.
However; we take every effort to reduce usage whenever possible.
G4-EN10
Percentage and total volume of water recycled and reused.
KBR does not use recycled and/or reused water for our office operations. However water is recycled and reused on projects
in some capacities for dust suppression and irrigation.
G4-EN11
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high
biodiversity value outside protected areas.
KBR does not own, lease, or manage any property in, or adjacent to protected areas and areas of high biodiversity value outside
protected areas.
G4-EN12
Description of significant impacts of activities, products, and services on biodiversity in protected
areas and areas of high biodiversity value outside protected areas.
Aspire Defence Capital Works (a KBR joint venture), involves construction work at military sites on Salisbury Plain, close to
sites designated as both a Special Protection Area (SPA) and Special Area of Conservation (SAC) under European legislation.
A habitats regulations assessment (HRA) has concluded that no residual ecological or contamination impacts are anticipated
as a consequence of the Aspire Defence Capital Works proposals, including on the Salisbury Plain SPA, SAC and SSSI.
G4-EN13
Habitats protected or restored.
Aspire Defence Capital Works (a KBR joint venture) is creating a program of biodiversity offsetting that will create habitats of
equivalent value to:
G4-EN14
Total number of IUCN red list species and national conservation list species with habitats in
areas affected by operations, by level of extinction risk.
Aspire Defence Capital Works (a KBR joint venture) surveys indicate a total of 50 ICUN red list species are within 2km of the
construction sites at Larkhill, Perham Down, Bulford and Tidworth in the UK. In terms of status by level of extinction risk these
species comprise:
Aspect: Biodiversity
n
n
n
n
10 endangered;
19 vulnerable;
19 near threatened; and
2 least concern.
Aspect: Biodiversity
G4-EN15
Direct greenhouse gas (GHG) emissions (Scope 1).
Sustainability by the numbers, p. 35
G4-EN16
Energy indirect greenhouse gas (GHG) emissions (Scope 2).
At this time KBR does not collect Scope 2 emissions data.
G4-EN17
Other indirect greenhouse gas (GHG) emissions (Scope 3).
At this time KBR does not collect Scope 3 emissions data.
G4-EN18
Greenhouse gas (GHG) emissions intensity.
G4-EN19
Reduction of greenhouse gas (GHG) emissions.
G4-EN20
Emissions of ozone-depleting substances (ODS).
G4-EN21
NOx, SOx and other air emissions.
Sustainability by the numbers, p. 35
Aspects: Affluents and Waste
G4-EN22
Total water discharge by quality and destination.
Sustainability by the numbers, p. 35
G4-EN23
Total weight of waste by type and disposal method.
Sustainability by the numbers, p. 35
G4-EN24
Total number and volume of significant spills.
None.
G4-EN25
Weight of transported, imported, exported or treated waste deemed hazardous under the terms
of the Basel Convention Annex I, II, III and VIII.
KBR did not transport, import, export or treat hazardous waste internationally.
G4-EN26
Identity, size, protected status and biodiversity value of water bodies and related habitats
significantly affected by the organization's discharges of water and runoff.
KBR is not aware of our owned office operations' discharges of water and runoff significantly affecting water bodies and/or
related habitats.
44
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Aspect: Products and Services
G4-EN27
Extent of impact mitigation of environmental impacts of products and services.
KBR does not manufacture products.
G4-EN28
Percentage of products sold and their packaging materials that are reclaimed by category.
KBR does not manufacture products.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.
Form 10-K, p. 95
Significant environmental impacts of transporting products and other goods and materials for
the organization’s operations, and transporting members of the workforce.
KBR does not collect this data.
Total environmental protection expenditures and investments by type.
Remediation Cost: $881,740.64 for three projects.
Aspect: Compliance
G4-EN29
Aspect: Transport
G4-EN30
Aspect: Overall
G4-EN31
Aspect: Supplier Environmental Assessment
G4-EN32
Percentage of new suppliers that were screened using environmental criteria.
Delivering Sustainable Projects - Supplier Development, p. 22
G4-EN33
Significant actual and potential negative environmental impacts in the supply chain and actions
taken.
KBR does not track this information.
Aspect: Environmental Grievance Mechanisms
G4-EN34
Number of grievances about environmental impacts filed, addressed, and resolved through
formal grievance mechanisms.
None.
G4-LA1
Total number and rates of new employee hires and employee turnover by age group, gender
and region.
KBR does not report this data.
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part- time
employees, by significant locations of operation.
Supporting Our People, Benefits, p. 19
G4-LA3
Return to work and retention rates after parental leave, by gender.
Aspect: Labor/Management Relations
G4-LA4
Minimum notice periods regarding operational changes, including whether these are specified
in collective agreements.
Aspect: Occupational Health and Safety
G4-LA5
Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.
Each KBR project location will have a formal joint management -employee health and safety committee. Committees are
responsible for implementation of the HSE policies, plans and procedures for site, training, recording and reporting incidents and
identification of risk. Percentage of workforce participation has not been captured.
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region and by gender.
1 Fatality; Injury categories tracked: Slips, Caught In or Between, Strain, Strike Against, Struck By.
G4-LA7
Workers with high incidence or high risk of diseases related to their occupation
KBR has more than 15,000 employees that support our clients in a petro chemical and construction industries; the industry is
high risk however our employees are protected from occupational illness through engineering controls and proper protection
equipment.
G4-LA8
Health and safety topics covered in formal agreements with trade unions.
45
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Aspect: Training and Education
G4-LA9
Average hours of training per year per employee by gender, and by employee category.
KBR does not track data by gender.
G4-LA10
Programs for skills management and lifelong learning that support the continued employability
of employees and assist them in managing career endings.
Delivering a Vital and Sustainable Workforce, Training, p. 16
G4-LA11
Percentage of employees receiving regular performance and career development reviews, by
gender and by employee category.
All employees regardless of gender received a performance review and career development review in 2015.
Aspect: Diversity and Equal Opportunity
G4-LA12
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
Data not available for global operations.
Building a Vital and Sustainable Workforce, Cultivating women leaders, p. 18
Aspect: Equal Remuneration for Women and Men
G4-LA13
Ratio of basic salary and remuneration of women to men by employee category, by significant
locations of operation.
KBR is committed to promoting equality of pay and opportunity for all employees. 2015 Proxy Statement, p. 26
Aspect: Supplier Assessment for Labor Practices
G4-LA14
Percentage of new suppliers that were screened using labor practices criteria.
Current contracts do not include labor practices screening. Our contracts include clauses requiring compliance with the laws of
the country where project is located and compliance with the COBC and/or KBR Supplier COBC where applicable. Subcontractors
and agents are required to complete KBR's Code of Business Conduct (COBC) training, which includes human rights training.
G4-LA15
Significant actual and potential negative impacts for labor practices in the supply chain and
actions taken.
KBR does not report this information.
Aspect: Labor Practices Grievance Mechanisms
G4-LA16
Number of grievances about labor practices filed, addressed, and resolved through formal
grievance mechanisms.
SOCIAL: HUMAN RIGHTS
Aspect: Investment
G4-HR1
Total number and percentage of significant investment agreements and contracts that include
human rights clauses or that underwent human rights screening.
Current contracts do not include Human Rights screening. Our contracts include clauses requiring compliance with the laws of
the country where project is located and compliance with the COBC and/or KBR Supplier COBC where applicable.
G4-HR2
Total hours of employee training on human rights policies or procedures concerning aspects of
human rights that are relevant to operations, including the percentage of employees trained.
All employees are to complete COBC training as a requirement of the annual review process; Human Rights procedures are
covered in this training.
Total number of incidents of discrimination and corrective actions taken.
In 2015 in the United States, there were four claims filed and closed involving allegations of discrimination. In 2015, KBR’s Ethics
Hotline received 442 calls with 38 percent related to Code of Business Conduct issues. In 2015, 37 Code of Business Conduct
matters alleged discrimination. Each matter was investigated thoroughly.
Aspect: Non-discrimination
G4-HR3
Aspect: Freedom of Association and Collective Bargaining
G4-HR4
Operations and suppliers identified in which the right to exercise freedom of association and
collective bargaining may be violated or at significant risk, and measures taken to support these
rights.
None.
46
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Aspect: Child Labor
G4-HR5
Operations and suppliers identified as having significant risk for incidents of child labor, and
measures taken to contribute to the effective abolition of child labor.
KBR is not aware of any operations or significant suppliers as having significant risk for incidents of child labor. We require all
employees, subcontractors and agents to complete KBR's Code of Business Conduct (COBC) training, which includes human rights
training. KBR’s Board of Directors’ CSR Committee oversees the activities of KBR in managing our major risk exposures in regards
to sustainable development, including human rights. KBR does not employ anyone, in any capacity, under the age of 18 years
except where this minimum employment age requirement is superseded by local law.
Aspect: Forced or Compulsory Labor
G4-HR6
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory
labor.
KBR is not aware of any operations or significant suppliers as having significant risk for incidents of forced or compulsory labor.
Measures taken to contribute to the effective abolition of forced or compulsory labor include requiring employees, subcontractors
and agents to complete KBR's mandatory Code of Business Conduct (COBC) training, which includes human rights training. KBR’s
Board of Directors’ CSR Committee oversees the activities of KBR in managing our major risk exposures in regards to sustainable
development, including human rights.
Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations.
100% of Security personnel have received formal training in KBR’s human rights policies and procedures. Ethics training, which
includes training on Human Rights, is required for all third party organizations providing security personnel.
Total number of incidents of violations involving rights of indigenous peoples and actions taken.
None.
Total number and percentage of operations that have been subject to human rights reviews or
impact assessments.
None.
Aspect: Security Practices
G4-HR7
Aspect: Indigenous Rights
G4-HR8
Aspect: Assessment
G4-HR9
Aspect: Supplier Human Rights Assessment
G4-HR10
Percentage of new suppliers that were screened using human rights criteria.
Current contracts do not include Human Rights screening. Our contracts include clauses requiring compliance with the laws of
the country where project is located and compliance with the COBC and/or KBR Supplier COBC where applicable.
G4-HR11
Significant actual and potential negative human rights impacts in the supply chain and actions
taken.
None.
Aspect: Human Rights Grievance Mechanisms
G4-HR12
Number of grievances about human rights impacts filed, addressed, and resolved through
formal grievance mechanisms.
In the United States in 2015 there were four claims filed and closed involving allegations of discrimination. In 2015, KBR’s Ethics
Hotline received 442 calls with 38 percent related to Code of Business Conduct Issues. In 2015, 37 Code of Business Conduct
Matters alleged discrimination. Each matter was investigated thoroughly.
G4-SO1
Percentage of operations with implemented local community engagement, impact assessments, and development programs.
KBR’s is currently implementing a comprehensive socio-economic plan on the Ichthys LNG project in Australia.
G4-SO2
Operations with significant actual and potential negative impacts on local communities.
None.
SOCIETY
Aspect: Local Communities
47
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
Aspect: Anti-corruption
G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the
significant risks identified.
All transactions are analyzed for risks related to corruption. KBR does not accept, condone or tolerate any instance of unethical
or illegal behavior.
G4-SO4
Communication and training on anti-corruption policies and procedures.
91% of employees completed anti-corruption training.
G4-SO5
Confirmed incidents of corruption and actions taken.
None.
Total value of political contributions by country and recipient/beneficiary.
In 2015, PAC receipts, or contributions from employees to KBRPAC, were $61,559 and $16,000 was contributed to candidates for
public office. Undisbursed funds are held for future elections and campaigns.
Aspect: Public Policy
G4-SO6
Aspect: Anti-competitive Behavior
G4-SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices
and their outcomes.
None.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
In the US, KBR had no adverse determinations, fines or non-monetary sanctions from the federal Equal Employment Opportunity
Commission (EEOC), any state or local human rights commission, the National Labor Relations Board (NLRB), or the Office of
Federal Contract Compliance Programs (OFCCP).
Aspect: Compliance
G4-SO8
Aspect: Supplier Assessment for Impacts on Society
G4-SO9
Percentage of new suppliers that were screened using criteria for impacts on society.
Current contracts do not include impacts on society screening. Our contracts include clauses requiring compliance with the laws
of the country where project is located and compliance with the COBC and/or KBR Supplier COBC where applicable.
G4-SO10
Significant actual and potential negative impacts on society in the supply chain and actions
taken.
KBR does not collect this data.
Aspect: Grievance Mechanisms for Impacts on Society
G4-SO11
Number of grievances about impacts on society filed, addressed, and resolved through formal
grievance mechanisms.
In 2015 in the United States, there were four claims filed and closed involving allegations of discrimination. In 2015, KBR’s Ethics
Hotline received 442 calls with 38 percent related to Code of Business Conduct issues. In 2015, 37 Code of Business Conduct
matters alleged discrimination. Each matter was investigated thoroughly.
PRODUCT RESPONSIBILITY
Aspect: Customer Health & Safety
G4-PR1
Percentage of significant product and service categories for which health and safety impacts
are assessed for improvement.
KBR does not manufacture products.
G4-PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning
the health and safety impacts of products and services during their life cycle, by type of
outcomes.
KBR received a total of five OSHA citations for non-compliance; corrective measures were implemented immediately where
possible and or actions were put in place to resolve incidents from reoccurring.
Aspect: Product and Service Labeling
G4-PR3
Type of product and service information required by the organization’s procedures for product
and service information and labeling, and percentage of significant product and service categories subject to such information requirements.
KBR does not manufacture products.
48
Global Reporting Initiative (GRI)
2015 KBR SUSTAINABILITY REPORT
G4-PR4
Total number of incidents of non- compliance with regulations and voluntary codes concerning
product and service information and labeling, by type of outcomes.
KBR does not manufacture products.
G4-PR5
Results of surveys measuring customer satisfaction.
KBR does not manufacture products.
Aspect: Marketing Communications
G4-PR6
Sale of banned or disputed products.
KBR does not manufacture products.
G4-PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning
marketing communications, including advertising, promotion, and sponsorship, by type of
outcomes.
KBR does not manufacture products.
Total number of substantiated complaints regarding breaches of customer privacy and losses
of customer data.
KBR did not receive any complaints concerning breaches of customer privacy.
Monetary value of significant fines for non-compliance with laws and regulations concerning
the provision and use of products and services.
KBR did not receive any complaints concerning breaches of customer privacy.
Aspect: Customer Privacy
G4-PR8
Aspect: Compliance
G4-PR9
www.kbr.com
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