History

Building Sustainable Solutions Sustainability Report

Categories
Published
of 24
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Description
Building Sustainable Solutions BUILDING SUSTAINABLE SOLUTIONS Fluor is more than a business. We have a relationship with the world. We work with stakeholders who want what we want: a healthy place to live
Transcript
Building Sustainable Solutions BUILDING SUSTAINABLE SOLUTIONS Fluor is more than a business. We have a relationship with the world. We work with stakeholders who want what we want: a healthy place to live and work and an opportunity to thrive. We are solving problems not only for today's generations, but also for generations to come. Together, we and our stakeholders will build solutions that are sustainable across time. We are vested in the future, and our responsibilities are clear. ABOUT THE COVER Photo courtesy of Denver Regional Transportation District. Fluor, as the managing partner of the Denver Transit Partners (DTP) Concession, is responsible for the financing, design, construction, testing and commissioning, as well as operations and maintenance of the 36-mile (60-kilometer) electrified Eagle P3 (public-private partnership) Commuter Rail network for the Regional Transportation District (RTD) in Denver, Colorado. In December 2014, new commuter rail cars arrived from Hyundai Rotem s assembly plant in Philadelphia, Pennsylvania. The cars were brought to Denver's Union Station for an open house and ribbon cutting ceremony, where more than 6,500 people toured them and the renovated station. Among the visitors was John Barr, who uses a motorized wheelchair due to cerebral palsy. Three years ago using a mock-up of the car, Barr s input led to design changes that make it easier for disabled riders to use the commuter rail system. Although Denver's Union Station was not part of the Denver Rail Project, it was renovated and reopened in 2014 and will be the hub for all commuter rail lines in 2016 as part of the Denver Rail Project. The station includes a new hotel, restaurants and shops and also encourages multimodal transportation use with an underground bus concourse and light-rail station, all within a block of one another. CAUTIONARY STATEMENT This Sustainability Report and fluor.com/sustainability contain certain statements that may constitute forward-looking statements involving risks and uncertainties, including statements about our financial condition, new awards, backlog levels and implementation of strategic initiatives and organizational changes. These forward-looking statements reflect our current analysis of existing information as of the date of this report and are subject to various risks and uncertainties. Due to known and unknown risks, the company s actual results may differ materially from our expectations or projections. Additional information concerning factors that may influence our results can be found under Item 1A Risk Factors in our 2014 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on February 18, The term material is used within this document to describe issues for voluntary sustainability reporting and should not be read as equating to the use of the word in any other Fluor reporting or filing. Our 2014 Annual Report on Form 10-K and our Proxy Statement for the 2015 Annual Meeting of Stockholders may be downloaded at investor.fluor.com. No material in this Sustainability Report forms any part of those documents. No part of this report or fluor.com/ sustainability constitutes, or shall be taken to constitute, an invitation or an inducement to invest in Fluor Corporation or any other entity and must not be relied upon in any way in connection with any investment decision or otherwise. CONTENTS Chairman & CEO Letter 4 About the Company About the Report Awards & Certifications PROGRESS REPORT 16 Community & Social Service 17 Employees & Workplace 21 Ethics & Compliance 27 Governance 34 Health, Safety & Environment 35 Supply Chain & Procurement 46 APPENDIX A - GRI CONTENT INDEX 50 APPENDIX B - PROJECT PROFILES 65 Chevron Phillips Chemical Cedar Bayou Petrochemical Project Baytown, Texas, USA 3 A Message from the Chairman & CEO G4-1, G4-2 Dear Valued Stakeholders: The strength of any enterprise can be measured by its performance and commitment to core beliefs and values. Fluor core values of safety, integrity, teamwork and excellence shape our behaviors and reinforce our culture throughout the world. Since 2012, we have focused on strengthening Fluor s ability to serve our clients in accordance with these core values. This is critical as we strategically move from an engineering, procurement, maintenance and construction company to an integrated solutions provider, bringing creative, innovative and total solutions to our clients unique business challenges. Sustainability is fundamental to our integrated solutions offerings. We are uniquely positioned to provide our clients with the technical experience and know-how, in areas such as energy efficiency and managing their carbon footprints, to help drive sustainable development. Fluor s integrated solutions offering is demonstrated by our Eagle P3 Project. Fluor, as the managing partner of the Denver Transit Partners Concession, is responsible for the financing, design, construction, testing and commissioning, operations and maintenance of the Eagle Commuter Rail network in Denver, Colorado. Our definition of sustainability extends to include our world-class safety programs and steadfast dedication to bettering the communities where we live and work. From our work with the NWR Partnership to provide engineering, procurement, fabrication and construction for the Sturgeon Refinery project in Alberta, Canada, converting bitumen into high quality marketable products, to the 41,000 hours our employees volunteered to community projects and the $8.5 million Fluor, its employees and the Fluor Foundation contributed to financial support to community initiatives in 2014, our commitment to sustainability is strong. David T. Seaton Chairman and Chief Executive Officer 4 Integrity, a cornerstone of sustainability, is pervasive as we conduct our business all over the world every day. We have a leadership role in the World Economic Forum s Partnering Against Corruption Initiative (PACI) and PACI Vanguard, created to establish a harmonized legal framework that more effectively and consistently addresses the enforcement of anti-corruption laws worldwide. This year, the PACI Vanguard will be working closely with the World Economic Forum B20 Working Group on Anti- Corruption. Fluor will lead this task force, with the collective goal of introducing and using technology to make the public procurement and customs processes stronger and more transparent around the world, and anti-corruption training for public employees to be more accessible. Fluor is honored to be recognized for our dedication to our core values. In 2014, our company was again listed as one of Ethisphere s World s Most Ethical Companies. This is particularly noteworthy because Fluor is one of only 14 companies to receive this prestigious recognition in each of the nine years it has been awarded. More recently, Fortune magazine named Fluor the top-ranked engineering and construction company on its 2015 World s Most Admired Companies list. This marks the fourth year in a row that our company has been ranked number one in this category by Fortune. During 2014, our core value of safety was challenged when we lost eight of our Fluor colleagues in two separate industrial incidents. This is particularly unfortunate given the deep commitment we have to provide a safe workplace for our employees and subcontractors. Fluor leaders addressed the safety challenges we faced from these incidents, strengthening our commitment to safe work practices and to safety as a core value of our company. This : Building Sustainable Solutions details our company s commitments to sustainability. I encourage you to read the report and learn more about how Fluor is working to create sustainable growth for the benefit of all our stakeholders. Sincerely, David T. Seaton Chairman and Chief Executive Officer August About the Company G4-3, G4-5 Headquartered in Irving, Texas, Fluor Corporation (NYSE: FLR) is one of the world s largest publicly-traded engineering, procurement, construction, fabrication and modularization, commissioning and maintenance and project management companies. For more than a century, Fluor, through its operating subsidiaries, has been a trusted global leader in providing exceptional services and technical knowledge across a broad range of industries. Clients rely on Fluor to deliver world-class integrated solutions that optimize their assets, improve their competitive position, increase their long-term business success and support their sustainability goals. G4-6 Consistently rated as one of the world s safest contractors, Fluor s primary objective is to develop and execute projects with excellence. Fluor has approximately 40,000 employees in nearly 80 countries and performs work on more than 1,000 projects in any given year in more than 40 specialized industries. This diversified model allows us to meet the challenges of engineering and design optimization, from small- and mid-sized capital projects to complex megaprojects from concept to completion. Fluor s Diversified Business Segments G4-4, G4-7, G4-17 Fluor reports its results under five primary segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power. These segments serve clients through various operating companies, subsidiaries and joint ventures. For a complete list, refer to Exhibit 21 of Fluor s 2014 Annual Report on Form 10-K. OIL & GAS Oil & Gas designs and builds some of the world s largest and most complex upstream, downstream and petrochemical projects in remote and challenging locations around the globe. The group provides design, engineering, procurement, construction, fabrication and project management services for processing plants, refineries, pipelines, offshore facilities and other energy assets. Fluor's new Amsterdam office building in the Netherlands 6 INDUSTRIAL & INFRASTRUCTURE Industrial & Infrastructure delivers projects that are the building blocks of today s urbanized world. The group serves the mining and metals, highway and rail transit, heavy civil, manufacturing and life sciences industries worldwide by providing design, engineering, procurement, construction, fabrication, operations and maintenance and project management solutions CASH & MARKETABLE SECURITIES (DOLLARS IN BILLIONS) GOVERNMENT The Government Group provides engineering, construction, logistics, base and facilities operations and maintenance, contingency response and environmental and nuclear services to the U.S. government and governments abroad. GLOBAL SERVICES Global Services provides a wide array of solutions to support projects across Fluor groups and to help clients optimize their performance in locations around the world. The group offers construction resources, industrial fleet and equipment services, temporary staffing, fabrication and modularization services and supply chain solutions. POWER Power helps its clients generate new megawatts to meet the world s growing demand for electricity. The group designs, builds, commissions, retrofits and maintains facilities across all fuel types and technologies, including fossil fuels, renewables and nuclear. The group also has expertise in environmental compliance and emissions retrofit work CONSOLIDATED BACKLOG (DOLLARS IN BILLIONS) G4-9, G4-EC1 FINANCIAL HIGHLIGHTS Fluor s market capitalization on December 31, 2014, was $8.9 billion. For 2014, revenues were $21.5 billion, with net earnings of $716 million. Cash and marketable securities on December 31, 2014 were $2.4 billion. Total assets were $8.2 billion and long-term debt was $ million. Total shareholders equity stood at $3.1 billion. The total cost of revenue, which includes operating costs, was $20.3 billion. New awards for the year were $28.8 billion and year-end backlog was $42.5 billion. 7 Fluor provides financial information, including revenues, cost of revenues, cost of capital (including interest expense and dividends to shareholders), corporate general and administrative costs (including compensation costs) and retained earnings, in its quarterly and annual filings with the U.S. Securities and Exchange Commission. Detailed information about Fluor s operations is available in the company s 2014 Annual Report on Form 10-K. 27% 12% 4% 3% 2014 REVENUE BY SEGMENT Power Oil & Gas Industrial & Infrastructure Government Global Services 54% CONSOLIDATED NEW AWARDS (DOLLARS IN U.S. BILLIONS) % % CONSOLIDATED BACKLOG BY REGION United States Europe, Africa & Middle East Americas (Non-U.S.) Asia Pacific & Australia 34% % EARNINGS PER SHARE (DOLLARS IN U.S. BILLIONS) % CONSOLIDATED BACKLOG BY SEGMENT Oil & Gas Industrial & Infrastructure Government Power 17% % % 8 G4-9, G4-10 OUR GLOBAL WORKFORCE Fluor is a Fortune 200 company, with a year-end 2014 global workforce of 37,508 employees, including 27,643 salaried employees and 9,865 craft and hourly workers. In 2014, the company s salaried workforce was 74 percent male and 26 percent female. G4-13 SIGNIFICANT CORPORATE CHANGES IN REPORTING PERIOD Information about significant corporate changes is contained in the 2014 Annual Report and Form 10-K found on investor.fluor.com. G4-24, G4-25 STAKEHOLDER ENGAGEMENT As a global services company focused on the engineering and construction of highly complex capital projects, Fluor recognizes that its stakeholders are critical to its success. These include clients, communities, employees and union organizations, institutions, governments, non-governmental organizations, shareholders, and subcontractors, suppliers and industry associations. Many of the priorities associated with sustainability at Fluor are a result of our ongoing interactions with our clients. Clients rely on Fluor to help them address their sustainability challenges and issues, including the need to improve energy efficiency, reduce greenhouse gas emissions and design and build more environmentally friendly, cost efficient manufacturing facilities. We know from experience that our clients place a premium on ethical business conduct; high levels of employee knowledge and expertise; excellence in health, safety and environmental matters; and a proactive approach to community involvement. We place a special emphasis on those areas that we consider to be essential to our clients business success. We use a variety of means to interact and communicate with our key stakeholders. Internally, we have various communications and feedback channels in place, as well as a global online collaboration platform, to encourage enterprise-wide information exchange. Externally, we engage with clients and other stakeholders through our day-today project operations, as well as through memberships in and involvement with numerous international, national, regional and local industry associations. More information about our stakeholder engagement can be found in the progress reports on pages 18, 21, 27, 34, 35 and 47 of this report. 9 G4-10, G4-15, G SUSTAINABILITY-RELATED MEMBERSHIPS AND ASSOCIATIONS Listed below are the principal associations and initiatives with which Fluor is involved at a global, company-wide level in the areas of sustainability: World Economic Forum (WEF) Global Agenda Council on Anti-Corruption & Transparency and chair of Partnering Against Corruption Initiative (PACI) United Nations (UN) Global Compact, signatory B20 Coalition s working group on Improving Transparency and Anti-Corruption and member, B20 Infrastructure and Investment Taskforce American Society of Civil Engineers, Committee on Sustainability (United States) Additional memberships of note are included in the progress reports on pages 18, 21, 28, 36 and 47 of this report. United States 32% Canada 8% Europe, Africa & Middle East 32% Latin America 7% Percent of Employees by Region Asia Pacific & Australia 21% 10 About the Report G4-29, G4-30 Fluor has published a Sustainability Report annually since Prior year sustainability reports are available online. In the, there is a new section of project profiles shown as Appendix B. While each project is a sucess story, highlighted in Appendix B are six projects with exceptional records in the sustainability arena. G4-28 This Sustainability Report features quantitative and qualitative data for calendar year 2014, as well as material from previous years and relevant information that became available in 2015 prior to the publication of the report. This report should be read in conjunction with the information contained in Fluor s 2014 Annual Report on Form 10-K and its Proxy Statement for the 2015 Annual Meeting of Stockholders. G4-15 This Sustainability Report serves as Fluor s annual Communication of Progress under the United Nations (UN) Global Compact. The UN Global Compact is a leadership platform that enables companies to voluntarily align their operations and strategies with 10 universally-accepted principles in the areas of human rights, labor, environment and anti-corruption and to actively support UN goals regarding these issues. Fluor became a signatory to the UN Global Compact in According to the UN, there are more than 10,000 signatories based in 145 countries. the Sustainability Committee addresses all material aspects. The report was developed to provide information on Fluor s progress under the UN Global Compact to clients, employees, shareholders, lenders, financial analysts, rating agencies, suppliers and subcontractors, non-governmental organizations, news media and the communities in which the company operates. Fluor used the Global Initiative s TM (GRI) G4 Sustainability Guidelines as a guide for developing this report. In determining content, Fluor s Sustainability Committee considered the company s core values and experience, as well as the reasonable expectations and interests of our stakeholders, Fluor s clients being key among them. This evaluation formed the basis for a materiality analysis, as advocated by the GRI report development process. This sustainability materiality analysis is separate and distinct from the company s analysis of materiality for other legal and financial reporting purposes, including U.S. Securities and Exchange Commission disclosures. G4-18, G4-48 MATERIALITY AND REPORTING PROCESS Fluor has prepared this report under the direction of the company s Sustainability Committee. Materiality of content included in this and its prioritization were assessed and determined by committee members. Fluor's Chairman and CEO reviews and provides comments on this report after 11 Fluor s sustainability report covers information that reflects overall company strategies, goals and priorities and includes data that are reasonably available. G4-19, G4-20, G4-21 MATERIALITY ANALYSIS: SCOPE AND BOUNDARY For all material aspects identified, the related data and performance information presented in this report cover Fluor s global operations as a company, unless otherwise noted for situations or circumstances where reporting data are collected and available only for a certain geography, business or issue. Financial figures cover Fluor operations as set forth in our 2014 Annual Report on Form 10-K. All financial figures are presented in U.S. dollars unless otherwise noted. In the context of Fluor s carbon footprint, this report represents emissions produced within the corporate boundary and excludes emissions produced at client sites; however, all health, safety, environmental, economic, stakeholder engagement, governance, human rights, labor practices, philanthropy and community service data included in this report cover Fluor and its subsidiaries. G4-22, G4-23 No significant changes in reporting scope, boundary or measurement methods occurred during The GRI G4 aspects shown on page 13 have been determined by the Sustainability Committee to be relevant or material to Fluor s operations. In this document, Fluor reports on the GRI G4 indicators that were relevant to our business operations and measurable in ALIGNM
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks