
2020 CORPORATE SUSTAINABILITY REPORT
INTRODUCTION
A MESSAGE FROM OUR CEO
Our purpose has never meant more than it has during the past year, and the value of what we do has never been higher. As so many of our team members worked on the frontlines during the pandemic, the world came to recognize what we have known all along-that our team members and the work they do are, indeed, essential. Over the past year, I have never been more inspired by our people, our purpose and our organization, and I want to take a moment to thank our team members again for the dedication to our company's mission: to take care of the people, spaces and places that are so important to us all.
The pandemic has posed unprecedented challenges for our clients and society at large, and we at ABM have shown we are up to the task. We rapidly focused on the safety of our team members and the heightened needs of our clients. We developed our proprietary, expert- backed Enhanced Clean and Enhanced Facility programs to deliver healthy spaces, safety benefits and peace of mind to our clients and their employees. We also assembled an Expert Advisory Council, consisting of leading internal and external experts in infectious diseases and industrial hygiene, that will continue to provide significant value to our clients and our communities for many years to come.
We have also become a leading voice for our industry. In April 2020, we partnered with other large organizations to form the Cleaning Coalition of America. As a founding member, ABM is committed to representing the needs of an industry that played a vital role in keeping essential services operating as the country recovered.
Through all of this, we've always maintained a focus on sustainability. Yes, we had to adapt fast to what seemed like ever-changing conditions, but we took no shortcuts. Instead, we recommitted ourselves to leaving a healthier planet for the next generation and beyond. As a result, we ensured that our new services were fully aligned with green building standards, and we engaged with our key suppliers on initiatives that report back environmental benefits to our clients. We also continued our pledge to increase the electrification of our vehicles, looked at opportunities to increase the procurement of renewable electricity and devoted considerable resources to being consistent with what we bring to the market and the way we operate. This is why we renewed our carbon reduction goals in alignment with the Science Based Targets initiative methodology.
The past year brought to light much more than the challenges of the pandemic. Social and cultural movements swept across the country and the world, underscoring that being a good global citizen goes beyond environmental stewardship. As a representative/ leader of more than 100,000 vital and dynamic team members from diverse backgrounds and countries who proudly represent the communities in which they live and serve, there has never been a more powerful time to reaffirm our company's core values of respect and integrity. To underscore our commitment to diversity and inclusion among our board of directors, executive leadership and our entire workforce, we instituted a Culture and Inclusion Council comprised of team members across the business, dedicated to fostering diverse talent, driving meaningful social change and strengthening our communities. We also plan to enter into partnerships with respected organizations that are focused on building a more equitable society for the next generation in the areas of advocacy, civil rights, education, and workforce development.
Looking back, it's truly been a remarkable year. We faced monumental challenges and overcame every hurdle put before us. As we continue to raise the standard in everything we do, we will be a driving force of a cleaner, healthier and more sustainable world.
Scott Salmirs President & CEO, ABM
Our purpose - to take care of the people, spaces and places that are important to you - has never meant more or been more relevant.
CHALLENGES OF COVID-19
Our response to COVID-19
Throughout its history, ABM has built our reputation on being there for our team members, clients and the communities we serve during the most critical times. To ensure business continuity for our clients and the safety of our employees, ABM quickly established protocols to deliver the essential, critical services thousands of our clients depend on.
In February 2020 in response to the COVID-19 pandemic, ABM formed an Operational Response Team (ORT) whose members would represent corporate functions and industry groups across the enterprise. The ORT would collectively become the communication network to share strategies for moving through the pandemic and into the future. Additionally, we formed an Expert Advisory Council with internal subject matter expertise in cleaning and disinfection, as well as external experts in infection prevention and control, safety and industrial hygiene. Information from the advisory council is channeled through various subcommittees and the ORT, and ultimately is cascaded throughout the organization through weekly industry group team calls.
The Expert Advisory Council focuses on the health, well-being and safety of our team members and our clients. The council works in partnership with ABM to review and advance innovative technologies that support consistent cleaning and disinfection practices in the workplace across our industry groups. They also work to respond to real world needs for providing safe, clean, healthy environments for building occupants. This group has advised on the development of ABM's EnhancedClean and Enhanced Facility programs.
ENHANCED Clean™
The EnhancedClean program demonstrates that we are delivering clean, healthy and safe environments through solutions that meet their green building certification standards and reduce their environmental footprint and includes these dynamic program elements:
- Standard Operating Procedures have been developed for cleaning and disinfection, safety, hand hygiene, PPE and social distancing in alignment with recommendations from the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO), the Occupational Safety and Health Administration (OSHA) and other governing agencies.
- Communication to our ABM team is supported by daily safety messaging, Standard Operating Procedures, white paper Position Statements and office-hour webinars that update the field on changing technologies.
- Informational Tools are readily available to our team members and clients, including safety signage and guidance on the strategic placement of hand sanitizing stations and on the positioning of staff to police high- traffic areas with a focus on increased frequency of cleaning high-touch surfaces.
- An Accredited Training Program requires the validation of knowledge and competencies of janitorial staff who deliver our EnhancedClean protocols.
CHALLENGES OF COVID-19 CONTINUED
We developed a three-step approach, Return Safely, for returning to work, spaces and places safely, consisting of formal training of our team members and increased frequency of high-touch disinfection and broader disinfection protocols, to help clients deliver assurance to their employees, customers and the public.
Site assessments for both the EnhancedClean and EnhancedFacility programs have been developed to identify the need for increased frequency and look at effective locations for hand sanitizing stations, touch-less products, and a focus on indoor air quality and technologies that improve total building health.
- Frequent High-Touch Disinfection includes the ongoing approach to surface disinfection and recommendations for increasing frequencies, using EPA-registered disinfectants.
- Broader Disinfection for the EnhancedClean program includes electrostatic spraying and UV light technologies that complement the daily disinfection of surfaces.
- Personal Protective Equipment training is provided and implemented throughout the program, as well as social distancing and proper hand hygiene for all ABM team members and encouraged for all customer personnel.
- Enhanced Facility is designed to help customers assess the health and controls of their buildings from an HVAC controls standpoint, where ABM can assist with indoor air quality and some integrated surface disinfection systems.
TIMELINE OF ABM'S RESPONSE TO COVID-19
JANUARY 2020
- Media reports begin to emerge from Wuhan, China, about a mysterious respiratory illness.
- ABM assembles small working group, including Safety, HR, Operations, Risk and Communication, to devise internal COVID-19 response, and begins regular email cadence to U.S. and U.K. teams with guidance from WHO and CDC.
- First U.S. and U.K. cases; CDC begins screenings at JFK International, San Francisco International and Los Angeles International airports.
- ABM establishes infection-control and cleaning protocols based on CDC and WHO guidance.
- WHO declares global public health emergency.
FEBRUARY 2020
- Global air travel restrictions begin.
- U.S. declares public health emergency.
- ABM issues information to team members so they can talk with clients about processes and protocols in place.
- ABM establishes expanded COVID-19 Operational Response Team (ORT) to include human resources HR, ILegal, Risk, Safety, Operations, Service Delivery, Communications, Marketing and leaders from across the enterprise.
MARCH 2020
- Cases begin to multiply around the globe; WHO declares COVID-19 a global pandemic.
- U.S. states begin to enact stay-at-home orders, except for essential needs or jobs; ABM's team members are considered essential workers.
- ABM launches public-facing COVID-19 Information Center and internal, dedicated employee site with extensive resources, as well as a dedicated email box for team members to send questions and to track any team members suspected or known to have COVID.
- ABM announces remote working policy and travel restrictions and implements daily management communication.
APRIL 2020
- ABM announces the ABM EnhancedClean program- a new standard for cleaning and disinfection rooted in expert insight and industry knowledge-developed to help in the fight against COVID-19.
- ABM is a founding member of the Cleaning Coalition of America to advocate on behalf of the 1 million professional cleaners nationwide to shape and advance crucial policies and measures that promote the safe and responsible return to business and the reopening of our economy.
MAY 2020
- The ABM Expert Advisory Council is established. Composed of leading experts in infectious disease and industrial hygiene, the team ensures consistent, high-quality operating practices and best-in-practice training so team members, clients and the public remain healthy and safe.
- ABM creates New Ways of Working team and campaign, featuring tips, tools and resources to help team members working remotely.
SEPTEMBER 2020
- ABM introduces EnhancedFacility program to provide facility services and solutions focused on improving indoor air quality to foster better occupant well-being through improved building health, safety and efficiency.
DECEMBER 2020
- Vaccinations begin to be offered in the U.S. and U.K.
- As a founding member of the Cleaning Coalition of America, ABM advocates for cleaners to be prioritized for vaccination early as essential workers.
JANUARY 2021
• ABM kicks off an ongoing COVID-19 vaccination education campaign with team members, providing resources such as FAQs, posters, weekly state-by-state report on each state's vaccine phase and links to state vaccine websites.
ABM AT A GLANCE
Three core principles at the heart of ABM
PURPOSE:To take care of the people, spaces and places that are important to our clients and team members
VISION: To see fully engaged people make us the clear choice in the industries we serve
MISSION: To make a difference, for every person, every day
Our Business
ABM Industries Inc., a leading provider of integrated facility solutions, is headquartered in New York City. The company delivers exceptional experiences to our clients, and serves properties of all sizes across urban, suburban and rural areas, including:
- Aviation. Aviation services support airlines and airports, and range from parking and janitorial to passenger assistance, catering, air cabin maintenance and transportation.
- Business & Industry. Business & Industry, our largest reportable segment, encompasses janitorial, facilities engineering and parking services for commercial real estate properties and sports entertainment venues, as well as traditional hospitals and non-acute healthcare facilities. We also provide vehicle maintenance and services to rental car providers.
- Education. Education provides custodial, landscaping and grounds services, in addition to facilities engineering and parking services for public school districts, private schools, colleges and universities.
- Technology & Manufacturing. Technology & Manufacturing provides janitorial, facilities engineering and parking services to industrial and high- tech manufacturing facilities.
- Technical Solution. Technical Solutions specializes in mechanical and electrical services.
ABM SERVES A WIDE VARIETY OF MARKETS, INCLUDING:
- Airports
- Airlines
- Banking & Financial Services
- Commercial Properties
- Government
- Hospitality
- Retail & Distribution
- Sports & Entertainment
- Higher Education
- K-12 Education
- Hospitals
- Medical Office Buildings
- Senior Living
- Industrial & Manufacturing
- Life Sciences
- Technology & Data Centers
Ownership and Legal Form
ABM is incorporated under the laws of the State of Delaware and is a publicly traded company, governed by a board of directors. ABM common stock is listed on the New York Stock Exchange [NYSE: ABM].
The person or entities known to ABM to be beneficial owners of more than 5% of the shares of ABM common stock as of December 31, 2020, are set forth below. This disclosure is based on a review of Schedule 13G filings with the U.S. Securities and Exchange Commission (SEC).
- Blackrock, Inc.
- The Vanguard Group, Inc.
- State Street Corporation
- ArrowMark Colorado Holdings LLC
- Dimensional Fund Advisors LP
Scale of the Organization
Dollar amounts in millions, except per-share amounts. Information relates to ABM's fiscal year ending Oct. 31, 2020.
External Initiatives
- International Facility Management Association (IFMA)
- U.S. Green Building Council (USGBC)
- Energy Star Partner (ES)
Membership or Association
- Association of Energy Engineers (AEE)
- National Association of Energy Service Companies (NAESCO)
- Zero Net Energy Alliance (ZNE)
- Building Owners and Managers Association (BOMA)
- Commercial Real Estate Women Network (CREW)
- Energy Management Association (EMA)
- Association of Energy Engineers (AEE)
- American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)
SUSTAINABILITY AWARDS AND RECOGNITION
Environmental, Social and Governance (ESG) Performance Ratings
ABM's outstanding sustainability commitment and performance has been reflected in the ratings we received from the very first year we responded to the ratings services. The company has engaged in cross-functional efforts to understand and use the ratings as one source for identifying areas of improvement that align with
- BBB on a scale of AAA-CCC
- ISS ESG Corporate Rating: ISS ESG PRIME | positioning the company in the top 10%of the industry.
- EcoVadis: BRONZE | ABM moved from 45/100 to 52/100, positioning ourselves at the top 44% of the overall score distribution of all companies rated by EcoVadis in ABM's industry space.
- Carbon Disclosure Project: C | ABM moved from D to C, outperforming the North American average.
- Commitment to the United Nations Global Compact
*For more information about our financial statements please refer to the financial data provided on our Annual Report available on-line at our website
GOVERNANCE
At ABM, our governance structure provides the framework to serve all of our stakeholders, including team members, clients, suppliers, investors and communities, with integrity. Our board of directors sets the tone at the top, and oversees ABM's management and strategic initiatives. As of March 24, 2021, the date of ABM's 2021 Annual Meeting of Stockholders, our board of directors had 10 members: Quincy L. Allen, LeighAnne G. Baker, Linda Chavez, Donald F. Colleran, Art A. Garcia, Thomas M. Gartland, Jill M. Golder, Sudhakar Kesavan, Scott Salmirs and Winifred M. Webb. All of our directors, with the exception of ABM's Chief Executive Officer, Scott Salmirs, are independent. One of our independent directors, Sudhakar Kesavan, also serves as chairman of the board of directors.
ABM's board of directors has four standing committees. Each committee is composed solely of independent directors; meets periodically throughout the year; reports its actions and recommendations to the full board; receives reports from senior management; meets regularly in executive session; annually evaluates its performance; and has the authority to retain outside advisors.
Annually, or more frequently as needed, our Governance Committee reviews committee assignments and makes recommendations to the board with respect to committee membership, taking into consideration each director's qualifications and the desire to refresh committee membership. The primary responsibilities of each committee, as well as membership of each committee as of April 1, 2021, are summarized below. Each committee is governed by a charter, which sets forth its responsibilities. For more information, see the committee charters on the corporate governance section of our website at investor.abm.com/corporate-governance.cfm.
ABM's Audit Committee, comprised of Art A. Garcia (chair), Quincy L. Allen, Jill M. Golder and Winifred M. Webb, oversees the company's financial reporting process and assists the board with respect to the company's compliance with legal and regulatory requirements. In addition, the Audit Committee reviews policies with respect to financial risk management and the company's major financial risk exposures. The Audit Committee met eight times in fiscal year 2020.
ABM's Compensation Committee, comprised of LeighAnne G. Baker (chair), Linda Chavez, Donald F. Colleran and Thomas M. Gartland, provides direction on executive compensation and monitors potential risks that may be associated with ABM's compensation programs. The Compensation Committee met eight times in fiscal year 2020.
ABM's Governance Committee, comprised of Thomas M. Gartland (chair), Linda Chavez, Jill M. Golder and Sudhakar Kesavan, identifies qualified candidates to serve on the board, and reviews the board and its committees' composition and structure. In addition, the Governance Committee is tasked with developing and recommending corporate governance principles and certain company policies to the board. The Governance Committee met nine times in fiscal year 2020.
ABM's Stakeholder and Enterprise Risk Committee, comprised of Winifred M. Webb (chair), LeighAnne G. Baker, Donald F. Colleran and Art A. Garcia, assists the board in its oversight of the company's activities and practices relating to social, environmental and public policy matters, as well as in identifying, evaluating and mitigating strategic and operational risks. The Stakeholder and Enterprise Risk Committee, formed in June 2020, met two times in fiscal year 2020.
Our board of directors is committed to refreshment and proactive assessment of its collective skills, experience, and perspectives. Fifty percent (50%) of our current members have served on the board for five or fewer years. In analyzing director nominations and director vacancies, our Governance Committee seeks to recommend candidates who will create a collective membership on the board with varied experience, backgrounds and perspectives, including the specific qualifications of industry knowledge; accounting and finance; management; leadership; business strategy and operations; corporate governance; other public board experience; and risk management. The Governance Committee also seeks diversity in its directors, including but not limited to diversity in the areas of race, ethnicity, national origin, gender, and age. When identifying highly qualified candidates for membership, our Governance Committee includes, and requests that any such search firm it engages include, women and racially and ethnically diverse persons in the initial pool from which director candidates are chosen, in accordance with ABM's Corporate Governance Principles.
Our Board of Directors and Governance Committee are committed to Board diversity: 40% of our Board members are women and 40% of our Board is racially or ethnically diverse.
During fiscal year 2020, the board held 12 meetings. Each director attended 100% of those meetings and 100% of his or her committee meetings. More information about our governance structure can be found in ABM's 2021 Proxy Statement, filed with the United States Securities and Exchange Commission on February 12, 2021. Additional information concerning our board and governance can also be found at abm.com/investors/.
TENURE - 6.4 YEARS AVERAGE
DIVERSITY - 40% WOMEN
40% RACIALLY OR ETHNICALLY DIVERSE
SUSTAINABILITY GOVERNANCE
During the 2020 fiscal year, ABM's board of directors established the Stakeholder and Enterprise Risk (SER) Committee. Comprised entirely of independent directors, The SER Committee is responsible for oversight of social, environmental, and public policy matters; stakeholder impacts; and enterprise and strategic risks.
The company's corporate sustainability manager regularly reports to the SER Committee on topics including, but not limited to, ABM's sustainability strategy axes, its impacts, initiatives, and performance metrics; the company's sustainability commitments in terms of carbon reduction and increased electrification of its fleet; ABM's ESG ratings; and our alignment with sustainability disclosure standards. Reporting directly to the chief communications officer, the corporate sustainability manager oversees sustainability strategy and monitors different initiatives, such as the GreenCare® portfolio of sustainable services and the company's philanthropic program ABMCares.
In addition, this manager oversees the Sustainability Committee, which is comprised of various sustainability project managers from across the company with expertise in waste, energy, green cleaning services, and the ABMCares committee that comprises team members who volunteer their time to advance social and philanthropic projects. Also, weekly meetings between the corporate sustainability manager and the company's environmental manager in the U.K. ensure alignment of sustainability efforts. During the 2021 fiscal year, ABM plans to create a position that will manage diversity, culture, and inclusion efforts and that will report on the company's social impact and human capital efforts.
To ensure dissemination of information at the highest levels of the company, the results of ABM's sustainability performance, as well as its ESG questionnaires, are presented on a quarterly basis to the members of the Company's senior management team.
Climate change risk is addressed by the company's enterprise risk management system that aims to demonstrate that ABM understands and strives to manage risks associated with our business strategy and objectives. This system covers topics related to human capital, cyber risk, class action lawsuits, extensive shareholder activism and climate change.
STAKEHOLDERS AND MATERIALITY ANALYSIS
Effective communication with our stakeholders is key to a successful approach to sustainability. We maintain an ongoing and open dialogue with our clients, vendors, team members and executives including gathering valuable insights that inform our sustainability efforts. For example, we have identified key stakeholders with a growing interest in our sustainability programs and policies including clients who valued this as an important topic on the client satisfaction surveys; suppliers who support our delivering sustainable services; and our top 300 leaders across the organization.
In 2020, ABM conducted a yearly materiality assessment and analysis, adhering to the principles of inclusion, materiality, responsiveness, and impact defined in the AA1000 standards. This process ensured alignment of the company's material aspects with stakeholder expectations.
This year, we are disclosing our main sustainability challenges and associated action plans to our stakeholders through our Sustainability Report and 10-K document on a regular basis. ABM annually reports a list of all consolidated subsidiaries as of the fiscal year in Exhibit 21.1 to ABM's 2020 Annual Report on Form 10-K, which was filed with the SEC on Dec. 17, 2020. Subsidiaries have been excluded from this Sustainability Report.
Who Are Our Stakeholders and What Are Their Expectations?
- Investors and Analysts: Shareholders and analysts expect ABM to grow in a profitable and sustainable way.
- Clients: ABM's services are generally provided at the locations of our clients, who expect the provision of sustainability services around energy, water, waste, and green cleaning.
- Team Members: Our team members continue to be the driving force behind everything we do, and they expect a safe working environment, decent working conditions and development opportunities.
- Vendors: As a service-based company, ABM relies strongly on the know-how of a number of vendors and partners providing services and products. They expect ABM to be a responsible partner and employer.
- Communities: Where ABM operates expect the company to do so in a responsible way, generating a positive impact at a local level.
Materiality Analysis
To ensure transparency across our corporate sustainability analysis, we've partnered for the ninth year in a row with the Center for Sustainability Excellence to perform a materiality analysis and publish an independent audit. To ensure accuracy of reporting, we've introduced an internal audit exercise to verify both qualitative and quantitative information. Results from the internal audit exercise have been shared with the Board of Directors. In addition, we received external feedback from AdvisIRy Partners and Seyfarth Shaw LLP to ensure we cover key topic trends and best practices in our report.
In order to build our materiality matrix, we distributed a survey with the Global Reporting Initiative's (GRI) list of topics material to ABM and asked both our internal (team members, executives) and external (clients, vendors) stakeholders to rank them in order of importance. New material issues identified this year are: economic performance, anti-competitive behavior, tax, supplier social assessment and response to social crisis. In order to identify priority topics to include in our sustainability strategy, we decided to focus on the aspects identified with "high importance" by our internal and external stakeholders.
Internally, topics such as taxes, employment, occupational health and safety, non-discrimination, diversity, customer health and safety and response to social crisis were identified as most relevant. Our vendors prioritized anti-corruption, energy, emissions, supplier environmental and social assessment and impact on local communities, among others. Finally, our clients prioritized employment, occupational health and safety, diversity, customer privacy and response to social crisis.
Topics such as emissions were no longer considered a priority this year but are still included in our 2020 Sustainability Report. More information on our specific management approach for each material topic can be found in each section of this Sustainability Report.
We welcome your insights into how we can meet our shared commitment to a sustainable world. Please send feedback, comments and questions regarding sustainability plans and progress to the ABM Sustainability Team at sustainability@abm.com.
SUSTAINABILITY STRATEGY AND DASHBOARD
Based on the results of our materiality analysis, we have identified three main axes to define our sustainability strategy:
DOING BUSINESS IN A RESPONSIBLE WAY
Ensure the compliance with ethical business practices across our entire value chain; bring sustainable services to market that positively contribute to our clients' environmental performance; and engage with the local communities where we operate.
ENSURING OUR TEAM MEMBERS' WELL-BEING
Contribute to the professional and personal development of our team members while ensuring a safe and healthy work environment.
MANAGING OUR ENVIRONMENTAL FOOTPRINT
Act consistently with our offering of sustainable services and continue to grow our environmentally friendly practices to manage the carbon footprint of our own operations.
SUSTAINABLE DEVELOPMENT GOALS CONTRIBUTION
ABM has performed an analysis on how our sustainability efforts contribute to the United Nations Sustainable Development Goals (SDGs), and we intend to report the contribution to each of them across the different sections of this Sustainability Report. To perform that analysis, the company followed the Practical Guide for Integrating the SDGs into Corporate Reporting, developed by the Global Reporting Initiative and the United Nations Global Compact.
DOING BUSINESS IN A RESPONSIBLE WAY
CREATING VALUE FOR CLIENTS THROUGH OUR GREENCARE PROGRAM
GreenCare - Our Portfolio of Sustainable Solutions for Client Facilities
As part of our sustainability strategy, ABM is strongly committed to adding value for clients through our sustainable solutions portfolio. Buildings represent a sizable portion of cities' overall greenhouse gas emissions inventories, so it must be a priority to operate them in a more environmentally friendly way. We aim to become a key strategic partner for our clients to achieve their sustainability goals. ABM has designed solutions to increase waste diversion rates from landfills, conduct energy-efficiency retrofits, install on-site renewable generation and use green cleaning supplies.
We have built a strong reputation in part by continually striving to improve our client service offerings through the ABM GreenCare program. As a member of the U.S. Green Building Council (USGBC), we also continue to offer specific products and procedures for buildings to maintain and improve their LEED certifications.
Our expertise in providing sustainable services
- Our clients have saved more than 68,414 tons of carbon dioxide equivalent (CO2e) and 96,702 megawatt hours (MWh) of energy consumption through our energy performance contracting services.
- We are one of the biggest installers of electric vehicle charging stations in the U.S. So far, we have installed more than 20,000 EV charging stations.
- Our green cleaning program has been implemented in more than 361 million square feet across our clients' facilities. We have serviced over 450 USGBC LEED-certified and -registered sites.
- Our energy performance contracting program has helped public and private sector clients save an average of 23% of their energy costs and millions of dollars over the course of their contracts.
We have built a strong reputation in part by continually striving to improve our client service offerings through the ABM GreenCare program.
- Solar Panels
- Efficient HVAC
- Proactive Maintenance
- LED Lighting
- Solar Glass
- Tenant Environmental Awareness Communication
- Building Automation
- Waste Centralization
- Low Water Toilet
- Sustainable Cleaning Services
- Sustainable Landscaping Services
- Carbon Capture
- Backup Power
- Energy Storage
- On-Site Trash Sorting, Waste Audits
- EV Charging
- Electric Fleet
Helping Our Clients Reduce Their Facilities' Energy Consumption
- ELECTRICAL VEHICLE CHARGING STATIONS
A leading installer of EV charging stations, ABM has installed more than 20,000 EV charging ports. Our partnerships with multiple market leaders of EV hardware and network providers allow us to offer the first all- inclusive, affordable charging service plan to our clients. We have the scope to design, self-perform and manage customized implementations at client sites.
- ELECTRICAL FLEET
ABM supports our clients' transition to electric vehicles. We are on top of the latest market developments in order to provide the cleanest transportation services.
- SOLAR PANELS AND GLASS
We help our clients understand that solar has become a viable financial solution for companies. We enable facilities to take advantage of the financial and environmental benefits of solar power generation, and assist with the design, installation, financing and operation of the systems.
- ENERGY PERFORMANCE CONTRACTING
As an accredited member of the National Association of Energy Companies, ABM improves energy efficiency across our clients' buildings, reducing energy demand and its associated carbon emissions. Importantly, our all-in approach, compared to traditional facility upgrades, also helps clients lower costs for HVAC, mechanical, electrical, and lighting.
- CARBON CAPTURE AND STORAGE
We offer carbon capture and recycle solutions for our clients to contribute to the circular economy and convert carbon into concrete.
GREEN CLEANING PROGRAM
ABM maintains a customizable, environmentally friendly cleaning program that helps clients achieve credit points under the USGBC LEED v4 Building Operations and Maintenance Green Building Rating System and the WELL standard. We have partnered with our chemical, paper and equipment suppliers to provide clients with green-certified products such as those meeting the requirements of Green Seal, ECOLOGO, Green Guard and the Forest Stewardship Council. ABM's janitorial team has also been trained to apply company standards and provide services that follow our clients' cleaning policies. These measures improve indoor environmental quality and positively contribute to the health and productivity of building occupants.
CHEMICALS
We have selected only products that meet the strongest environmental certifications:
- ECOLOGO: Demonstrates environmental leadership, meeting requirements for performance, limited toxicity, biodegradability and limited waste and resource use.
- Green Seal: This program aims to reduce, to the extent technologically and economically feasible, the environmental impact associated with the manufacture, use and disposal of products.
- GreenGuard: This third-party product certification program based on proven emissions standards provides procurement professionals with a resource for low-emitting products.
- BioPreferred: Increases the purchase and use of products that come from plants, marine and forestry materials, and other renewable agricultural resources.
DISINFECTANTS
Accelerated Hydrogen Peroxide (AHP). AHP is a globally patented synergistic blend of commonly used ingredients that produces exceptional potency as a germicide and superior performance as a cleaner. It has proven to be particularly effective in the ongoing battle with COVID-19. Our main chemical supplier, Diversey, acquired the global intellectual property rights related to AHP based on Virox technologies Inc. This chemical breaks down into oxygen and water during the sanitizing process, while many other disinfectants can leave behind undesirable chemical residues.
PAPER
Promoting mixed fiber. Mixed fiber is used in brown paper towels and is made up of materials you recycle at home, such as magazines, carton packages, corrugated boxes and direct mail. Our partner Georgia Pacific uses 100% recycled materials to produce natural paper towels. It supports healthier forests, reduces the environmental impact of our products and includes the use of post-recycled content.
Improving Waste Diversion from Landfills
ABM waste management services can help clients manage your facility's materials and resources more sustainably and achieve zero waste goals while also reducing operating costs and minimizing environmental impacts. These services have proven to increase our clients' waste diversion rates, reduce operation costs, and achieve LEED and True Zero Waste certification credit points. We offer services such as:
WASTE AUDITS
We establish a facility's baseline waste diversion rate, identify material composition, and determine financial and environmental savings if potential waste diversion is met. Audit results identify improvement opportunities, pinpoint facility hotspots and highlight contamination concerns. We help our clients identify current, true and potential waste diversion rates that will help determine costs and environmental savings from the implementation of different initiatives.
SOLID WASTE DATA TRACKING & MONITORING
We can provide monthly customized reports via interactive KPI dashboards that highlight cost savings from program impacts and the resulting return on investment. Thanks to our solid waste reporting platform, clients can track impacts of implemented programs using key metrics identified for success. As a result, ABM is able to build dashboards that allow clients to take a deeper dive into facility trends, tenant waste streams, landfill reduction, cost savings over time and more.
ON-SITE TRASH SORTING PROGRAM
Dedicated people on-site pull out recyclable and compostable materials from landfill and end facility recycle contamination.
PROGRAM MANAGEMENT AND TENANT AGREEMENT
ABM provides customized program signage, implements waste reduction and recycling initiatives, and promotes best practices for waste disposal and personalized audits.
A SNAPSHOT OF OUR CLIENTS' CASE STUDIES OF SUSTAINABLE SOLUTIONS
Aiken County Public Schools
Energy Performance Contracting
Aiken County Public Schools in Aiken County, South Carolina, selected ABM to extend the lifespan of the school system's 40-plus facilities, while decreasing energy and operational expenses.
To achieve these goals and improve the learning environment for its students and faculty, we developed a customized solution that included lighting, HVAC and control upgrades; water conservation measures; and the installation of solar fields at six campuses.
The upgrades and operational changes were not only implemented without cutting into the school system's budget, they are instead projected to save the system more than $2.2 million in energy and operating costs in the first year alone. Cost reductions will continue during the life of the 20- year program, resulting in a projected savings of $70 million.
9/11 Memorial & Museum
Integrated Facility Solutions
Located where the Twin Towers once stood in New York City, the 9/11 Memorial & Museum invites visitors to learn about the history of the 9/11 attacks and 1993 World Trade Center bombing.
A site of this size, scope and public stature required a single-source provider for its complex facility needs. That provider is ABM, which administers the facility's engineering, lighting, electrical, HVAC systems, landscaping, janitorial and other maintenance needs at a level commensurate with the site's purpose.
Furthermore, by leveraging our expertise in servicing unique environments, ABM has helped the facility control its operating costs, achieve LEED Gold Certification and ensure smooth operations behind the scenes, so the 9/11 Memorial & Museum team can focus on its core mission.
Aladdin Airport Parking
High-efficiency lighting and EV charging stations
San Diego's Aladdin Airport parking garage needed a lighting upgrade to improve efficiency and reduce maintenance costs. It also wanted to further reduce its carbon footprint through the installation of EV charging stations.
ABM Energy and ABM Parking Services achieved all these goals via a comprehensive solution that was completed with no money out of pocket and had immediate cash flow upon completion. Not only was energy usage cut in half, but the new lighting significantly improved safety and dramatically reduced maintenance costs.
ABM also helped procure government grants for the EV charging stations and rebates for the new lighting, further reducing costs.
OUR ENHANCEDCLEAN AND ENHANCEDFACILITY PROGRAMS
A New Standard
From the things we touch to the air we breathe ABM delivers healthier facilities with the latest approaches in data-driven cleaning and facility services. Among our latest product offerings are EnhancedClean and EnhancedFacility.
Developed as a response to challenges posed by the coronavirus pandemic, these programs have been embraced by our customers and held up as model offerings by the facilities services and cleaning industry. Their applicability, however, has proven to be much broader than simply stopgap solutions to threats presented by COVID-19.
Combined, EnhancedClean and EnhancedFacility offer a comprehensive, customized program of infection and virus control to help protect both people and places. As fact-based, expert-developed, dynamic approaches to occupant wellness, delivered by team members trained in highly specialized and effective disinfection methods, these initiatives have become the benchmark for mitigation of air- and surface-based viral transmission risks. While resetting that standard, they also help increase efficiencies in facility services, improve the financial health of the operations we serve, and perhaps most importantly, restore confidence among occupants.
Even when the pandemic fades from the headlines, the public continues to have a heightened sense of awareness concerning infection control. Our clients, therefore, will need to demonstrate they are doing their utmost to provide clean, healthy and safe environments. With the latest and most effective preventive practices and methods of regular disinfection, EnhancedClean and Enhanced Facility provide that path to a higher standard.
EnhancedFacility: Overview
ABM's Enhanced Facility program provides facility services and solutions focused on improving indoor air quality (IAQ), which in turn fosters better occupant well-being through improved building health, safety and efficiency. Utilizing the latest in advanced technologies for disinfection and improved IAQ, EnhancedFacility's utility helps mitigate more than just the transmission of COVID-19; it strengthens overall resiliency for total building health.
However, because each facility has its own singular requirements, EnhancedFacility calls first for a healthy building risk assessment that includes several measures, such as an HVAC inspection and a determination of the effectiveness of disinfection protocols. Depending on the results of the assessment, a range of solutions are devised, including needlepoint bipolar ionization technology within HVAC systems, dry hydrogen peroxide generation, and far-UV and UV-C lighting solutions.
These specific recommendations help prioritize budgets to focus on actions that will have the most impact.
Maintenance is also part of the package, as are funding options that are tailored to the needs of each business. These include public and private loan programs that could be paid for by savings realized with a professional service agreement.
EnhancedClean: Overview
Again, as facilities return to normal occupancy levels, providing reassurance and peace of mind is critical. The ABM EnhancedClean program delivers such assurance with a three-step certified disinfection process that's backed by experts.
Providing consistent intervals of frequent disinfection of high-touch point and other surfaces, the EnhancedClean process was developed with input from our Expert Advisory Council, which includes board-certified experts in infectious disease and industrial hygiene. To properly instruct our EnhancedClean facilitators on the program's highly effectively and specialized cleaning processes, we've also developed a rigorous training program accredited by the American National Standards Institute, a globally recognized nonprofit organization that establishes standards for training programs, processes and products. Such accreditation helps ensure that team members servicing our clients' facilities have best-in-class training that aligns with the desired outcomes.
A supplement to EnhancedClean is the use of a digital cleaning log, a proprietary tool offering exceptional benefits that ABM has developed to capture, archive and report on the cleaning being performed. This data is pulled into a reporting dashboard to clients displaying KPIs and trends like cleaning logs and type of cleaning performed. Furthermore, evidence-based testing of the program offers a scientific measurement of the cleanliness of facility surfaces, data that is also employed to objectively measure the efficacy of and provide continuous improvements to the EnhancedClean program.
While each building has unique requirements, all facilities have in common an ongoing need for preventive practices and regular disinfection to improve the health and wellness of the building and its occupants. ABM's EnhancedClean takes that cleaning to a new level.
Environmentally Friendly Solutions
Even during the height of the pandemic and the push to develop new initiatives, such as EnhancedClean and EnhancedFacility, we've remained committed to exploring and developing solutions that protect the planet's limited resources. We've continued to explore and adopt cleaning chemicals with environmental certifications like EcoLogo and GreenSeal that do not harm our clients' green building achievements. Our goal remains to leave a healthier planet for the next generation and beyond.
* ABM EnhancedClean services are designed to reduce but not eliminate the risks of spreading infectious disease and viruses. There is no guarantee that the EnhancedClean Services or any cleaning services will completely eliminate the risks of spreading infectious diseases and viruses.
ABM'S SUSTAINABLE PROCUREMENT INITIATIVES
ABM's Supply Chain
As a facilities management service provider, we make purchases in support of and on behalf of our clients and corporate functions. During 2020, ABM engaged with over 50,000 suppliers and spent more than $1 billion to provide materials and services to our clients and to our own operations:
SPEND:
- 49% - Janitorial Services, Human Resources, Personal & Fleet Vehicles, Recruitment Consultants, IT Software & Services
- 51% - Janitorial Suppliers, Cleaning Equipment, MRO Suppliers
ABM's Supplier Code of Conduct. Using Environmental and Social Criteria for Screening Our Suppliers and Mitigating Risks
ABM uses strategic supplier partnerships to provide a capable, modern supply chain that allows ABM team members to receive the same products used to service our clients in the most responsible manner. All this is done while managing our supply base through strategic sourcing processes and risk mitigation efforts.
We have established the ABM Supplier Code of Conduct to ensure that suppliers, including subcontractors that provide services directly to ABM's clients, uphold the company's policies. These requirements cover compliance with all applicable local laws, respect for human rights, environmental conservation and the safety of all the products and services we provide.
Through this Code of Conduct, our suppliers are committed to upholding the human rights of workers, and to treating their team members with dignity and respect. This applies to all workers, including temporary, migrant, student, contract, direct team members and any other type of worker. In addition, we ask our new contractors to have Safe Contractor accreditation or agree to apply for and achieve accreditation within three months of becoming an approved supplier.
Our suppliers shall maintain all required environmental permits and safety data sheets, as well as records of the solid waste, wastewater and air emissions generated by their operations. At the same time, they should strive to reduce all types of waste generation, including water and energy consumption, as an overall strategy to implement environmentally friendly business practices. In addition, ABM suppliers shall strictly prohibit any form of corruption, adhere to fair business practice standards and comply with any applicable anti- corruption law.
Supplier Diversity
ABM recognizes the importance of maintaining supplier diversity. We are committed to providing minority-owned, women-owned, as well as disabled veteran-owned (MWDVE) businesses direct access to subcontractor opportunities and procurement bids. We strongly believe that a robust and diverse supplier base not only helps ABM's competitiveness in the marketplace, but it also fuels the economic vitality across all sectors in our industry.
The company actively participates in supplier diversity initiatives and is proud to support MWDVE enterprises through ABM's mentoring program. Our extensive training and introduction to the latest cleaning techniques, supplies and equipment have all played a major role in the success stories where we subcontracted MWDVE companies.
ABM enterprise supplier diversity spend has increased more than 164% over the past four years since the inception of our program. We now have over $128 million in spend with diverse supplier partners. During the 2020 fiscal year, that spend decreased considerably due to COVID-19 impacts on the business.
In 2020, 17% of ABM's overall supplier spend was with minority-owned businesses. Indeed, ABM is committed to "walking the walk" when it comes to culture and inclusion. And as our teams should be a direct reflection of the communities we serve, so should, we believe, our suppliers and partners. This extends not just to their workforce makeup, but to their supplier diversity practices as well.
To date, ABM's most substantial spend with diversity suppliers is concentrated in California (23% of total diversity spend), Georgia (16%), Illinois (12%) and Texas (11%).* These states are also where some of our largest markets are located. This means the dollars we spend go directly back into these communities, demonstrating our commitment to local economic development.
Partnering With Our Suppliers for Sustainable Procurement Practices
We are constantly identifying new products and methods to operate more efficiently for our clients, while staying at the forefront of the most innovative sustainable practices. As an example, we have a strong relationship with Diversey, our industry-leading chemical supplier. This partnership has worked to implement sustainability initiatives across all of ABM's value chain. Diversey's latest innovations in packaging and chemical concentrations have reduced ABM shipping volumes by an equivalent of 37 truckloads over 2020, and plastic and cardboard usage by 347,123kg which has offset about 899,122kg CO₂e of carbon emissions.*
Diversey, which is our main chemical supplier, promotes a sustainable supply chain that implements circular-economy principles. The company uses post-consumer recycled (PCR) corrugated cardboard for all products (at least 75%) and offers highly concentrated cleaning products in closed- loop dispensing systems, which significantly reduces the need for single-use plastic containers. For instance, a hard- surface cleaner like Pur-Eco is diluted 1:256 from ready to dispense. Compared to a ready-to-use product sold in 1-gallon containers, there is a 99% reduction in packaging.
Also, as part of Diversey's Facilitators for Life sustainability strategy, the company has a goal to reduce its overall packaging footprint. This is being accomplished via four methods: making packaging lighter, increasing the chemical concentration of the products it handles, increasing PCR amounts and moving to more easily recycled materials.
* Based on calculations from life cycle assessments, industry knowledge and engineering factors. Technical information of estimations at the end of the report.
OUR ETHICAL BUSINESS APPROACH
For more than 100 years, ABM has been committed to ethical business practices, and we hold our suppliers to the same high standards. It is our policy to comply with all applicable laws and regulations where we operate and to conduct business activities in an honest and ethical manner.
Our Code of Business Conduct
Our code of business conduct ensures that our principles of respect, integrity, collaboration, innovation, trust and excellence are applied throughout our operations, and that these values are aligned with our vision to lead the industry in the delivery of integrated facility-service solutions. Our code of business conduct covers topics such as conflicts of interest, duty of loyalty, gifts and gratuities, bribery and corruption, and harassment and discrimination, among others.
ABM is absolutely committed to fostering a professional and safe working environment. As part of our efforts to increase awareness of business ethics-related topics, we provide a comprehensive training program for team members at all levels that fully complies with and exceeds all federal and state law requirements. During the 2020 fiscal year, 98% of ABM staff and management team members in the U.S. and 93% in the U.K. completed this Code of Business Conduct (COBC) certification.
Our Data Protection Approach
ABM utilizes a multilayer defense aligned with the National Institute of Standards and Technology (NIST) framework to identify and mitigate cybersecurity risks, where best-in-class security tools are used to aggregate and remediate risk as soon as possible, post identification. We use internal and external tools and resources to support the cybersecurity program and any associated technology- enabled initiatives. Additionally, in an effort to advance the maturity of the cybersecurity program, executive leadership began a search to find ABM's first named chief information security officer (CISO). The new CISO will be responsible for modernizing the IT security landscape and serve as an expert on security risk analysis and preventive measures.
Customer data is retained in aggregate; meaning organizational data is a part of customer master data. However, personally identifiable information (PII) is limited in nature, and demographic information is not maintained. Data is managed in accordance with ABM's data classification policy.
During 2020, ABM had zero breaches of customer privacy or losses of customer data, and we continue to strive to be on the forefront of compliance with laws and guidelines brought from General Data Protection Regulation, California Consumer Privacy Act, and all new guidelines and laws for personal information and retention. ABM meets and, in many cases, exceeds those guarantees of protection against collection and retention of private information.
Our Human Rights Statement
ABM follows all international labor and immigration laws and does not tolerate the use of child labor; any acts of modern slavery; human trafficking; or other illegal, abusive or forced labor practices. This includes compliance with internationally recognized laws and regulations in all locations where we operate, regardless of local business customs. We are taking significant steps like trainings on MSA for general audience/ team members and procurement, on site audits or suppliers and the establishment of a modern slavery working group to evaluate and assess the presence of modern slavery and human trafficking in our supply chain, and we do not tolerate forced labor or slavery in any form or in any part of the business or supply chain.
ABM's U.K. business maintains a Modern Slavery Act Statement wherein ABM states its support of the Modern Slavery Act of 2015. The company considers its team members as critical to its success and it is committed to operating free from forced labor, slavery and human trafficking.
Tax Compliance
Tax Planning. We seek to conduct our tax affairs in an efficient manner in compliance with existing laws. We do not participate in artificial tax arrangements. We seek to apply tax relief as intended and, where necessary, request tax rulings so we have certainty in our tax affairs and operate compliantly. We conduct transactions between ABM-affiliated companies in compliance with controlling tax law and in accordance with Organization for Economic Co-Operation and Development (OECD) principles, including country-by-country reporting.
Relationships With Governments. We are committed to complying with tax laws in a responsible manner and having open and constructive dialogue with the tax authorities in the jurisdictions where we operate. We support the principles of cooperative compliance and hold the view that a relationship based on mutual respect and collaboration furthers the aims of the company. We actively seek to ensure that ABM pays the legally prescribed amount of tax.
Tax Risk Management. We do not believe that it is in the interest of the stakeholders for the company to take a high-risk approach to tax. The company has controls in place to ensure timely submission of tax returns for all taxes due. We have implemented processes and procedures designed to identify tax risk and ensure such risks are managed and dealt with appropriately. Where issues are identified, we seek to disclose these promptly and make appropriate and timely changes to mitigate tax risk going forward.
Governance. Our tax policy is overseen by our vice president, tax, who reports to the chief accounting officer. Our approach to tax is underpinned by a control framework. Controls are monitored and tested in line with this policy.
TAKING CARE OF OUR PEOPLE AND CLIENTS
ABM's mission to make a difference, every person, every day, is evidenced in our approach to risk management and safety. Our programs are designed not only to ensure compliance with OSHA and other regulatory bodies, but also to protect the health and welfare of our team members, clients and clients' clients. A cornerstone of ABM's comprehensive risk management and safety program is safety awareness to ensure our team members are:
- Educated on how to complete tasks safely.
- Trained in hazard identification.
- Aware of emergency response procedures to immediately address challenges.
- Proficient in reporting accidents utilizing applicable procedures to ensure appropriate loss mitigation techniques are implemented should a loss occur.
Our "Think Safe" approach to safety includes establishing a safety mindset from day one of employment by focusing on our safety absolutes. This safety culture is continuously reinforced through daily moments for safety messaging, monthly relevant training topics, and unique programs and materials created for our team members. Examples include the ABMWay Hub, which contains specific information about how to prevent certain types of workplace injuries; ways to proactively address potentially catastrophic situations such as hurricanes or tornadoes; and refreshers on ABM's safety absolutes.
One of the cornerstones of our ThinkSafe program is a collaboration with operations to help leaders identify workplace hazards and implement changes to prevent accident or injury. In our frontline leader training, participants are guided in creating a culture of caring, through leadership engagement tours (LETs) and participation in the safe work observations program (SWOP). Frontline leader training also provides guidance on what to do should a claim occur to ensure team members receive the right care at the right time to expedite their recovery.
Health and Safety Policy
The safety organization is comprised of safety managers imbedded within our industry groups, though safety managers do report centrally to the vice president of risk management and safety. This deployment allows safety managers to create custom industry group solutions to challenges that arise from operations and to ensure all safety activities are aligned with ABM corporate goals and objectives. Our risk and safety leadership can in turn adapt our safety program to include client safety requirements and oversee the safety activities of subcontractors.
Initiatives
The strong partnership between our risk and safety and operations areas has resulted in a number of initiatives. For example, with our top focus sites initiative, we looked at our top frequency accounts and developed a strategic partnership with operational leadership to conduct a holistic review that then focused on intervention and engagement at all levels from frontline team members to operational leadership. Program components included:
- Initial site assessments
- Development of a site-specific safety improvement plan
- Biweekly progress calls
- Team member engagement through safe work observations
- Regular site visits/audits by safety team
- Monthly progress review meetings
Results coming from this initiative have been outstanding at our client sites, with successes including:
- Apparel accessories sports equipment industry client:
- 40% year-over-year injury reduction (found that leaders were not as engaged in safety leadership as they could be, and we showed how they could be leaders in safety and influence culture)
- Packaged bakery industry client: 58% year-over-year injury reduction (found that we weren't working well as a team in improving safety and worked to improve our collaboration for shared results)
- Automated machinery & equipment industry client: 68% year-over-year injury reduction (found that having formerly been a different company, that they had a different culture in which safety was just a cost of doing business and we partnered in helping shift to a culture where safety was valued)
Equally important as these results, there were meaningful safety conversations at all levels among operational leaders, frontline team members and the safety team.
Hazard Identification
As mentioned earlier, ABM's safety program helps leaders identify hazards and make changes to prevent accident or injury. A job hazard analysis protocol has been developed that applies to all ABM on-site service team members across all service lines. It highlights the responsibilities of frontline managers, branch managers, team members and the safety department to identify and report hazards and implement critical actions to mitigate them.
Along with this job hazard analysis protocol, ABM maintains a PPE hazard assessment process, a safety inspection process and a safe work observation process. Also, our employee safety manual and employee handbook require reporting of all unsafe acts/conditions to supervisors. To that end, team members can report work-related concerns via the safety hotline: (866) 208-2114, and have authority to cease work whenever they encounter unsafe working conditions.
Increasing Awareness
ABM programs are designed to increase the safety acumen of our staff. We deliver tailored training to team members based on their job requirements, hazards identified through site assessments, and OSHA- and client-mandated training topics. These topics are delivered through interaction with the managers. They can be delivered via Moment for Safety messages in a pre-shift meeting, weekly safety briefings and/or tailored safety programs for all service lines. These interactions are documented for regular safety audits and inspections, including on-site client reviews. Additionally, ABM partners with client environmental health and safety staff to ensure consistent processes between both organizations.
The Results
Safety programs for fiscal year 2020 produced the fifth consecutive year of claim frequency reductions. ABM's continued attention to safety and aggressive claims management has sustained our experience modification rating (EMR) of .91 and an OSHA frequency rate of 2.14.
Moving Forward
Looking toward the future, our ultimate goal is recognition by our team members, clients, customers and communities as having a world-class safety environment, where safety has been embedded as a core value. In order to reach this goal, we've developed a strategy consisting of three pillars:
1. Strengthen our safety infrastructure by developing compliance and data- driven programs and initiatives in conjunction with operations.
- Partner with operations to deliver value-added programs and services Deploy safety programs and initiatives that ensure compliance and address behavioral concerns
- Focus on mitigating safety risk at locations and with tasks demonstrating elevated levels of claims/injuries
2. Mature our safety culture through management commitment, awareness and new ways to engage team members.
- Integrate safety into all operational tasks and business planning
- Drive operational ownership and understanding through awareness and education
- Utilize technologies and observations to engage team members
3. Ensure that the safety department continues to evolve with the needs of the organization, and that we are developing a high-performance team that can help us move to increasingly higher levels of achievement.
- Develop a sustainable and high-achieving safety team that is conducive to attracting and retaining team members
- Appropriately recognize and compensate high performers
- Provide development and advancement opportunities
ABM UK Highlight
ABM Group companies in the UK retains ISO standards for the following: ISO 45001 Occupational Health & Safety, ISO 14001 Environmental Management, ISO 9001 Quality Management, and ISO 50001 Energy management. Audits performed during the 2020 fiscal year returned no Non-Conformances to requirements.
SAFETY CULTURE AND COVID-19
The maturation of ABM's safety culture has been demonstrated in our handling of the COVID-19 pandemic. Safety is not just a part of the discussion. Safety is involved in ALL aspects of business planning and development.
Our Commitment to Safety in Action
- Management is committed to providing the highest standards of safety and health to our team members.
- Operations has partnered with corporate functions in developing and deploying policy and programs.
- Safety has been involved in all stages of development of new services and products, such as EnhancedClean and EnhancedFacility.
Key Deliverables
- Membership: Operational leaders, risk and safety, legal, human resources, communications, IT, learning and development, marketing, and strategy and innovation
- Work efforts/products: Policy/standard operating procedures/work instructions; communications; printed materials such as posters/fliers; FAQs; position papers; and materials for clients
- Exposure control plan intended to protect team members and comply with reopening guidelines and regulatory standards.
Components Include
- Screening and return-to-work procedures for team members
- PPE guidance and policy
- Social distancing guidance and policy
- Personal hygiene guidance and policy
- Training (completed at 100%)
- Locations/project-specific plans (completed at 100%)
- SharePoint site to house documents
- EnhancedClean
We've worked diligently to ensure team members are protected against COVID-19. Throughout the pandemic, we've also had to put an increased focus on chemical safety, specifically for the disinfectants that we use, as we are having to use a higher volume of them, as well as different disinfectants, due to demand.
However, at the same time we've looked toward team member safety, we've also had to balance our focus with client concerns stemming from information that has not always been based in science. Because of this, and to ensure general transparency and consistency in processes, we've put even greater emphasis on partnering with our clients' environmental, health and safety staff. Such cooperation provides opportunities for sharing of best practices, compatibility and compliance, and the opportunity to build even greater trust during these difficult times.
With EnhancedClean as an example, operations engaged the safety department in the earliest stages of development to ensure we took into account the well-being of both our team members and the occupants of the facilities we service. To do so, every disinfectant product we use was first vetted by our Expert Advisory Council, consisting of industrial hygienists, safety specialists and infectious disease specialists. In these instances, we didn't just look at the efficacy of the products we use, but also what impact they may have on our team members.
Once products are selected, procurement only secures disinfectants that have been approved for use in ABM operations. Then, exposure assessments are conducted by safety to ensure the proper level of team member protection. Standard operating procedures and position papers are drafted to ensure safety and aligned communications, and an engaging curriculum is designed to ensure team member understanding.
Think Safe™ People. Materials. Environment.
- Number and rate of fatalities as a result of work- related injury: 0, 0.00
- Number and rate of recordable work-related injuries: 1,769, 2.24
- Main types of work-related injuries: Overexertion, Slip/Trip/Fall
- Numbers of hours worked: 157,944,185 (calculated based on 200,000 hours worked per 100 full-time equivalents (FTES) → No workers have been excluded; if the employee had an OSHA recordable injury it is counted)
- Days away, restricted or transferred (DART) rates: There were 1,104 DART recordable incidents (1.40 rate)
OUR GIVE-BACK APPROACH
ABMCares Program
At ABM, we developed our company mission-to make a difference, every person, every day-because we truly believe our business needs to positively affect the communities where we live and work.
ABMCares is our matching philanthropy program for all staff and management team members. This company-wide program encourages our team members to give back to their local communities and to engage in activities that contribute to their well-being. It is our aim to position charitable giving as part of our corporate identity and to spark interest in wellness programs at the local level. During 2020 we were proud to announce that the program was extended to the U.K. team members as part of our CEO's commitment to giving back.
ABMCares Ambassadors
ABMCares ambassadors guide and support team members who engage in the ABMCares program. In this voluntary role, ambassadors drive participation in both philanthropy and wellness activities. They are the liaison between their local offices and ABM corporate.
ENSURING OUR TEAM MEMBERS' WELL-BEING
About ABM Team Members
Our mission is to make a difference for every person, every day. We are serious about having a culture where each of our team members feels like part of a team, that they are trusted, listened to, trained and rewarded.
A DIVERSE WORKFORCE IS OUR COMPETITIVE ADVANTAGE
Equal Opportunity Employment
At ABM, we know that a diverse workforce is essential to success. As a federal contractor, ABM is an Equal Opportunity and Affirmative Action employer in compliance with the requirements of Executive Order 11246 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act. We are committed to equal opportunity and affirmative action initiatives, such as proactive outreach programs that create opportunities for all and foster a diverse, inclusive workforce.
We do not discriminate on the basis of race, religion, sex, national origin, age, color, creed, sexual orientation, disability, ancestry, marital or veteran status or any other protected status covered by the law.
Our diversity and inclusion efforts
We are comitted to ensuring that everyone from every background is seen, heard and valued at ABM. Our first step was establishing a team member-led, executive leader-sponsored Culture and Inclusion Council to develop organizational priorities that nurture an inclusive workplace that drive meaningful impact. We also conducted an Organizational Culture Assessment to measure the current perspective related to culture and define priorities. One of the main highlights of this assessment is that Leadership is committed to diversity and inclusion being a part of ABM's new culture and that frontline workers are a diverse and valuable group to ABM.
During the 2020 fiscal year, ABM performed listening sessions and inclusive leadership training over multiple sessions. This training focused on identifying the key traits and building the capabilities of inclusive leaders to foster the company's commitment to its culture and inclusion efforts. It was delivered to the Executive Leadership Team and all Council members. Looking forward during 2021, we will strength our commitment to diversity and inclusion and we plan to partner with organizations focused on equal opportunity and advancement for all.
ABM's Culture and Inclusion Council focuses on the following:
- Developing inspirational leaders. Working as a team, we will create programs, tools and training to foster a supportive, dynamic and inclusive culture, including leadership development programs, mentorship opportunities and affinity groups.
- Empowering team members. We'll enable every team member to be their best by reimagining how we support and develop talent at every level, approach succession planning and develop diverse talent.
- Showing up for our team. Idendifying ways to recognize and reward our team members' successes in ways that are meaningful to them.
- Creating a culture of belonging. Every team member has a story, and we aim to elevate every voice through new platforms, programs, networks and partnerships that foster a culture of connection and belonging to drive lasting change.
Highlight: ABM U.K. Diversity Efforts
ABM U.K. has piloted and launched the following initiatives within its aviation business: ABM Aviation supported the journeys of disabled passengers at Heathrow, Stansted, Manchester, Liverpool and Edinburgh in 2020.
- Every one of the airports where ABM operates received a good or very good status accessibility rating by the Civil Aviation Authority, based on operational performance, facilities and the level of consultation with disabled consumers. READ MORE
- Increasing awareness: to support individual customer journeys, team members receive a comprehensive training package accredited by Disability Rights U.K., covering both visible and invisible disabilities.
- ABM Aviation is a strategic founding partner to #PurpleLightUp. This is a global annual event that celebrates workplace contributions of disabled employees. Samantha Saunders, our head of innovation and regulatory compliance, is one of their 10 ambassadors who help shape growth and engagement strategies. READ MORE
- ABM Aviation is a member of the Valuable 500 group of companies. We are committed to introducing work experiences to young persons with disabilities and extending our supported internship program to them. To make this happen, we committed to the journey of achieving Disability Confident Employer Status, which will see us embark on a range of initiatives to raise the standards of passengers with reduced mobility (PRM) services offered through staff training, partnerships with disability groups and investments in new technologies and specialist equipment. READ MORE
- ABM Aviation has attained Level 2 status in the U.K. Government Disability Confident Employer program. READ MORE
DEVELOPING OUR TEAM MEMBERS' POTENTIAL
Learning and Development Opportunities
ABM's employees who make a difference, every person, every day, take ownership of their careers as they grow and develop. This is why we maintain a learning management system called ABMUniversity, our online platform that provides our staff and management employees with access to a multitude of training courses, videos, reference material and other tools. Outside of ABMUniversity, our front line team members receive on-the-job training to ensure we are executing for our clients.
Our leadership and staff and management team members, which account for 10% of our workforce, complete an average of 19 hours of training per year, and our service-level employees average 38 hours of training per year. Employees receive monthly awareness training in addition to regulatory-related training as pertains to their jobs. We also require annual harassment-prevention training around our code of business conduct. Some of our courses for management include using coaching as a leadership style; customer service; communicating and listening; time management and delegation; and human resource fundamentals. More than 38 courses in these areas were completed, and more than 213 training courses were completed outside the scope of on-the-job training.
Career and Performance
We promote an environment in which every team member and manager builds a trusting and respectful relationship with candid, frequent feedback and coaching. This relationship is the essence of ABM's career and performance process. Our program aims to develop inspirational leaders; to clearly cascade and align goals and priorities; and to strengthen communication with frequent, consistent talent conversations.
INCREASING OUR TEAM MEMBERS' ENGAGEMENT
Team Member Engagement - ABMVoice Program
At ABM, every voice matters. In 2020, we conducted a pulse survey of our staff and management team to assess engagement, our culture and the organization's response to the pandemic. More than half of our team members participated in the survey and provided valuable feedback.
The response rate of the 2020 survey was 56% and the engagement rate was 75%. To measure our team members engagement rate, we took into account the response that they provided to questions like: I feel accepted by my teammates, I find my work engaging, I recommend ABM as a great place to work and it would take a lot to get me to leave ABM.
The good news is that we have a great foundation to build upon. We have team members who are aligned around the mission of the company and understand the path to success. We can be proud of the work that has been done over the past few years and we can use it as a baseline for our continued growth.
As we continue to make ABM a great place to work, areas of opportunity were identified in the survey, and we are taking action to improve team member development, culture and inclusion, and performance management.
Here are a few key highlights from the nearly 6,000 responses we received:
- Team members felt well-supported during the pandemic and trusted leadership to create a safe workplace.
- Team members are aligned around ABM's mission and believe in our future success.
- Although there were slight decreases in engagement, scores remain healthy overall.
- There is an opportunity to make team members feel more valued.
- We need to better define and prioritize team member development.
TEAM MEMBERS' WELL-BEING
The health, wellness and job satisfaction of our team members are vital to the continued success of our clients. ABM provides all our team members access to health and welfare benefits, retirement savings, worker's compensation coverage and paid time off.
ABM's comprehensive benefits offerings are designed to meet the diverse needs of our eligible full-time team members and many part-time team members as well. Benefits offered include:
- 401(k) plan with company match for all team members with at least six months of service, including company match of 100% of the first 3% and 50% of the next 2% of eligible contributions.
- Access to financial planning education and materials, whether participating in the 401(k) or not.
- Paid time off for sick leave, vacation, and company-observed holidays.
- ABMCares provides to staff and management team members one day off per year to volunteer and up to $1,000 in matching charitable contributions annually to support our team members in the communities in which they live and work.
- Employee assistance program to support mental health and various challenges.
- Variety of medical, dental, vision and voluntary benefits, with choices to best meet team member and family needs, including:
- COVID-19 testing and treatment, with waiver of copays aligned with best practices.
- Disease management programs, which assist team members in the management of chronic medical conditions, such as coronary artery disease, diabetes, asthma, and congestive heart failure.
- Telemedicine benefits, unlimited in some plans and circumstances.
- Transplant solution programs that provide specialized networks and support to team members requiring transplant services.
- Health and wellness coaching programs, maternity support, and care for diabetes.
- Legal preparation courses for will assistance, among other topics.
Collective Bargaining Agreements
ABM respects team members' rights to associate freely and is committed to comply with all laws, such as adherence to minimum wage provisions of applicable laws and regulations, including ABM's internal workforce and subcontractors. We are one of the largest-sector unionized employers in the United States. Approximately 34% of our team members are represented by 250 active collective bargaining agreements.
These collective bargaining agreements are periodically renegotiated with labor representatives. They also set terms of wages, benefits and other conditions of employment. For single-site collective bargaining agreements, ABM bargains directly with labor representatives. For area-wide agreements, ABM frequently bargains in a group of employers who are covered by the same agreement.
MANAGING OUR ENVIRONMENTAL FOOTPRINT
OUR CARBON FOOTPRINT
ABM recognizes the role the company plays in limiting its impact on the environment and facing the global warming cl working on strengthening our environmental reporting processes and have increased the sites reporting and type of i COVID-19, a significant part of our staff and management workforce worked remotely during 2020. This explains the r and carbon emissions from our operations. ABM recognizes the role the company plays in limiting its impact on the e warming challenge. We are currently working on strengthening our environmental reporting processes and have incre of information we need. Due to the COVID-19, a significant part of our staff and management workforce worked remo reduction in energy consumption and carbon emissions from our operations.
Our Carbon Footprint
ABM's overall carbon footprint decreased by 52% during the 2020 fiscal year. This can be explained by the significant c travel's emissions due to travel restrictions during the pandemics and also a decrease of 19% on our scope 1 and 2 em of remote working and a decrease of fuel consumption linked to a reduction in our business activities.
Addressing the Climate Change Challenge and Setting Carbon Reduction Goals
ABM is deeply committed to reduce the company greenhouse gas (GHG) emissions in line with the commitments undertaken in the Paris Climate Agreement. As a result, we have chosen to renew our carbon reduction targets in alignment with the Science Based Targets initiative methodology in order to limit global temparatures no more than 2 Celsius degrees above pre-industrial levels as indicated by the Intergovernmental Panel on Climate Change.
During the 2019 fiscal year, ABM reached its carbon reduction target to reduce metric tons of GHG emissions from its scope 1 and 2 per FTE equivalent by 15% from our 2011-year baseline (0.67 Tons of CO₂e/FTE) by 2020. This is why, during the 2020 fiscal year we partnered with the Center for Sustainability and Excellence to develop our company's Science Based Targets and to verify our emission factors used to calculate the Scope 1, Scope 2 and Scope 3 emissions. Due to the significant decrease on our energy consumption because of COVID-19, we have decided to use the 2019 as our baseline year.
Utilizing the Absolut Contraction Approach (ACA) Method under the Well Below 2 Degrees (WB2C) scenario, we plan to reduce by 27.5% our Scope 1 (direct emissions from gas consumption and fleet), Scope 2 (indirect energy emissions from purchased electricity) and Scope 3 emissions (business travel) by 2030 from a 2019 base year. This target plans to be submitted to the Science Based Target initiative for approval and it might vary depending on the approval process.
RISKS AND OPPORTUNITIES FROM CLIMATE CHANGE
In addition to mitigating the effects of climate change, ABM continuously evaluates the risks and opportunities that climate change represents for us and our clients. Potential climate change impacts are identified, assessed and managed as part of ABM's enterprise risk review, which is reported to the board of directors. The company's management and its board continuously monitor the risk profile.
Risks Related to Climate Change
- Policy, Regulations and Energy Prices
Our operations are subject to various federal, state and/or local laws regulating topics such as discharge of materials into the environment or otherwise relating to the protection of the environment. As an example, ABM U.K. is subject to the Climate Change Levy, which requires the company to report its GHG emissions. Also, some of ABM's energy-efficiency projects are subject to federal and state legislation and policies that support those kinds of projects.
Ineffective compliance with current laws and regulations could affect our reputation or generate financial fines that could increase the costs and potential liabilities associated with the conduct of our operations. To ensure compliance, we maintain an environmental policy that provides guidelines on discharge into soil, water and air, and the generation, handling, transportation and disposal of waste and hazardous substances. We also stay abreast of any regulation updates in terms of environmental compliance.
- Technology
Peers implementing the latest cleaning and technical solutions and related technologies can affect our risk, ABM's strategy department is constantly looking at the latest innovation trends to ensure we provide our clients with the best technology available in the market. Also, regarding our own operations, we have designed a road map to increase the electrification of our fleet.
- Market
Clients have expressed an increased interest in sustainability-related services that could help them to improve their sustainability performance, including reduction of energy consumption and waste generation. Inability to provide such services could affect our client retention rates. To manage this risk, ABM has put in place its GreenCare portfolio of sustainable solutions to help clients reach their green cleaning, zero waste and carbon-neutrality goals.
- Physical
Adverse weather conditions can lead to reduced travel activity and affect service delivery at some of our clients' locations. This can generate increased operational costs. To manage this risk, ABM has designed contingency plans, business continuity plans, crisis management procedures and disaster recovery procedures.
Opportunities Related to Climate Change
- Development and/or Expansion of Low-Emissions Services and Products
An increase of clean energy and climate change-related regulations and incentives like rebates could generate an increase in demand for our sustainable services, as they contribute to a reduction of our clients' environmental footprint. Also, as many of our clients are more actively managing their climate change risks, we may see increased demand for our lower-emissions products and services. Many more companies are responding to the Carbon Disclosure Project and making commitments to the Science Based Targets initiative
ABM has worked hard to be up to date on the latest sustainability trends and client-industry regulations to ensure that the company can identify the right opportunities and generate added value through our portfolio of sustainable services. Through our GreenCare program, we have the greatest opportunity to help our clients reduce their environmental footprint with solutions like green cleaning services, energy efficiency services, on-site renewable energy generation, installation of EV chargers and sustainable parking solutions, among others.
- Physical
Although weather conditions may lead to increased costs as described above, some weather events might create opportunities for increased services related to cleanup and restoration; severe weather situations can also affect our operations in the affected areas related to our offices and our clients' locations. This could lead to an increase of our tag work and therefore positively affect our sales.
GREENING OUR FLEET
As a company that provides transportation services and maintains a significant vehicle fleet, we are conscious of our environmental footprint. This is why we are actively measuring and reporting emissions from our fleet of more than 5,400 vehicles. They include light, medium and heavy trucks; minivans; passenger cars; forklifts; and trailers, among others.
We are also transitioning to more sustainable fuels and hybrid and electric vehicles. In the U.K., our ABM company car and cash allowance policy states that all available vehicles will be from hybrid and EV ranges, and that CO₂ emissions are capped at 130 g/km. In the U.S., ABM is currently exploring opportunities in each state to increase the electrification of our fleet and promote the use of electric vehicles at our clients' sites.
During the 2021 fiscal year, ABM plans to develop a commitment to increase the electrification of its vehicles and will be sharing more information about the implementation road map. So far, we have identified more than 4,000 vehicles that are eligible for the transition, based on available market options. As the market evolves, we expect to continue that transition.
WHAT ARE WE DOING TO REDUCE OUR ENVIRONMENTAL FOOTPRINT?
As an industry leader, we are committed to reducing the impact of our operations on climate change as well as supporting our clients' transitions toward a reduced carbon/net zero economy. We are currently working on aligning our reduction efforts with climate science, based on the COP 21 agreement to keep the increase in average global temperature to well below 2°C or 1.5°C, if possible.
Measures we have implemented include:
- Setting carbon reduction goals aligned with science: Develop a carbon reduction target under the Science Based Target initiative in order to ensure that we align with global efforts to reduce global warming.
- Office consolidations: We are consolidating some of our offices in an effort to substantially reduce duplicated heating and coolling energy, use of electrical devices and lighting.
- Renewable energy procurement: The majority of our offices in the U.K. purchase renewable electricity, reducing carbon emissions considerably. We are currently evaluating opportunities to engage in a renewable electricity procurement strategy, and we're evaluating offsets for the remaining offices.
- Real estate development: When opening new offices and upgrading existing ones, we use open floor plans wherever possible to reduce the overall footprint through a variety of measures that include: reducing the amount of construction; providing HVAC to fewer individual spaces; increasing the amount of lighting via daylight; and reducing electricity demand.
- Increasing environmental awareness among team members: ABM maintains a course catalogue open for team members with courses to increase environmental awareness. Some of the courses we offer are: greening existing buildings, net zero energy, triple bottom line of sustainability and introduction to corporate sustainability.
During the first half of fiscal year 2021, we plan to publicly launch our Science Based Targets initiative commitment and plan to plan to develop commitments around vehicle electrification. Also, we plan to develop a renewable energy procurement strategy for the sites we can directly control, and scale to other offices our waste management pilot that includes proper separation of waste and composting at our main offices.
TECHNICAL INFORMATION ABOUT THE REPORT
Calculation Methods and Sources of Information
- Scale of the organization dashboard financial information: selected financial data comes from our 2020 Annual Report on Form 10-K.
Human Resources Metrics
- Women in top management positions: categories like senior vice president, director, executive vice president and vice president are considered as top management positions.
- Team members engagement rate: the engagement rate is calculated based on four questions: I feel accepted by my teammates, I find my work engaging, I recommend ABM as a great place to work, and it would take a lot to get me to leave ABM. This survey is performed by Quantum Workplace and the calculation of the favorability is the sum of favorable responses (agree and strongly disagree) divided by total possible responses.The questions included in the survey were: I feel accepted by my teammates, I find my work engaging, I recommend ABM as a great place to work, it would take a lot to get me to leave ABM, I understand how my job helps ABM achieve success, I believe ABM will be successful in the future, I see professional growth and career development opportunities for myself at ABM, the culture at ABM supports my health and wellbeing, the senior leaders of ABM demonstrate integrity, inclusion is valued at ABM and ABM leaders value team members above all stakeholders.
- Human resources' reporting systems: due to our human resources reporting structure, we might not be able to provide detailed information on region, type of contract and turnover metrics.
Business Ethics Metrics
- Communication and training anti-corruption: all staff and management team members are requested to complete the Code of Business Conduct training. The metric excludes team members reclassified, terminated, on leave or furloughed.
- Material legal proceedings: for the company are disclosed in Note 13, Commitments and Contingencies, on page 86 of our 2020 Annual Report on Form 10-K.
- Board of director metrics: reflect the Board composition as of April 1, 2021.
- ABMCares donations and volunteered hours metrics: disclosed information has been directly captured from our ABMCares platform managed by a third-party vendor who processes all donations and matchings and volunteered hours logged by ABM's team members.
- Sustainable procurement - carbon footprint calculator Diversey: Calculations were based on ABM 2019 product purchases analyzed. Compared to industry standard glug-glug packaging. Assumptions from Diversey product specifications, studies, or industry knowledge: concentrated products in Diversey dispensing systems average 1:128 dilution - Comparative industry standard product assumed 1:16 dilution (this is a conservative number since overuse of glug bottles has been shown to be significant) - carbon footprint estimate based on packaging reductions (3.02 kg CO2e/ Kg HDPE, 2.94 Kg CO2 e/Kg LLDPE, 1.49 Kg CO2e/Kg cardboard.
- Safety metrics: ABM follows the OSHA requirements set by statutes, standards, and regulations. Recordable injuries are defined as any work-related fatality, and any work-related injury or illness that results in loss of consciousness, days away from work, or transfer to another job, and any work-related injury or illness requiring medical treatment beyond first aid. Main types of work- related injuries are considered as: overexertion, slip/trip/fall. Incidence rate of injuries and illnesses are computed from the following formula (number of OSHA recordable injuries and illnesses x 200,000)/employee direct hours worked = incidence rate. The 200,000 figure in the formula represents the number of hours of 100 employees working 40 hours per week, 50 weeks per year, and provides the standard base for calculating incidence rate for an entire year. ABM does not track high-consequence work-related injuries.
- Human rights training: human rights related topics are covered in our Code of Business Conduct training.
Environmental Metrics:
- The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) and relevant tools were used in these calculations. Data of natural gas use in leased offices was gathered through our annual survey. Office locations in which the utilities are included in common area maintenance (CAM) were estimated based upon similarity to other known offices of that size and region of the country. Fleet data of gallons of fuel used by vehicle and by model year were analyzed. Fuel purchases not directly assigned to a specific vehicle were calculated as a light-duty vehicle (small truck/van) as that is our primary vehicle type within the ABM fleet. Actual data was gathered through our online survey when available. For offices that did not have readily available data or the electricity is included within CAM charges, estimations were made based upon similar sized offices of the same region or previous year data (if available).