AECOM announces next phase of its Sustainable Legacies strategy, including ambitious net zero targets that are among the first approved by the Science Based Targets initiative

Rhea-AI Summary

AECOM (NYSE: ACM) has announced the next phase of its Sustainable Legacies ESG strategy, launched a year ago, which aims to advance sustainability initiatives globally. Key updates include more ambitious net-zero carbon emission targets, operational net-zero achievement for Scopes 1 and 2 for fiscal 2021, and enhanced governance frameworks. The strategy focuses on sustainable development, improving social outcomes, equity, and diversity. AECOM aims for a 60% reduction in Scope 1 and 2 emissions by 2030 and net-zero by 2040, marking a proactive stance in the ESG space.

Positive

• Achieved operational net-zero in Scopes 1 and 2 emissions for fiscal 2021.
• Set ambitious net-zero carbon targets, aiming for validation by the Science Based Targets initiative.
• Implemented a global supplier outreach program to enhance sustainability across the value chain.
• Advanced ScopeX initiatives to reduce embodied carbon in infrastructure design.
• Published a global ESG report in November 2021, aligned with TCFD and SASB frameworks.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced the next phase of Sustainable Legacies, its industry-leading ESG strategy that was launched one year ago to advance sustainability initiatives that deliver positive impact both at AECOM and in communities around the world. This strategy integrates four key pillars that will embed sustainable development and resilience across the Company’s work, improve social outcomes for communities, achieve net-zero carbon emissions and enhance its governance. Included in the Company’s updated strategy are more ambitious net zero targets that are among the first in the world to be approved by the Science Based Targets initiative.

“As a purpose-driven organization, I am proud of our teams’ progress to lead the industry as an ESG firm and how we continue to challenge ourselves with even more ambitious initiatives and targets included in our Sustainable Legacies strategy,” said Troy Rudd, AECOM’s chief executive officer. “Alongside our Board of Directors and Executive Leadership Team, the advancements we have made in just a short time inspire all of us to strive for more through our commitment to making a positive impact on the communities we serve.”

“The passion our nearly 50,000 professionals bring to their work every day to deliver a better world is no better reflected than in our Sustainable Legacies strategy,” said Lara Poloni, AECOM’s president. “Following the meaningful accomplishments we have made over the past year, including the approval of our net zero targets by the Science Based Targets initiative, we are excited to continue the next phase of our ESG strategy, especially as we partner with our clients on their own increasingly complex, multi-decade sustainability initiatives.”

Significant Progress at the One Year Anniversary

Following the one-year anniversary of the launch of its Sustainable Legacies strategy, AECOM has celebrated numerous accomplishments that reflect strong progress to-date on its ESG initiatives, including:

• Achieved operational net zero in its Scopes 1 and 2 emissions for fiscal 2021, including the use of 100% renewable electricity usage in North American offices, with plans to scale further.
• Implemented the Company’s Travel with Purpose program to maintain substantial business travel reduction.
• Initiated a robust supplier outreach program to gain insights into key partners’ ESG programs and evaluate opportunities to drive sustainability improvements throughout the Company’s value chain.
• Initiated work on the Company’s own in-house nature-based solution projects for carbon sequestration.
• Advanced ScopeX^TM initiatives to accelerate the Company’s ESG offering for clients and to reduce embodied carbon in infrastructure design and construction.
• Published the Company’s global ESG Report in November 2021 that incorporated its initial disclosures aligned with the TCFD and SASB framework.
• Implemented ESG risk framework to ensure work aligns with the Company’s Sustainable Legacies strategy, which is being continuously updated to ensure full alignment with climate science, particularly following COP26 last year.
• Committed to providing financial support to the people of Ukraine through a global employee match donation campaign and employee-driven local humanitarian efforts.

Key Pillars of AECOM’s Sustainable Legacies Strategy

• Achieve net-zero carbon emissions: While developing and implementing best practices and achievable goals for its clients, AECOM has continued to further its own carbon emissions goals with one of the first net zero targets validated by the Science Based Targets initiative. The Company has committed to achieving science-based net zero by 2040, which includes the following actions:
  • A near-term target to reduce Scope 1 and 2 by 60% and Scope 3 emissions by 50% by 2030.
  • A long-term target to reduce Scope 1, 2 and 3 emissions by 90% by 2040.
  • Decarbonizing fleet vehicles and switching to renewable energy tariffs.
  • Partnering with its suppliers to decarbonize and including carbon considerations into its procurement processes.
  • Implementing a 50% reduction in business travel.
  • Creating projects centered around using nature-based solutions to offset residual carbon.
• Embed sustainable development and resilience across our work: Recognizing that the greatest contribution it can have on the world is through its work, AECOM has committed to reducing carbon in its designs through its ScopeX^TM platform, a first-of-its-kind initiative that considers embodied and operational carbon across the entire project life cycle. The company will further incorporate ESG action plans on major projects to reduce carbon impact by at least 50 percent. It will also embed net-zero, resilience and social value targets into its client account management program.
• Improve social outcomes: AECOM believes equity, diversity and inclusion enable better outcomes for clients, a deeper understanding of community challenges and more innovative solutions that propel the industry forward. As part of this pledge, the Company continues to progress against its near-term target of women comprising at least 20% of senior leadership roles and at least 35% of the overall workforce. The Company has also implemented locally relevant non-gender diversity targets in each region of its business. Its efforts extend to include developing project teams that reflect the clients and communities it serves and partnering with small and medium enterprises to generate social value through positive community investments. Additionally, the Company is focused on delivering inclusive, accessible projects that proactively improve social value outcomes for individuals, communities and society.
• Enhance governance: To better assess ESG factors in potential projects, AECOM has implemented and continues to expand its enterprise risk framework, which is supported by leadership accountability and advocacy through the audit of specific ESG targets and metrics on an annual basis. In addition to regular reporting to the Board of Directors on ESG matters, as part of the recently expanded charter of the Board’s Safety, Risk and Sustainability Committee that includes direct oversight of ESG activities, the Company intends to continue to track and report on its ESG performance targets externally in line with leading industry benchmarks.

Reflecting the above accomplishments and more ambitious strategy, AECOM has launched today a refreshed website that provides more information on how AECOM is delivering Sustainable Legacies. Please visit aecom.com/sustainable-legacies for more.

About AECOM
AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical expertise and innovation, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $13.3 billion in fiscal year 2021. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, coronavirus impacts, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; impacts caused by the coronavirus and the related economic instability and market volatility, including the reaction of governments to the coronavirus, including any prolonged period of travel, commercial or other similar restrictions, the delay in commencement, or temporary or permanent halting of construction, infrastructure or other projects, requirements that we remove our employees or personnel from the field for their protection, and delays or reductions in planned initiatives by our governmental or commercial clients or potential clients; losses under fixed-price contracts; limited control over operations run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and inadequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital’s real estate development; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of various dispositions such as the sale of our Management Services, self-perform at-risk civil infrastructure, power construction, and oil and gas construction businesses, including the risk that purchase price adjustments, if any, from those transactions could be unfavorable and any future proceeds owed to us as part of those transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220518005252/en/

Media:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is AECOM's plan for net-zero carbon emissions by 2040?

AECOM aims to achieve net-zero carbon emissions by 2040 with a near-term target of a 60% reduction in Scope 1 and 2 emissions by 2030.

When was AECOM's Sustainable Legacies ESG strategy launched?

AECOM launched its Sustainable Legacies ESG strategy one year ago.

What are the key pillars of AECOM's Sustainable Legacies strategy?

The key pillars include achieving net-zero carbon emissions, embedding sustainable development, improving social outcomes, and enhancing governance.

What achievements has AECOM made under its Sustainable Legacies strategy?

Achievements include operational net-zero status for fiscal 2021, a global ESG report, and the implementation of a Travel with Purpose program.

How does AECOM plan to improve social outcomes as part of its ESG strategy?

AECOM plans to enhance social outcomes by promoting equity, diversity, and inclusion in its workforce and through community-focused projects.