Built on Values Our Story Continues Report/KBR... · 2015-12-02 · KBR is a company of people,...

Built on ValuesOur Story ContinuesS U S T A I N A B I L I T Y R E P O R T 2 0 1 4

http://www.kbr.com

ABOUT OUR REPORT

KBR’s Corporate Sustainability Report, “Built on Values – Our Story Continues”, discloses our significant social, environmental and economic impacts to provide our stakeholders a way to assess our commitment to corporate sustainability. Our stakeholders include shareholders, customers, employees, government and industry partners, and the communities we serve.

The Global Reporting Initiative (GRI) promotes the use of sustainability reporting as a way for organizations to become more transparent. GRI’s mission is to make sustainability reporting standard practice.

This report, which covers business activity in calendar year January 1, 2014 to December 31, 2014, has been prepared according to GRI G4 Core guidelines and reflects KBR’s relevant and material aspects of sustainable development. Previous reports were published on a three-year basis. With this report, our third, we are moving toward an annual publication.

If you have questions on this report please email us at [email protected].

Commitment

> ABOUT OUR REPORT

> LETTER FROM

THE CEO

Integrity

> OUR EMPLOYEES

>> Code of Business

Conduct / Ethics

>> Zero Harm

>> Message from

VP HSSE

>> Safety Statistics

>> Health and Wellness

>> EAP

Transparency

> ECONOMICS AND

FINANCE

>> Economics

>> Finance

Accountability

> ENVIRONMENT

>> Environmental

Statistics

>> Human Rights

>> Volunteering

>> Community Projects

Responsibility

> PROJECTS

GRI

> GLOBAL REPORTING

INDEX 4.0 INDICATORS

2 5 9 11 16 18

Contents

2014 KBR SUSTAINABILITY REPORT 2

Click here for more information on our website

https://www.kbr.com/about/responsibility

As a company that develops technology, designs and builds energy infrastructure and provides services to government clients around the world, we have the potential to leave lasting footprints wherever we go. At KBR our philosophy has always been to treat other people’s communities with the same respect as our own. We focus on Health, Safety, Security and Environment (HSSE) because we believe in leaving a place as good as, or even better than, we found it.

The theme of this year’s report – “Built on Values” – reflects our commitment to doing the right thing for our people, our clients and partners, and the communities and countries in which we do business.

When I joined this company as CEO in June of 2014, I knew I was coming into an organization with a 100-year history of serving clients wherever and whenever they needed KBR to be. Whether it’s providing the technology and consulting know-how to develop our customers’ valuable global assets; designing and constructing the infrastructure and facilities to develop the world’s energy resources; providing support and services for men and women of their countries’ armed forces; or navigating the intricacies of undertaking major projects in geopolitically or culturally sensitive environments, KBR delivers.

However, KBR’s proud tradition of service and accountability is not an end. Rather it inspires a pressing and continuing commitment to live up to the ideals established by those who came before us and to advance those ideals for the next generation of KBR leaders and employees.

In 2014 we took steps to move our company toward a more sustainable future.

n Safety has been a core value of KBR since 1961 when Brown & Root founder Herman Brown distributed a letter to each employee that became the basis for our safety programs. In August we appointed a Vice President of Health, Safety, Security and Environment (HSSE) and for the first time established a direct line of HSSE reporting to the office of the CEO, emphasizing our commitment to Zero Harm starting at the highest levels of KBR and continuing throughout the organization.

n In November we introduced our Zero Harm safety program. More than merely an initiative, Zero Harm is a vision. It establishes a culture of safety where safe execution is non-negotiable and no incidents are tolerated. With an emphasis on training, personal responsibility and accountability, Zero Harm underscores the belief that all incidents are preventable and empowers everyone in the organization to avoid any situation that could put our employees, subcontractors or clients at risk.

n As part of our commitment to economic sustainability we conducted a major strategic review of our operations and in December announced a major business transformation creating a new KBR focused on our core strengths in consulting, technology, engineering and construction, and government services and structured along delivery lines that will enable us to meet the expectations of our customers and other stakeholders. This, combined with reduced complexity, will provide a more robust balance sheet, greater accountability and empowerment for our people, and position KBR to meet the challenges of the future.

n In an effort to encourage greater communication and transparency, KBR’s Executive Leadership Team began seeking opinions throughout the organization including from the KBR IMPACT Group – the global network for KBR’s future leaders – on how to bring alive the actions that ultimately demonstrate our values and drive our day-to-day business activities. Together we defined a collection of core behaviors that form the backbone of our corporate culture and reinforce our shared mission of We Deliver.

We Deliver.A MESSAGE FROM OUR PRESIDENT AND CEO

2014 KBR SUSTAINABILITY REPORT 3Commitment

KBR is a company of people, more than 25,000 employees doing business in 70 countries, and it is to our people who we owe our best effort. We conduct business ethics training and have a robust code of conduct that applies to all employees and reflects how highly we value principled business practices. We believe that every employee has the right to expect a safe, healthy work-place and so we begin meetings with a safety moment, discussing specific on-the-job risks and how to mitigate them. Our Zero Harm culture underscores and supports our safety commitments.

In addition to providing training, skill-enhancing and development opportunities to employees in our offices and worksites, we also work with local community colleges to identify needed job training courses in order to help build and maintain the workforce of the future. We’re providing jobs to local people, fair trade opportunities to local companies and support to local communities.

In turn, KBR employees commit thousands of hours to their communities – supporting schools, cleaning parks, funding playgrounds, planting trees and providing much needed supplies and assistance to those in the communities who need it most. We also give hundreds of thousands of dollars to charitable organizations around the globe to help support worthy causes aimed at providing more educational opportunities, increased health or prevention benefits, and environmental improvements in the communities in which we live and work.

At KBR we understand that building a sustainable future – one that is built on values – is a never-ending process. In today’s global society, the role of a corporation goes beyond providing returns to shareholders, wages to employees, and products and services to its immediate customers. We believe we have a responsibility to also make our world a better place and we embrace that responsibility.

To do this requires the will and the courage to adapt to an ever-changing and challenging future by understanding and meeting the needs of customers in diverse markets without succumbing to market volatility and risk. It means responding to the concerns and values of all of our neighbors in a respectful and accepting manner in accordance with the customs and needs of each community in which we operate. It means understanding that a company thrives not just by capturing markets, but by serving the people, cities and countries of our global community.

We are honored to have the opportunity to work with clients around the world building the projects of the future and helping to contribute to a better tomorrow for everyone.

Stuart Bradie, KBR President and CEO

KBR’S BEHAVIORS ARE:

WE DELIVER

We are committed to standing by our promises to deliver projects through collaboration, disci-pline, and the KBR Way.

WE VALUE OUR PEOPLE

We value and respect our employees as people. We are committed to Zero Harm for every person. We emphasize development of each person to reach his or her full potential.

WE ARE PEOPLE OF INTEGRITY

We are people of character. We value honesty, trust, courage, prudence, and tenacity. We will not sacrifice our integrity.

WE EMPOWER OUR EMPLOYEES

We trust our employees to be independent decision makers while being held accountable to quality and delivery. We enable our employees to be proactive in their work and adaptive to change.

WE LEAD BY EXAMPLE

We own our work, individually and as a company. We have a passion to deliver high quality work and a will to succeed. We value the success of KBR over individual success. We are ONE KBR.

2014 KBR SUSTAINABILITY REPORT 4Commitment

We Deliver.A MESSAGE FROM OUR PRESIDENT AND CEO

CODE OF BUSINESS CONDUCT (COBC)

At KBR we believe that integrity is the most important value we hold, and it must never be sacrificed for the sake of profits. This belief is reflected in our COBC – the ethical standards and legal principles that are the foundation of our company. KBR’s COBC influences every aspect of our business, from how we help our customers develop their resources, to the way we interact with the communities where we live and work, to how we treat our people and everyone with whom we come into contact.

KBR’s Board of Directors adopted the COBC to establish a common set of ethical standards and legal principles that the company expects every employee to exhibit when dealing with clients, communities and each other. KBR also expects third parties working on behalf of the company to adhere to the same ethical standards, and will not condone any illegal or unethical actions.

KBR conducts its business in compliance with all applicable laws and in accordance with ethical standards. In some situations, the applicable laws of the United States may conflict with those of another country. In such cases, the company will endeavor to resolve such conflicts following the guidance of our Legal Department. Where such a conflict cannot be resolved, the applicable laws of the United States will be observed and complied with.

It is the personal responsibility of each employee to adhere to the standards and restrictions applicable to his or her assigned duties and responsibilities, whether imposed by applicable laws or the COBC. Each employee must avoid any

activities that would involve the company in any practice that is not in compliance with the COBC. Any employee who does not adhere to such standards and restrictions is acting outside the scope of his or her employment, responsibilities or agency.

Beyond legal compliance, all employees are expected to observe high standards of business and personal ethics in the discharge of their as-signed duties and responsibilities. This requires the practice of fair dealing, honesty and integrity by employees in every aspect of engaging with company employees, the public, the business community, shareholders, customers, suppliers, partners, competitors and governmental and regulatory authorities. Employees, when acting on behalf of the company, will not take unfair advantage through manipulation, concealment, abuse of privileged information, misrepresenta-tion of material facts, or other unfair practices.

Employees have the responsibility to read, understand, and comply with the COBC and to participate in company-mandated COBC training. Any employee who compromises or violates the provisions of the COBC may be subject to disciplinary action including termination and, if applicable, criminal or civil proceedings.

Examples of conduct that may result in disciplinary action include violating COBC policy, requesting others violate COBC policy, or failing to promptly report a known or suspected COBC violation.

When in doubt about the propriety of a particular course of action, employees are encouraged to contact the Ethics Hotline or any member of the Law Department.

Full disclosure of our COBC can be found at https://www.kbr.com/Documents/COBC_English.pdf

ETHICS

The ethical principles contained in our COBC demonstrate our commitment to perform our mission with the highest integrity. KBR offers an independently operated, global ethics hotline for reporting possible violations of the KBR COBC or applicable anti-corruptions laws.

In the United States in 2014, there were 24 discrimination claims resolved in mediation or arbitration through KBR’s Dispute Resolution Program and one harassment claim resolved in arbitration. Globally, in 2014, KBR’s Ethics Hotline received 465 calls, with 47 percent related to COBC issues.

Our Employees

2014 KBR SUSTAINABILITY REPORT 5Integrity

The nature of KBR’s business requires our people to meet challenges and deadlines every day, safely and responsibly. In 2014, KBR employees worked more than 172,000,000 hours at over 600 facilities around the world with a resulting recordable injury rate of 0.30.

While many consider this recordable injury rate an admirable achievement, KBR views it as the next threshold on which we must improve. The only way to maintain this level of commitment to continuous improvement is with a matching commitment to the health and safety of our people and to the environment.

At KBR, HSSE is highly integrated into our training, facility and project planning, and a corporate culture that values and believes in each person’s ability to achieve complete HSSE success. That success begins with being a safe and healthy individual who mitigates safety risks at work and home, and also has the courage and feeling of empowerment to intervene when he or she sees others at risk.

We have reinvigorated our safety program through a series of campaigns aimed at realignment and refocus our efforts by creating a step change that makes a good program greater.

The KBR Zero Harm initiative was launched in late 2014 with key components specifically designed to engage employees with our overarching theme that zero incidents are achievable. Central to this are our seven fundamental HSSE Absolutes, each of which contain elements that support our company and HSSE program vision. These are:

n Total Safety Task Instructions: The KBR pre-task risk assessment and mitigation conducted prior to task commencement. Employees work together to identify task related hazards reinforcing not only safety training but also teamwork.

n Courage to Care Conversations: The Courage to Care Conversation process is a behavioral and observational based safety program that empowers employees to inter-vene with co-workers when unsafe acts are observed in addition to reinforcing positive behaviors. Employees are encouraged to exercise the Courage to Care Conversation process in their personal lives in an effort to extend a safety mentality all day, every day.

n MyKey Stop Work Authority: MyKey represents each employee’s right to stop any task if there is a perceived danger or risk, regardless of that employee’s position or level of authority.

n Safety Energy: Safety Energy is the KBR leading indicator program that is a proven best practice. Safety Energy continuously

measures and tracks the level of engagement that project leadership expends towards safety initiatives.

n Keys to Life: The KBR Keys to Life are field related activities that have been identified as having the highest potential to cause serious injury. The keys are diligently managed at all field locations where they establish a clear set of injury mitigation standards in an effort to trigger robust employee engagement.

n Key Office Behaviors: The KBR Key Office Behaviors are safe office behaviors that are actively managed in all office locations. The Key Office Behaviors provide a high level of engagement in an environment that is typically more introverted in nature.

n Incident Review Board: The Incident Review Board provides a method for incidents to be reviewed through a fair, consistent, and equitable process. The Incident Review Board ensures all high potential incidents are thoroughly reviewed by business segment leadership as well as serves as a global lessons learned communications platform.

Implementing and highlighting these HSSE Absolutes within our business has proven successful based on our incident rates. But at KBR we view incident rates as a representation of someone – a person, a family member, a friend – who suffered as a result of an unsafe act or condition. It is for this reason that we strive to make continual improvements to our programs. Zero Harm is about learning from our past to make today successful and creating a sustainable future for our employees and operations.

The KBR Zero Harm Program

Message from HSSE Vice President

“Sustainability plays a vital role in the future of our business. The demand for businesses to contribute to the communities where they operate is here, and we must respond to that demand in a way that demonstrates our commitment to create value for our stakeholders. We have made significant progress in our sustainability efforts, from compliance initiatives that ensure continuous improvement in our safety, environmental and quality man-agement systems to project pre-planning efforts that incorporate programs designed to serve the communities in which we are engaged in. Sustainability is integrated into all areas of our operations, and KBR continues to be willing and capable of in-corporating these sustainable development activities for the benefit of the community, our operations, and our clients.”

Nick Anagnostou, Vice President Health, Safety, Security and Environment

H S S E B R A N D I N G

CMYK


North America Middle East Europe Africa Australia Asia

2014

56.8%

5.4%

6.2%

17.9%

13.6%

2013

60.3%

14.1%

8.3%

1.4%

13.0%

2.9%

2012

51.4%

27.5%

8.1%

7.0%

4.6% 1.4%

RECORDABLE INCIDENTS BY REGION, 2011 – 2014

2011

44.7%

43.4%

4.5%1.7%0.4% 5.3%

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Recordable Incidents

Safety incident numbers include subcontractors and joint ventures

Lost Time Incidents

2011 2012 2013 2014

0.10(128) 0.09

(73) 0.07(48) 0.04

(34)

0.37(468) 0.35

(284)

0.38(277)

0.30(257)

SAFETY INCIDENTS, 2011 – 2014

Safety Statistics


On Feb. 10, employees at KBR’s Corporate Headquarters gathered to sign a Zero Harm banner, a large, visible testament to each individual’s personal commitment to safety. Personnel at office facilities and sites around the globe conducted similar banner signing ceremonies.

EMPLOYEE HEALTH AND WELLNESS

KBR people are known for their hard work, dedication and drive to deliver innovative solutions to every challenge – from creating safe, efficient technology that helps customers develop their resources, to designing and constructing the facilities and infrastructure that power our world, to providing support for militaries and governments around the globe. To attract such people, we must offer rewarding careers, opportunities for professional and personal development, equality of opportunity, flexible compensation, fair treatment and the expectation that they will be treated with dignity and respect.

WELLNESS PROGRAM

The most successful and productive employees are usually the healthiest. Understanding the many stressors and obligations that exist in our employees’ lives and the challenges involved in maintaining wellness with so many competing demands in today’s world, KBR makes the health of our employees a top priority. Through our many health-focused programs, we demonstrate to our employees that we care and want to retain them as valued, long-term team members.

IN THE U.S.

Health Screenings

In 2014, 1,570 employees across the U.S. participated in free on-site health screenings. Screenings include a blood pressure, body fat and body mass index measurement; a cholesterol test (glucose, HDL/LDL and triglycerides); and a waist-circumference measurement. At the screening, participants may discuss their test results and options for improving their health with a health coach.

Flu Shots

In 2014, 1,617 employees received free flu shots at seven KBR offices throughout the U.S. We also provided flu shot vouchers for use at local pharmacies to employees who work at locations where it is not feasible to provide on-site vaccinations.

Healthy Steps

This wellness program rewards U.S. employees financially for taking specific measures to protect and improve their health. KBR employees had the opportunity to participate in the Health Screenings. If employees’ screening results were within healthy ranges, they automatically earned a premium discount for 2015. If employees’ screening results fell below the healthy ranges, they were required to either participate in health coaching or improve their numbers on their own to receive the premium discount. For 2014, 1,151 employees received the discount on their 2015 medical premium.

GLOBALLY

In the U.K. and Australia, flu shots and vouchers were offered to employees. Employees in South Africa take advantage of a cash back benefit from their medical plan that reimburses costs associated with purchasing healthy foods, fitness clothing and gym memberships. In the UAE, health checks were carried out for the first time in 2014. Singapore employees participated in numerous organized wellness activities including team sports and family days while also taking advantage of on-site health screenings. Indonesia conducted flu shots and sponsored several employee sports activities.

In addition to these wellness programs, KBR offers other initiatives to help employees stay healthy including on-site health fairs, coaching for lifestyle and chronic conditions, on-site chair massages and discounts for fitness facilities, weight-loss programs and retailers that offer healthy food options.

EMPLOYEE ASSISTANCE PROGRAM (EAP)

As an integral part of our ONE KBR and Zero Harm culture, KBR’s EAP provides confidential, professional mental health counseling and related services free of charge to employees and their dependents. This helps to ensure that KBR employees are emotionally healthy, safe and productive and able to meet our customers’ requirements.

KBR’s EAP organization is staffed internally in the U.S. by a range of licensed mental health profes-sionals, including licensed clinical social workers, licensed professional counselors, licensed chemical dependency counselors and certified employee assistance professionals.

EAP offers 24-hour crisis intervention, stress management for critical events and individual consultations covering a wide variety of issues including marital troubles, substance abuse, child rearing, elder care and mental issues.

Additionally, EAP counselors routinely consult with supervisors and managers on issues that include workplace crisis intervention, addressing employee performance problems, as well as supervisory topics involving change management, human relations, communications, and emotional resiliency. EAP tools and resources are available

to help our employees and their supervisors reach their full potential so they can be independent but accountable decision makers, proactive in their work and responsive to the needs of KBR’s customers.

Our Employees


Employees attend the annual benefit fair sponsored by Wellness@KBR where they receive free flu shots. The fair is part of KBR’s commitment to ensuring the health and well being of every employee.

Economic sustainability for KBR means creating a company that will last for generations to come. In 2014, we strengthened our commitment to deliver superior returns to our shareholders and backed it with sustainable business practices that ensure profits today and in the future. We focused on our core strengths in consulting, technology, engineering construction, and govern-ment services; restructured the organization to better meet the expectations of our customers and other stakeholders; and improved our capital and operational efficiency.

Ensuring a sustainable company means creating our own future rather than reacting to whatever is happening in the marketplace. It means looking beyond short-term gains and quick profits to cre-ating opportunities for long-term financial value and being valued by our customers.

ECONOMICS

Good governance is the hallmark of a well-run, economically sustainable company. KBR’s Board of Directors adheres to a fair and honorable model of governance to guide its role as the guardian of shareholder interests. KBR’s Board has four standing committees to which it has delegated certain duties and responsibilities: Audit, Compensation, Nominating and Corporate Governance (“NCG”), and Health, Safety, Security, Environment and Social Responsibility (“HSSE&SR”).

The NCG Committee’s responsibilities include, but are not limited to:

n developing, implementing and periodically reviewing KBR’s corporate governance guidelines;

n developing and implementing a process to assess board and committee effectiveness;

n identifying individuals qualified to become board members, consistent with board- approved criteria; and

n determining the composition of the board and its committees, including selection of director nominees for the next annual meeting of stockholders.

The HSSE&SR Committee’s responsibilities include, but are not limited to:

n reviewing the status of KBR’s health, safety, security, environmental, and social responsibility policies and performance, including processes to ensure compliance with applicable laws and regulations;

n reviewing KBR’s health, safety, security, environmental, and social responsibility performance to determine consistency with policies and goals;

n reviewing and providing input to KBR on the management of current and emerging health, safety, security, environmental, and social responsibility issues;

n overseeing KBR’s activities in managing its major risk exposures within the health, security, environmental, and social responsibility areas; and

n reviewing KBR’s political and charitable contributions and social responsibility activities.

Economics and Finance

2014 KBR SUSTAINABILITY REPORT 9Transparency

FINANCE

KBR operates in highly competitive markets throughout the world. We believe we offer a competitive advantage in the following ways:

n market-leading health, safety and environmental standards and sustainable practices n customer relationships n successful prior execution of large projects in difficult locations n technical excellence and differentiation n high value in delivered projects and services measured by performance, quality, operability and costn service delivery, including the ability to deliver personnel, processes, systems and technology on an

“as needed, where needed and when needed” basis with the required local content and presence n consistent superior service quality n financial strength through liquidity, capital capacity and the ability to support warrantiesn breadth of proprietary technology, know-how and technical solutions and n robust risk awareness and management processes.

KBR conducts business in over 70 countries. Based on the location of projects executed, our operations in countries other than the U.S. accounted for 63% of our consolidated revenues during 2014, 66% of our consolidated revenues during 2013 and 73% of our consolidated revenues during 2012.

We market substantially all of our project and service offerings through our business segments. The markets we serve are highly competitive and for the most part require substantial resources and highly

skilled and experienced technical personnel. A large number of companies are competing in the markets served by our business, including U.S.-based companies such as Bechtel Corporation, Fluor Corporation, Jacobs Engineering Group Inc., AECOM Technology Corporation, and international-based companies such as Amec Foster Wheeler plc, Chicago Bridge and Iron Company N.V., Chiyoda Corporation, JGC Corporation, McDermott International, Inc., Petrofac, Saipem S.p.A., Technip S.A., Wood Group PSN and WorleyParsons. Since the markets for our services are vast and extend across multiple geographic regions, we cannot make a definitive estimate of the total number of our competitors.

Years ended December 31

Dollars in millions, except per share amounts 2014 2013 2012 2011 2010

Statement of Operation Data:

Revenues $ 6,366 $ 7,214 $ 7,770 $ 9,103 $ 9,962

Gross profit (loss) (65) 417 518 640 689

Equity in earnings of unconsolidated affiliates 163 137 151 158 137

Impairment of goodwill, asset impairments and restructuring charges (a) (660) — (180) — (5)

Operating income (loss) (794) 308 299 587 609

Please see our 10-K filing for more information on Global Operations.

Economics and Finance

2014 KBR SUSTAINABILITY REPORT 10Transparency

KBR revenue by geographic location as a percentage of total revenues:

United States, 37%

Middle East, 11%

Europe, 10%

Africa, 4%Other countries, 4%

Australia, 22%Canada, 12%

2014 2013

United States, 34%Middle East, 13%

Europe, 8%

Africa, 8%

Other countries, 2%


2012

United States, 27%

Middle East, 13%

Europe, 7%

Africa, 21%

Other countries, 3%


http://investors.kbr.com/investors/sec-filings/sec-filings-details/default.aspx?FilingId=10919159

Greenford Leatherhead Birmingham Air Hotel

KBR ELECTRICITY CONSUMPTION, tCO2e

0

2,000

4,000

6,000

8,000

10,000

2011

2,802 2,448 2,315 2,073

3,662 3,443 3,493 3,224

2,372

2,4482,315

2,073

2012 2013 2014

KBR NATURAL GAS CONSUMPTION, tCO2e

0

200

400

600

800

1,000

1,200

2011

808 740 835 680

246 281

328

246

2012 2013 2014

TOTAL WEIGHT OF OFFICE WASTE, LBS

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2011

27,492 30,819 34,492 15,971

837,756 682,021 553,360 644,816

325,986

309,032

230,846186,522

2012 2013 2014

PAPER CONSUMPTION, LBS

0

20,000

40,000

60,000

80,000

100,000

120,000

2011

45,112 47,886 36,904 41,635

837,756 682,021 553,360 644,816

325,986

309,032

230,846186,522

2012 2013 2014

0

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

2011

4,588,845 4,165,421 3,064,966 2,216,615

5,433,490 3,053,0362,920,157

2,999,145

2,918,308

2,242,127

2,242,1272,854,643

2012 2013 2014

KBR OFFICE FACILITY WATER USAGE, GALLONS

0

20,000

40,000

60,000

80,000

100,000

2011

78,380 44,316 35,176 31,298

1,814

1,361

1,6901,361

2012 2013 2014

KBR GLOBAL TRAVEL EMMISSIONS, tCO2eENVIRONMENTAL STATISTICS

KBR is committed to pursuing sustainable environ-mental solutions to offset human activities that may contribute to global warming. We make efforts to mitigate any negative contribution to this issue and work to find ways to reduce carbon emissions. Year after year we’ve been recognized by the Carbon Trust Standard for reducing our carbon footprint.

Although the majority of our energy consumption is by office operations, we continue to reduce the overall usage of all natural resources.

Our employees are helping where and when they can to reduce our greenhouse gas impacts. In 2014 KBR U.S. offices recycled 360 short (U.S.) tons of paper.

We continue to work with our clients and suppliers to find ways to minimize materials that will later become waste before they get to the project sites. We make every effort to recycle materials. Containers used to transport materials to site are used on return trips to deliver collected and segregated items to recyclers.

We make every effort to reduce what we use and recycle generated material as a method to help sustain natural resources.

Environment

2014 KBR SUSTAINABILITY REPORT 11Accountability

Each year KBR employees contribute to the betterment of their communities, volunteering thousand of hours and raising money to support worthy causes.

HUMAN RIGHTS

As an extension of our COBC, KBR adopted a Global Human Rights Policy that acknowledges the principles contained in the United Nations Declarations of Human Rights. While KBR believes it is the role of government in each country to protect the human rights of its citizens, our actions play an important role in upholding equality, dignity and respect for all people in the countries where we conduct business.

Our human rights policy serves as a powerful guide for our employees and subcontractors. For example, KBR has a zero-tolerance policy regarding Trafficking in Persons compliance. We enforce these requirements by conducting pre-award reviews, mandating that all employees and subcontractors deployed overseas attend a Trafficking in Persons training program, performing monthly inspections at subcontractor temporary labor camps, and offering an ethics hotline for employees to report any concerns, including potential Trafficking in Persons violations.

VOLUNTEERING

EMPLOYEE INVOLVEMENT

KBR employees routinely solve problems and find solutions for our customers. That’s the founda-tion of our We Deliver commitment. It’s also a quality that extends to our employees’ volunteer activities. Around the world, KBR employees contribute many hours to the betterment of their communities. At times, it involves small local projects – planting trees; cleaning parks; adopt-ing schools and repairing playground equipment;

and lending assistance to the ill, the elderly and the disadvantaged. While these projects and causes might seem small in nature, they are ones for which employees have a real passion. Collec-tively, their efforts add up to thousands of hours of volunteer service in hundreds of communities. Community outreach in the form of volunteering or cash donations is further encouraged and facilitated through KBR’s corporate matching donations and the KBR Cares volunteer program, the company’s vehicle for organizing volunteer activities and raising employee awareness of community needs. A few examples of employee involvement in 2014:

Bowling for dollars

One of the highlights of the year for KBR’s Houston volunteers is the Junior Achievement Bowl-a-Thon. Each year KBR employees volunteer as team captains and bowlers/fundraisers competing to raise the most money both within the company and among other companies in the Houston area. It’s a hotly contested event, with teams vying to outdo each other in fund raising, costumes and team spirit. KBR bowlers raised a total of $21,476.58 in 2014 to provide financial literacy training and experiences to America’s future business professionals.

Lighting up

Hamilton is a small community in northern Mississippi with a population of 631 and one local school for grades K-12. For the past two years KBR has provided maintenance and small capital services to Tronox Limited’s titanium dioxide manufacturing operation, which has been part of

the town for more than 50 years. After making do with an aging manual scoreboard for many years, the school’s sports teams raised the money to purchase a new electronic lighted scoreboard for their baseball field. Unfortunately, the scoreboard cost more than expected, leaving them without the funds to have it installed. Hearing of their predicament, KBR reached out to the school and asked if they could help. Each day, schedule permitting, KBR employees would load a forklift, a manlift and other equipment onto trailers and, accompanied by a police escort, drive two miles to the school’s baseball field to work on the project. It took five days to get the new scoreboard in place but KBR met the students’ goal to have it up and working for the Lady Lions baseball team’s first game of the season. Once again KBR Delivers – safely, on time and on budget!

Giving from the heart

KBR’s corporate matching donations program helps employees make contributions to the local or national charities that are closet to their hearts. KBR absorbs all of the administrative costs of the program and adds a 50 percent matching donation for employee contributions over $50.00. Employees may donate to one or more organizations, either through a one-time contribution or payroll deductions. In 2014, KBR employee contributions helped fund parks, preserve estuaries, and provide much needed financial support to non-profit organizations involved in education, health and welfare, civic programs, arts and culture. KBR employee payroll deductions of approximately $350,000 to various organiza-tions were supplemented with KBR corporate dollars, for a total of $523,500 in contributions to worthy causes.

Environment


As Qatar’s ambitious Expressway Programme creates the vital transportation linkages to support the country’s growth, KBR’s highly effective HSE initiatives are helping to instill a unified safety culture among the many workforces and create a safer future.

KBR Canada’s Aboriginal and Local Engagement Committee is designed to foster greater under-standing and engagement with this large and growing segment of the country’s workforce.

COMMUNITY PROJECTS

RAISING THE BAR FOR SAFETY ACROSS QATAR’S EXPRESSWAY PROGRAMME

It’s the safety superhighway. As Programme Management Consultant for Qatar’s extensive Expressway Programme, KBR has 18 projects in construction, and safety is the driving value across all project sites. Throughout, KBR’s health, safety and environment team has guided consultants and contractors in implementing highly effective safety initiatives that empower the project’s many workforces across Qatar. Among the initiatives are health, safety and environment toolbox talks and stand downs, weekly manage-ment walk throughs, issuing of first aid pouches for all workers and the use of safety report cards.

The focus is paying off. In 2014, numerous Expressway Programme projects celebrated notable safety milestones:

n Dukhan Highway Central, with a workforce of more than 3,000 people, achieved 25 million hours without a lost time incident (LTI).

n Lusail Expressway, achieved 10 million work-hours without a LTI.

n F-Ring Road, demonstrating a commitment to an incident and injury-free workplace, achieved four million work-hours without a LTI.

As more Expressway Programme projects move into construction, the safety focus is expanding to include road users driving through and around project sites. In a Qatar first, crash cushions have been installed along temporary diversion roads. Traffic mounted attenuator vehicles are also being used to guide traffic to make journeys even safer for road users.

By achieving project safety milestones and expanding safety awareness into the community, KBR and its program partners are helping to shape an improved safety culture for construction projects across Qatar.

KBR REACHES OUT TO CANADA’S ABORIGINAL COMMUNITIES

Diversity in the workplace is one of the corner-stones that contribute to a stronger workforce. In Canada, Aboriginal people make up a large and growing segment of the workforce. That’s why employees of the KBR Services Group has taken steps to ensure that they encourage diversity by reaching out to the local Aboriginal communities. From hiring subcontractors and tradespeople to work on KBR projects, to increasing Aboriginal cultural awareness among KBR staff and estab-lishing relationships within the communities, the goal is to foster increased trust and openness among KBR and the Aboriginal communities.

To this end, KBR established the Canada Aboriginal and Local Engagement Committee designed to increase Aboriginal awareness and inclusion in the Canadian communities in which KBR employees live and work.

Since most of Canada is governed by treaties with the indigenous people, industry in Canada has a duty to consult with Aboriginal people, whose treaty and traditional rights may be affected by oil and gas projects. But KBR wanted to do more – honoring our client requirements while also being proactive and developing our own long-term relationships with First Nations and Metis people.

Not only does it make for a better, more diverse workforce for KBR projects, it also furthers our sustainable development commitments to develop projects efficiently and responsibly, reach out to communities through initiatives that meet their needs and create greater economic opportunities for the entire region.

Environment


After a fellow Leatherhead, UK employee’s life was saved through the swift response of the region’s air ambulance service, KBR employees raised £5,000 (USD $7,543) to fund the program, which relies on charitable contributions.

KBR TEAMMATES RAISE FUNDS, AIR AMBULANCE AWARENESS AT LEATHERHEAD

When an employee in KBR’s Leatherhead, U.K., office suffered a serious medical crisis while on the job, his colleagues responded swiftly to help him, contacting the emergency response service to dispatch an air ambulance (helicopter) to the campus, ensuring a successful outcome.

One of the biggest surprises for most KBR employees that day was the fact that the air ambulance service was not funded through the U.K. National Health Service, but is a registered charity that relies on fundraising to survive. It costs £6 million (USD $9.7 million) a year to fund the service, which covers the English counties of Kent, Surrey and Sussex. The single visit to the KBR campus cost about £2,500 (USD $3,771).

To say thank you, Leatherhead employees decided to raise money for the service. As part of dress down Friday, all members of the project were invited to wear the shirt of their favorite team, whatever the sport, and pay a fee for the privilege. The event, along with KBR fund matching, raised more than £5,000 (USD $7,543) for the air ambu-lance service. The fundraising had a ripple effect; KBR employees later ran in a local half marathon sponsoring the air ambulance.

CONVERTING TRASH TO ENERGY – SOLID WASTE AUTHORITY OF PALM BEACH COUNTY

Converting municipal solid waste (MSW), or trash, into energy is not a new process but new and emerging technologies are making the process cleaner and more economical than ever before. KBR provided engineering, procurement and construction (EPC) services for the Solid Waste Authority of Palm Beach County’s Renewable Energy Facility 2, the most advanced and cleanest waste-to-energy power plant in North America. The facility is designed to transform 3,000 trash per day of MSW into 100 megawatts of clean energy, providing power for an estimated 40,000 homes and businesses, while reducing the local landfill deposit rate by up to 90 percent.

Since the project was awarded in 2011, KBR was embedded in the community, employing 259 local direct hire workers during peak construction in December 2014 and contracting with 21 local subcontractors for engineering, concrete construction, electrical work, roofing, landscaping, plumbing, painting and other services. A total of $136,943,953 was paid to Palm Beach County firms, including $22,693,474 to small business enterprises. KBR exceeded its local hire commitment by 5% for skilled employees and 10% for unskilled employees.

Environment


Through an innovative redevelopment and remediation program, KBR transformed the 136-acre brownfield site of its original Clinton Drive campus into a greenspace for urban development.

The City of Palm Beach’s state-of-the-art waste-to-energy power plant designed and built by KBR will provide power for an estimated 40,000 homes and businesses while reducing landfill use.

A key element of the contract was to provide training and development opportunities for local workers. KBR trained 223 participants in a wide variety of National Center for Construction Education and Research courses, from field and task-specific safety training to craft skills such as pipefitting, electrical, rigging, project supervision and crew leadership.

KBR also recruited and trained local U.S. Military veterans, many of them out of work and living in transitional housing. Through our award-winning QuickTrain program, KBR’s ongoing feeder oper-ation for entry level unskilled and semi-skilled workers, they graduated with basic construction skills and guaranteed jobs as helpers and laborers on the project.

KBR RECEIVES FINAL ENVIRONMENTAL CERTIFICATION FOR FORMER CORPORATE HEADQUARTERS PROPERTY

When KBR decided to sell the original Brown & Root headquarters at 4100 Clinton Drive, Houston, Texas, the company knew that extensive remediation would be needed to make it ready for future development. After more than 100 years of industrial activity both with Brown & Root and previous owners, the site contained residual chemicals and other contaminants.

The KBR team knew that transforming the 136-acre brownfield site for more productive use would be no small feat. It took five years and multiple KBR departments and teammates working together with civic and local elected officials to complete the remediation process. Approximately 36,000 cubic yards of soil was removed and recycled for use in commercial/industrial projects, enabling KBR to reduce the carbon footprint, lessen resource consumption and lower the cost of soil disposal.

KBR also applied for a Municipal Setting Designation (MSD), a tool that is used to streamline and facilitate urban redevelopment in Houston.

An MSD creates an area within a municipality where current and future property owners are prohibited from using the groundwater for potable purposes such as drinking, bathing, cooking or irrigating crops. Since City of Houston water is supplied by a closed system from surface water bodies such as Lake Houston rather than shallow groundwater, this prohibition is merely a formality. By designating a property as being located within an MSD, owners are not required to clean up the groundwater to drinking water standards, thereby shortening the remediation process and saving significant sums of money. The Clinton Drive site is the largest tract approved thus far for an MSD.

KBR received the final certificate of completion from the Texas Commission on Environmental Quality in September 2014. In the process it turned a large, historically impacted, limited-use site into a greenspace that is ready for new life as a vibrant residential or commercial development in the heart of Houston.

Environment


With a can-do attitude and a spirit of innovation, KBR provided a healthy environment for UK and international troops in a remote and arid desert.

To a large extent, the scope and the boundaries of our approach to corporate sustainability and sustainable development is defined by who we are as a service company and what we do for our customers. As people, and as global corporate citizens, we strive to make a difference in the lives of the people who work for us, their families and all those in the communities where we operate. The following stories highlight some of our achievements in 2014.

CAMP BASTION (AFGHANISTAN)

Located northwest of Lashkar Gah, the capital of Afghanistan’s Helmand Province, Camp Bastion is a solitary fortress in the middle of an arid, treeless, empty desert. Between 2005 and 2014 it was the logistics hub for International Security Assistance Force operations in Helmand during the War in Afghanistan and Operation Herrick and was capable of accommodating over 32,000 people.

KBR arrived at Camp Bastion in 2007 under the CONLOG (Contractor Logistics) contract with Britain’s Ministry of Defence. At peak, more than 1,500 KBR staff worked at the base.

Operating in a remote desert with extreme weather conditions, KBR faced many challenges in performing its mission. But through broad experience, a can-do spirit and sheer necessity, (the mother of innovation), KBR successfully navigated every challenge.

POTABLE DRINKING WATER

With summer temperatures exceeding 40ºC (104ºF), each soldier needed on average, up to 10 liters per day of drinking water. Rather than relying on road convoys to deliver bottled drinking

water, KBR designed, constructed and operated an industrial water bottling plant at the camp. Every day the plant produced 36,000 liters of water — a total of 72.5 million bottles from 2008 through 2014, containing enough water to fill 29 Olympic swimming pools. KBR not only met the needs of each soldier, we also:

n Saved the equivalent of 6,400 trucks deliveries by transporting empty bottles and preforms, which are 3% of the weight and 9% of the volume of commercially bottled water.

n Delivered approximately £25 million (USD $37 million) cost savings to the British taxpayers – transport of bottled water into Helmand being 60% more expensive than the Bastion-produced product.

n Reduced the carbon footprint by eliminating repeated water delivery trips to and from the camp.

n Prevented human death and injury by reducing the need for convoys through a remote and hostile region.

FULL REGENERATION CAPABILITY

KBR designed, constructed and operated a major workshop repair facility for routine maintenance and overhaul programs, extending equipment service lives, reducing equipment rotation and backloading to the UK, reducing transportation emissions and green footprint and saving a total of £120 million (USD $181 million).

TACTICAL BASE ABLUTION UNIT

KBR piloted the KBR TAU, a lightweight, economic and robust yet easily transportable ablution system that improved camp hygiene and living conditions. With this system, 100% of grey water was filtered and cleaned for re-use, requiring the water tank to be replenished every two weeks under normal conditions. Black water from toilet flushing was transferred to a holding tank and

incinerated, with only minimal ash as a by-product. An on-demand battery reduced generator use and delivered an efficiency rating greater than 90%. The KBR TAU is now being used in military exercises worldwide.

SUSTAINABLE WASTE MANAGEMENT SYSTEM

Built in 2013, the waste transfer system provided on-site sorting/segregation of waste into different streams, resulting in more than a 50% reduction in the use of landfill/incineration through recycling.

n Woods – 16,445 m3

n Cans, tins and aerosols – 732 m3

n Plastic bottles – 734 m3

n Paper and cardboard – 7,300 m3

n Scrap metals – 455,000 kg (circa 4,460 m3)n Waste oils – 372,610 litern Waste fuel – 51,860 litern Landfill/incineration – 25,681 m3

DEVELOPING LOCAL SKILLS

With a commitment to contributing to future stability, reconstruction and sustainable development in Afghanistan, KBR maximized local recruitment and procurement by employing, training and developing Locally Recruited Workers. Maintaining a constant dialogue with the employed “Mullah” or village headman as the key point of contact for all health, safety, welfare, and cultural issues, KBR employed and trained thousands of Afghans to the highest standards of quality and safety. Qualified as electricians, plumbers, air con technicians, generator mechanics and chefs, they now have skills to contribute to their nation’s development.

Projects

2014 KBR SUSTAINABILITY REPORT 16Responsibility

The award-winning Regional Rail Link in Victoria, Australia is becoming the model for delivering an environmentally sustainable infrastructure project.

AUSTRALIAN RAIL LINE

The Regional Rail Link is a landmark AU$ 4.1 billion (USD $2.97 billion) infrastructure project in the Australian state of Victoria. Designed to untangle bottlenecks, improve reliability and provide new services from the heart of Melbourne to growth areas in the west, the project benefits both met-ropolitan and regional travelers, enabling more Victorians to use sustainable public transport.

KBR, in joint venture with Arup (KAJV) was awarded concept design for the project, which includes 45km of new rail track, 25 bridges, five new upgraded stations and five grade separations with-in the operational rail corridor. The contract was later extended to the development of reference designs and technical advisory support for procurement and subsequent construction phases.

The goal of all the stakeholders was to deliver a project with a positive legacy for communities along the tracks. Through close collaboration between KBR, the other contractors and the Regional Railway Authority project team, the project has raised the bar for innovative sustain-ability practices on large infrastructure projects nationwide.

Key successes include reducing construction- phase energy and carbon by 20 percent, developing a groundbreaking environmental rating tool for railway stations and achieving green star certifications for five railway stations – a first in Australia. The project also introduced innovative practices for the recycling and reuse of construction and demolition waste resulting in large reductions in materials such as Portland cement, timber and base building materials.

The project received the Infrastructure and Buildings Award at the Premier’s Sustainability Awards 2014, which recognizes and celebrates achievements and dedication toward building a more environmentally sustainable future for Victoria. More importantly, it offers tangible proof that with a strong commitment by project stakeholders, sustainability can be successfully built into large-scale infrastructure projects from inception, encouraging further innovations throughout its operating life.

Projects

2014 KBR SUSTAINABILITY REPORT 17Responsibility

Global Reporting Index 4.0 IndicatorsGeneral Standard Disclosures

EC Economic PerformanceEN Environmental PerformanceHR Human Resources and Human Rights LA Labor Practices and Decent WorkPR Product Responsibility and ComplianceSO Social Performance and Society

INDICATOR PROFILE DESCRIPTION RESPONSE

G4 1 Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

See CEO’s statement in our report content.

G4 2 Provide a description of key impacts, risks, and opportunities. Our rate of growth and the success of our business depend upon our ability to attract, develop and retain a sufficient number of affordable trained engineers and other skilled workers either through direct hire or acquisition of other firms employing such professionals. The market for these professionals is competitive. If we are unable to attract and retain a sufficient number of skilled personnel, our ability to pursue projects may be adversely affected, the cost of executing our existing and future projects may increase, and our financial performance may decline.

A significant portion of our revenue is derived from foreign operations, which exposes us to risks inherent in doing business in each of the countries where we transact business. The occurrence of any of the risks described below could have a material adverse effect on our business operations and financial performance. With respect to any particular country, these risks may include by are not limited to:

n Expropriation and nationalization of our assets in that country;n Political and economic instability;n Civil unrest, acts of terrorism, force majeure, war or other armed conflict;n Currency fluctuations, devaluations and conversion restrictions;n Confiscatory taxation or other adverse tax policies;n Governmental activities or judicial actions that limit or disrupt markets, restrict payments, limit the movement of funds, result

in the deprivation of contract rights or result in the inability for us to obtain or retain licenses required for operation.

Due to the unsettled political conditions in many oil-producing countries and other countries where we provide governmental logistical support, our financial performance is subject to the adverse consequences of war, the effects of terrorism, civil unrest, strikes, currency controls and governmental actions. Our operations are conducted in areas that have significant amounts of political risk. In addition, military action or continued unrest in the Middle Ease could impact the supply and price of oil and gas, disrupt our operations in the region and elsewhere and increase our costs related to security worldwide.

Some of our services are performed in high-risk locations, such as Iraq, Afghanistan, Nigeria, Algeria, Egypt and Saudi Arabia where the country or location and surrounding area is suffering from political, social, economic issues, war or civil unrest. In those locations where we have employees or operations, we have and may continue to incur substantial costs to maintain the safety of our personnel. Despite these precautions, we have suffered the loss of employees and contractors which could expose us to claims and litigation. In the future, the safety of our personnel in these and other locations may continue to be at risk, exposing us to the potential loss of additional employees and contractors. For more information, please view our Annual Report.

G4 3 Report the name of the organization. KBR, Inc.

G4 4 Report the primary brands, products, and services. KBR, Inc. and its subsidiaries (collectively, “KBR”) is an engineering, construction and services company supporting the global hydrocarbons and international government services market segments.

G4 5 Report the location of the organization’s headquarters. 601 Jefferson Street, Suite 3400 Houston, Texas 77002

G4 6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

We conduct business in over 70 countries. KBR’s major operations in regards to revenue are in the following countries/regions: U.S., Australia, Africa, Europe, Middle East, and Canada. KBR’s major operations in regards to property, plant and equipment are in the following countries: U.S., U.K. and Asia-Pacific

G4 7 Report the nature of ownership and legal form. KBR, Inc. was incorporated in Delaware on March 21, 2006 prior to an exchange offer transaction that separated us from our former parent, Halliburton Company, which was completed on April 5, 2007. We trace our history and culture to two businesses, The M.W. Kellogg Company (Kellogg) and Brown & Root, Inc. (Brown & Root). Kellogg dates back to a pipe fabrication business which was founded in New York in 1901 and has been creating technology for petroleum refining and petrochemical processing since 1919. Brown & Root was founded in Houston, Texas in 1919 and built the world’s first offshore platform in 1947. Brown & Root was acquired by Halliburton in 1962 and Kellogg was acquired by Halliburton in 1998 through its merger with Dresser Industries.

G4 8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

Our business strategy is to provide our customers with differentiated and superior capital project delivery and services offerings across the entire engineering, construction and operations project lifecycle. We aim to create enhanced customer satisfaction leading to repeat business through a best-in-class delivery platform. Our projects are generally long-term in nature and an essential feature of our global strategy is to establish local operations in locations where services demand growth is expected. Our core skills are conceptual design, front-end engineering design (“FEED”), engineering, project management, procurement, construction, construction management, logistics, commissioning, operations and maintenance.

2015 KBR SUSTAINABILITY REPORT 192014 KBR SUSTAINABILITY REPORT 19Global Reporting Initiative (GRI)

2015 KBR SUSTAINABILITY REPORT 202014 KBR SUSTAINABILITY REPORT 20


G4 9 Report the scale of the organization, including: As of December 31, 2014, we had approximately 25,000 employees.See G4-6$6,366,000,000 N/A - Not a private sector organizationN/A - KBR does not sell specific products. We are an engineering and construction company that provides support on specific projects.

G4 11 Report the percentage of total employees covered by collective bargaining agreements. 887 employees are covered by collective bargaining agreements.

G4 12 Describe the organization’s supply chain. KBR’s supply management services leverage today’s technologies and logistics methods to make efficient decisions which streamline the supply management process.

We have a global track record of ensuring timely and accurate material receipt through innovative expedition and quality assur-ance with vendors to minimize receiving delays and errors. We optimize transportation networks, operating hand-in-hand with global freight forwarders with dedicated assets.

We also leverage the latest supply chain technology to ensure our customers’ material is accurately tracked throughout its journey to its destination and installation.

Proportion of spending on local suppliers at significant locations of operation.

G4 13 Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;

Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations)

Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination

In November 2013, we closed on the sale of a portion of a subsidiary, Allstates Technical Services, for $10 million in cash. The sale resulted in a $3 million pre-tax gain and is recorded in “gain on disposition of assets” in our consolidated statements of operations.

During the three months ended March 31, 2015, we entered into an agreement to acquire the noncontrolling interest in one of our consolidated joint ventures for $40 million. We paid the partner previously accrued expenses of $8 million. The acquisition of these shares was recorded as an equity transaction, with a $40 million reduction in our paid-in capital in excess of par.

G4 14 Report whether and how the precautionary approach or principle is addressed by the organization.

KBR acknowledges the 15th principle contained in the United Nations Rio Declaration on Environment and Development Principles as a general standard for sustainable development concerns worldwide. KBR will continue to play a role in upholding sustainable development principles by our actions in the countries in which we do business.

G4 15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

Committee for Economic Development of Australia – The (CEDA) is a bipartisan, non-profit, national, independent, member-based organisation providing thought leadership and policy perspectives on the economic and social issues affecting Australia. Its expressed aim is to “promote national economic development in a sustainable and socially balanced way.

Carbon Disclosure Project – We have participated in the CDP since 2010. CDP works to transform the way the world does business to prevent dangerous climate change and protect our natural resources.

Centers for Houston Future – We support this dynamic, community based organization that works to solve our region’s toughest problems. This organization accomplishes this goal by providing meaningful research, defining innovative strategies, and engaging diverse leaders. The overarching benefit to the community is that of an independent and respected source of Leadership, Research and Solutions.

G4 16 List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: holds a position on the governance body; participates in projects or committees; provides substantive funding beyond routine member-ship dues, views membership as strategic

KBR and its employees participated in the following during 2014:

n Aerospace, Defence and Security Associationn American Chamber of Commerce – Australia, Azerbaijan, Braziln American Council of Engineering Companies of Texas (ACEC Texas)n American Fuel & Petrochemical Manufacturers (AFPM)n American Immigrations Lawyers Association (AILA)n American Institute of Architectsn American Institute of Certified Public Accountants (AICPA)n American Institute of Chemical Engineers (AIChE)n American Institute of CPA’sn American Petroleum Institute (API)

Global Reporting Initiative (GRI)



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n American Society of Civil Engineersn American Society of Mechanical Engineers (ASME)n American Welding Society (AWS)n ASISn Associated Builders & Contractors National Diversity Committeen Association for Financial Professionalsn Association of Corporate Travel Executives (ACTE)n Association of General Contractors (AGC)n Association of the United States Army (AUSA)n Australian Petroleum Production and Exploration Association (APPEA)n Bayou Preservation Associationn Bi-lateral U.S. Arab Chamber of Commercen BIPACn Birmingham Business Alliancen British Chemical Engineering Contractors Association (BCECA)n British Safety Counciln Business Council of Alabaman Business Council of International Understandingn Business Roundtable – Golden Triangle, Houstonn CAPS Research n Center for Houston’s Futuren Chamber of Commercen Committee for Economic Development of Australian Construction Industry Instituten Construction Management Association of America (CMAA)n Consult Australia – National Sustainability Roundtablen Design Build Institute of America (DBIA) n Energy Instituten Engineering and Construction Contracting Association (ECC)n Engineering and Construction Risk Institute (ECRI)n Engineering Construction Industry Training Board (ECITB)n Engineers Australia – Society for Sustainability and Environmental Engineeringn Gas Processors Association Ltd.n Gasification Technologies Council (GTC)n Global Business Travel Association (GBTA)n Golden Training Business Round Tablen Greater Houston Partnershipn Gulf Coast Power Associationn Gulf Petrochemicals and Chemicals Association (GPCA)n Houston Business Roundtablen Houston Minority Supplier Development Counciln Institute for Supply Managementn Institute of Electrical and Electronics Engineers (IEEE)n Institute of Materials, Materials and Miningn Institute of Measurement and Controln Institution of Engineering and Technology (IET)n Institution of Structural Engineersn International Facility Management Association (IFMA)n IT Service Management Forum (ITSMF)n Manufacture Alabaman Manufacturers Alliance for Productivity and Innovation (MAPI)n National Association of Industrial & Office Product (NAIOP) Northern Virginian National Association of Minority Contractorsn National Contract Management Association (NCMA)





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n National Defense Industrial Association (NDIA)n National Foreign Trade Counciln National Petroleum Counciln National Association of Minority Contractors n Partners for Environmental Progressn Petroleum Federation of India (PetroFed)n Process Industry Practicesn Procurement Executives Groupn Professional Services Counciln Program Advisory Committee (PAC) Kitimat Valley Institute (KVI)n Project Management Institute (PMI)n Renewable UKn Restore America’s Estuariesn Roads Australia – Sustainability Chaptern Safety Institute of Australian Simulation Australian Society for Human Resource Management (SHRM)n Society of American Military Engineers (SAME)n Society of Naval Architects and marine Engineers (SNAME)n Society of Women Engineers (SWE)n South African Institution of Chemical Engineersn Subsea Energy Australian Technical Association of Pulp and paper Industry (TAPPI)n US Chamber of Commerce – Iraq Business Initiativen US-China Energy Cooperation Programn US Green Building Council (USGBC)n Water Services Association of Australia n Women Business Enterprise Alliancen Women in Defencen Women’s Energy Network

G4 17 List all entities included in the organization’s consolidated financial statements or equivalent documents.

Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

KBR offers an extensive portfolio of proprietary technology and consulting services; engineering, construction, procurement and asset maintenance services; and base operational, logistics, life support and asset management services, through our Technology & Consulting, Engineering & Construction and Government Services business segments.

We enter into joint ventures and alliances with other industry participants in order to reduce exposure and diversify risk, increase the number of opportunities that can be pursued, capitalize on the strengths of each party and provide greater flexibility in delivering our services based on cost and geographical efficiency. Clients of our E&C business segment frequently require EPC contractors to work in teams given the size and complexity of global projects that may cost billions of dollars to complete. Our significant joint ventures and alliances are described below. All joint venture ownership percentages presented are stated as of December 31, 2014.

We are working with JGC and Chiyoda for the purpose of design, procurement, fabrication, construction, commissioning and testing of the Ichthys Onshore LNG export facility in Darwin, Australia. The project is being executed using two joint ventures and we own a 30% equity interest in each joint venture. The investments are accounted for using the equity method of accounting and reported in our E&C business segment.

KJVG is a joint venture consisting of JGC, Hatch Associates, Clough Projects Australia and KBR for the purpose of design, procurement, fabrication, construction, commissioning and testing of the Gorgon onshore LNG project located on Barrow Island off the northwest coast of Western Australia. We hold a 30% interest in the joint venture which is consolidated for financial accounting purposes and reported in our E&C business segment.



G4 17 List all entities included in the organization’s consolidated financial statements or equivalent documents.

Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

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Aspire Defence Holdings Limited (“Aspire Defence”) is a joint venture currently owned by KBR and two financial investors to up-grade and provide a range of services to the British Army’s garrisons at Aldershot and around the Salisbury Plain in the U.K. We own a 45% interest in Aspire Defence and we own a 50% interest in each of the two joint ventures that provide the construction and related support services to Aspire Defence. The investments are accounted for using the equity method of accounting and reported in our GS business segment.

Mantenimiento Marino de Mexico (“MMM”) is a joint venture formed under a Partners Agreement with Grupo R affiliated enti-ties. The principal Grupo R entity is Corporative Grupo R, S.A. de C.V. and Discoverer ASA, Ltd., a Cayman Islands company. The Partners Agreement covers five joint venture entities executing Mexican contracts with Petróleos Mexicanos (“PEMEX”). MMM was set up under Mexican maritime law in order to hold navigation permits to operate in Mexican waters. The scope of the business is to render maintenance, repair and restoration services of offshore oil and gas platforms and provisions of quartering in the territorial waters of Mexico. We own a 50% interest in MMM and in each of the four other joint ventures. We account for our investment in these entities using the equity method of accounting and report them in our E&C business segment.

G4 18 Explain the process for defining the report content and the Aspect Boundaries.

Explain how the organization has implemented the Reporting Principles for Defining Report Content.

The content of this report is provide using the “in accordance “core to provide full disclosure of KBR managed operations; as stated in previous reports the environmental data is provided for KBR owned facilities. Economic, social and environmental information found in this report is also mentioned in our 2014 Annual Report, including Form 10-K and Annual Proxy Statements. This report is prepared under the direction of the VP of HSSE and KBR’s Sustainable Development Committee which has executive management representation.

G4 19 List all the material Aspects identified in the process for defining report content. KBR’s material aspects continues to be our Core Values of Commitment, Integrity, Transparency, Accountability and Responsibility, in short; our Employees, Economic and Environment focus . We have not made significant changes from our previous reports in aspect boundaries.

G4 20 For each material Aspect, report the Aspect Boundary within the organization, as follows: All aspects identified in G4-19 are material within our organization.

G4 21 For each material Aspect, report the Aspect Boundary outside the organization, as follows: Not engaged with aspect boundaries outside of our organization.

G4 22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatement

We have restated our Consolidated Statement of Operations for the year ended December 31, 2013. We determined the restatement was necessary due to the materiality of the additional estimated costs to complete seven Canadian pipe fabrication and modular assembly contracts within our Services business segment which we identified subsequent to filing our Form 10-K on February 27, 2014. In addition, we identified a pre-tax error which resulted in an overstatement in our revenue recognition on a long-term construction project. We also identified an error which resulted in an understatement of our income tax provision. The adjustment to “provision for income taxes” on the consolidated statements of income for the year ended December 31, 2013 reflects this additional expense. In addition, we have corrected several immaterial errors which resulted in an increase in net income. These errors resulted in misstatements in our Consolidated Statement of Operations for the year ended December 31, 2013 as follows:

In KBR’s Restated Consolidated Statement of Operations from 2013:

Net Income Attributable to KBR was $75,000,000 USD.

Services Revenue was $7,214,000,000 USD.

Cost of Services was $6,797,000,000 USD.

General and Administrative was $248,000,000 USD.

Provision for Income Taxes was $129,000,000 USD.

In KBR’s Consolidated Balance Sheets, Retained Earnings were $1,748,000,000 USD.

Please view KBR 2013 10-K/A for more information.

G4 23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. The 2011-2013 Sustainability Report followed GRI 3.1. This report will provide information on GRIs indicators that may not have been addressed in previous report.

G4 24 Provide a list of stakeholder groups engaged by the organization. KBR engages with its stakeholder groups including shareholders, clients, communities, nonprofits, governments, suppliers and employees.




G4 26 Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken

KBR, Inc. maintains an investors hotline that allows stockholders to call. Additionally, there is an Annual Meeting of Stockholders which gives shareholders an opportunity to speak with the Board of Directors as well as the Executive Leadership Team.

G4 27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

No key topics reported for 2014.

G4 28 Reporting period (such as fiscal or calendar year) for information provided. January 1, 2014 through December 31, 2014

G4 29 Date of most recent previous report (if any). KBR published its last report on April 2013; we reported in conformance with the Global Reporting Initiative (GRI) framework using the GRI G3.1 Indicators. The report contained information for years 2011-2013.

G4 30 Reporting cycle (such as annual, biennial). KBR will publish the report annually. Sustainability Report cover the 2014 calendar year, from January 1, 2014 through December 31, 2014.

G4 31 Provide the contact point for questions regarding the report or its contents. Please contact us at [email protected]

G4 32 GRI Context Index “In accordance” – Core has been chosen by the organization.

G4 33 Assurance This report was not third party verified.

G4 34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

KBR, Inc.’s Board of Directors is currently comprised of nine directors All of teh directors are independent , non-executive directors except for the CEO. The Chairman of the Board is independent. All directors are elected annually, with nominees standing for election to one-year terms. At this time, the Board has four standing committees to which it has delegated certain duties and responsibilities: Audit, Compensation, Nominating and Corporate Governance (“NCG”), and Health, Safety, Security, Environment and Social Responsibility (“HSSE & SR”).

The NCG Committee’s responsibilities include, but are not limited to:

n developing, implementing and periodically reviewing KBR’s corporate governance guidelines;n developing and implementing a process to assess Board and committee effectiveness;n identifying individuals qualified to become Board members, consistent with Board-approved criteria; performing an annual

evaluation of our independent directors;n determining the composition of the Board and its committees,including selection of the Director nominees for the next annual

meeting of stockholders; andn periodically reviewing the compensation paid to non-employee directors (including Board and committee chairpersons) in the

form of annual retainers and meeting fees, if any, and making recommendations to the Board regarding any adjustments.

The HSSE & SR Committee’s responsibilities include, but are not limited to:

n reviewing the status of KBR’s health, safety and sustainable development policies and performance, including processes to ensure compliance with applicable laws and regulations;

n reviewing KBR’s health, safety and sustainable development performance to determine consistency with policies and goals;n reviewing and providing input to KBR on the management of current and emerging health, safety and sustainable

development issues;n overseeing KBR’s activities in managing its major risk exposures within the health, safety and sustainable development areas;

andn reviewing KBR’s political and charitable contributions and social responsibility activities.

G4 35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

Members of the Health, Safety, Security, Environment and Social Responsibility Committee communicate with and delegate HSSE and SR related tasks to senior executives and other employees during and outside of committee meetings.

G4 36 Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

KBR, Inc. appointed Nick Anagnostou as the global head of Health, Safety, Security, and Environment in 2014. Mr. Anagnostou reports directly to the CEO and presents HSSE related status updates to the HSSE & SR Committee.



G4 37 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

To foster better communication with KBR’s stockholders, KBR established a process for stockholders and other interested parties to communicate with the Audit Committee and the Board. The process was approved by the Board and its Audit Committee and is designed to meet the requirements of the NYSE and the SEC. Stockholders and other interested parties may communicate with the Board or the independent/non-executive directors via mail (Board of Directors c/o Director of Business Conduct, KBR, Inc., P.O. Box 3406, Houston, Texas 77253-3406), telephone (1-855-231-7512 (toll-free from the U.S. or Canada) or 1-503-619-1884 (calling collect from any other country)), or e-mail ([email protected]). Information regarding these methods of communication is also on the KBR website, www.kbr.com, under “Corporate Governance.”

G4 38 Report the composition of the highest governance body and its committees by:

n Executive or non-executive n Independence n Tenure on the governance body n Number of each individual’s other significant positions and commitments, and the nature of

the commitmentsn Gender n Membership of under-represented social groupsn Competences relating to economic, environmental and social impactsn Stakeholder representation

At this time, the Board has four standing committees to which it has delegated certain duties and responsibilities: Audit, Compensation, Nominating and Corporate Governance (“NCG”), and Health, Safety, Security, Environment and Social Responsibility (“HSSE &SR”). Each committee is comprised of independent directors. The eight independent directors and the committees on which they serve are:

Mark E. Baldwin, 61 (Audit and HSSE & SR)James R. Blackwell, 56 (Audit and HSSE & SR)Loren K. Carroll, 71 (Chairman of the Board)Jeffrey E. Curtiss, 66 (Audit Chairman and NCG)Umberto della Sala, 66 (Compensation and HSSE & SR)Lester L. Lyles, 68 (HSSE & SR Chairman and Audit)Jack B. Moore, 61 (Compensation Chairman and NCG)Richard J. Slater, 68 (Compensation Chairman and NCG)

G4 39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).

KBR, Inc. Chairman of the Board is an outside, independent Director.

G4 40 Report the nomination and selection processes for the highest governance body and its commit-tees, and the criteria used for nominating and selecting highest governance body members, including:

n Whether and how diversity is consideredn Whether and how independence is consideredn Whether and how expertise and experience relating to economic, environmental and

social topics are considered. Whether and how stakeholders (including shareholders) are involved

The Board is responsible for filling vacancies on the Board. The Board has delegated to the NCG Committee the duty of selecting and recommending prospective nominees to the Board for approval. The NCG Committee considers suggestions of candidates for Board membership made by current Committee and Board members, KBR management, and stockholders. The Committee may also retain an independent executive search firm to identify candidates for consideration. The NCG Committee will also consider candidates nominated by the stockholders in accordance with KBR’s Bylaws. A stockholder who wishes to recommend a prospective candidate should notify KBR’s Secretary.

When the NCG Committee identifies a prospective candidate, the Committee determines whether it will carry out a full evalu-ation of the candidate. This determination is based on the information provided to the Committee by the person recommending the prospective candidate and the Committee’s knowledge of the candidate. This information may be supplemented by inquiries to the person who made the recommendation or to others. The preliminary determination is based on the need for additional Board members to fill vacancies or to expand the size of the Board, and the likelihood that the candidate will meet the Board membership criteria listed above. The NCG Committee will determine, after discussion with the Chairman of the Board and other Board members, whether a candidate should continue to be considered as a potential nominee. If a candidate warrants additional consideration, the Committee may request an independent executive search firm to gather additional information about the candidate’s background, experience and reputation, and to report its findings to the Committee. The NCG Committee then evaluates the candidate and determines whether to interview the candidate. Such an interview would be carried out by one or more members of the NCG Committee and others as appropriate. Once the evaluation and interview are completed, the NCG Committee recommends to the Board which candidates should be nominated. The Board makes a determination of nominees after review of the recommendation and the Committee’s report.

Candidates nominated for election or re-election to the Board should possess the following qualifications:

n personal characteristics:- highest personal and professional ethics, integrity and values;- an inquiring and independent mind;- practical wisdom and mature judgment;

n broad training and experience at the policy-making level in business, government, education or technology;n expertise that is useful to KBR and complementary to the background and experience of other Board members, so that an

optimum balance of members on the Board can be achieved and maintained;n willingness to devote the required amount of time to carrying out the duties and responsibilities of Board membership;n commitment to serve on the Board for several years to develop knowledge about KBR’s principal operations;n willingness to represent the best interests of all stockholders and objectively appraise management performance; andn involvement only in activities or interests that do not create a conflict with the Director’s responsibilities to KBR and its

stockholders.




G4 40 Report the nomination and selection processes for the highest governance body and its commit-tees, and the criteria used for nominating and selecting highest governance body members, including:

n Whether and how diversity is consideredn Whether and how independence is consideredn Whether and how expertise and experience relating to economic, environmental and

social topics are considered. Whether and how stakeholders (including shareholders) are involved

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The NCG Committee is responsible for assessing the appropriate mix of skills and characteristics required of Board members in the context of the needs of the Board at a given point in time and shall periodically review and update the criteria. Diversity in personal background, race, gender, age and nationality for the Board as a whole may be taken into account in considering individual candidates, but KBR does not have a policy with regard to any particular aspect of diversity of its directors.

G4 41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed.

Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum:

n Cross-board membershipn Cross-shareholding with suppliers and other stakeholders n Existence of controlling shareholder n Related party disclosures

At this time, except for our CEO,all of our directors are independent, as set forth in KBR’s Corporate Governance Guidelines and outlined below.

A director will be considered independent under KBR’s Corporate Governance Guidelines if he or she:

n has no material relationship with KBR;n has not been employed by us or any affiliate of ours during the preceding three years, and no member of the director’s imme-

diate family has been employed as an executive officer of ours or any of our affiliates during the preceding three years;n has not received, and does not have an immediate family member who has received, during any twelve-month period within

the preceding three years, more than $100,000 in direct compensation from KBR, other than director’s fees, committee fees or pension or deferred compensation for prior service;

n is not a partner or an employee of KBR’s independent auditor, and was not during the past three calendar years a partner or employee of KBR’s independent auditor who personally worked on KBR’s audit;

n does not have an immediate family member who is a partner of KBR’s independent auditor or an employee of KBR’s indepen-dent auditor who participates in that firm’s audit, assurance or tax compliance (but not tax planning) practice or was during the past three calendar years a partner or employee of KBR’s independent auditor who personally worked on KBR’s audit;

n is not a current employee and does not have an immediate family member who is a current executive officer of any company that has made payments to, or received payments from, KBR or any of its affiliates in an amount which, in any of the last three fiscal years, exceeds the greater of $1 million or 2% of our or such other company’s consolidated gross revenues; and

n has not (and has not had a family member who) within the preceding three years served as an executive officer with a company for which a KBR executive served on its compensation committee.

The definition of independence and compliance with this policy will be reviewed periodically by the NCG Committee. All direc-tors complete independence questionnaires at least annually and our Board makes determinations of the independence of its members under the listing standards of the NYSE and the SEC requirements for Audit Committee members. Our Board believes that its membership should include no more than two directors who are also employees of KBR. While this number is not an absolute limitation, other than the Chief Executive Officer, who should at all times be a member of the Board, employee directors should be limited only to those officers whose positions or potential make it appropriate for them to sit on the Board.

G4 42 Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

KBR Board of Directors consists of four committees that address economic, environmental and social impacts. Those committees are:

Audit CommitteeCompensation CommitteeHealth, Safety, Security, Environment and Social Responsibility CommitteeNominating and Corporate Governance Committee

KBR Executives present to the Board of Directors.

G4 43 Report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics.

At Board of Directors and HSSE & SR committee meetings presentations from senior executives provide the Board with economic, environmental and social topic information. In addition, Board Members takes tours of project sites located globally to better understand how the Boards operations influence these topics.

G4 44 Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment. Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice.

Board members completes annual self-assessment questionnaires for the Board and each committee that they sit on which they serve.

The members also complete an annual D&O Questionnaire and a NYSE Independence questionnaire. All of the and questionnaire results are presented and discussed at the Nominating and Corporate Governance Committee meetings.

The Nominating and Corporate Governance Committee annually reviews the Committee assignments and reassigns members as needed.



G4 45 Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities.

The KBR Board of Directors has four standing committees that address economic, environmental and social impacts. Those committees are:

Audit Committee Compensation Committee Health, Safety, Security, Environment and Social Responsibility Committee Nominating and Corporate Governance Committee

Additionally, KBR has an Annual Shareholders Meeting of Stockholders. Stockholders have an opportunity to submit items to the agenda for review and vote.

G4 46 Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.

KBR’s Board of Directors considers risk oversight to be an integral part of its role, and discussions regarding risks faced by the company are part of its meetings and deliberations throughout the year. As part of the implementation of KBR’s new strategy, KBR’s management is improving its enterprise risk management system to provide greater executive oversight for managing risks. Once this update is complete, management will provide the Board regular reports regarding significant strategic, operational, financial, and hazard risks determined by management to have a potential significant impact on the company as a whole. The risk report involves both current and emerging risks and is the culmination of a process involving input from all business groups and executive leadership. Management’s assessment of risk will include specific strategic, operational, financial and hazard risks, the perceived trend for each of those specific risks — whether increasing, decreasing or stable — and the measures being taken to monitor and mitigate those risks.

In addition to the enterprise risk management process described above, the Board also engages in risk oversight through the project approval process, whereby projects reaching a threshold level of expected revenues require Board approval. Fixed-price contracts have a lower threshold level than reimbursable-type contracts because of their potential price and financial risks. In reviewing projects, the Board is presented with management’s assessment of a particular project’s cost exposure associated with operations risk, liabilities and funding risks, among others. In this manner, KBR’s Board is engaged in risk oversight at the outset of the largest projects, which could have a material effect on KBR’s operations.

The Board is also engaged in risk oversight through regular reports from its Audit Committee. The Audit Committee is charged with reviewing with management the company’s major financial risk exposures, as well as other areas of risk exposure if request-ed to do so by the Board, and the steps management has taken to monitor and mitigate those exposures. The Audit Committee receives periodic reports from management on these areas of potential exposure, including litigation, liquidity and capital resources, financial reporting and disclosures, regulatory and tax risks, among others. The Audit Committee also receives reports from management regarding compliance risks and Code of Business Conduct matters.

G4 47 Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

The Health, Safety, Security, Environment and Social Responsibility Committee convenes at least twice a year.

G4 48 Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered.

The Health, Safety, Security, Environment and Social Responsibility Committee reviews KBR’s sustainability report and receives sustainability updates at its meetings.

G4 51 Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration:

n Fixed pay and variable pay: n Performance-based payn Equity-based payn Bonusesn Deferred or vested shares n Sign-on bonuses or recruitment incentive paymentsn Termination payments n Clawbacks n Retirement benefits, including the difference between benefit schemes and contribution

rates for the highest governance body, senior executives, and all other employees.

Report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives.

Pay for Performance in 2014

Our NEOs who were with KBR for the entirety of 2014 did not receive any payouts under our 2014 Short-Term Incentive Plan. Likewise, the long-term cash performance awards payable for the three-year period ending on December 31, 2014, earned $0, which represents 60% of our NEOs’ annual long-term incentive compensation opportunity. In addition, restricted stock unit and stock option holdings, which represent 40% of our NEOs’ annual long-term incentive compensation, are significantly devalued and all of our NEOs’ stock options granted in the last five years are currently underwater.

These results demonstrate a compensation plan designed on the principles of “Pay for Performance” and fully aligned with the disappointing financial and operational results for 2014. Equally evident is the resultant challenge of ensuring retention and forward-incentive for the existing and new members of our executive leadership team.




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Clawback of 2013 Compensation

Due to the restatement of our 2013 financial results, our Compensation Committee and Board of Directors implemented our claw-back policy and sought and recovered from our NEOs who are current executive officers and the former CEO and chief accounting officer the portion of their 2013 Short-Term Incentive Plan payouts that should not have been paid in light of the restatement. Our current CEO, Mr. Bradie, was not an employee in 2013, and our current chief financial officer, Mr. Ferraioli, joined KBR on October 28, 2013, and was not eligible for a 2013 Short-Term Incentive Plan payout. Thus, neither Mr. Bradie nor Mr. Ferraioli were subject to any clawbacks.

Changes Made to 2015 Compensation

Upon the recommendation of our CEO, based on prior year performance and peer-comparative data, our Compensation Commit-tee approved zero 2015 base salary increases, zero 2015 short-term incentive target increases, and zero 2015 long-term incentive target increases for all NEOs (excluding the CEO).

Based on peer-comparative data for his level of compensation, on his non-involvement (pre-hire) in the 2013 financial and opera-tional problems, and on our Board’s total satisfaction with his immediate personal engagement in formulating and leading KBR’s business transformation actions, our Compensation Committee and Board approved modest increases to our CEO’s short- and long-term incentive targets for 2015 but made no increase to his base salary. The CEO’s 2015 total target compensation was kept below the median total target compensation for our E&C Peer Group.

G4 52 Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization.

The Compensation Committee uses an independent conpensation consultant, Meridian, to assist the committee with renumera-tion decision.

G4 53 Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.

Stockholders may present a proposal to be considered for inclusion in KBR’s proxy material for its Annual Meeting of Stockholders by submitting the proposal in writing to KBR’s Corporate Secretary at 601 Jefferson Street, Suite 3400, Houston, Texas 77002. KBR must receive proposals not later than the 120th day prior to the date on which KBR estimates that it will send its materials for its Annual Meeting of Stockholders. Proposals submitted for inclusion in KBR’s proxy materials must comply with Rule 14a-8 under the Exchange Act.

In order for stockholder proposals to have been properly submitted for presentation at KBR’s Annual Meeting of Stockholders, KBR must have received notice of the proposal not earlier than the 120th and 90th days, respectively, prior to the intended date of the Annual Meeting of Stockholders. Proposals must comply with Article I, Section 9 of KBR’s Bylaws.

A nomination or proposal that does not comply with the above procedures will be disregarded. Compliance with the above procedures does not require KBR to include the proposed nominee or business in KBR’s proxy solicitation materials.

G4 56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

KBR has built a rich heritage on a cornerstone of integrity. The COBC was developed to help you apply legal and ethical practices to your everyday work-life and also to help you follow the law. Ethics is a vital part of who KBR is as a company. KBR has adopted a “code of ethics,” as defined in Item 406(b) of Regulation S-K. KBR’s code of ethics, known as its Code of Business Conduct, applies to all directors, officers and employees of KBR, including its principal executive officer, principal financial officer, principal accounting officer and controller, and also applies to all employees of KBR and KBR’s agents. KBR has posted its Code of Business Conduct on its website, www.kbr.com. In addition, KBR intends to satisfy the disclosure requirements regarding any amendment to, or waiver from, a provision of the Code of Business Conduct that relates to any element of the definition of code of ethics set forth in Item 406(b) of Regulation S-K, including the requirements of Item 5.05 of Form 8-K, by posting such information on its website, www.kbr.com. Our ethical principles demonstrate our commitment to ensure we carry out our mission with integrity. Our principles are contained in the COBC, which consists of the policies relating to the ethical and legal standards of conduct to be followed by all in the conduct of our business.

G4 57 Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

Directors, Employees and Legal Agents may contact the Code of Business Conduct office to seek advice on ethical and lawful behavior through a toll-free and online Ethics Hotline, Code of Business Conduct post office box, and contact directly to the Director of the Code of Business Conduct, appropriate representative of the Law Department, Audit Services, Human Resources, Health, Safety, Security & Environment or other compliance-related department, the Employee’s supervisor or manager, or a member of the executive senior management.



G4 58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Under the Code of Business Conduct, Directors, Employees and Legal Agents must promptly report any suspected violation of the Code of Business Conduct to an appropriate reporting outlet, which includes the toll-free and online Ethics Hotline, Code of Business Conduct post office box, and reports directly to the Director of the Code of Business Conduct, appropriate representative of the Law Department, Audit Services, Human Resources, Health, Safety, Security & Environment or other compliance-related department, the Employee’s supervisor or manager, or a member of the executive senior management.

Employees may exercise their legal right or duty to report possible violations of law to the appropriate governmental authorities at any time, without reporting the matter to, or seeking prior authorization from, the Code of Business Conduct department, Legal Department or any other internal reporting outlet.

The Company prohibits retaliation in any form for reporting, in good faith, suspected violations of the Code of Business Conduct. Disciplinary action will be taken against anyone who retaliates directly or indirectly against any Employee who reports actual or suspected violations. Discouraging other Employees from making a report is prohibited and could result in disciplinary action.

Additionally, stockholders and interested parties may contact the Audit Committee and the Board of Directors through a Post Office Box, toll-free and online Ethics Hotline or by email.

G4 EC1 Report the direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization’s global operations

Report the direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization’s global operations:

Revenues $6,366,000,000

Economic value distributed:

Operating costs $6,431,000,000

General and Administrative $239,000,000

Other Non-operating income ($17,000,000)

Provision for Income Taxes $421,000,000

Community investments Corporate Giving $620,000; Employee Giving and Corporate Matching $700,000

Net Income attributable to KBR ($1,198,000,000)

To better assess local economic impacts, report EVG&D separately at country, regional, or market levels, where significant. Report the criteria used for defining significance.

N/A

G4 EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

Existing or pending climate change legislation, regulations, international treaties or accords are not expected to have a short-term material direct effect on our business, the markets that we serve or on our results of operations or financial position. However, climate change legislation could have a direct effect on our customers or suppliers, which could impact our business. For example, our commodity-based markets depend on the level of activity of mineral and oil and gas companies and existing or future laws, regulations, treaties or international agreements related to climate change, including incentives to conserve energy or use alternative energy sources, which could impact our business if such laws, regulations, treaties or international agreements reduce the worldwide demand for minerals, oil and natural gas. We will continue to monitor developments in this area.

G4 EC3 Coverage of the organization’s defined benefit plan obligations The defined benefit section of the KBR (UK) Ltd Pension Plan is a defined benefit plan obligation where there is a fund set up to meet the liabilities. The latest full triennial actuarial valuation of the Plan looked at the Plan’s position as at 1 April 2012 and showed that the defined benefit section had a deficit of £337m, equivalent to a funding level of 73%. This valuation was based on the ongoing scheme specific funding assessment as required under the scheme funding framework in the UK. The methodolo-gy, assumptions and results are set out in the scheme funding report for that valuation. An assessment of the deficit at the latest triennial valuation date of 1 April 2015 is currently underway.

There is a recovery plan in place under which KBR (UK) Ltd is currently paying contributions of £28m per year into the Plan. Under this recovery plan, the deficit was projected to be eliminated by 31 December 2023. This projection is based on the assumptions from the actuarial valuation and future assumptions about the returns achieved on the Plan’s assets. The recovery plan has been agreed by KBR (UK) Ltd and the Trustees of the Plan.

The defined benefit section of the Plan is closed to new entrants and existing members are no longer building up new benefits. There are therefore no regular employee or employer contributions towards the cost of new benefits being paid into the Plan.




G4 EC4 Financial assistance received from government None

G4 EC7 Development and impact of infrastructure investments and services supported N/A

G4 EC8 Significant indirect economic impacts, including the extent of impacts n Changing the productivity of organizations, sectors, or the whole economy- Providing the knowhow and project management behind the processes to convert natural gas to a liquid, such as in the

case of Gorgon, Ichthys, Skikda and Escravos, enabling export of a cleaner energy source in transportable quantities resulting in new or better supplied markets for natural gas production.

- Transportability of “stranded gas” from regions with large supplies and relatively small market to regions with growing demand and relatively little resource promotes a better global allocation of resources leading to greater efficiency for many nations and the energy industry as a whole (Gorgon, Ichthys, Skikda, Escravos, Dyno-Nobel).

- Transfer of technology to produce ammonia and fertilizers that improve food supplies and yields for a growing population. KBR has provided services in support of 3 number of ammonia and fertilizer facilities in 2014.

n Economic development in areas of high poverty- Offices in Luanda, Delhi, Chennai, Jakarta and Monterrey, which provide professional and clerical employment as well as

multiplier effects, where living conditions having been improving, but are not yet fully developed.- Greater supplies of ammonia and urea translate into higher quantities of foodstuffs available for growing populations

n Economic impact of improving or deteriorating social or environmental conditions- Providing the knowhow and project management behind the processes to convert natural gas to a transportable liquid,

enabling wider use of a more environmentally-friendly fuel for heating, electricity and other energy requirements- Natural gas powered facilities often replace existing and incremental coal-fired or oil-fired energy facilities, which contrib-

utes toward reducing SOX, NOX, particulate and other emissions.- Higher crop yield using fertilizers derived from ammonia produced from a KBR process technology improves the overall

success of planting and availability of food and exports.

n Enhancing skills and knowledge amongst a professional community or in a geographical region- Providing professional engineering jobs and associated training in Angola, China, India, Indonesia, Mexico, Saudi Arabia,

South Africa

n Jobs supported in the supply chain or distribution chain- Thousands of jobs supported through sub-contractors and equipment vendors and OEM manufacturers throughout the

world through the construction of world-class processing plants

n Stimulating, enabling, or limiting foreign direct investment- Enabling large-scale FDI in Australia (Gorgan and Ichthys), Mozambique, Saudi Arabia (Dow), inward United States

(Dyno-Nobel) with competitive designs, schedules and pricing along with capable project management in LNG, refining, petrochemicals and ammonia.

n Economic impact of change in location of operations or activities- Increasing presence in India provides professional and clerical job opportunities to a growing market.

G4 EC9 Proportion of spending on local suppliers at significant locations of operation N/A

G4 EN3 Energy consumption within the organization This information is provided in the report as a graph. See page 11.

G4 EN5 Energy intensity This information is provided in the report. See page 11.

G4 EN6 Reduction of energy consuption This information is provided in the report. See page 11.

G4 EN8 Total water withdrawal by source Water sources consist of Municipal water supplies; we do not consider usage in an office environment to be significant. However; we take every effort to reduce usage whenever possible.

G4 EN9 Water sources significantly affected by withdrawal of water Water sources consist of Municipal water supplies; we do not consider usage in an office environment to be significant. However; we take every effort to reduce usage whenever possible.

G4 EN10 Percentage and total volume of water recycled and reused KBR does not use recycled and/or reused water for our office operations. However water is recycled and reused on projects in some capacities for dust suppression and irrigation.



G4 EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

KBR does not own, lease, or manage any property in, or adjacent to protected areas and areas of high biodiversity value outside protected areas.

G4 EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Aspire Defence Capital Works (a KBR joint venture), involves construction work at military sites on Salisbury Plain. These works are close to sites designated as both a Special Protection Area (SPA) and Special Area of Conservation (SAC) under European legislation, notably for the populations of stone curlew, common quail and hen harrier, and for the chalk grassland habitat, one of the largest remaining areas of calcareous grassland in north-western Europe. The SAC is also designated for juniper formations on heaths, semi-natural dry grassland and scrubland facies and the marsh fritillary butterfly. Much of the natural environment is also protected through its designation as a Site of Special Scientific Interest (SSSI) for its populations of rare bumblebee species, and many rare birds, plants and invertebrates.

A habitats regulations assessment (HRA) has concluded that no residual ecological or contamination impacts are anticipated as a consequence of the Aspire Defence Capital Works proposals, including on the Salisbury Plain SPA, SAC and SSSI.

G4 EN13 Habitats protected or restored For Aspire Defence Capital Works (a KBR joint venture), a programme of biodiversity offsetting will create habitats of equivalent value to:

n 238,292 square meters of semi-improved calcareous grasslandn 641 square meters of unimproved grassland

Works will be undertaken in accordance with the U.K. National Planning Policy Framework and BS 42020:2013 Biodiversity - Code of practice for planning and development. The works will be within land owned and managed by the UK Defence Infrastructure Organisation (DIO). An independently prepared management plan has been submitted to the authorities for approval.

G4 EN14 Total number of IUCN red list species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

For Aspire Defence Capital Works (a KBR joint venture) Surveys indicate a total of 50 ICUN red list species are within 2 km of the construction sites at Larkhill, Perham Down, Bulford and Tidworth in the U.K. In terms of status by level of extinction risk these species comprise:

n 10 endangered;n 19 vulnerable;n 19 near threatened; andn 2 least concern.

G4 EN15 Direct Greenhouse Gas (GHG) emissions (Scope 1) This information is provided in the report as a graph. See page 11.

G4 EN23 Total weight of waste by type and disposal method Recycled 46 tons of scrap metal recovered from a remediation project; 325 lbs of hazardous waste soil was sent for disposal.

G4 EN24 Total number and volume of significant spills None

G4 EN25 Weight oif transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention2 Annex 1, II, III, and VIII, and percentage of transported waste shipped internationally

KBR did not transport, import, export or treat hazardous waste internationally.

G4 EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff

KBR is not aware of our owned office operations’ discharges of water and runoff significantly affecting water bodies and/or related habitats.

G4 EN27 Extent of impact mitigation of environmental impacts of products and services N/A

G4 EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

None

G4 EN31 Total environmental protection expenditures and investments by type Remediation Cost: $881,740.64 for three projects.

G4 EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

None

G4 HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Current contracts do not include Human Rights screening. Our contracts include clauses requiring compliance with the laws of the country where project is located and compliance with the COBC and/or KBR Supplier COBC where applicable.




G4 HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

All employees are to complete COBC training as a requirement of the annual review process; Human Rights procedures are covered in this training.

G4 HR3 Total number of incidents of discrimination and corrective actions taken In the United States in 2014, there were 15 discrimination claims resolved in mediation through KBR’s Dispute Resolution Program. In 2014, KBR’s Ethics Hotline received 465 calls with 47 percent related to COBC issues.

G4 HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

None

G4 HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

As stated in KBR’s Code of Business Conduct and supported in a letter to employees by our CEO, KBR cannot in any way accept, condone or tolerate any instance of unethical or illegal behavior. KBR is not aware of any operations or significant suppliers as having significant risk for incidents of child labor. Measures taken to contribute to the effective abolition of child labor include requiring employees, subcontractors and agents to complete KBR’s mandatory Code of Business Conduct (COBC) training, which includes human rights training. The charter mission of KBR’s Board of Directors’ CSR Committee oversees the activities of KBR in managing our major risk exposures in regards to sustainable development, including human rights. KBR does not employ anyone, in any capacity, under the age of 18 years except where this minimum employment age requirement is superseded by local law.

G4 HR6 Operations and significant suppliers identifiedas having significant risk for incidents of forced or compulsory labor, and measures tocontribute to the elimination of all forms of forced or compulsory labor.

As stated in KBR’s Code of Business Conduct and supported in a letter to employees by our CEO, KBR cannot in any way accept, condone or tolerate any instance of unethical or illegal behavior. KBR is not aware of any operations or significant suppliers as having significant risk for incidents of forced or compulsory labor. Measures taken to contribute to the effective abolition of forced or compulsory labor include requiring employees, subcontractors and agents to complete KBR’s mandatory Code of Business Conduct (COBC) training, which includes human rights training. The charter mission of KBR’s Board of Directors’ CSR Committee oversees the activities of KBR in managing our major risk exposures in regards to sustainable development, including human rights.

G4 HR7 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations

100% of Security personnel have received formal training in KBR’s human rights policies and procedures. Ethics training, which includes training on Human Rights, is required for all third party organizations providing security personnel.

G4 HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken None

G4 HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments

None

G4 HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

In the United States in 2014, there were 24 discrimination claims resolved in mediation or arbitration through KBR’s Dispute Resolution Program and 1 harassment claim resolved in arbitration through KBR’s Dispute Resolution Program. In 2014, 143 of the 465 reports to the KBR’s Ethics Hotline related to grievances about human rights impacts. All 143 were addressed during the reporting period. 125 of those grievances were resolved during the reporting period. 35 grievances from the prior reporting period were resolved during this reporting period.

G4 LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

KBR benefits by significant locations of operations US Canada UK Saudi AustraliaMedical X X X X XPharmacy X X X X XDental X XVision X XLife Insurance X X X XAccident Insurance X X X X XDisability X XEmployee Assistant Program X XRetirement & Savings – 401(k) X X X XPension XStock Purchase Program XWorker’s Compensation XNote: Significant locations of operations is defined as having a local headcount of 500 or more employees.



G4 LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs

At KBR; each project location will have a formal joint management -employee health and safety committee. Committees are responsible for implementation of the HSE Policies, Plans and Procedures for site, Training, Recording and Reporting Incidents and Identification of Risk. Percentage of workforce participation has not been captured.

G4 LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Zero Fatalities. Injury categories tracked (Slips, Caught In or Between, Strain, Strike Against Struck By)

G4 LA7 Workers with high incidence or high risk of diseases related to their occupation KBR has more than 15,000 employees that support our clients in a petro chemical and construction industries; the industry is high risk however our employees are protected from occupational illness by using engineering controls and proper protection equipment when required.

G4 LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Educational Assistance

It is KBR’s intent that every employee realizes his or her full potential in an environment that values productivity and results. To this end, KBR provides educational opportunities that enable employees to improve their skills and/or knowledge outside the scope of standard on-the-job informal training.

Educational assistance whenever possible should be planned and budgeted in advance, and applicable to an employee’s current or projected position. All costs incurred will be applicable to the cost center where the employee resides. Additionally, eligible employees are approved based on managerial discretion, and on the condition that studies must be completed without jeopardiz-ing the employee’s work performance. Further, employees must show evidence of successful course completion at the conclusion of the course or course of study. In addition to country-specific eligibility requirements, specific monetary limits may be imposed. Participation in this program does not guarantee a promotion or change in job responsibilities and earnings.

Following the reimbursement payment date of educational assistance, the employee is obligated for the course of one year to reimburse monies paid in the event of resignation or separation for cause. Upon acceptance of reimbursement, the employee authorizes the Company to take this deduction from any monies that may be owed to the employee. Reimbursement may also be applicable to an employee transferring from one manager to another across budgetary lines.

Internal Training Courses

KBR is committed to the continued development of its employees and believes that the employee and the Company have a shared responsibility for career and competency development. KBR recognizes the need for employees to acquire additional skills, knowledge and experience to meet the short-term needs of their jobs, as well as the longer-term needs of the individual and company.

The KBR Transferable Competency model is core to The KBR Way and the creation of a culture focused on hiring the right people, requiring them to behave in a way that is consistent with our business values and brand, and executing processes that will allow us to win in the marketplace. The educational material contained in KBRU is to assist KBR, managers and employees globally to be more productive, and have more meaningful and consistent conversations about performance, putting us on the path toward creating a more enriching experience at KBR. The competency model contains seven transferable competencies and is aligned with KBR’s Mission, Vision and Values: • Quality, Health, Safety & Environment • Commercial Focus • Leadership • Business Process Thinking • Strategic Process Thinking • Empowerment • Communications.

G4 LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

All employees are subjected to regular performance and career development reviewss, regardless of gender received a performance review and career development review in 2014

G4 PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

KBR received a total of five OSHA citations for non-compliance; corrective measures were implemented immediately where possible and or actions were put in place to resolve incidents from reoccurring.

G4 PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

KBR did not have any incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship receive any complaints concerning breaches of customer privacy.




G4 PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

KBR did not receive any complaints concerning breaches of customer privacy.

G4 PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

KBR did not receive any fines for non-compliance with laws and regulations.

G4 SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

All transactions are analyzed for risks related to corruption. KBR cannot in any way accept, condone or tolerate any instance of unethical or illegal behavior. The charter mission of KBR’s Board of Directors’ CSR Committee oversees the activities of KBR in managing our major risk exposures in regards to sustainable development, including human rights.

G4 SO4 Communication and training on anti-corruption policies and procedures 91% of employees completed training.

G4 SO6 Total value of political contributions by country and recipient/beneficiary In 2014, PAC receipts, or contributions from employees to KBRPAC, were $84,992 and $220,250 was contributed to candidates for public office. Undisbursed funds are held for future elections and campaigns. fec.gov and the Center for Responsive Politics

G4 SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

None

G4 SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compli-ance with laws and regulations

In the United States in 2014, KBR had no adverse determinations, fines or non-monetary sanctions from the federal Equal Employ-ment Opportunity Commission (EEOC), any state or local human rights commission, the National Labor Relations Board (NLRB), or the Office of Federal Contract Compliance Programs (OFCCP).

G4 SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

In 2014, 29 of the 465 reports to the KBR’s Ethics Hotline related to grievances about impacts on society. All 29 matters were addressed during the reporting period. 28 of those grievances were resolved during the reporting period. 8 grievances from the prior period were resolved during the reporting period.

G4 GRI indicators (G4-10, G4-25, G4-49, G4-50, G4-54, G4-55, EC5,EC6, EN1, EN2, EN4, EN7, EN16, EN17, EN18, EN19, EN20, EN21, EN22, EN27, EN28, EN30, EN32, EN33, HR10, HR11, LA1, LA3, LA4, LA8, LA9, LA12, LA13, LA14, LA15, LA16, PR1, PR3, PR4, PR5, PR6, SO1, SO2, SO5, SO9 and S10) are either not applicable or cannot be answered by our organization at this time. We anticipate being in a position to address in future reports. .


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Built on Values Our Story Continues Report/KBR... · 2015-12-02 · KBR is a company of people,...

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