Successfully embedding sustainability into a large organization to create real, positive change requires a wholesale cultural shift. That means working with every part of the business to not only capture the good work they’re already doing, but also to ensure performance indicators are set throughout the business that encourage continuous improvement.
Over the past few years, KBR has experienced just such a dynamic shift, during which we formally unveiled our new sustainability policy aligned to the UN’s Sustainable Development Goals, achieved carbon neutrality four years running, and doubled down on embedding sustainability into both our business practices and solutions portfolio.
Additionally, to drive KBR’s sustainability and ESG (environmental, social and governance) commitments, KBR appointed dedicated leadership in the person of Adam Kramer, corporate sustainability officer. Since then, Adam and a specially assembled team of experts have been busy working across KBR to further our ESG strategy, drive our net-zero commitments, and report our progress to the world.
Doing the Work
Communicating KBR’s sustainability progress is critical to the life of the company and benefits all our stakeholders. As we perform, improve and make good on our commitments, the stronger a case can be made for increases in our ESG ratings with indices — such as MSCI (Morgan Stanley Capital International) — that help investors identify risks and measure how sustainable and resilient companies are in the long term. In short, better rankings make us a more attractive company to invest in or do business with.
Effectively reporting on that progress requires an enormous amount of data. When the sustainability team began collecting data and researching each KBR function and business unit, they found we were already doing positive work around sustainability.
“There were numerous areas where we were already making positive social and environmental impact,” said Kirsten Mackenzie, KBR’s director of Corporate Sustainability. “We also had strong, robust performance around governance. From there, we developed a gap analysis to better identify strengths and weaknesses across our major ESG areas.”
The result: comprehensive reporting across our ESG activities —with continuous improvement being made — which has led to improved rankings with many indices.
The Road to AAA
You may have heard that KBR received a AAA designation in MSCI’s 2023 ESG Ratings — the highest ranking, given to companies that are leading their industries in managing the most significant risks and opportunities. If you missed it, you can watch Adam Kramer breaking the good news to Kirsten Mackenzie.
For context, MSCI uses a rules-based methodology to measure companies’ long-term resilience. The methodology covers more than 1,000 data points across 80 exposure scores. For a few years, KBR hovered at a BB rating. (MSCI’s system rates from CCC to AAA). To improve our ranking would require collecting and reporting all that data we mentioned before, which would reveal KBR’s strong performance in key areas.
“MSCI puts a lot of weight on social impact for companies in our category, so they forensically evaluate how companies like KBR manage people,” said Adam Kramer, vice president and corporate sustainability officer. “This includes analyzing demographics to measure genuine workforce diversity from the board level through to early-career professionals, as well as how we’re creating a more inclusive workplace — from benefits and salaries to flexible working to support networks for all demographics. Thanks to the work of KBR’s amazing People team, there was lots of good news to report on these and related fronts.”
Other key people-related areas included workforce training and development opportunities and knowledge-sharing mechanisms, such as KBR Communities of Interest or ONE KBR Technical Fellows. Additional impact areas where KBR’s performance received top marks were data privacy and security, corporate governance and business ethics, and environmental impact, for which we received a 10/10 overall score due to our measuring and monitoring of emissions and our emissions-reduction targets.
Even with the AAA rating and other recent sustainability successes, KBR isn’t content to rest on its laurels. We are working hard on our Net Zero Roadmap to further reduce emissions across the organization. We’re also analyzing our climate risks and opportunities, along with their financial impact, to ensure we are managing them effectively in the long term.
“I could not be prouder of the team and the work they’re doing to show the world how KBR is walking the talk to keep its sustainability commitments,” said Adam Kramer. “The MSCI rating, along with our other recent ESG recognitions, is an amazing testament to KBR’s commitment to making ESG part of our everyday business processes and to delivering the best performance in everything we do.”
So Far, So Great!
Recent ESG Highlights
AAA designation in MSCI’s 2023 ESG Ratings
Gold rating in EcoVadis Carbon Action Module, ranking KBR in the top 5% of suppliers
$2.24B
sustainability-focused revenue in 2022 a 13% increase from previous year
Don’t Miss KBR’s 2022 Sustainability and Corporate Responsibility Report!
The new report will be available soon and will showcase all the incredible work KBR is doing to create a better, safer and more sustainable world.
KBR Solutions That Drive Sustainability
The list of KBR’s sustainability-focused offerings is long, but here are a few examples of solutions that are helping our customers accomplish their business goals and keep their sustainability commitments to ensure a cleaner future for all.
ACETICASM
KBR recently announced the acquisition of Acetica, an acetic acid production technology, that will expand KBR’s petrochemicals value chain through a profitable pathway for CO2 utilization. This technology will enable the back-integration of CO2 from carbon capture to produce high-value chemicals that serve as key ingredients in sustainable coatings, adhesives and other materials that support net-zero transition.
Circular Economy Services
As more companies, governments and value chains become aware of the disruptive and costly challenges presented by our current global economic model, the more KBR is being relied upon to turn customers’ sustainability and circular economy strategy into action. KBR uses a systemic approach and leading-edge tools to provide support from the start of a project or at any step in the journey.
• Analyze – Systems mapping, material flow analysis, circular maturity assessment, data analysis, benchmarking, trends and risks, baseline development
• Advise – Strategy, circular initiatives roadmap development, performance measurement frameworks, business cases, investments
• Integrate – Systems thinking for infrastructure delivery, circular and social procurement, circular concept building and infrastructure design, circular supply chains, net-zero innovation partnerships
• Measure – Key performance indicators, dashboards and progress reporting, frameworks
Government Sustainability Advisory Services
KBR’s Consulting team, with synergies across both Government Solutions and Sustainable Technology Solutions, has been advising governments on low-carbon solutions, new business models, value chain strategies and sustainability roadmaps. Our work includes supporting government departments in Japan, the U.K., Australia, Singapore, nations in the Middle East, Trinidad and Tobago, and the United States. These partnerships are strengthened by our working relationships and experience in the energy sector, which is key in the energy transition.
PureSAFSM
KBR announced the launch of a cutting-edge sustainable aviation fuel (SAF) technology in alliance with Swedish Biofuels AB. This differentiated offering extends our decarbonization and energy transition portfolio into the aviation sector. In addition to processing ethanol, our technology can convert CO2 and synthesize gas to SAF, expanding opportunities for KBR’s clients to utilize captured carbon and promoting a cleaner, greener future.
SCOREKleanSM
Furnaces are the largest sources of greenhouse gas emissions in the petrochemical industry. This proprietary ethylene and propylene process technology utilizes 100% hydrogen-fueled burners, resulting in zero emissions from the ethylene-cracking furnaces. It is yet another example of how KBR is prioritizing decarbonization in the industry.
Support for Scientific Agencies
We work closely with several government agencies to watch for and safeguard against some of the world’s most unpredictable natural phenomena. From developing the system that identifies and alerts people of hazardous weather conditions to maintaining the Global Seismographic Network, KBR scientists are changing how we learn about the planet and protects those who inhabit it. We support earth and planetary science and data processing, analysis, and visualization operations to other government agencies including the National Oceanic and Atmospheric Administration, the U.S. Geological Survey, the National Weather Service and NASA.
